How to adapt your onboarding strategies to retain Millennial and Gen Z talent

In 2018, we laid out four fundamental practices for onboarding new employees, emphasizing the importance of compliance, clarification, culture, and connection, otherwise known as the 4 C’s of onboarding. While these core components remain just as crucial today, the workforce has evolved, and so too must our approach to onboarding. That’s why it’s time to propose a fifth C of onboarding: Change.

With Gen Z currently accounting for 23% of the workforce, it’s essential to adapt our strategies to meet the needs and expectations of this younger generation, as well as Millennials who continue to shape the modern workplace. Today’s younger employees are not afraid to advocate for their needs, and employers must actively listen if they want to retain top talent. We need to go beyond the basics and create an onboarding experience that resonates with today’s employees- one that leverages technology, encourages collaboration, and fosters a strong sense of purpose. Let’s explore the importance of embracing change to effectively engage and retain Millennial and Gen Z talent in 2024 and beyond.

The Changing Workforce

While Millennials currently represent the largest majority of the workforce, Gen Z is quickly catching up. This year, Gen Z is expected to outnumber Baby Boomers in the workforce for the first time. This shift underscores the need for companies to adjust their approach to onboarding, particularly as younger employees have different expectations from their predecessors. So, who are Gen Z and Millennials when it comes to the workplace?

• One-third of new hires quit their jobs within the first six months. Gen Z and Millennials tend to have shorter tenures compared to previous generations. A 2023 survey found that nearly 40% of Gen Z workers reported considering a job change within their first year of employment.
• Approximately 50% of Millennials and Gen Z report that they would leave a job if it does not align with their personal values or purpose. This generation seeks purposeful work and wants to be part of companies whose values resonate with their own.
• 69% of employees state that they’re more likely to remain with a company if they receive a great onboarding experience. Onboarding and retention are directly related, especially for younger generations who are vulnerable to poor onboarding practices.

Adapting Onboarding

Onboarding is the first and most important opportunity for employers to win over a new employee- and it’s often overlooked. Companies with effective onboarding processes can reduce the new employee retention rate by 82%, yet 24% of companies do not have an established onboarding strategy. So what changes can employers implement?

Leverage Collaboration and Personalization:

Millennials and Gen Z employees value personalized experiences and collaboration. Rather than adopting a one-size-fits-all approach, tailor onboarding to the new hire’s specific role, team, and career goals. Assigning a mentor helps foster meaningful connections and support during their transition into the company. Encourage teams to engage with their new employees to make them feel like a valued member from day one.

Embrace Technology

Younger generations are digital natives who expect seamless integration of technology into their work lives. In fact, many Millennials and Gen Z employees are willing to walk away from companies that don’t provide adequate technological resources. One in six Millennial and Gen Z workers have already left a job due to outdated or unreliable tech. Leveraging technology in onboarding- from using digital platforms for training to automating administrative tasks- can streamline the process and ensure that new employees feel equipped to succeed from the start.

Provide a Sense of Purpose

Nearly all Gen Zs and Millennials want purpose-driven work, and they are not afraid to turn down work that doesn’t align with their values. Having a sense of purpose is key to workplace satisfaction and well-being. Younger generations want to work for companies with a purpose beyond profit- companies that share their values- and feel more empowered to make a difference as part of organizations. Purpose fosters a sense of belonging and helps create long-term commitment to an organization.

Conclusion

Millennials and Gen Z are redefining what employees expect from the workplace. Companies that listen and adjust their onboarding strategies to meet these expectations will enjoy higher employee retention, satisfaction, and engagement. By embracing change– the fifth “C”- employers can create an onboarding experience that can keep up with the evolving workforce. Interested in more strategies to manage and reward your employees? Reach out to Madison Recognition to learn more.

At Madison Recognition our work is rooted in the belief that unleashing the productive potential of employees with reward and recognition programs and empowering individuals will help us stay ahead of workforce trends. We’d love to hear from you.