Retaining Generation Z: Why high pay is not enough and how coaching can help?
By 2025, Generation Z will make up nearly 30% of the global workforce, making it vital for companies to understand how to attract and retain this generation with their unique needs. Generation Z members are revolutionising the world of work: high pay is no longer enough, maintaining mental health has become a primary requirement.
Who is Generation Z and what do they want?
Born between 1997 and 2012, Generation Z is the first truly digital native generation to grow up in the world of technology and social media. Generation Z comes to the workplace with new and unique expectations that are very different from those of previous generations.
New job expectations
For the 65% of Generation Z workers, workplace flexibility - teleworking or hybrid model - is the most important aspect when looking for a job. Young people do not tolerate being looked down upon by colleagues or disrespected by managers, and expect the workplace to be not only a source of income but also a space for personal development.
The failure of traditional retention strategies
Why don't the old methods work?
For Generation Z workers, it is a priority to work for companies that are in line with their social values. This means that:
- The high pay alone is not enough to buy loyalty
- Hierarchical structures they seek horizontal links instead of
- Company values and personal values consistency is expected
The real challenge
As the years go by, the generation of employees is getting younger in proportion, making the challenge for HR professionals even greater, not only in recruitment but also in retention. The problem is not just a generational difference, but fundamentally different worldview and values.
The role of coaching in retaining Generation Z
Why is coaching the solution?
Traditional HR approaches often prove inadequate to meet the specific needs of Generation Z. This is where the the role of coaching:
1. Personalised development
Members of Generation Z individual attention and personalised development pathways they are looking for. This is exactly what coaching provides:
- Individual skills development
- Mapping personal career goals
- Supporting value-based workplace decisions
2. Continuous feedback and mentoring
Management can use seven strategies to engage Generation Z: increasing information sharing, presenting career development paths, which coaching provides naturally.
3. Developing emotional intelligence
Generation Z mental health and work-life balance as a priority. Coaching helps:
- Learning stress management techniques
- Preventing burnout
- Building healthy workplace relationships
Practical coaching strategies for Generation Z workers
1. Values-based coaching approach
What does this mean in practice?
- Help the employee to clarify his/her own values
- Identify roles and projects that are in line with your values
- Supporting decision-making processes according to value-based criteria
2. Technology-enabled coaching methods
Generation Z are digital natives, so:
- Virtual coaching sessions flexible hours
- Mobile apps use to monitor progress
- Gamified development plans
3. A fast results-oriented approach
For Generation Z, it is important not to be bored at work, to have something to do all the time. In coaching:
- Short-term milestones posting on
- Weekly/fortnightly coaching sessionök
- Immediate feedback and recognition
Elements of an effective Generation Z retention programme
Coaching-based onboarding
Effective onboarding increases retention and productivity, up to 82% and 70%. A coaching-based onboarding programme included:
- First 30 days: Clarifying values and objectives
- 60 days: Developing a concrete development plan
- 90 days: Achieving and evaluating first milestones
Continuous development support
Mentoring: create mentoring schemes where older generations can share their experiences with younger ones. The CoachLab methodology:
- Weekly coaching sessionök individual development goals
- Cross-generation mentoring programmes with coaching support
- 360 degree feedback system coaching with processing
Why choose CoachLab solutions?
Proven results among Generation Z
What we offer:
🎯 Specialised Generation Z coaching methodology: techniques specifically developed for this age group
📱 Technology-enabled solutions: mobile app, online sessionök, digital tracking
⚡ Fast and measurable results: 30-60-90 days milestones
🤝 Integrated HR support: Full retention strategy based on coaching
Concrete benefits for your organisation
- Reduced turnover: 40-60% lower drop-out rate
- Increased engagement: Higher employee engagement indicators
- Faster ROI: Shorter payback period on development investments
- Positive employer brand: More attractive for Generation Z
The next step: start today!
Don't wait until you lose your best Generation Z talent!
A successful Generation Z retention strategy is no accident - requires conscious planning and expert coaching support.
What can you do today?
✅ Gauge the satisfaction of your current Generation Z employees
✅ Identify the key retention risks
✅ Design a coaching-based development programme
✅ Start a pilot programme with your most valuable Generation Z employees
Get started with CoachLab!
Book a free strategy consultation and learn how you can build a coaching-based retention system that really works with Generation Z.
Because retaining talent is the key to the future.
Frequently Asked Questions (FAQ)
1. Why is the retention of Generation Z special compared to other generations?
Generation Z (born 1997-2012) is the first truly digital native generation, which has fundamentally different expectations. While high pay and career prospects were the main motivators for previous generations, Generation Z is mental health, work-life balance and value-based work is the priority. 65%s see workplace flexibility (teleworking, hybrid model) as the most important factor. This means that traditional retention strategies such as salary increases or hierarchical promotion are no longer sufficient.
2. How does coaching help to retain Generation Z workers?
Coaching provides solutions in three key areas: personalised development, continuous feedback and emotional intelligence development. Generation Z seeks individual attention and personal career goals that traditional HR methods cannot provide. Coaching helps them to clarify their values, find roles that are in line with their personality and learn stress management techniques that preserve their mental health. This reduces turnover by 40-60%.
3. What specific coaching methods should be used for Generation Z workers?
For Generation Z, three main coaching approaches are proving effective: values-based coaching (balancing personal values and work role), technology-friendly methods (virtual sessions, mobile apps, gamified development plans) and a rapid results-oriented approach (short term milestones, weekly/weekly sessions, immediate feedback). It is important that coaching sessions are flexible and supported by technology, as this generation takes it for granted.
4. How long does it take to see results in a coaching-based Generation Z retention programme?
CoachLab's experience shows that 30-60-90 days with milestones working coaching programmes are the most effective. In the first 30 days, values and goals are clarified, in 60 days a concrete development plan is made and by 90 days measurable results are achieved. Effective coaching-supported onboarding increases retention by 82% and productivity by 70%. The full ROI is usually seen within 6-12 months through reduced turnover and increased engagement.
5. How much does a coaching-based Generation Z retention programme cost and does it pay off?
The cost of a coaching-based retention programme is significantly lower than the cost of replacing a Generation Z employee, which on average is equivalent to 6-9 months salary (recruitment, training, loss of productivity). An average coaching programme over 3-6 months is around 150-900 thousand Ft/person, while the loss of a good Generation Z employee can cost 800 thousand - 3 Million Ft in damages. The ROI is usually between 200-400% due to reduced turnover, increased productivity and improved employee engagement.
1. Why is the retention of Generation Z special compared to other generations?
Generation Z (born 1997-2012) is the first truly digital native generation, which has fundamentally different expectations. While high pay and career prospects were the main motivators for previous generations, Generation Z is mental health, work-life balance and value-based work is the priority. 65%s see workplace flexibility (teleworking, hybrid model) as the most important factor. This means that traditional retention strategies such as salary increases or hierarchical promotion are no longer sufficient.
2. How does coaching help to retain Generation Z workers?
Coaching provides solutions in three key areas: personalised development, continuous feedback and emotional intelligence development. Generation Z seeks individual attention and personal career goals that traditional HR methods cannot provide. Coaching helps them to clarify their values, find roles that are in line with their personality and learn stress management techniques that preserve their mental health. This reduces turnover by 40-60%.
3. What specific coaching methods should be used for Generation Z workers?
For Generation Z, three main coaching approaches are proving effective: values-based coaching (balancing personal values and work role), technology-friendly methods (virtual sessions, mobile apps, gamified development plans) and a rapid results-oriented approach (short term milestones, weekly/weekly sessions, immediate feedback). It is important that coaching sessions are flexible and supported by technology, as this generation takes it for granted.
4. How long does it take to see results in a coaching-based Generation Z retention programme?
A CoachLab experience of the 30-60-90 days with milestones working coaching programmes are the most effective. In the first 30 days, values and goals are clarified, in 60 days a concrete development plan is made and by 90 days measurable results are achieved. Effective coaching-supported onboarding increases retention by 82% and productivity by 70%. The full ROI is usually seen within 6-12 months through reduced turnover and increased engagement.
5. How much does a coaching-based Generation Z retention programme cost and does it pay off?
The cost of a coaching-based retention programme is significantly lower than the cost of replacing a Generation Z employee, which on average is equivalent to 6-9 months salary (recruitment, training, loss of productivity). An average coaching programme over 3-6 months is around 150-900 thousand Ft/person, while the loss of a good Generation Z employee can cost 800 thousand - 3 Million Ft in damages. The ROI is usually between 200-400% due to reduced turnover, increased productivity and improved employee engagement.
