Hi folks!
Every week, I share a practical, hands-on guide on running your small business better.
Today’s topic: How to hire and retain 18 to 25-year-olds (Gen Z)
Before we start: the Scalable CEO Cohort is now underway!
As part of Scalepath membership, this weekly 8-module program will help you master key skills—from growth strategies to financial modeling—backed by dozens of playbooks and templates, weekly member calls, and a supportive community of small business leaders.
We had a great kickoff in Week 1, and if you apply today you can join us for our session this week! (Building a Great Team)
The Playbook: How to Hire and Retain 18 to 25-year-olds (Gen Z)
Pretty soon, Gen Z will make up most of your business's employees.
As an owner, you need to understand their motivations, desires, and needs — so you can get the cream of the crop.
As of today, 62% of Gen Z work for small businesses. They want meaningful work and flexible environments, so SMBs are in a good spot to snag the best talent of their generation.
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1. Use digital recruiting tools.
Gen Z is highly online. They’re the first true digital natives, so you need to be visible and accessible where they exist.
Engage on social media like Instagram or TikTok with authentic content like employee testimonials, behind-the-scenes videos, and day-in-the-life stories.
Just don’t try to fake a culture that doesn’t exist. They’ll spot it a mile away.
Then, make sure that your application process s mobile-friendly and streamlined. They’ll bridle at unwieldy processes.
And if they must upload a resume, type the same info in again… good luck.
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2. Offer flexibility.
Gen Z thrives in an atmosphere of trust. They’ll perform better and stay longer if they don’t feel micromanaged.
Be open-minded about what can be accomplished via remote and hybrid work. Ensure you have the right tools (Slack, Asana, Google Meet, etc).
Also, consider flexible work hours. What parts of the job are really time-bound? If they ask why a piece of work can’t be done on the weekend, “just because” is not a good enough answer.
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3. Support work-life balance.
Gen Z expects their work to allow for a personal life. For them, a job is just a job, and they’ll expect to be appropriately compensated for their time.
Some options:
- Unlimited PTO (less risky than it sounds) or flexible vacation policies
- Discourage “overtime culture”
- Family support programs like parental leave, childcare support, and family wellness initiatives
- Counseling, mental health days, and wellness programs — Gen Z is more conscious of mental health than any previous generation
4. Create purpose-driven work.
When Gen Z doesn’t understand the purpose of their work, they’re likely to tune out or rebel.
Ensure your company’s mission is clear in your hiring process and through regular internal comms.
Gen Z needs to feel they’re directly contributing to the goal.
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5. Offer growth opportunities
Gen Z often has a pessimistic attitude about the business world. If you proactively show them personal growth, development, and outcomes… they’ll love it.
Make career paths clear. Check in with them on their progress.
Mentorship programs or skill exchanges are a great resource here. Pair new employees with experienced mentors who can guide and teach them.
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6. Reward results, not tradition
Because they’ve grown up with technology, Gen Z often have creative solutions to old problems. Encourage that. Never tell them, “That’s how it’s always been done.”
Use that creativity to your advantage. Ensure employees have a platform to share their ideas and feedback, like suggestion boxes, surveys, or open team meetings.
Also, make sure to act on good ideas. People will be motivated and engaged when they see their input being used.
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7. Give regular updates, feedback, and recognition
Gen Z employees want to be in the loop. Keeping them informed is key to reinforcing their sense of purpose.
Consider:
- Regular updates on company goals, progress, and decisions
- Regular performance reviews to discuss career development
- Recognize achievements and contributions through employee of the month awards, bonuses, and/or public acknowledgment
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8. Pay them well.
Gen Z want to feel fairly compensated for what they deliver.
If you incentivize high achievement, you’ll get it. Just ensure your criteria are clear, so they know exactly what’s expected of them.
There’s my playbook for today!
What do you think? Hit reply and let me know.
Michael
Also, this is a reminder that you can apply today to participate in week 2 of the Scalable CEO Cohort, which is included with your Scalepath membership. Apply today!
