Engaging and Retaining Young Professionals in the Age of Polyworking

With widespread financial insecurity and rising inflation rates, millennial and Gen Z employees are increasingly turning to polyworking, or working multiple jobs at once, to earn a sustainable income.

This isn’t something younger employees are eager to participate in. According to a UKG survey of 13,000 frontline employees and managers spanning all generations and industries, 83% of frontline Gen Z workers said they are feeling burned out at work, compared with 75% of all frontline employees. Polyworking, combined with a rise in burnout, often leaves business leaders wondering how they can attract and engage this generation of workers. This blog explores ways to help solve the issue of burnout and make yourself an employer of choice that appeals to the new generation of workers.

Prioritizing Company Culture and Work-Life Balance

Implementing a positive, motivating company culture is the best investment your company can make. When looking for jobs, millennials and Gen Z aren’t only looking at compensation — they are also considering whether the company values their employees and provides a supportive culture with a healthy work-life balance. And creating a positive culture doesn’t just benefit employees. Organizations with a positive and inclusive culture tend to outperform their peers and have higher retention rates.

The UKG survey also revealed that 58% of Gen Z employees would rather have more vacation time than receive a pay increase. They want a position with benefits that will allow them to live and feel content outside of work. These younger employees aren’t putting their sole focus on climbing the corporate ladder: The study states 1 in 3 Gen Z employees say they’d forgo a promotion for an extra week of paid time off each year. 

“If you want the upcoming generation to stay, start by respecting what they’re up against,” says Erika Sandoval, UKG Principal Human Insights Senior Partner. “They are asking for fair pay, stability, and a path forward, and what keeps them is feeling valued, supported, and seen in a workplace that understands life is more than a job title.” 

Additionally, the study reveals work-life balance and work schedules are two of the most important factors frontline employees across all generations consider when choosing an employer, only behind pay/compensation. People still value pay, but they also want to have an enjoyable work environment that supports individual growth and accomplishment. This is even more pronounced among younger talent.  

Along with a positive culture, Gen Z and millennial employees are looking for fulfillment in their work where they can make a larger impact and feel a sense of purpose in their jobs. According to a Gallup survey, 43% of the millennial respondents agreed when asked, “Does your organization make a positive impact on people and the planet?” Those employees who agreed with the question are twice as likely to be engaged in their work and 5.5 times more likely to trust their company’s leadership.

As an employer, showcasing a motivating culture with work-life balance opportunities will attract these young professionals to your organization and increase employee retention rates. Automated HCM software with employee sentiment functionality can help manage your company’s culture and build an inclusive workforce.

Provide Flexible Access to Paychecks

A huge reason why polyworking is so popular among younger workers is that they often struggle to earn a livable wage with just one job. The gap between how much low- to middle-income families earn and the minimum cost of living is widening, causing workers to feel behind right at the start of their careers, compelling them to seek multiple jobs.

Ensuring your employees are paid fairly is a crucial way to attract and retain the upcoming generation. Even though millennials are drawn to the promise of work-life balance opportunities and career development, inadequate pay is the biggest reason they will leave a job.

Along with fair compensation, younger workers are also looking for earlier and easier access to their paychecks, something they can get from side hustles. To satisfy this, employers can provide earned wage access (EWA), or on-demand pay, to give millennials and Gen Z the flexibility to access their earnings before the traditional payday. EWA can provide financial stability and control to workers starting their careers, having to deal with rising inflation rates that impact living expenses.

Another important thing to consider is providing financial literacy and education for your employees. Seventy-eight percent of Americans are living paycheck-to-paycheck, and with the current state of economic instability, providing financial counseling about budgeting, saving, borrowing, taking on debt, and investing is crucial. 

Supporting Learning Through Continuous Mentorship Opportunities

Young employees crave learning and career development opportunities. According to Forbes, 79% of Gen Z workers will actively look for a new job if their current position lacks learning and development opportunities. Fostering continued mentorship and reinvesting in these millennial and Gen Z employees will make them want to be a part of your organization.

A central reason younger employees aren’t moving up the corporate ladder is due to leadership gridlock. Right now, people aren’t retiring. According to Axios, the share of older adults working has been steadily increasing since the 1980s. There’s nowhere for young professionals to move up, and this lack of career development can lead to people needing multiple jobs or becoming stuck in low-paying, junior-level positions.

Mentorship is a great resource to support the new generation through these issues, especially if an employee feels stuck in a role or wants to earn more money. The time and money spent teaching can lead to more internal promotions and employee loyalty when those senior-level positions eventually open up.

When searching for jobs, people consider career development opportunities and the ways their managers coach them. A Boston Consulting Group survey asked 6,000 people what attributes they want most from their leaders at work. Respondents said they most want more recognition, coaching, listening, and caring from their leaders. Gen Z and millennials don’t want mentorship to stop after onboarding; they want to grow with an employer that supports their career goals.

The Impact of AI

AI is transforming how the younger generation works, and employers need to think about it in terms of hiring and retention strategies.

Millennials and Gen Z are nervous about what the future of AI looks like in their fields. Deloitte recently released its 14^th annual Gen Z and millennial survey, which includes responses from over 23,000 people in these age groups, highlighting their priorities and sentiments about the workforce. Because AI is rapidly advancing, and it is uncertain the extent to which it will take over, eight in 10 Gen Z and millennials say soft skills are more important for career advancement than technical skills. Younger employees tend to value the human element of their work and holistic success.

Another reason Gen Z and millennials are less likely to move up in an organization is because they are thinking pragmatically about the future of work and are more likely to seek roles they perceive as less susceptible to AI disruption. This age group is optimistic about generative AI’s ability to improve work quality, but more than two-thirds are taking action to protect their careers.

Younger employees are looking for transparency when it comes to their company’s AI use. 63% of Gen Z and 65% of millennial respondents worry that gen AI will remove jobs, and 61% of Gen Zs and millennials worry gen AI will make it harder for younger generations to enter the workforce, as it automates tasks typically performed by entry-level workers.

The U.S. Department of Labor reported best practices for employers implementing AI into the workforce, including providing AI training to employees, ensuring meaningful human oversight of significant decisions, ethically developing AI standards and being transparent about how employees are using AI to assist them. As an employer, it’s important to educate your employees on how AI can be used as a tool to increase productivity and show that it’s not simply a job replacement.

In Summary

With today’s financial uncertainty, polyworking is an inevitable part of many young professionals’ careers. As an employer, you can focus on creating a supportive company culture, providing fair compensation with earned wage access, and mentoring to stand out among Gen Z and millennials entering the workforce.