The secrets to retaining your Gen X and Gen Y employees

Every employer wants to know the key to keeping their workforce engaged, motivated, and committed. And it comes down to looking at each generation individually, as each one brings its own unique perspectives and expectations to the workplace.

We took a deep dive into this topic in our 2023 Workforce Trends research. By analysing over 2,700 employees across Australia and New Zealand, we unearthed four ways to keep Gen Y and Gen X happy and engaged in your organisation.

But first, let’s meet Generations Y & X

Generation Y also known as Millennials are those born between 1980 and 1994. They’ve grown up with unprecedented technological growth and are known to be highly creative and forward thinking. Now, mid-career, they are in their 30s and 40s and seek stability and a supportive environment to balance their professional and personal commitments.

Generation X, on the other hand, those that are born between 1965 and 1979, are settled in their careers, possibly occupying leadership positions. These are independent, hardworking individuals, quiet achievers who prioritise stability in their careers.

Unlike our Wisdom Workers who are slowing down in their careers, our Gen X & Y’s are mid-career. They are still focussed on continued learning and propelling their careers upwards. Here are our strategies to retain them.

Maintain a clear focus on continuous learning

To keep Gen X and Gen Y engaged, a focus on ongoing learning and development is paramount. With their established careers, you must ensure their roles remain stimulating and aligned with industry innovations. By investing in their growth, you not only stay ahead of the competition but also boost overall job satisfaction.

What employers can do:

• Offer regular higher management training programs, workshops, and online courses.
• Encourage attendance at industry related conferences and events for networking and staying up to date on the latest trends.
• Establish a mentorship program where they can take on the role of mentor, increasing their responsibility and connection to their peers.

Demonstrate a clear path for internal career progression.

Millennials and Gen Y employees are loyal workers who prioritise long-term commitment. To retain them, it’s crucial to offer a transparent career development plan. By outlining the required skills, experiences, and milestones, you empower them to visualise their future and foster their dedication.

What employers can do:

• Ensure employees can clearly see and understand the opportunities available to move-up in your company.
• Promote internal job postings, providing visibility and encouraging applications from Gen X and Gen Y employees.
• Embrace lateral movement, allowing individuals to explore different divisions within the company, showcasing your commitment to finding their best fit.

Give confidence to make internal moves:

While internal career paths may exist, 1 in 5 Gen X and 1 in 4 Gen Y employees lack the confidence to pursue more senior positions. Overcoming this challenge is vital to unlock their full potential and drive their careers forward.

What employers can do:

• Provide tools for self-assessment, helping employees identify their skills and create personalised development plans.
• Offer guidance on potential career paths and ensure employees understand the steps required for advancement.
• Connect them with someone who has successfully navigated a similar path, inspiring confidence through shared experiences.

Nurture communication and support

Although independent and hardworking, Gen X and Gen Y employees still crave leadership support. Lack of communication and guidance can pose a significant obstacle for 24% of Gen X and 27% of Gen Y workers.

What employers can do:

• Schedule regular one-on-one meetings to assess employees’ workload, professional and personal well-being and provide constructive feedback.
• Adopt transparent communication channels, sharing company goals, progress, and changes to keep employees informed and engaged.
• Recognise and appreciate their contributions regularly, as a simple “thank you” or “well done” can go a long way.

Remember to keep generational priorities in mind.

Retaining Gen X and Gen Y employees demands a proactive and strategic approach. By offering support, learning and development opportunities, and clear paths for internal progression, you can create an environment that cultivates long-term commitment.

For further insights into your employees’ priorities, download our 2023 Workforce Trends report, a comprehensive infographic that will help your business cater to each generations needs for long-term retention.