5 Strategies to Manage and Motivate Gen Z Talent

Generation Z, born between 1997 and 2012, is poised to surpass Baby Boomers as the largest group of full-time workers in 2024. How can real estate lenders and investors ensure they effectively manage and motivate this new wave of talent? The key to understanding Gen Z talent, and in turn successfully recruiting and retaining them, lies in recognizing their unique needs, expectations and values, which differ from previous generations. For businesses seeking to stay competitive, here are five strategies for managing and motivating Gen Z talent:  

1. Foster a Culture of Autonomy and Transparency  

Generation Z craves autonomy in the workplace, valuing flexibility and the ability to take ownership of their work. Members of this generation don't want to be micromanaged; they desire a sense of trust and independence. They are highly self-motivated and often look for roles where they can exercise creativity and innovation. A 2023 Slack survey of over 10,000 desk workers globally found that employees who felt trusted by their employers were twice as productive as those who did not.  

To encourage this sense of autonomy, employers must create environments where Gen Z feels empowered to make decisions and problem-solve on their own. Transparency in leadership is also critical. Slack's study revealed that employees who believed their company leadership was transparent were 2.3 times as focused and 1.8 times more productive than those who felt out of the loop. Clear communication about expectations, shifts in priorities and strategies and company direction are essential for retaining Gen Z talent, especially in uncertain economic times.    

2. Emphasize Purpose and Mission  

One of the defining characteristics of Generation Z is their desire for work that aligns with their values and contributes to a larger mission. This generation is purpose-driven, seeking roles that allow them to make an impact beyond their immediate tasks. They want to understand how their work fits into the company's broader mission and how it contributes to societal good.  

This presents an opportunity for real estate lenders and investors to communicate the purpose behind tasks and projects, demonstrating how employees' efforts play a role in achieving company goals. Even routine tasks will be better received with context and clear explanations of how the work supports larger strategic objectives. Gen Z professionals value knowing the "why" behind their efforts and thrive in roles where they can see the tangible results of their work.     

3. Prioritize Mental Health and Well-Being  

The global pandemic heightened the importance of mental health and well-being, particularly for younger generations. Gen Z places a strong emphasis on work-life balance, mental health support and overall wellness. Companies that prioritize these aspects of their workplace culture will find it easier to retain Gen Z talent.  

According to a 2023 Deloitte survey, 46% of Gen Z respondents felt stressed or anxious all or most of the time. The data underscores the need for employers to provide mental health resources, promote work-life balance and foster a supportive work environment. Offering benefits like flexible work hours, mental health days, access to counseling services and promoting a healthy work-life integration can significantly impact job satisfaction and retention for this generation.     

4. Leverage Technology and Flexible Work Models  

Gen Z is the first generation to have grown up with smartphones, social media and constant connectivity. They are tech-savvy, adaptable to new tools and expect technology to be seamlessly integrated into their work environments. Businesses that fail to keep pace with technological advancements may struggle to engage and retain Gen Z employees.  

Moreover, the shift to hybrid and remote work models during the pandemic has transformed workplace expectations. Gen Z professionals often prefer flexible work arrangements that allow them to maintain a better work-life balance. While some major companies are mandating a five-day-a-week return to the office, Gen Z is more likely to remain loyal to employers that offer flexible work models. Balancing remote work with clear performance expectations and communication is critical in building trust and loyalty among Gen Z employees.     

5. Encourage Inclusion and a Sense of Community  

Diversity, equity and inclusion (DEI) are non-negotiable values for Gen Z, and companies that prioritize these initiatives and create inclusive workplace environments will resonate more with Gen Z talent. This generation is highly attuned to issues of social justice and equality, and they expect their employers to reflect these values. More than eight in 10 Gen Z candidates say that a firm’s commitment to diversity and inclusion is important when choosing an employer, according to a recent Monster survey. A sense of community, where employees feel heard and valued, is equally important.  

Gen Z professionals are passionate about contributing to workplace cultures that celebrate diversity and offer opportunities for open dialogue. They want their voices to be heard, and they seek meaningful engagement from their employers on social issues. Encouraging team-building activities, employee resource groups and a collaborative work environment helps foster this sense of belonging.  

In addition to inclusivity, Gen Z values mentorship and leadership development opportunities. This generation is eager to learn and grow within their roles. Offering structured mentorship programs, clear pathways for career advancement and opportunities for skill development can significantly enhance employee satisfaction and retention.  

Conclusion: Adapting to the Future of Work  

As economic uncertainty and global challenges persist, businesses must remain agile in how they manage and motivate their workforce. Generation Z is not only shaping the future of work but also redefining expectations around flexibility, purpose and well-being. By fostering a culture of autonomy, transparency and inclusion, while prioritizing mental health and leveraging technology, companies can effectively manage and retain top Gen Z talent.

SitusAMCʼs Talent Solutions division works with clients to reimagine their talent strategies, and integrate flexible delivery models to streamline recruitment, drive cost efficiencies and find the best professionals at junior and senior levels. For more insights, download our white paper, “The Secret to Managing and Retaining Talent in 2024” here or visit our website.