Over the past 10 years, the generational mix in the workforce has shifted markedly. Millennials now constitute the dominant cohort, and Gen Z is projected to reach approximately 30% of the U.S. workforce by 2030. This shift is accelerating change across the world of work. Many millennials and Gen Zers are not tolerant of unhealthy cultures. They are more inclined to vote with their feet when the expectations of their organization or its leaders are not met.
As the first true digital natives, Gen Z has grown up with the internet, which means many display a natural fluency with devices, apps and online platforms. Leveraging this capability is essential as organizations navigate AI, rapid technological transformation and the influence of social media.
To attract and retain millennials and Gen Z, organizations should prioritize building contemporary workplaces that embody a culture that is aligned with this new balance. In my view, legacy attraction, development and retention strategies built by traditionalists, Baby Boomers and Gen X require a significant overhaul. In today’s employee-centered market, organizations must develop innovative approaches that support younger workers through their employment journey. Their expectations will shape the new battleground for attraction, retention and engagement. I believe organizations with the foresight to respond can differentiate themselves and win the war for talent; those that do not could face increasing pain and organizational challenges.
So, what should organizations focus on to create a contemporary workplace that attracts, retains and engages younger generations? Here’s what I recommend.
1. Build a psychologically safe, values-led culture that leaders live every day.
This will be the defining factor. As I mentioned above, many younger employees will not tolerate unhealthy workplace cultures, and they expect leaders to uphold organizational values authentically. A key to ensuring psychological safety is to actively build trust. A big part of fostering this trust is maintaining open and transparent two-way communication. This is essential for psychological safety, as people need to feel comfortable raising issues and asking for help.
2. Embed diversity and inclusion in behavior and decision-making.
Many younger workers are passionate about inclusion in the workplace across a widening spectrum of diversity. Some strategies that I’ve found can enhance diversity and inclusion are:
• Set clear intentions. Rather than tokenistic “targets,” set realistic representation goals, and link them to your broader strategy and values.
• Establish early-stage leadership programs. Invest in emerging leaders from underrepresented groups.
Prioritize mentoring and sponsorship. Pair senior leaders with high-potential employees from diverse backgrounds.
• Link diversity and inclusion outcomes to leader KPIs. Remember that this is not just HR’s job. Make diversity and inclusion a shared leadership responsibility.
3. Provide transparent pathways for development and career advancement.
Younger workers often want clarity about progression. Set clear criteria, expectations and timeframes for promotion and succession so people can see a future with you. One way to do this is to provide more transparent development opportunities. Advertise secondments, projects and acting roles; don’t just tap people on the shoulder.
You can also establish diverse decision-making panels. Ensure panels for promotions, talent reviews and senior recruitment include diversity of gender, background and thinking. Then, standardize the criteria for advancement. Make promotion and talent decisions against clear, role-relevant criteria.
Another important step is to offer continuous learning through diverse, accessible formats. Prioritize ongoing growth via podcasts, webinars, online conferences and other innovative modalities—not just traditional workshops. Finally, it bears repeating that you should invest in mentoring and coaching to advance younger employees. Structured mentoring and coaching can accelerate professional and personal growth.
4. Design work around well-being and work-life balance.
Organizations that intentionally design work with well-being in mind can stand out as employers of choice. However, these efforts should go well beyond fruit bowls and mindfulness apps. You’ll need to structure roles, expectations and systems so people can perform at a high level without sacrificing their health and well-being. A few examples of policies and programs I encourage leaders to consider include:
• Flexible work policies that normalize hybrid work
• Job-sharing and part-time options in leadership roles
• Predictable rosters with reasonable notice of changes for operational or shift-based work (to reduce last-minute disruption to people’s lives)
• Guidelines on after-hours contact (e.g., no expectation to respond to emails or messages outside agreed hours except in genuine emergencies)
• Employee assistance program (EAP) with confidential counseling
• Well-being days or “mental health days”
• Well-being budget or initiatives (e.g., access to counseling, ergonomic assessments, physical activity initiatives, mindfulness or resilience programs aligned with evidence-based practice, etc.)
5. Ensure leaders understand their responsibility for engaging the younger generation.
To ensure all of the leaders throughout your company can best support younger workers, I suggest building their leadership capabilities through targeted training, particularly with a focus on helping managers understand Gen Zs in the workplace. This also means establishing leadership competencies that clearly articulate the requirement to support the younger generation. These competencies should be embedded in the organization and used to assess and develop leadership capability.
6. Make mental health a leadership priority.
In 2023, Gallup reported that 44% of employees feel stressed. And in 2022, the Guardian reported that up to 10 million people in England may need new or additional mental health support over the next three to five years. This highlights why addressing mental health proactively must be a core organizational focus.
To navigate a dynamic and demanding context, leaders must deliver what today’s workforce requires, not just what has worked in the past. By genuinely listening to younger generations and taking their perspectives seriously, organizations can tap into a powerful source of energy, innovation and purpose. These employees are not simply asking for “perks”—they are calling for fair, inclusive and values-driven workplaces where people are respected, heard and able to do meaningful work without sacrificing their well-being.
When leaders embrace these expectations, they do more than keep younger workers happy. They create inclusive, high-trust environments where people at all career stages feel safe to speak up, share ideas, challenge the status quo and learn from mistakes.