Retention Unlocked: What Works for Gen X vs. Gen Z
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by Tanisha Barkakaty
IT Jobs and Recruitment Insights
As a Senior Recruiter in the IT field with over 3.5 years of experience in recruitment, I’ve witnessed the evolving dynamics of workplace expectations across generations. One of the biggest challenges companies face today is retaining both Gen X, who value stability and long-term growth, and Gen Z, who prioritise flexibility and fast-paced career progression. Businesses that fail to address these generational differences often struggle with turnover, while those that tailor their retention strategies to meet the needs of both groups build stronger, more engaged teams.
Understanding Career Expectations: Gen X vs. Gen Z
Retention starts with understanding what motivates employees. While salary is important, factors like company culture, benefits, and career progression play a critical role in whether employees stay or go.
Gen X (Born 1965-1980): The Stability Seekers
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Career Growth & Job Security – Gen X employees often seek long-term stability and structured career progression.
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Work-Life Balance – While they appreciate flexibility, they are accustomed to traditional work environments.
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Leadership & Autonomy – They prefer independent work and expect minimal micromanagement.
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Loyalty to Employers – They tend to stay with companies that invest in their professional growth.
From my experience: I recently worked with a highly skilled Gen X network engineer who had been with the same company for 15 years. He left only after realising there were no further growth opportunities. His action could have been prevented with a clear progression plan.
Gen Z (Born 1997-2012): The Growth-Driven Innovators
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Purpose-Driven Work – They seek roles that align with their values and offer meaningful impact.
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Continuous Learning – They prioritise career development and upskilling over job security.
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Workplace Flexibility – Remote and hybrid work models are a necessity, not a perk.
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Fast Career Progression – They want quick advancements and opportunities to take on new challenges.
Insight: A Gen Z candidate I placed in a data centre operation position left after just eight months because he didn’t see a path to promotion. Unlike Gen X, who might wait years for a title change, Gen Z employees expect frequent growth milestones.
How to Retain Both Generations in One Workplace
The key to retention isn’t choosing one generation’s preferences over the other—it’s creating a culture that accommodates both. Here’s how businesses can strike the right balance:
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Implement Cross-Generational Mentorship
Pairing Gen X employees with Gen Z hires can foster knowledge-sharing and collaboration. Gen X provides industry expertise, while Gen Z brings fresh, digital-first perspectives. Introducing a reverse mentorship program where younger employees teach senior staff about emerging technologies can foster knowledge-sharing and collaboration—this not only boosts engagement but also improves retention.
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Offer Flexible Work Arrangements
Gen Z thrives in hybrid or remote settings, while Gen X often values in-person collaboration. A flexible work policy allows employees to tailor their schedules without feeling forced into a one-size-fits-all model. I’ve seen companies lose promising Gen Z employees by insisting on rigid office attendance, while Gen X employees felt disconnected in fully remote setups. A hybrid approach benefits in scenarios like this.
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Build a Learning-Driven Culture
Gen Z seeks continuous learning, and Gen X values professional development. Companies that provide upskilling opportunities—through mentorship, certifications, and leadership training—will retain both generations. Introducing a development fund where employees could choose their learning paths can lead to increased engagement across all age groups.
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Align with Purpose & Recognition Preferences
- Gen X employees appreciate structured promotions and financial rewards.
- Gen Z responds well to immediate feedback, public recognition, and personal development opportunities.
Many businesses struggle with balancing recognition strategies—Gen X employees may feel undervalued without formal promotions, while Gen Z employees may become disengaged without real-time feedback. Companies that implement a dual-approach—offering frequent performance reviews for Gen Z and structured long-term incentives for Gen X—tend to see higher retention and employee satisfaction.
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Customise Benefits Packages
- Gen X: Values pensions, healthcare, and stability-focused benefits.
- Gen Z: Prefers mental health support, student loan assistance, and wellness programs.
A few multinational companies I observed have revamped their benefits packages to include traditional retirement plans for Gen X and mental health days for Gen Z. What is the result? A happier, more committed workforce across these global organisations.
Why Retention Strategies Matter
Retention isn’t just about keeping employees—it’s about fostering a workplace where people feel valued and invested. Companies that recognise the unique expectations of Gen X and Gen Z can build a culture that not only retains talent but also drives long-term business success.
I’ve seen firsthand what happens when businesses fail to adapt. High turnover, loss of institutional knowledge, and disengaged employees become common themes. On the flip side, companies that invest in tailored retention strategies enjoy a committed, thriving workforce that spans generations.
So, the final question - Are your retention strategies built for the future? If not, remember that now is the time to adapt, engage, and create a workplace that works for everyone.
Lastly, don’t forget to check out our insights page for other blogs and insights that might be of your interest, as we at GemPool love to document our experiences from time to time.
