The Key to Retaining Millennial and Gen Z Talent in 2024

In 2024, being a people-focused employer is no longer just a nice-to-have—it’s a business necessity. With Millennials and Gen Z making up more than 50% of the global workforce, these generations bring new expectations, values, and demands. For employers who want to attract, retain, and engage top talent, the old rules simply don’t apply anymore.

These generations want more than a paycheck—they want meaningful work, flexibility, and a supportive culture that values their wellbeing. If your business can meet these needs, you’ll benefit from a more engaged workforce, lower turnover, and better business outcomes. But if you’re not aligned with what Millennial and Gen Z employees want, you could be missing out on top talent and losing current employees to more progressive employers.

In this blog, we’ll dive into why being a people-focused employer is essential in 2024, what Millennials and Gen Z are looking for, and the tangible benefits this approach offers to your business.

Why Being a People-Focused Employer Matters in 2024

Businesses that prioritise a people-first approach are seeing the payoff. According to a survey by LinkedIn, companies with highly engaged employees experience 21% greater profitability and 41% lower absenteeism. By putting your people at the centre of your strategy, you’re not just investing in their wellbeing—you’re directly contributing to your company’s success.

In fact, research shows that 70% of employees are more likely to stay with a company that invests in their mental health and development. And with a majority of the workforce now consisting of Millennials and Gen Z, who value purpose-driven work and wellbeing, failing to adopt a people-first mindset could leave your business at a disadvantage.

But what exactly do these younger generations want in a workplace, and how can you meet those expectations?

What Do Millennials and Gen Z Want from Employers?

Millennials and Gen Z have reshaped the workforce with their unique expectations. It’s not just about job security and salary anymore—today’s employees are looking for more holistic benefits that enhance both their professional and personal lives. Here’s what matters most to them:

Work-Life Balance and Flexibility: Flexible working arrangements are a top priority for Millennials and Gen Z. In fact, a study by LinkedIn found that 72% of Gen Z candidates rank work-life balance as the most important factor when choosing a job. Remote work options, flexible hours, and a healthy work-life balance are non-negotiable for many of today’s employees.
Purpose and Meaningful Work: These generations want to feel that their work matters. A study from PwC revealed that 88% of Millennials seek purpose in their careers, and they are more likely to stay with companies whose values align with their own. This desire for purpose goes beyond traditional perks—it’s about feeling connected to the organisation’s mission and making a positive impact.
Development and Growth Opportunities: Continuous learning and career development are essential for retaining Millennial and Gen Z employees. Research shows that 67% of younger workers rank opportunities for learning and development as one of the top factors influencing their decision to stay with a company. They are looking for employers who invest in their growth, offer mentorship programmes, and provide clear career advancement pathways.
Diversity and Inclusion: Diversity isn’t just a buzzword for Millennials and Gen Z—it’s a core expectation. A 2022 Glassdoor survey found that 76% of job seekers, especially younger workers, see a diverse workforce as a key factor when evaluating potential employers. This generation wants to work for companies that actively foster diversity, equity, and inclusion. Read more on Glassdoor’s diversity survey.
Wellbeing and Mental Health: According to a recent survey by Mind Share Partners, 60% of Millennials and 75% of Gen Z employees have left jobs because of mental health concerns. These younger generations expect employers to take an active role in supporting their mental and physical wellbeing through benefits like wellness programmes, mental health days, and a positive work environment.

Pro-Tip: To attract and retain younger talent, your company needs to offer more than just competitive salaries. Prioritising flexibility, wellbeing, and professional growth will help you stand out as a people-focused employer.

The Benefits of a People-Focused Approach

Making your business more people-focused doesn’t just benefit your employees—it has a direct impact on your bottom line. Here’s how a people-first culture can transform your business in 2024:

Higher Engagement and Productivity: When employees feel valued and supported, they are more engaged in their work. Gallup research shows that engaged employees are 17% more productive and 21% more profitable for their companies. Explore Gallup’s employee engagement insights. By creating a culture where your employees feel invested, you’ll see increased productivity and higher-quality work.
Lower Turnover and Higher Retention: The cost of replacing an employee can be as much as 33% of their annual salary, according to HR experts. Employees who feel valued and have opportunities for growth are far less likely to leave. A people-focused culture can significantly reduce turnover, saving you both time and money on recruitment and training.
Stronger Employer Brand: Today’s candidates research companies before applying, and your employer brand plays a crucial role in whether they want to work for you. Companies with strong people-first reputations see better quality applicants and lower cost-per-hire. According to LinkedIn, a strong employer brand can reduce hiring costs by up to 43%.
Fostering Innovation and Creativity: Diverse and inclusive workplaces promote innovation and creativity. Research shows that companies with a diverse workforce are 70% more likely to enter new markets and see a 19% increase in revenue through innovative solutions. Employees from different backgrounds bring fresh perspectives, helping your company stay competitive and creative.
Improved Wellbeing and Reduced Absenteeism: A people-first approach that includes wellbeing programmes and mental health support can reduce employee stress, burnout, and absenteeism. Studies show that organisations that prioritise employee wellbeing see a 56% reduction in burnout and a more motivated workforce.

Pro-Tip: Regular feedback is key to building a people-focused culture. Conduct employee surveys or set up one-to-one meetings to gather insights and address any concerns, ensuring your people feel heard and valued.

How to Create a People-First Culture in 2024

Building a people-first culture isn’t just about offering perks—it’s about creating an environment where employees feel supported and valued. Here’s how to build that culture in 2024:

Foster Transparent Communication: Encourage open, honest dialogue between leadership and employees. Regular check-ins, town halls, and feedback loops help employees feel connected to the organisation and give them a platform to voice their opinions.
Prioritise Wellbeing: Implement mental health support initiatives, offer flexible work arrangements, and ensure employees have access to resources that promote their physical and emotional wellbeing. Show your team that their health matters.
Offer Growth Opportunities: Provide continuous learning opportunities, mentorship, and clear career progression paths. Investing in your employees’ growth will make them feel valued and motivate them to stay long-term.
Celebrate Diversity and Inclusion: Create an inclusive environment where diversity is celebrated. Review your recruitment processes, unconscious bias training, and policies to ensure you’re building a truly diverse workforce.
Leverage Technology: Use technology to offer flexible work options, enhance collaboration, and provide digital learning tools. Investing in the right tech can make your workplace more efficient and appealing to tech-savvy Millennial and Gen Z employees.

Pro-Tip: Don’t wait for employees to come to you with concerns—be proactive. Offering pulse surveys and employee engagement platforms can help you identify issues early and respond before they escalate.

Talk Staff: Supporting Your People-First Strategy

At Talk Staff, we believe that people are at the heart of every successful business. Our consultancy services are designed to help companies build a people-focused culture that fosters engagement, retention, and long-term growth.

Whether you’re looking to improve your HR processes, streamline recruitment, or implement professional development programmes, Talk Staff can help you put your people first. We work with businesses to create customised strategies that align with today’s workforce expectations, ensuring you’re set up for success in 2024 and beyond.

Want to learn more? Contact Talk Staff to discover how we can help you build a people-first culture that drives your business forward.