Pay, climate action may be top ways to retain Gen Z, millennials
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Dive Brief:
- Pay was the no. 1 reason Gen Zers and millennials quit their jobs over the last two years, according to Deloitte’s Global 2022 Gen Z and Millennial Survey.
- Among job search priorities were good work-life balance, accessible learning and development opportunities and alignment to worker values. In fact, about 40% of respondents told Deloitte they rejected a job or assignment because it did not align with said values.
- Notably, climate justice is top of mind for the younger generations: about 75% said they believe the world is at a “tipping point” regarding climate change, with less than half feeling “optimistic” that efforts to protect the planet will be successful. Additionally, respondents who were satisfied with their employer’s environmental and social impact were more likely to want to stick with their employer for more than five years.
Dive Insight:
The challenge for Gen Zers and millennials, Deloitte said in its report, is for these groups to “reconcile their desire for change with the challenges and complexities of everyday life.” One way HR professionals can smooth out some of the tension for employees is through environmental and social governance initiatives.
Along with climate justice, diversity, equity and inclusion are top-of-mind for Gen Zers and millennials. Commitment to DEI remains a consistent factor in attracting and retaining young talent; releasing internal and external ESG reports are a concrete way to signal a company’s commitments.
Some companies — beyond key players such as Walmart and Target — appear to increasingly value the power of an ESG report. Starbucks, Wells Fargo and Uber tie executive compensation to DEI progress. In 2020, 78% of respondents to a Willis Towers Watson survey said they plan to align executive incentives with company ESG goals in the three years following.
Previous Deloitte data confirms the significance of this finding: 70% of respondents said their role was impacted by their company’s purpose, whereas only a third said compensation was tied to performance related to purpose-driven work.
As is the case for many facets of the employee experience, HR plays a critical role in bringing all of it (ESG reports, DEI-goal-driven compensation and the like) to fruition. These shifts can shed light on what some have identified as an important aspect of an agile businesses: a commitment to accountability.
This article, written by Caroline Colvin, appeared first on HR Dive.
