Older members of Gen Z are now in their mid- to late twenties and are becoming a significant part of the workforce. They’re entering a job market where pensions are rare and layoffs are becoming more common, and these factors have reshaped how they view job security and company loyalty. As a result, many Gen Z professionals are more likely to switch jobs in pursuit of new opportunities rather than staying with one company long-term. With more Gen Zers graduating and starting their careers each year, it’s beneficial for employers to understand what drives them and what will improve retention amongst this generation. Here are five key factors to consider:

1. Increases in compensation over time. A primary reason Gen Z employees change jobs frequently is the desire to increase salary and total compensation, which often happens more quickly by moving to another company than by staying at their current one. For many in this generation, maximizing earning potential is a key motivator. To retain Gen Z talent, employers should be prepared to offer consistent compensation growth through annual raises (these could be cost-of-living adjustments and/or merit-based increases) or performance-based bonuses.

2. Modern benefits. As priorities evolve across generations, so do expectations around employee benefits in the workplace. For Gen Z, mental health benefits are an increasing priority, driven by a growing awareness of mental well-being. Most Gen Zers carry student loan debt, making benefits like student loan repayment assistance or tuition reimbursement especially valuable to them. As working members of Gen Z begin to start families, benefits such as paid parental leave are also highly sought after. It’s advantageous for companies to offer benefits that align with Gen Z’s current needs and life stages.

3. Flexible work setup and remote work options. Having experienced remote learning during the pandemic, and with many starting their careers in virtual roles, Gen Zers place a high value on flexible work setups. The option to work remotely, whether full-time or as part of a hybrid arrangement, is especially appealing to this generation. To support retention, consider offering remote or hybrid schedules that allow employees to work from home.

4. Career development and mentorship. With many Gen Z employees just beginning their careers, professional growth is a top priority. Ongoing coaching and mentorship from peers and leaders can make a big difference in their engagement and satisfaction. To retain Gen Z talent, companies should provide clear pathways for advancement and skill development.

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