Written by: Ms. Sheetal Sandhu, Group CHRO, ICRA
Published on 24th September, 2025
Every generation reshapes the world of work in its own way. Gen Z now enters at a time of technological acceleration, climate concern, and social change. They are the first to grow up entirely online, and that constant exposure to information shapes how they think, work, and decide. Their outlook is marked by digital fluency and a strong sense of values, which carry clear implications for employers. For HR leaders, the task is not only to bring this talent into the organization but to create conditions where it can contribute fully. Meeting that task calls for a sharper focus on clarity, flexibility, and purpose in the workplace.
Gen Z is struggling with engagement at work, and harnessing the focused energy of this generation is no joke! They’re known for their mistrust of tradition, impatience, and demand for immediate action. Gen Z is projected to make up 27% of the global workforce by 2025 and has already disrupted the status quo. With unparalleled technological prowess and a unique set of values, they bring both excitement and challenges to the workplace.
According to a 2022 Gallup Poll, 54% of Gen Z employees, slightly higher than any other generation are ambivalent or not engaged at work. As such, it is essential for managers to support their Gen Z employees and earn their full engagement.
To earn Gen Z’s engagement, building a sense of purpose and a values-based culture is paramount. Here are seven actionable, future-focused HR strategies:
Show clear routes for career progression and support open conversations about salary and pay equity. Gen Z is pragmatic and concerned with job security and advancement. It’s no surprise that half of this generation has already witnessed that they or someone in their household lost a job or took a cut in pay because of the COVID-19 outbreak. Understanding performance metrics, what good looks like, and how to overdeliver is key. As Gen Z shares salary information openly with one another, they expect their employers to share such information transparently and affirm organizational commitment to pay equity and career growth. Having open conversations about salary and career progression will go a long way with Gen Z.
McKinsey research confirms Gen Z is a purpose-driven generation. Their desire to know how their individual contributions and role in the team help support the organization’s mission differentiates them. They make career choices and purchasing choices driven by the impact these make in the world. Thus, managers should consider setting up sessions to speak about the team’s vision and impact on the organization. We all need to understand our roles and responsibilities to do our jobs, but Gen Z needs to understand how and why their role matters. HR should adopt the tactic of “hyper personalization” on goal setting or OKRs to keep them focused.
Having grown up with unfettered access to information, Gen Z seeks to make informed decisions on their own. They need room for experimentation to prove themselves. To keep them motivated, flex your management style and give greater autonomy to explore and improve work processes. They might surprise you with better outcomes. Create opportunities for this workforce to lean into their strengths such as leveraging technology, social media, and their desire for connection. It’s a new way to enroll them in your vision while driving engagement.
Provide extremely specific, constructive viewpoints (no feedback) to demonstrate that you are invested in their success. Elevate your discussions as coaching conversations rather than “tell” mode. Support them by developing their situational awareness. For many, this may be their first in-person job experiencing “first job syndrome,” receiving direct constructive feedback (reverse mentoring), and building professional relationships. They might not realize the impact of their actions on the broader team. Consider having a group discussion or training on how to build resilience and emotional intelligence to succeed in the workplace and how to approach feedback as a lifelong self-improvement journey.
Author Haidt said: “The more connected a generation is, the more lonely it is.” While this is the most connected generation with technology, social media, and smartphones, Gen Z is also among the most isolated. Most Gen Z employees only know remote or hybrid ways of life. Thus, they have not had as many opportunities to forge deep professional relationships that are often created in person over time.
HR may consider supporting this generation by creating a mentoring program with Millennial and Gen X employees to bridge across generations and boost meaningful collaboration. In addition, create a peer or buddy program where Gen Z team members are paired so they always have someone to contact for support. This is mutually beneficial, as Gallup research reports that having a best friend at work is key to employee engagement and job success. It is strongly linked to business outcomes, including profitability, safety, inventory control, and retention.
Mental health struggles significantly impact Gen Z employees. Many experience anxiety and depression, which affects their work performance. In fact, Gen Z’s top wish for their leadership is that they care about wellbeing and mental health.
Emotional intelligence and empathy go a long way to create a shared connection and open avenues of communication and deeper conversation. Work to create a culture that allows vulnerability, open communication, and makes time for mental recovery. Addressing what impacts the team improves effectiveness and allows managing timelines and priorities around mental wellness just as with physical illness.
Another opportunity is to offer and support mental health-related employee resource groups (ERGs). When supporting Gen Z employees from diverse backgrounds, it is critical to offer culturally diverse programs, marry your CSR and employee engagement calendars, and create a deep sense of purpose and belonging. To empower leaders to have these rich conversations, provide training on mental health benefits, policies, and communication tools to effectively discuss these issues.
Gen Z can be engaged and retained with strong support for their professional development by demonstrating investment in their success, flexing management styles, and communicating inclusively. After all, for Gen Zers, “actions speak louder than words.”
The strategies outlined here show that engaging Gen Z is not a matter of surface perks or temporary fixes. It is about building workplaces where growth is possible, contributions are recognised, and wellbeing is taken seriously. These principles, while urgent for Gen Z, are not confined to them. They represent sound management that improves the experience of every employee. Organizations that act with openness and consistency will find themselves not only retaining young professionals but also shaping teams that are resilient, collaborative, and ready for the future.
