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Attracting and retaining the Gen Z workforce


By Laine Thomas Conway
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With a growing number of Gen Xers nearing retirement age—and the vast majority of Boomers already having moved on—organizations are ramping up their efforts to recruit and retain Generation Z (and gearing up for Gen Alpha). Yet, research shows 83% of Gen Z workers consider themselves job hoppers and, worse yet, they have a habit of ghosting new or potential employers, with 93% admitting to ghosting interviews and 87% saying they didn’t show up for their first day of work. ghosting new or potential employers

Further exacerbating the situation, Gen Z recognizes a traditional job isn’t their only option. More than half (53%) of skilled Gen Z knowledge workers are opting to work as freelancers, compared to 28% across all generations. They are also starting their own businesses in record numbers. Unlike previous generations, who tended to view entrepreneurship as a risky career path, Gen Z considers entrepreneurial opportunities an attractive career path. Consequently, more than half (54%) say running their own business is their goal. 

53%
of skilled Gen Z knowledge workers are opting to work as freelancers, compared to 28% across all generations

How can employers overcome those challenges and make themselves attractive to Gen Z? The answer lies in flexible work arrangements, purpose-driven culture and comprehensive, personalized benefits that meet them where they are via their preferred vehicles. 

What makes Gen Z tick? 

Born between 1997 and 2012, Gen Z came of age during tumultuous times, epitomized by the housing crisis, COVID-19 lockdowns and economic upheaval. Socially conscious and politically aware, they grew up in an era of rapid technological change and globalization. From a young age, they embraced diversity, equity and inclusion (DEI) as normal and desirable, rather than something to be questioned or feared.  

Committed to racial justice, environmental consciousness and sustainability, they have a strong sense of individuality and a desire to make a positive impact on the world. They’re also the most technologically advanced generation ever. If you thought Millennials were digital natives, hold onto your hats. Gen Z takes digital fluency to a new level, their very existence intertwined with technology, but aware of the potential negative impacts of excessive screen time and social media usage (even if they don’t often act on it).

One area where Gen Z is unwavering is in their commitment to work-life balance. While achieving this elusive goal has been a rallying cry for generations, Gen Zers have made it a priority—and employers who fail to provide them the flexibility and choices they crave will have a hard time recruiting or retaining these sought-after young workers. 

Most members of Gen Z spent some of their school years attending classes via Zoom in an arrangement that became the norm for them. Now that the pandemic is a distant memory, the flexibility of tending to one’s responsibilities remotely is a genie not going back into the bottle, even as some companies push return to office mandates. 

And while some employers cling to the belief that Gen Z is eager for an in-office experience, findings from the 2025 Alight Employee Mindset Study prove otherwise. Nearly three-quarters (72%) of Gen Zers say they’re happy with a hybrid arrangement if they choose it, compared to only 59% where their employer dictates the days. While 60% say they would return to the office full-time if required, one-third would either quit on the spot or start looking for a new job (and the remaining would return grudgingly). That can be a huge talent drain for an employer looking to attract and keep younger workers.

Struggling with wellbeing

So, where does this leave employers? Challenged, to be sure, but also facing a huge opportunity to cultivate an employee experience with the potential to deliver ROI in terms of productivity, innovation and motivation.  

From the moment a Gen Z job seeker—or any applicant—first encounters an organization’s careers page or LinkedIn profile, there should be a concerted effort to keep them engaged and make them aware of everything they stand to gain by pursuing employment with the company. From commitments to the environment, diversity and meaningful work to flexible schedules and wellbeing programs that prioritize mental health support, Gen Z has expectations that are table stakes—and it is incumbent upon employers to make sure they communicate all the ways they are meeting them.

Mindset data shows that Gen Z values employer-sponsored wellbeing benefits—and with good reason. They report struggling more than their older colleagues when it comes to key wellbeing markers, including mental health, where one in three (38%) Gen Zers say they have symptoms of burnout, often to the point where they may need to make changes or seek help. Making matters worse, they have a decidedly unfavorable view of their finances. More than any other generation, Gen Z says their finances control their life and they are just getting by financially.

These struggles continue into the realm of physical wellbeing, where fewer than half of Gen Z workers feel confident with their most recent medical plan elections. This is likely because they just recently came off their parents’ health insurance and have little, if any, experience selecting health coverage. What’s more, young workers are far more likely to express regret over health care decisions—69% of Gen Z and Millennials, compared to 55% of Gen X and 34% of Boomers. 

Valued support

Such challenges can be mitigated by providing personalized navigation assistance and concierge decision support. More than 70% of Gen Z workers say they would find value in support for navigating the health system, compared to just half of Boomer workers. This can include everything from decision-making tools that make it easier to enroll in the health plan to guidance with locating a provider, making an appointment and even weighing options when faced with a surgical procedure or difficult diagnosis. 

It's not just physical health where Gen Z would like assistance from their employer. Nearly three-quarters say they would find value in mental/emotional health apps (73%), parental support (72%), personalized financial management (74%), caregiver support/resources (70%) and more. Notably, getting paid more frequently was valued highly by 78% of Gen Z, pointing to the need for earned wage access (aka instant pay) options. All of these numbers rise when Gen Z workers actually use these services, with at least eight in 10 finding these supports valuable, so promotion and reinforcement is critical. 

73%
say they would find value in mental/emotional health apps

Employers must not forget these young adults have never lived in a time when everything wasn’t tech-enabled. Therefore, it’s imperative to provide a high-tech, high-touch benefits experience that mirrors what they receive when interacting with Netflix, Pandora, Spotify, Instacart, DoorDash and other popular tech-enabled consumer brands.

These and other strategies may not entirely curb Gen Z’s job-hopping ways, which experts say is not a sign of instability but a means of diversifying their skill sets, pursuing new challenges and seeking environments that align with their values and ambitions. However, it just may entice them to make your company one of the many stops on their career journey, while delivering an employee experience that is more desirable for people of all generations.  

Laine Thomas Conway
Laine Thomas Conway
By Laine Thomas Conway

Laine Thomas Conway is the Engagement and Enablement leader for Delivery at Alight Solutions. Laine is a prominent expert on how companies can effectively attract, retain and engage their workforce by going beyond education to tell a richer story that captures the authentic employee experience that drives individual wellbeing and business results. Laine is the leading voice of Alight’s International Workforce and Wellbeing Mindset Study that explore facets of employee experience and wellbeing to provide insights on how employers can enable greater productivity, engagement and wellbeing in the workplace and at home. Using this internal research and external market trends, she helps employers understand the evolving needs of their people.

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