Attracting Young Talent: What to have in mind when recruiting Millennial and Gen-Z Professionals

In an ever-changing business world, attracting and retaining young talent has become a strategic priority for organisations that seek to remain competitive. With the arrival of new generations in the labor market, it is crucial to understand who these individuals are and what their priorities are in order to design effective talent attraction strategies. Millennials and Centennials possess unique characteristics that companies must consider when attempting to attract them into joining their organisation.

Who are the new generations?

Millennials and Centennials, or Gen-Z, are those born during 1977-1996 and 1996-2010, respectively. Millennials are known for being tech savvies, having a strong entrepreneurial acumen, caring about the environment and being ambitious. They currently represent 35%-40% of the world workforce, while Centennials add up to 5%-10%. Centennials, who are the youngest of the generations in the labor market, standout for having been born and raised into technology, fighting for social justice, valuing diversity and inclusion, and having a pragmatic mindset. They are also less likely to have brand loyalty, and are predicted to hold 18 different jobs throughout their lifetime.

What are the main priorities for these generations?

At Kilpatrick we carried out a thorough study throughout 3 different regions: Asia, Europe and the Americas. We asked a pool composed of Millennial and Centennial professionals to rank a fixed set of variables in terms of priorities when deciding whether to join an organisation or not. The variables were ranked as following:

1. Salary
2. Work-life balance
3. Company’s mission and vision
4. Internal growth opportunities
5. Training
6. Involvement and continuous feedback

Interestingly enough, internal growth opportunities came out in 4th place, whereas it used to be the first for older generations. This is mainly due to the fact that new generations are less likely to marry a company when compared to Baby Boomer and Generation X professionals. Centennials have an average tenure of 1.2 years, while Baby Boomers almost quadruple this statistic with an average stay of 8 years within a single company. New generations have a strong preference towards overall remuneration, work-life balance and organisational social and environmental responsibility.

How can companies better address salary as a priority for young talent?

Today, companies need a deep understanding of how the perception of a good salary has evolved among the newer generations. In the current work landscape, a competitive salary has become a fundamental starting point to attract and retain talent. Studies have shown that an average of 46% of candidates in high-demand industries have backed down from offers due to better offers elsewhere.

People now perceive the employment relationship as a mutual contract where both parties must benefit. They no longer settle for poorly paid jobs, regardless of the industry or company's prestige. Therefore, it's crucial to offer salary packages that are not only attractive but also exceed the market average as a minimum, while also including incentives and additional benefits that demonstrate that the company values the time, work, and skills of its younger employees.

How to attract candidates through work-life balance benefits?

Offering a good work-life balance has become a decisive factor in attracting and retaining young talent in companies. The COVID-19 pandemic acted as a catalyst, revealing the true value of work-life balance, with Millennials discovering the advantages of remote work and Cenntenials beginning their careers with this practice already established. Studies have consistently shown that younger generations expect and demand enough flexibility in order to enjoy their lives. The “live to work” of older generations has been replaced by a “work to live” mindset.

As a company seeking to attract young talent, it is essential to ensure that employees' personal lives are valued and respected. This involves offering a variety of benefits, such as the option to work from home, generous vacation policies, financial support for sports activities, wellness programs, health insurance and assistance with childcare. However, beyond contractual benefits, employees also value the company's culture and policies regarding work-life balance. It is crucial to establish policies that limit interaction outside of working hours and during vacations, as well as flexible schedules that allow employees to effectively manage their professional and personal lives. Failing to recognise the importance of work-life balance puts companies at risk of being perceived as outdated. Thus, this could result in losing the interest of talented young individuals seeking workplaces that value their well-being.

What about the company’s mission and vision?

Addressing the topic of a company's mission and vision in today's context involves recognising that they have become one of the primary reasons for individuals to decide whether or not to join a particular organisation. Actions, policies and reputation related to sustainability, diversity and inclusion, ESG, and the overall responsibility of the company have become of absolute importance for younger generations. Data shows that 75% of people want to work for an organisation that makes a positive contribution to society and the environment.

It is crucial to make this clear through tangible actions rather than just words or slogans. Merely greenwashing, for example, is no longer sufficient. Instead, having tangible policies and a track record of meaningful actions is essential. Providing this information to young prospects is important to ensure they maintain interest in the organisation. By transparently showcasing the company's efforts toward sustainability and DEI, businesses can attract and retain young candidates who align with their values and goals.

Conclusion

The strategies for attracting and retaining young talent, particularly Millennials and Centennials, are complex and dynamic. By understanding the shifting priorities and values of these generations, companies can better approach recruitment. Prioritising competitive salaries, fostering a healthy work-life balance and embodying a strong mission and vision are key pillars in attracting the new generations. Moreover, companies must continuously adapt and evolve their strategies to remain relevant in an ever-changing context. By embracing these approaches, companies can position themselves as desirable employers for Millennials and Centennials, better ensuring candidate interest and engagement.

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