A generous salary alone won’t be enough to get the loyalty of the Millennials and Generation Z employees. These younger generations of workers factor in several aspects of their job role other than money to determine their loyalty towards a company.

Millennials and Gen Z often often find it difficult to find a position that gives them a sense of fulfillment. Additionally, they  give high priority to monetary factors in their decision-making, such as work-life balance, good management, and long term opportunities a position can offer. They perceive loyalty compared to the previous generations in another way, which may affect their relationship with the top level management.

According to a survey from Forbes Magazine, job loyalty among millennials and Gen Z are not as bad when you compare it to previous generations. When the right conditions are met, these generations can become some of your most loyal employees.

As a business owner or a recruiter, taking note of how these generations view job loyalty can be a game-changer in lowering your turnover rates. The following are some aspects that the younger generations base their loyalty off to. Consider the following  characteristics of the younger generations in order for you to understand them better and assess if them, joining the team would benefit both sides long term.

The younger generations have a high risk tolerance

Millennials and Gen Z are famous for wanting to take control of their lives and the decisions that they make. As a result, they have become self-reliant and unfazed by things such as unemployment rates. 

Surveys show that 49% of millennials think about leaving their jobs within the first two years. This is backed up by the fact that these generations continuously seek purpose in their lives. They also want to be inspired and grow in their careers rather than live from paycheck to paycheck. If your company fails to provide these factors, they will not stick around at all.

Millennials and Generation Z are often soul searching in their jobs

According to a study by Zapier’s Digital Natives Report, 73% of millennials and 65% of Gen Z workers state that they consider their jobs a fundamental part of their identity. As a result, they seek like-minded companies that can give them a sense of purpose for what they do.

While not all positions may be noble or exciting, sticking to your company values is essential. Additionally, you should ensure that your younger generation of workers feels appreciated for their work.

Discussing the desired salary

While salaries may not be the be all end all of Millennials and Gen Z , it still plays an important role in their decision-making. According to  Randstad 2020 U.S. Compensation Insights survey, 73% of Generation Z and 74% of Millennials expect a pay raise every year in order to stay at their current company. Compared to Boomers and Traditionalists (also known as the “Silent Generation”) the number drops significantly—to 62% and 43%, respectively.

You may not be able to buy the loyalty of your younger workers with hefty paychecks, but rewarding them with proper remuneration will not only help improve their morale but also build trust with the company . Companies that offer competitive salaries and annual pay raises are still typically more favorable for the younger generations.

They want to hone their skills in and impact the organization they join

The younger generations see jobs today more as an opportunity to grow and learn rather than a means to live. If a position does not offer much room for career growth or opportunities, chances are they will look for jobs elsewhere.

Providing the necessary training programs for your millennial and Gen Z recruits can help employers address this need . Simultaneously, it allows them to understand better their role and how they can grow from this down the road.

They want to provide meaningful work for the society

More often, millennial and Gen Z workers will let go of their high paying jobs to work more meaningful jobs. This is because workplace culture and the concept of altruism are vital to them. Companies that ensure honesty and quality service are more likely to retain these employees in the long run. If these generations can feel empowered with what they do, they are more likely to stick around.

They value receiving appreciation and recognition 

The younger employees are eager to contribute to the workforce and share their ideas with a team of like-minded people. Simultaneously, they eagerly seek the guidance and recognition of their seniors. Sparing a few minutes of your time to talk to these workers about their progress can go a long way. Schedule employee evaluations and give feedback on their performance over a specified period.

They want to thrive with their workplace culture

Millennials and Gen Z value their individuality. However, at the same time, they want to thrive and fit into the working environment. You can help them feel comfortable by adopting healthy working routines that make the workplace more enjoyable. When a healthy environment is provided, these workers can focus more on their work and develop their skills.

New Generations, New Characters, Many Differences, but Many Opportunities

Millennials and Gen Z are slowly changing more and more companies for the better. However, because these generations are the most complex to understand, working with them may have created issues in many organizations. 

The younger generations are known to have different values and perspectives when it comes to loyalty. As a result, companies often struggle to attract them and experience rising turnover rates. They want to work to give themselves purpose rather than for a paycheck. Understanding this perspective is crucial if you’re going to maintain these workers in the long run.

If you need help with the recruitment or training, we at John Mathew Consulting provide nothing short of the best services. Whether you are a candidate looking for a job, or a client looking for great staff, it takes a lot of time, effort and persistence. Here at Patrice and Associates we assure you, you are in the best hands. We are the largest and most successful recruiting firm in the hospitality industry, with a 30 year track-record, enormous database of candidates & jobs, unmatched industry intelligence and many proprietary tools that will help you stand out from the competition. First consultations are always free!