Why is the market for talent so tight and when will we get some relief? There are currently 5 generations in the workforce. It is expected that we will have 6 generations before long. The 5 generations making up the workforce today are The Silent Generation, Baby Boomers, Gen X, Millennials, and Gen Z. The Baby Boomers are retiring at the rate of 10,000 per day and leaving opportunities for younger workers to move up into leadership positions. The chart below shows the projected breakdown between each generation in the workforce in 2025.
Another factor affecting the war on talent is a declining birth rate. The birth rate is essentially flat and projected to stay that way through the year 2100. There is always an opportunity for an event or events to sway that projection either positively or negatively in the next 75 years, but currently those events are not known to exist.
Attracting Gen Z
Are you ready to invite Gen Z into your workplace? Gen Z, also known as Zoomers, are currently entering the workforce as new college graduates and high school graduates. They number about 68.6 million in the US, which is a smaller generation than the retiring Baby Boomers, which is about 72 million in the US.
Gen Z is a tech-savvy generation with an 8-second attention span; attracting Gen Z is difficult. Some of their influencing factors are 9/11, Great Recession of 2008, the War on Terror, social media, and gun violence. All of these influences have affected their resilience and shaped who they are. What does that mean for the workplace?
Gen Z, like generations before them, are unique in how they think, communicate, and feel about their careers. They have witnessed the Great Recession of 2008 when their parents worried about their finances and losing their jobs. They have also survived a global pandemic, leaving many young people more concerned about their mental health than in the past. Companies that promote mental health as part of an overall wellness strategy and care about diversity, equity and inclusion are more likely to attract Gen Z workers.
Gen Z workers also value work-life balance, upskilling opportunities, and hybrid schedules. Gen Z’s career goals are not that different from past generations. Gen Z workers want to achieve their professional goals, maintain a healthy work-life balance, and feel that their work is meaningful and satisfying, collaborate with colleagues and be respected in the workplace.
What should employers do to help attract and retain Gen Z? I recommend auditing policies and practices to better align with the wants and needs of the next generation. Look for policies that no longer have a place in the organization post-pandemic. We’ve learned a lot in the past few years, use that information to create policies that reflect a more flexible and adaptable workplace.
We’re not throwing out the bath water, just warming it up a bit to keep the next generation engaged and thriving in an ever-changing workforce. 2024 graduates are looking for an employer who offers opportunities to work with AI, provides an adequate salary, and possibly student loan repayment programs. Their wants are not that radical from what past generations have asked for, but in light of a tight labor market, they are more likely to find what they are looking for in an employer. If your organization is not thinking about adapting and growing with the new generation, then it is likely your struggle to attract and retain talent will continue until you find ways to adapt.
Ready to talk about solutions to your challenges with attracting and retaining talent? Let’s chat to see how I can help your organization.