Employee engagement and employee happiness are often referred to as the same thing when discussing workplace satisfaction. Despite their connection, happiness and engagement are two different states.
Happiness is defined by moments of satisfaction, joy and well-being. These feelings, while valuable, are often short-lived. They can also be vulnerable to constant changes. Engagement, on the other hand represents a more stable, enduring mindset, a period of commitment, rather than a short spell of pleasure.
It is the job of business leaders to keep their employees motivated and productive. The relationship between employers, employees and what they want from their leaders has changed. Managing the workforce is also more difficult with younger generations, as business leaders still struggle to understand their needs and desires.
Our study of more than 35,000 global employeesfound that, while engagement levels are continuing to rise, the intent to remain beyond three years has declined, particularly amongst Gen Z, who is most engaged. This could be due to changing values as young employees are looking for purpose that aligns with their personal values. It could also be because of workplace dynamics, such as the shift to remote and hybrid work. Or it could simply reflect a fluid job market as employees become more mobile. This paradox shows that measuring engagement by itself no longer predicts employee retention.
How can leaders of businesses ensure that they take the time to understand new employees’ mindsets and put measures in place to create an environment where employee engagement is a priority?
Start by recognizing that quick fixes for happiness are not a substitute for a tailored experience tailored to each individual’s career aspirations needs and value alignment.
Gen Z and the workplace: A new perspective
When we compare the attitudes of younger employees to those of older generations, there is a marked difference. This is a positive sign despite the rapidly changing workplace and perceptions of this generation.
In our study, we found that 77% individuals aged 18-24 reported feeling engaged at their workplace. This compares to 70% for all other age groups. It’s not a sign that they are dissatisfied, but rather their willingness to introduce new ideas and challenge traditional practices is a reflection on their active engagement.
Younger employees are more optimistic than older workers about their future career. 75% of 18-24 year-olds think their company can help reach their career goals in the long term, compared with just 67% older workers. The 18-24-year-olds are also proud of their company’s positive impact on the world, with 76% expressing satisfaction about their efforts. Even this optimism, however, is dampened by the fluidity of the job market. Gen Z are most likely to look for new opportunities in months rather than years after joining a company.
Gen Z is a generation that’s not afraid to change things. Nearly three-quarters (72%) of Gen Z feel confident enough in their ability to shake things up. While it is great to have new ideas, staying realistic is just as important. Leaders should encourage new thinking, and help employees to understand the practical aspects of implementing innovation. The workforce will be able to change their perspective on how they share new ideas by asking themselves if each suggestion is in line with the company’s strategic goals.
Additionally, 38% report feeling under pressure by their employers to improve productivity. This undermines both engagement and retention. Burnout is a major concern for employees due to the pace of change, disruption and rapid adaptation of new processes. Gen Z employees are more likely to be engaged when personal wellbeing and reasonable work loads are integrated into the daily operations.
For business leaders and managers investing in Gen Z is more than making them feel welcomed – it means actively supporting their development at every stage of their professional lifecycle. In an age where AI and ever-changing skills are a major concern, it is important to make sure that people know their growth is supported. This can be done through employee listening programs, which offer support and encourage a two-way conversation on issues of importance to the workforce.
New perspectives on workplace productivity
By 2025, employees who believe that their work is contributing to a better future for themselves and others will be the most motivated. Our research has shown that 82% more employees aged 18-24 engage more when they believe in the values of their organization, and 76% more are future-focused when they feel proud of what their organisation is doing to positively impact on the world. Engagement without wellbeing support and a connection can be hollow. The organisations that are thriving today are those who have integrated mental health resources into their culture, as well as flexible policies and feedback loops.
Business leaders need to take action for Gen Z employees. It’s all about building trust so that they will be more likely act proactively, adopt new behaviors, and promote the company without prompting. Employers must adopt a change management approach that is employee-centric. Employers who are successful involve employees of all generations early and adapt policies in response to feedback.
Business leaders need to demonstrate competence, integrity and generosity in order to meet the needs of their employees. It means that they should actively ask for feedback and ideas of employees outside their immediate network. They should ultimately create meaningful connections by creating personalised career maps, mentorship programs, and assignments reflecting individual aspirations.
This will allow them to make better and more inclusive choices, thereby improving the employee experience, increasing engagement and the likelihood of high-performing employees staying.
The organisations need to tap into the talent and the potential of the 18-24-year-olds. But they risk losing them if they do not understand how to keep this segment of their workforce engaged and able see a future for the company.
Business leaders need to stop focusing on quick fixes for employee happiness. Instead, they should focus on purpose, growth and wellbeing to keep their Gen Z employees engaged. This will allow them to provide the workforce with the chance to achieve the meaningful goals that they desire. Gen Z should not be the focus of a programme, but it should be considered in general.
