Mind the Gap: Gen Z will stick around if given more internal opportunities

CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

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Have you ever heard someone scoff that Gen Z workers have “no sense of loyalty”?

I have, and I raise those naysayers this: Does anyone? Leaders have been debating the “death” of the stay-till-you-drop job ethos since before I was born, and job hopping is far from new.

As such, it’s no surprise that Microsoft’s recent workplace survey found that 52 percent of Gen Z were considering leaving their jobs—but it also found that 73 percent of us would stay at our jobs if it were easier to change roles internally.

That’s good news for employers—our research shows that reskilling current employees and allowing them to transition into new jobs with new responsibilities can be tools for long-term success. On the flip side, stagnation can lead workers out the door; “quiet quitters” may be phoning it in if they feel like there’s no chance of moving up anyway.

Young workers are 82 percent more likely to keep an eye out for new opportunities and have the least confidence in internal mobility. It’s key for managers to show Gen Z employees that there’s room to grow, as well as clear pathways for them to develop.

McKinsey partner Bryan Hancock and coauthors suggest that leaders should start counting internal retention—workers hopping to a new job at the same org—as a success. That means creating the following for employees:

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clear paths toward advancement that make it easy to identify next steps

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a transparent internal hiring marketplace where employees can look for new jobs

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opportunities to build new skills to prepare for the future

(Read more about how leaders can put these ideas into practice here.)

And to even want to move up, workers need to feel seen where they are—good pay is key, but over half of employee engagement comes from nonfinancial recognition. Gen Z needs it even more than prior generations; Gallup found that nearly four in ten young workers crave praise from bosses at least a couple of times a week. It’s not (just) an ego thing; entry-level workers often use kudos as a road map toward doing more of what they’re doing right.

(Conversely, 10 percent of baby boomers say they’d never like praise, thank you very much.)

If Gen Z workers can imagine a future where they are, then pastures guarded by ghastly things like résumé refreshes and new commutes may start to look a little less green.

VISUALIZE IT

The Great Resignation spurred employees to big shifts—workers didn’t just leave jobs for slightly better ones; they often left behind an entire industry.