Article Summary
- Gen Z seeks authenticity – They value workplaces that genuinely align with sustainability, social responsibility, and employee well-being, rather than performative branding.
- Leadership and culture matter – Leaders must model values, support employees, and integrate purpose into daily operations to retain Gen Z talent.
- A structured approach is essential – Clear, actionable values, open dialogue, and employee involvement in value creation ensure that purpose is embedded in company culture.
Generation Z, born between 1997 and 2012, will soon form a significant portion of the workforce, comprising around 27% by 2025. Gen Z brings a distinctive outlook to the professional environment, one that is marked by a strong sense of agency and scepticism towards traditional hierarchies.
According to a comprehensive research project involving Stanford and Oxford universities among others, Gen Z is “an extraordinarily thoughtful, promising and perceptive generation that is sounding a warning to their elders about the world around them.” 1 They challenge the status quo, question the established expertise of older generations and look to work for organisations that genuinely make a difference.
The challenge for organisations, then, is how to move beyond superficial messaging about purpose and values. Despite the fact that more companies are highlighting their commitment to social and environmental causes, Deloitte reports that 43% of business leaders admit their organisation views purpose primarily as a marketing strategy.2 This disconnect fuels the scepticism of a generation that wants to see genuine action, not just performative branding.
To attract and retain Gen Z talent, leaders must embed organisational values deeply into their operations, so much so that these values become a core part of the employee experience. HR leaders must ensure their purpose, values and behaviours are felt by every employee and create an environment where employees are comfortable challenging behaviours that do not align with the organisation’s stated values.
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Understanding what Gen Z values in the workplace
Gen Z is drawn to workplaces where purpose and authenticity are woven into the fabric of daily operations. Research in Malaysia and Indonesia from Kartika, Wahyuningsih and Abdullah demonstrates that young talent, including Gen Z, prioritises sustainability and environmental responsibility. The study finds this generation considers green human resource management practices to be “very necessary”, regarding companies that adopt them as desirable workplaces. Furthermore, there is a high willingness among respondents to apply for jobs at such companies. 3
Separate research on recruiting and retaining Gen Z in the public sector concludes that intrinsic rewards such as career advancement, employees’ autonomy, job satisfaction, supervisor support and ‘work itself’ are more important in attracting and retaining this generation than extrinsic rewards. A meaningful and challenging job is a crucial work factor and, says the study, Gen Z possesses altruistic work values associated with corporate social responsibility (CSR). Interestingly, there’s a gender difference here with Gen Z females having a higher preference for values including work-life balance, workplace flexibility and CSR.4
Manager support is key to retaining this generation. Research finds high supervisor support buffers the adverse effects of unmet expectations and work-related boredom, reducing intention to quit. According to the study coaching could be an effective tool to support Gen Z’s aspirations and wellbeing in the workplace, so organisations should make coaching a key element in its culture and part of a manager’s job. 5
Gen Z describes effective leadership as influential, results-driven and leading by example with a servant’s heart. Effective leaders are emotionally intelligent, prioritising their team’s needs and operate with transparency and consistency in communication. 6
Moving beyond marketing to embedding values
It is not enough for leaders to merely communicate values or have purpose statements. The real test lies in how these values are brought to life. For this generation values are not just corporate buzzwords, they are indicators of an organisation’s authenticity and commitment to its people and the wider community.
Embedding organisational values also drives high performance. When employees feel that their work is aligned with a greater purpose they are more engaged, motivated and productive. Aligning values with what employees care about has a direct impact on organisational outcomes, including increased retention and higher performance levels.
Investors in People’s We Invest In People framework includes the principle ‘Living the organisation’s values and behaviours’ which is essential to creating a culture of commitment and authenticity. By deeply embedding values, organisations are better positioned to not only attract young talent but also to cultivate a culture where all employees – regardless of generation – feel valued and aligned with the company’s mission. This kind of authentic engagement ultimately leads to higher performance and a more resilient workforce.
One effective approach is to involve employees directly in value-driven initiatives. When employees see that their efforts are contributing to meaningful outcomes, whether in sustainability, diversity or social responsibility, they develop a stronger emotional connection with the organisation.
Roadmap: How to embed organisational values to attract Gen Z talent
Embedding organisational values effectively requires deliberate actions that ensure these values are lived, rather than simply stated. Below is a step-by-step guide for HR and organisational leaders who wish to transition from communicating values to truly embedding them:
#1
Define clear, actionable values
Many organisations have broad value statements but they often lack specificity. Leaders must ensure that values are clear, actionable and align with the overall mission. For instance, a value like ‘sustainability’ should be defined in practical terms: how will it shape hiring practices, product development or community engagement?
#2
Involve employees in value creation
Engage employees across different levels when defining or revisiting organisational values. This collaborative approach not only ensures that the values resonate with everyone but also fosters a sense of ownership. Gen Z wants a say in decisions that affect them. Encouraging their involvement in the value-definition process aligns with their preference for agency and transparency.
#3
Embed values into daily operations
It is critical to incorporate organisational values into everyday operations. Whether through company policies, decision-making frameworks or team meetings, values must be present in every aspect of work. For example, an organisation that values ‘innovation’ should encourage employees to experiment, take calculated risks and reward creative problem-solving.
#4
Lead by example
Leaders play an important role in demonstrating the values of the organisation. Consistency between what leaders say and what they do is vital in building trust.
Gen Z is quick to notice inconsistencies between words and actions and nothing erodes trust faster than leaders who do not practice what they preach. Leaders should model behaviours that reflect the organisation’s values, such as advocating for work-life balance, prioritising mental health and actively participating in sustainability initiatives.
#5
Reward and recognise value-aligned behaviours
Recognition is a powerful tool for embedding values. Leaders should develop systems that recognise employees who exemplify organisational values in their work. This could be through formal awards, shout-outs in team meetings or highlighting these employees in internal communications.
#6
Foster an environment of open dialogue
Encourage employees to challenge behaviours that do not align with organisational values. Creating a culture of open communication where individuals feel comfortable raising concerns is crucial for embedding values deeply. This means providing channels, such as feedback platforms, open forums or anonymous surveys, through which employees can voice their opinions without fear of repercussion.
#7
Continuously evaluate and adapt values
Values should not be static. They must evolve as the organisation grows and as societal expectations change. Regularly review your organisational values and seek input from employees to ensure they remain relevant and meaningful. Sustainable strategies tailored to evolving expectations are key to retaining younger talent, who seek workplaces that are adaptable and progressive.
Conclusion
To attract and retain Gen Z talent, organisations must move beyond superficial messaging and integrate values into the fabric of workplace culture. Genuine commitment, transparent leadership, and a structured approach to embedding purpose will help businesses build trust, engagement, and long-term success.
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Sources
- Understanding the iGeneration https://casbs.stanford.edu/programs/projects/understanding-igeneration
- Unleashing purpose across industries: Overcome common pitfalls to maximize value & impact. https://www2.deloitte.com/us/en/pages/consulting/articles/esg-impact-and-purpose.html?nc=42&id=us:2sm:3li:4dcom_share:5awa:6dcom:consulting
- How Does Green Human Resources Management Practice Influence The Job Pursuit Intention of Millennial Generation in Indonesia and Malaysia? Fita Wahyuningsih, Lindawati Kartika, Abdul Rashid Abdullah https://publisher.uthm.edu.my/ojs/index.php/jtmb/article/view/12034/6178
- Acheampong, N. A. A. (2021). Reward Preferences of the Youngest Generation: Attracting, Recruiting, and Retaining Generation Z into Public Sector Organizations. Compensation & Benefits Review, 53(2), 75-97. https://doi.org/10.1177/0886368720954803
- Examining the Role of Supervisor Support on Generation Z’s Intention to Quit B Chillakuri – American Business Review, 2020
- M. Jake Agua,s Millennial and Generation Z’s Perspectives on Leadership Effectiveness https://www.regent.edu/journal/emerging-leadership-journeys/gen-z-generation-z-leadership/
