retention Archives

Valeria Orona, Industrial Engineer
Chloe Feast, Industrial Engineering Intern
Nate Sugrue, Industrial Engineering Intern

From an employer’s perspective, satisfying one age group at the expense of another is not an effective workforce solution. However, as our fellow Generation Z colleague Elizabeth Lee discussed in the previous blog post of this series, some inefficiencies that older generations have “lived with” can be frustrating for younger employees, even deal breakers. In 2019, a shocking 73 percent of Gen Z employees left their jobs because the job did not end up meeting their expectations, compared to less than 50 percent across older generations [1]. As Gen Z’s representation in the workforce increases, employers must be aware of our work expectations to maximize employee retention.

Onboarding and training

As Gen Z enters the workforce, employers face the challenge of finding optimal ways to incorporate us into their organization. Unlike generations before us, we were raised in the digital age, gaining high technological literacy and developing unique learning strategies as a result.

For our generation, working in teams is less attractive. We’ve been educated in a system that assesses individual effort, so we generally prefer to work independently rather than in a group setting. Moreover, as educational practices have evolved in our lifetime, we have been exposed to multiple new learning approaches, such as online modules (eLearning), flipped classrooms and virtual testing environments. These techniques can certainly be leveraged by employers to efficiently integrate Gen Z into their organizations. However, our generation still learns by doing, and 40 percent of Gen Z employees want daily in-person interactions with their boss, not a computer screen.

In practice, balancing our generation’s desires to work independently with expectations of face-to face contact means utilizing progress check-ins, daily huddles and mentorship to ensure that when we have questions, we are equipped to find answers. Direct communication with management shows our generation that their opinions are respected in the organization, while mentorship from experienced employees helps improve our performance.

Beginning a new career is intimidating for all generations, but Gen Z is currently entering the workforce at the most rapid rate. The teaching approach that, in our experience, was most effective in mitigating this intimidation factor and increasing knowledge retention is strong mentorship. Having mentors explain the responsibilities, best methods, and techniques that they learned and utilized throughout their careers make us as Gen Zers feel welcomed, comfortable asking questions, and confident in our abilities to perform.

We have also each seen eLearnings being leaned on as a primary method of onboarding, with online courses usually comprising the first days of employment. Despite being an often-necessary aspect of onboarding because of limited training resources, too much material assigned at once in eLearnings can result in low information retention and employee morale. Instead, providing digital training supplemented by hands-on experience and mentorship places Gen Zers in the best environment for success.

Motivation and retention

Retail employers know that the cost of hiring and training a new employee is substantial. Unfortunately, even cutting-edge retailers with advanced workplace management and otherwise high employee satisfaction can struggle to respond to the work expectations of our generation. Each of us have witnessed technology that is often both incorrectly utilized and outdated in the day-to-day logistics of the retail workforce.

However, employers should note that while utilization of value-adding technology in daily tasks is preferred by a typical Gen Z employee, it certainly should not be the sole consideration when trying to appeal to young associates. As mentioned previously, personal factors such as freedom to grow, hands-on development resources, and appropriate face-to-face communication with management are equally valued by our generation.

Stability and environments that provide continuous growth and development are key interests of Gen Zers like us. When our managers and supervisors validate hard work, through feedback or benefits, we find our work most satisfying. We deliver with the expectation of a level of recognition for exceptional work. Thus, organizations with vertical mobility and tangible benefits like scholarships and education programs are particularly attractive to our generation.

Whether it be learning opportunities, advancement opportunities or recognition for hard work, our generation values both feedback and visibility into future potential. We are motivated simultaneously by our big-picture goals within an organization and the degree to which we feel our day-to-day tasks are both meaningful and recognized. From our experience, work in which we received regular feedback from a mentor or manager coupled with opportunities to learn new skills—through interaction with subject matter experts or developed training programs—provided the best motivation.

When companies invest in employee education, training, rewards and work environments, our generation delivers the best results. Making sure a company provides well-structured objectives and purpose gives us Gen Zers the growth potential we look for. We appreciate a good work-life balance, and even though we generally will not hesitate to sacrifice some hours of our personal life when needed, we expect some flexibility in return. There is nothing more frustrating and unproductive than being kept at work when there’s nothing to do. In short, flexibility, recognition and development potential are key to retaining Gen Z talent.

In summary

The personal touch has not been lost on our generation; it simply needs to be molded differently than with previous generations. We suggest retailers focus on direct feedback, mentoring and the right balance of technology to bring Gen Zers into the workplace. These simple considerations can go a long way towards retailers retaining the talent they look for in an increasingly competitive environment.

Our generation was born into technology and assumes it as an everyday part of work life. Solution integration can be the perfect balance of appealing to our younger generation’s requirements while generating positive change company-wide. Our next Gen Z POV post will explore solutions that can integrate seamlessly with the way we are accustomed to living and working with technology.

When most employers think of “training,” they equate it to the mass quantities of information transferred to employees so they can adequately execute their roles. However, this is only part of a complex and evolving topic. If this stereotype is challenged, employers can differentiate between information and instruction to provide themselves the opportunity to expand employees’ skillsets and place them in positions to excel. They can also capitalize on these expanded skillsets by deploying associates to fill in where they are needed, whether that is by task or across departments. In addition to increased productivity and flexibility, investing in a training culture also delivers benefits that ultimately help drive retention.

But, do employees really care about training?

Training is often considered to be a foundation from which employees begin their roles. However, studies have consistently shown that providing employees with ongoing training opportunities results in greater employee satisfaction with the company and their role.¹ There are a few reasons why employees who receive training are much likelier to be happy.

Invest in me

An employee who receives training feels that the company is invested in their well-being. Therefore, an invested employee is more likely to be invested in the company as well. An invested employee shows organizational commitment to company goals and has a sense of responsibility to help the company achieve its initiatives. In addition, an employee who can receive training sees value in the company. After all, humans invest in what they believe will be a fruitful and integral part of their future.

Evening the playing field

Employees come from a variety of backgrounds, education levels and experiences. Even within the same department, the diversity of the workforce is likely to bring employees who come equipped with equally diverse skillsets. Training provides an avenue for employees to start on a similar level and contribute in areas they may have been weaker in. Furthermore, this may alleviate the workload on seasoned employees and allow these seasoned employees to expand their contribution to the organization in other ways.

ROI: Training leads to savings

When your roof has a leak, do you sell your house and buy a new one? Most likely, the answer is no. You fix it because you have invested in it. So, when an employee lags behind because he may need further training, why do we consider replacing him? We often first consider the cost of training rather than the overall savings benefits.

What is the true cost of hiring a new employee?

The new employee must still receive initial training and will require time before she is able to truly contribute to the company. Therefore, training current employees often costs less than onboarding a new hire. A study by the CAP found that turnover costs for midrange positions were approximately 20 percent of an annual salary, while the average cost to train an employee is only $1,296.² In addition, you can train current employees to develop them into the worker you envision them to be while simultaneously increasing their job satisfaction.

Employee learning and development

It is important to highlight that not all training is created equal. In order to reap the benefits of providing employee training, content should be developed in an organized, meaningful manner utilizing best practices. Learners should know the expected training outcome and the actions they should be able to execute after the lesson. Lessons should be concise and delivered in segments to ensure the information is processed. Include exercises and assessments to engage the learners and gauge their retention along the learning process. Commonly used and highly effective training methods include eLearning, instructor-led training, blended-learning, and on-the-job training. Look for best-practice documentation to support and reinforce training long after the sessions conclude.

Conclusion and considerations

The most profound impact training has on an employee is a sense of value. Training provides employees with a feeling of empowerment. The confidence to not only do their job, but to excel at it and to be respected. By recognizing the importance of training and acknowledging the need for employee development, you are providing your workforce with the tools for success, increasing productivity and helping to boost retention in the process.

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