What we learnt:
Twenty interviewees responded to this question: “Do you see yourself staying in one job for a long time or moving across multiple jobs in your life?”. From that number, 20,65% indicated they would change jobs multiple times in their lifetime.
“So I would stick to one company and ensure that I grow within that company for at least a period of five to eight years, hopefully, as long as the work environment is good.” – Sunita (22, Mixed race, female)
“I think in my generation, we don’t see ourselves sticking. We don’t see ourselves in one job the rest of our lives. Because I think it’s the best way for us to grow right now and to learn more skills and experiences. So I think that’s important. It’s not to stay in one company.” – Gabrielle (21, Mixed race, female)
“Um, to be honest, when I first started working, it was all about being loyal to an employer, you know, and seeing how the loyalty will work for me. And to be honest, in my early career, loyalty worked, but it didn’t pay the bills. So now that I’m in this position, I do believe in hopping and not staying longer than two years at any given employer. So I will be a hopper on this one. Yeah.” – Lerato (27, Black, female)
“So the employer’s almost like insurance. I get my bills paid while I’m getting my hustle to take off.” – Ronen Aires
What does the research/experts say:
Employer loyalty is not dead. It is changing. Older generations typically stayed with a company their entire lives, and employee loyalty was considered a personal strength. This approach has evolved with this generation continually searching for jobs that pay well, reflect values and enable a work-life balance.
Generally, the research shows that Gen Z are less loyal to their employers than previous generations. There are many reasons for this.
The main reason cited is the lack of available growth opportunities if one stays with one employer. A 2023 study from ResumeLab states that 83% of GenZ workers see themselves as “job hoppers” and 78% declare a two- to five-year commitment. For 70% of the sample, career development is top on their list. “Generation Z has ignited a paradigm shift in the traditional concept of job stability, embracing a dynamic approach to their careers that often involves frequent job changes. Unlike their predecessors, they view job hopping not as a sign of instability but as a strategic means to diversify their skill sets, pursue new challenges, and seek environments that align with their values and ambitions.”
Gen Z views employment as a transaction, hence why they job-hop frequently. A 2023 report by the Oliver Wyman Forum found that 70% of GenZs who consider themselves “loyal” to their employers are actively or passively seeking a new job. They see work as a means to an end. Work brings in a steady income so they can enjoy their life outside the office – finding meaning outside their careers in their everyday passions. The report says that “Gen Z members don’t want Xboxes and rock climbing walls in the office. They want to clock in and clock out [of work], and aren’t interested in small talk or fraternising with coworkers over beers.” They want a job for a living, not a job for life.
According to a February 2024 report by Zurich, Gen Z employees between 18-34 years of age could change jobs up to 10 times. That works out to a new job every 1.6 years! While this may not be the case in practice, it does demonstrate a shift away from long stints working at one employer.
What can businesses and policymakers do about this?
Older generations (often the employing generations) value loyalty and want new hires to stay as long as possible. They see frequent moves as a lack of commitment and loyalty and tend to use this to give a negative rating to a prospective candidate’s suitability for a job. Instead of fighting this trend, employers need to embrace this trend and find ways to increase retention. Leaders can not simply demand allegiance at work from younger workers. However, it is understandable that not many businesses would want to invest in expensive onboarding for someone who will be gone in 12 to 18 months.
‘Stay-or-pay’ clauses have been making headlines of late and are one way to discourage new employees from resigning soon after starting. However, this is not without controversy, and employers should tread carefully. Such clauses refer to employees paying costs incurred by employers, including training and finding a replacement. It was common practice for specific high-paying roles or specific industries but has since spread beyond the handful of roles and industries where it originated and now is used by thousands of mid and low-wage employers. Workers who sign repayment agreements can owe their employers money if they leave their jobs early. Regulators are starting to crack down on this practice. Critics of this practice say that the financial penalties do not accurately reflect the costs incurred by the company but instead appear inflated and are designed to discourage quitting. There is a fine line between recouping costs and punishing workers for finding better opportunities elsewhere. An increasing number of companies are taking advantage of this grey area.
Simon Cox, Chief Transformation Officer at software company ServiceNow, says that the best strategy to retain top talent is to take a long-term view and foster and encourage individuals who desire to roam. “One thing I’ve seen organisations start to look at is their alumni. Gen Z and millennials are curious, they want different experiences, and they’re not going to have a job for life at the bank. So let them go. Keep in touch with them, see how they do, and eventually, you can welcome them back.” Deloitte has a network of more than 20,000 individuals who, among other benefits, can hear about career opportunities within Deloitte.
Employers need to understand what motivates young employees to stay or leave. This understanding will help them build strategies to increase employee loyalty and retention across generations. While a salary remains a high priority, in South Africa, according to the 2021 Deloitte Millennial & Gen Z Survey, 49% value flexibility/adaptability, 48% creativity and 34% curiosity/growth mindset.
Young workers aspire to rapid professional growth through training programs, coaching, mentoring, and tutoring. They are most likely to stay if they see opportunities for their professional advancement. For them, micro-management is outdated, and autonomy in setting their routines is appreciated.
Policymakers and employers forcing young people to subscribe to the old definition of loyalty is counterproductive. Companies need to develop strategies that evolve with the changing nature of the workforce. All generations stand to benefit from a workplace that provides their employees with professional development, work-life balance and compensation.
The data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.
By Flux Trends
WHERE TO FROM HERE?
Book a Bridgebuilder Workshop, close the generation divide and dive into the future of work and how to manage it. Let us help you build your team.
Turn the insights from 30/30/30 Project into strategic action to engineer the future YOU and your team and nation need – with hope, agency, and optimism.
Contact Bethea Clayton at connected@fluxtrends.co.za or +27764539405, if you are interested in exploring any of these options with your team or clients.
Image credit: Cytonn Photography
