Running head: RECRUITMENT AND RETENTION OF GENERATION Z

Recruitment and Retention of Generation Z in the Workplace

by

Kristen Scheuerlein

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Project Committee:

David Lucia, Sponsor

Frank J. Plachecki, Ph.D., Reader

Approved: March 11, 2019

Submitted in partial fulfillment of the requirements for the degree of Master of Business

Administration, The College of St. Scholastica





ProQuest Number: 13810474




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RECRUITMENT AND RETENTION OF GENERATION Z IN THE WORKPLACE 2

Acknowledgements

This thesis paper would not have been possible without the support from family, friends,

and professors at the College of Saint Scholastica. I would like to give a special thanks to my

parents, Charles and Deborah, and my husband Joel for helping me stay motivated and

supporting me on the journey to obtain my Master’s degree. Lastly, I would like to thank my

advisors David Lucia and Robert Hartl for their hard work and dedication to the College of Saint

Scholastica’s Master’s program.

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RECRUITMENT AND RETENTION OF GENERATION Z IN THE WORKPLACE 3

Abstract

The paper offers recommendations for the recruitment and retention strategies of generation Z

based on their workplace preferences. The specific preferences include their preferred work

styles, job expectations, organizational commitment, and job search behaviors. Based on

literature review methodology, the paper presents the current recruitment and retention strategies

and challenges, in order to analyze methods for generation Z compared to previous generations.

Then, multiple recommendations are made to effectively recruit and retain generation Z.

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RECRUITMENT AND RETENTION OF GENERATION Z IN THE WORKPLACE 4

Table of Contents

Introduction…………………………………...…………………………………………………...7

Statement of Problem……………………………………………………………………7

Statement of Research Question…………...…………………..…………………….….9

Purpose of Study………………………………………………...………..……………10

Definition of Terms……………………………………………………………….........10

Assumptions and Limitations………………………………………….……………….11

Significance of Study………………………………………………...……………...…11

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Review of Literature……………...………………………………………………...……………12

Generations in the Workforce…….………………………...……………………….....12

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Baby Boomers…………………………………………………………....……12

Generation X………………………………………………………………..…14
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Millennials…………………………………………………………………….15

Generation Z…………………….……………………………………....……………..18
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Values of Generation Z……….....……...………...……………....…………..18

Beliefs of Generation Z…...….…....………………………………………….20

Generation Z in the Workforce……….……………………………………………….21

Preferred Work Styles………………………………………………………...24

Job Expectations…………………………………………………………...…25

Organizational Commitment…….……………………………………………27

Job Search Behaviors………….……………………………………………...28

Recruitment……………….…………………………..………………………………30

Current Recruitment Strategies………….……………………………………30

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Challenges for Organizations…………………………………………………32

Retention………………………………………………….…………………………..34

Current Retention Strategies………………………………………………….35

Summary………….…………………………………………………………………..38

Discussion……….……………………………………………………………………………….41

Assumptions and Limitations…………………………………………………………41

Recommendations to Effectively Recruit Generation Z………………………………41

Recommendations of Effectively Retain Generation Z……………………………….43

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Possible Future Research……………………………………………………………...45

References……….……………………………………………………………………………….46
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RECRUITMENT AND RETENTION OF GENERATION Z IN THE WORKPLACE 6

List of Tables

Table 1: Work Values of Millennials……………………………………………………...…….16

Table 2: Different Generational Characteristics from the Viewpoint of Teamwork and

Knowledge Sharing…………………………………………………………………………...…22

Table 3: Generational Behavioral Characteristics..……………………………………………...23

Table 4: Generation Z Preferred Channels to Research Future Employers…………..…………29

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RECRUITMENT AND RETENTION OF GENERATION Z IN THE WORKPLACE 7

Recruitment and Retention of Generation Z in the Workplace

Introduction

Statement of Problem

With Baby Boomers beginning to retire, generation Z is a new generation entering the

workforce joining generation X and Millennials. Generation Z are individuals who were born

between the years 1995 to 2010 (Bencsik, Horvath-Csikos, & Jubasz, 2016). Tysaic (2017)

stressed that we cannot treat this new generation the same as Millennials, as different

environmental factors have led to different perceptions and expectations regarding factors such

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as preferred work styles, job expectations, organizational commitment, and job search behaviors.

For example, “Many Millennials entered the workplace looking for meaning in a job, Gen Z
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members say salary is the most important factor in choosing an employer” (Tysiac, 2017, p. 1).

By understanding preferred work styles, job expectations, organizational commitment, and job
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search behaviors of Generation Z, the hiring staff may be better prepared to determine and

develop a more effective strategy for recruiting and retention of the Gen Z workforce.
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Through review of scholarly articles, this paper presents information to better understand

generation Z’s preferred work styles, job expectations, organizational commitment, and job

search behaviors. Doing so will help determine how organizational leaders address work

environments for generation Z, in order to provide environments they can thrive in.

Preferred work styles. Refers to how employees like to act in a workplace environment

(Miller, 2018). This is important to understand in order to create an atmosphere that generation

Z can thrive in. Miller (2018) discussed, “The emphasis on privacy will likely only intensify

under Generation Z. Unlike Millennial, we have been raised to have individualistic and

competitive natures” (p. 55-56). Miller went on to explain how workplaces may need to shift
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from collaborative environments to more individualistic and competitive environments due to

generation Z’s work style preferences.

Job expectations. Job expectations are what employees look for in a job (Wozniak,

2016). By understanding the job expectations of generation Z, recruitment teams can appeal to

this new generation. One example for generation Z is their need for the possibility of

advancement within an organization, which they favored over generations X and Y (Wozniak,

2016). If the hiring team knows that generation Z has an expectation of future advancement,

they may focus on career and job devolvement for advancement as well as skill and knowledge

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devolvement. Knowing the job expectations of generation Z will aid in both the recruitment and

retention strategies.
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Organizational commitment. An employee’s bond or connection to an organization is

often used to describe organizational commitment (Shu-Fen, 2018). Organizational commitment

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is important to understand, because research indicates that an employee who is committed to the

organization has a higher rate of staying with that organization. Shu-Fen (2018) wrote, “An
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employee with higher organizational commitment would be more willing to work hard for the

organization” (p. 43). Understanding what generation Z wants from an organization can lead to

higher organizational commitment and higher retention. Rose and Raja (2016) stated:

Employees satisfaction with retention factors has a significant relationship with their

organizational commitment and that the biographical groups differ significantly in terms

of the variables. Employees who are happy with their jobs are improbable to leave

compared to employees who are unhappy. (p. 1)

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Job search behaviors. Refers to how future employees are gathering information on

future employers (Wozniak, 2016). By understanding what platforms individuals are using to

apply to future positions, along with how they prefer to process information and engage the

organization, can align their recruitment strategies to the preferred platforms and recruitment

strategy. Wozniak (2016) found that generation Z is looking for information on future

employers on their websites and portals with job offers. Unlike generation X who favored

getting information from relatives or acquaintances (Wozniak, 2016). For example, if an

organization did not have a useable website, they may be less likely to reach generation Z since

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that is where they are looking for most information on future employers. Bertagni and Salvetti

(2015) stated in regard to generation Z, “They are supposed to be active searchers: in general,
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they prefer media that they can interact with as opposed to passive TV or print texts. Their brains

are wired for the fast delivery of content, data and images” (p. 208).
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It is important to understand employees in order to assess their fit within an

organization’s culture and structure (Miller, 2018). Most organizations need to keep their
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retention rates high because the costs dealing with turnover add up quickly. Boushey and Glynn

(2012) stated, “The cost of employee turnover for businesses is high, regardless of the level of

wages being paid to the departing or incoming employees. Companies typically pay about one-

fifth of an employee’s salary to replace that employee” (p. 1). By understanding job search

behaviors of Generation Z, and developing policies and practices that are aligned with their

expectations, an organization may have a higher chance of recruiting and retaining the right

employee.

Statement of Research Question

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How might the traits of generation Z workforce demographic impact the recruitment and

retention strategies of organizations?

Purpose of Study

The purpose of this topical paper is to examine the generation Z workforce to better

understand the next generation of workers and propose ways to effectively recruit and retain

workers within generation Z workforce. The literature review first provides insights from

current literature on the values and beliefs of the generation Z population. Next, research

explores their work styles preferences, job expectations, organization commitment, and job

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search behaviors. Finally, scholarly articles and journals are reviewed to identify some current

recruitment and retention strategies. Based on the findings in this literature review,
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recommendations are presented to more effectively recruit and retain the future workers of

Generation Z.
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Definition of Terms

In this study, multiple terms are presented with the following definitions:
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Baby boomers: Individuals born between the years 1946 to 1960 (Bencsik, Horvath-

Csikos, & Jubasz, 2016).

Generation X: Individuals born between the years 1960 to 1980 (Bencsik, Horvath-

Csikos, & Jubasz, 2016).

Millennials: Also known as generation Y, are individuals born between the years 1980 to

1995 (Bencsik, Horvath-Csikos, & Jubasz, 2016).

Generation Z: Individuals born between the years 1995 to 2010 (Bencsik, Horvath-

Csikos, & Jubasz, 2016).