Even as employers adapt to the new normal in the wake of COVID-19, broader demographic changes in the workforce are impacting workers' attitudes and expectations – not least the growing prominence of Gen Z in the workplace.

If your recruitment and reward practices are stuck in old ideas, you're likely to struggle at attracting and retaining this young generation of hard and loyal workers. Here's what employers need to know about engaging with Gen Z.

Who are Gen Z?

Gen Z is generally defined as the generation born between 1996 and 2012, many of whom are now in their mid-20s. The children of the new millennium grew up with digital technology integrated into all aspects of their lives and many felt the impact of the global recession on their families, consciously or unconsciously, even before a global pandemic threatened their own early careers.

Older members of Gen Z already account for between a quarter and 30 per cent of employees, a figure that's only set to grow as baby boomers retire and millennials move into management roles, so employers need to make sure they are engaging with the future of their workforce.

What makes Gen Z different?

However arbitrary the generational divides may seem, growing up in the 21st century has had a significant impact on the attitudes of younger workers to their careers and employers compared to the previous generation.

While millennials (aged 26 to 41) have been noted for preferring collaborative work environments, being prone to job-hopping and not being money motivated, Gen Z are more ambitious, prefer to work independently and are concerned with job security, flexibility, and their finances!

Taking these characteristics into account, here are five ways to attract and retain Gen Z employees:

1. Provide opportunities for growth

Gen Z are role hoppers rather than job hoppers. They are eager to take on projects and develop their skills and should be given the freedom to do so, with appropriate recognition when you reap the rewards of their efforts.

2. Offer flexibility 

Gen Z have begun their careers with expectations of flexibility and a work-life balance, especially if their first experiences included working remotely due to COVID. Employers need to provide a degree of flexibility and respect their staff's personal time and interests.

3. Invest in technology

Gen Z are digital natives who have grown up with uninterrupted Wi-Fi and specialised devices and apps for every task. When you provide them with reliable and intuitive systems, they will reward you with technology-boosted productivity.

4. Make salaries match responsibilities 

Gen Z are savvier about money and expect to be compensated fairly for the work they do. They are more likely to negotiate for a higher rate and to work harder and longer to earn it.

5. Personalise rewards

Standard employee benefits packages don't cut it with Gen Z, who have grown up with bespoke marketing and customised experiences. Allowing them to choose their own rewards is a great attractor and motivator that will encourage them to stick around.

Managed reward programmes

My Rewards International (ASX:MRI) is a global leader in providing white-labelled loyalty, reward and engagement programs for businesses and consumers.

They serve more than 100 leading corporate clients providing 5.8 million members with discounts and special offers from a network of over 4,500 individual merchants. These services are delivered through a self-managed cloud-based e-commerce platform.

My Rewards recently announced very positive H1 FY22 financial results including a 137% growth in YoY pro forma revenue, 220% growth in corporate clients and 27% growth in members. To keep up to date with their news and progress, and for more information about loyalty and reward programs as a whole, subscribe to the My Rewards International Limited Chairman's List.