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Increasing Employee Retention in the Era of Gen-Z


Today, many people entering the labor force are looking for jobs that promote a healthy work-life balance. The appeal of having flexibility, working from home, and increasing focus on personal well-being has been an important factor to the new working population, Gen-Z. Forbes (2023) reports that, "78% of Gen-Z employees consider well-being at work to be equally important as their salary." Increased flexibility during, and in the wake of, the COVID-19 pandemic has undoubtedly changed labor force expectations. Understanding this, many companies have sought to promote work-life balance, thereby increasing attractiveness for young professionals and ensuring the effectiveness of the future labor force. 

Employee Burnout

As companies strive to adapt to these shifting expectations, they have long grappled with the issue of high employee turnover. In 2022, "50.6 million U.S. employees quit their jobs" (Built-in, 2022). A key contributor to this problem is employee burnout. According to a 2020 Gallup report titled Employee Burnout: Causes and Cures, "76% of employees sometimes experience burnout on the job and 28% [state] they feel burnout 'often' or 'always.'" (Forbes 2023). While it is often assumed burnout is exclusively caused by overworking, other contributing factors include unwarranted deadline pressures, unfair treatment at work, and lack of manager support. Burnout is not necessarily caused by employee actions – employers influence it as well. When employers overload their staff, ignore work-life balance, or fail to provide support and communication, they contribute to burnout. This can lead to lower productivity and higher turnover.

To prevent burnout, employers should prioritize a healthy work culture with a balanced workload, support, and open communication. This helps create a better environment for everyone. Understanding this, dissatisfied employees often seek opportunities that more closely fit their needs. Consequently, employers facing understaffing and uncertainty regarding employee retention can implement several strategies to address these challenges effectively. Firstly, conducting regular employee satisfaction surveys to understand their needs and concerns can provide valuable insights for targeted improvement efforts. Offering competitive compensation packages, including benefits like healthcare, retirement plans, and paid time off, can enhance employee satisfaction and loyalty. Moreover, investing in comprehensive onboarding processes and continuous training opportunities ensures that employees feel equipped to excel in their roles and progress within the company. Creating a positive work environment characterized by supportive leadership, recognition of achievements, and opportunities for collaboration fosters a sense of belonging and engagement among employees. Additionally, implementing flexible work arrangements and promoting a healthy work-life balance demonstrates respect for employees' personal lives and preferences. By prioritizing the well-being and professional development of their workforce, employers can enhance employee retention and mitigate the challenges posed by understaffing.

Gen-Z & The Workforce

Recognizing the need to attract and retain the emerging generation of employees, companies are now facing the entrance of Gen-Z into the workforce. Companies must adapt to meet their expectations for work-life balance and flexibility. Gen-Z is often considered the lazy generation, but "A May 2023 Deloitte survey found that 46% of Gen-Z respondents had a side job, suggesting this generation is resourceful when it has to be" (Forbes 2023). Gen-Z has been seen to have not only full-time jobs but part-time ones as well, such as freelance work, spanning fields such as graphic design, writing, programming, and social media management, leveraging their skills in the gig economy. Additionally, many Gen-Zers participate in the sharing economy, offering services like ride-sharing, food delivery, or renting out accommodations through platforms like Uber, Lyft, DoorDash, Airbnb, and others are also popular side gigs among Gen-Z, reflecting their adaptability to the digital landscape and diverse interests. It's clear the next generation is willing to put in the work – the problem of retaining employees doesn't stem from individual laziness. Recognizing this, companies should strive to offer flexible choices for the emerging generation of employees. 

It’s clear the next generation is willing to put in the work – the problem of retaining employees doesn't stem from individual laziness. Recognizing this, companies should strive to offer flexible choices for the emerging generation of employees. 

These options could include the opportunity for remote work or the potential for a four-day workweek. With remote work becoming increasingly prevalent, it's essential to explore its benefits and impact on employee well-being. Working from home not only provides convenience but also contributes to the improvement of employee mental health. According to Forbes, employees feel a greater sense of control over their day when they have the option to work remotely, leading to increased productivity and better time management. In fact, a survey revealed that, "86% of respondents prefer a fully remote or almost fully remote structure to either hybrid or full-time in-office work." Moreover, Forbes reports that remote work, "resulted in a 13% performance increase, due to a combination of fewer sick days and a quieter and more convenient work environment." (Forbes 2023). Additionally, aside from boosting employee retention, remote work options can also help companies reduce costs associated with equipment and office space.

Employee Retention: Four-Day Workweek

In addition to remote work, the implementation of a four-day workweek is gaining traction as a strategy to enhance employee satisfaction and retention. Research shows adopting a four-day workweek provides an additional day for employees to utilize as they see fit, granting them extra time for personal pursuits or relaxation. 4-Day-Week Global in the U.K. tested and reported the changes they saw after implementing a four-day workweek in 61 companies, and 92% of the companies stated they were going to continue with the four-day workweek permanently. According to CNBC (2023), "90% said they definitely want to continue with a four-day week, 55% reported an increase in their ability at work, and 15% said no amount of money would make them go back to a five-day schedule." By offering a four-day workweek, companies not only meet the evolving preferences of their workforce, particularly among Gen-Z, but also demonstrate a commitment to work-life balance and employee well-being. This can significantly enhance employee satisfaction and engagement, ultimately leading to higher retention rates as employees are more likely to remain loyal to organizations that prioritize their needs and offer a favorable working environment.

Employee Retention: Pets in the Workforce

In exploring alternative approaches to enhance employee satisfaction and retention, let's shift the focus from the implementation of a four-day workweek to the role of pets in the workplace to appeal to employee retention, particularly dogs. According to Forbes (2023), a recent study conducted by Cesar, a part of the Mars family of brands, uncovered a compelling statistic: "An overwhelming 87% of dog-friendly employers reported observing a positive impact on their employees' willingness to return to the office." This sheds light on the significant role that pets play in the workplace environment, indicating that allowing dogs in the office can enhance employee satisfaction and engagement. Such findings not only highlight the importance of accommodating furry companions but also underscore the potential benefits of fostering a pet-friendly workplace culture in promoting employee well-being and productivity, ultimately leading to higher employee retention rates as individuals are more likely to remain in environments where they feel supported and valued. Additionally, research from the National Library of Medicine (2021) reveals that "for work-related burnout, working with a facility dog was associated with higher perceived personal accomplishment, but had no effect on emotional exhaustion. With respect to job perceptions, working with a facility dog was associated with more positive job descriptions and lower intention to quit",  further emphasizing the positive impact of canine companions in the workplace.

Employee Retention: Co-Working

Moving forward, let's delve into another innovative approach to improve employee satisfaction and retention: co-working spaces and their potential benefits for professionals. Co-working refers to a collaborative workspace shared by individuals from different companies or professions, typically independent workers who desire a flexible and communal working environment. A recent study conducted by with 500 U.S. adults who use co-working spaces sheds light on the positive impact of these collaborative work environments. Surprisingly, half of the co-working professionals reported an increase in their income since joining, emphasizing the financial benefits. Additionally, nearly half noted improvements in their work skills, quality, and collaboration, highlighting the conducive atmosphere for growth. Moreover, 45 percent mentioned better mental health, showing the supportive nature of co-working communities. These findings not only underline the practical advantages for personal and professional development but also suggest that nurturing such environments could boost overall employee satisfaction and retention. With opportunities for skill improvement, teamwork, and well-being, co-working spaces offer a fulfilling work setting that encourages long-term commitment to organizations.

However, it's important to acknowledge that while presenting examples of successful workplace strategies, such as remote work options and pet-friendly environments, it's crucial to recognize that these approaches may not universally yield positive results. Factors like industry type, company culture, and employee demographics can influence the effectiveness of these practices. Moreover, the examples provided might not be representative of all organizations, and their long-term sustainability and scalability require careful consideration. Therefore, while these examples illustrate potential benefits, it's important to assess their applicability and limitations in different workplace contexts.


In conclusion, the shifting landscape of the modern workforce demands a reevaluation of traditional work practices. As highlighted throughout this essay, Gen Z's entrance into the labor force brings with it a strong emphasis on work-life balance, flexibility, and well-being. Companies must recognize and adapt to these changing expectations by embracing innovative approaches such as remote work options, the implementation of a four-day workweek, and fostering pet-friendly and collaborative environments. By prioritizing the holistic needs of their employees, organizations not only enhance retention rates but also cultivate a culture of productivity, satisfaction, and growth. As we navigate this paradigm shift, let us remember that flexibility is not just a perk but a necessity for the well-being of individuals across all generations. It's time to reshape our approach to work, fostering environments that empower individuals to thrive both personally and professionally. Let us embrace this opportunity to create workplaces that inspire, support, and elevate every member of our workforce.

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