Next-Gen Retention: How Companies Can Unlock Massive Value by Investing in Their GenZ Employees
In boardrooms and break rooms across the globe, an invisible tension is mounting. Research shows that 60% of workers experience generational conflict, with 70% of older employees often dismissing the abilities of their younger counterparts. These divides aren’t just awkward—they’re expensive.
And yet, companies that understand how to bridge generational gaps consistently outperform those that don’t.
A recent global study revealed that 83% of business leaders believe multigenerational teams are essential for long-term growth and success. Meanwhile, Harvard Business Review found that highly inclusive environments can improve team performance by up to 30%. The contrast is stark: businesses that lean into generational diversity as a strength are pulling ahead—fast.
The Workforce Has Changed. Has Your Strategy?
With 75% of the global workforce soon to be made up of Millennials and Gen Z, companies no longer have the luxury of ignoring generational dynamics. These younger employees bring fresh ideas, bold ambition, and entrepreneurial energy—but they won’t stay where they feel unseen, unheard, or undervalued.
Gone are the days when employees were content to climb the corporate ladder one rung at a time. Today’s workforce is driven by purpose, flexibility, and impact.
84% of Gen Z plan to or are open to starting their own business
55% of Millennials and Gen Z already have a side hustle
For most Gen Z entrepreneurs, success means freedom: being their own boss (46%), setting their own schedule (43%), and protecting their work-life balance (42%)
For employers, this entrepreneurial drive can feel like a threat to retention. But what if it’s actually an opportunity?
Want Loyalty? Start with Empathy.
You've probably heard the saying, “They don’t care how much you know until they know how much you care.” For the next generation, we’d add: “They won’t care about your company’s purpose until they know you care about theirs.”
It’s no longer enough to offer a paycheck and a ping-pong table. If leaders want to attract and retain top Gen Z and Millennial talent, they need to show interest in who their employees are beyond the office.
In fact, 72% of Gen Z have either left or considered leaving a job because their employer didn’t offer flexible work options that support their side projects, passion initiatives, or personal goals.
This is not about diluting your company mission. It’s about building trust. Start with one simple, high-impact question:
“What do you really care about outside of work?”
That question, asked with genuine curiosity, does more than open a conversation—it opens a door to loyalty, creativity, and retention. When employees feel seen for who they are and what they value, they’re far more likely to invest in what you value.
The Bottom Line
The future of high-performing workplaces isn’t defined by rigid hierarchies or outdated retention models. It’s shaped by leaders who are willing to adapt—who listen, learn, and lead with empathy.
So here’s your action step: ask the question. What do your employees care about outside of work?
Their answers might just unlock the next level of your company’s growth.