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The Clock Is Ticking: Fix The Gen Z Disconnect Or Lose The Next Generation Of Talent

A generational standoff is reshaping the modern workplace, so companies must rethink outdated models to support, retain, and empower Gen Z talent, or risk losing them for good.

Sheya MichaelidesbySheya Michaelides
August 8, 2025
in Workforce
Reading Time: 8 mins read
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The Clock Is Ticking Fix The Gen Z Disconnect Or Lose The Next Generation Of Talent

Gen Z demands purpose, mental health support, real growth, and inclusive leadership, and companies that ignore these needs risk losing their future leaders and profits.

Gen Z has entered the workforce with clarity, conviction, and certain non-negotiables. They’re not afraid to walk away from jobs that undermine their mental health, compromise their values, or fail to offer purpose. What some employers dismiss as entitlement is, in fact, a demand for genuine leadership, inclusive environments, and personal growth.

This is a cultural reckoning. From quiet quitting to public resignations, Gen Z is signalling what traditional systems have long ignored: outdated hierarchies, rigid structures, and vague promises aren’t working for them.

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For companies, the message is urgent. High turnover, burned-out teams, and declining engagement are symptoms of a deeper fracture. If employers continue to cling to outdated playbooks, they risk more than short-term disruption, and jeopardize their long-term relevance.

The question is whether organizations are ready to respond, not with superficial perks and platitudes, but with meaningful change. Gen Z isn’t waiting for the workplace to catch up. They’re already rewriting the rules.

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Will companies listen, or lose the very people they’re depending on to lead them forward?

The High Price of Misalignment: Mental Health, Retention, and Organizational Risk

The growing divide between Gen Z and employers is already taking a toll on mental health, workplace stability, and long-term economic productivity. Organizations are also facing rising turnover, damaged reputations, and costly onboarding and training efforts that fail to deliver a return on investment (ROI). These point to a systemic failure to meet the needs of a generation entering the workforce under unprecedented pressure.

For many Gen Z workers, this misalignment hits hard on a personal level. Within months of starting their first jobs, they often face anxiety, burnout, and a sense of instability. Rather than feeling supported, they find themselves in rigid workplaces that disregard their core values, leaving them disillusioned before their careers can take root. Without adequate support, a young employee’s mental wellbeing can suffer swiftly and severely.

This mental health strain is especially evident among Gen Z women, prompting many to reassess their role in the workforce. 

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“Gen Z women, in particular, are more inclined to consider changing jobs compared to their male counterparts (71% vs. 63%),” Reyhaneh Mansouri, a career expert at Resumedia, told Allwork.Space. “Gen Z is the only age group where women are more likely to switch jobs than men.” 

In contrast, men in other generations tend to show higher job-switching intentions. These figures suggest a distinct dissatisfaction among Gen Z women that broader trends cannot explain. Many are actively planning to leave roles that fail to provide support, inclusion, and psychological safety.

Experts emphasize a clear message: retaining Gen Z talent requires taking mental health seriously as a fundamental element of work design and delivery. Human Resources teams must focus on the real priorities of young employees, including equity, psychological safety, and genuine connection to workplace culture. When these essentials are absent, employees do not simply leave…they suffer.

However, the fallout reaches far beyond individual employees. For organizations, early departures and disengagement among Gen Z workers inflate hiring expenses, weaken productivity, and erode employer branding. Neglecting mental wellbeing turns companies into revolving doors, where talent leaves before it can develop. This talent drain fractures team cohesion drains institutional knowledge, and compounds recruitment and training costs. 

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These challenges pose serious risks to both workforce development and national productivity. It is unrealistic to expect a generation burdened by instability and stress to sustain the economic resilience the future demands.

How to Build a Workplace Gen Z Won’t Walk Away From

With Gen Z projected to make up nearly 30% of the global workforce by 2030, organizations that fail to address this generational disconnect risk losing both current employees and future leaders.

At the heart of the problem are outdated workplace systems, misaligned feedback practices, and vague career paths that fail to reflect Gen Z’s priorities. 

Irina Pichura, a renowned career coach at Resume.org, stressed to Allwork.Space the need for “clear, skill-based roadmaps, not just the generic ‘growth potential’ prior generations have been promised.” 

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She noted Gen Z’s preference for direct, timely feedback and recommends “…check-ins that are more frequent, perhaps monthly, via Slack, not just a yearly performance review would do better.”

This emphasis on structure and clarity aligns with Mansouri’s perspective. 

“Gen Z is looking for personalized growth paths and real-time feedback,” Mansouri explains. “Since, according to the statistics, career growth is significant for Gen Z, and they are only starting to work, companies should offer a ‘clear career path’ for junior positions.”

Practical steps could include redesigning entry-level positions to accommodate Gen Z’s skills and expectations, developing structured onboarding programs, and incorporating transparent and ongoing feedback mechanisms. Investing in soft skills and cultural alignment, beyond technical proficiency, is also essential to long-term engagement.

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The misalignment is also about communication. At Michigan State University, for example, students are learning the fundamentals of workplace communication, including how to manage networking conversations and spot social cues when a discussion is faltering. 

Still, the burden should not fall solely on Gen Z. Mansouri urges employers to improve leadership development by prioritizing communication strategies tailored to hybrid work environments and Gen Z’s expectations: honest, empathetic, and frequent exchanges.

Supporting mental health is also non-negotiable, and can be done through flexible work arrangements, wellness initiatives, and inclusive cultures. 

“DEI and a positive work environment, which are directly related to mental health, are one of the most important things for Gen Z, so this is the place that has a big room for improvement,” Mansouri says. 

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Preparing managers to support this new workforce is also critical. As Mansouri explains, many are “unprepared for this shift, especially those trained in older models of authority and feedback.” 

She emphasizes the need to develop emotional intelligence, coach-style leadership, and better integration of the digital tools Gen Z expects.

In a recent Allwork.Space podcast, Stephanie Chung discussed the value of empathetic leadership in navigating a multigenerational workforce. Her insights reinforce the importance of flexible, human-centered management approaches to ensure younger workers are not only hired, but they stay for the long haul.

Beyond leadership, employers must take active steps to build trust and cultural connection. Mansouri recommends “monthly pulse surveys to gauge sentiment and identify specific improvement areas that may go unnoticed,” along with “meaningful moments of connection throughout the year,” such as wellness events, group activities, and social gatherings. 

Pichura adds that allowing Gen Z “to bring their authenticity to work while still aligning with company values” is vital and emphasizes networks such as peer groups, ERGs, and mentorship circles are not optional.

The phenomenon of career catfishing (where candidates accept offers and then do not show up) is a clear signal of mistrust. Around 34% of Gen Zers admit to doing this, often due to poor recruiting experiences and unclear processes. This trend also emphasizes the importance of starting with transparency. 

Clear salary bands and visible promotion pathways help build trust, address equity concerns, and reduce the occurrence of drop-off and catfishing.

Meeting Gen Z’s expectations does not mean giving in, but means creating a work environment rooted in clarity, respect, and accountability.

Why Supporting Gen Z Is a Strategic Imperative

Failing to support Gen Z carries serious consequences. For many young professionals, entering the workforce filled with ambition only to burn out within months is a stark reality. 

For companies, this means missing out on the chance to develop a loyal, energized, and future-ready workforce. On a broader scale, it signals a setback to the economy at a time when innovation, inclusion, and adaptability are imperative.

To reduce turnover and retain the next generation, organizations must rethink how they onboard, develop and support early-career talent. The answer is not to expect Gen Z to “toughen up” or fit outdated models but to lay stronger, more sustainable foundations for success.

If employers continue to alienate the very people they will need to depend on, the consequences could extend beyond high turnover and eventually erode the talent pipeline vital for the future of work.

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Tags: Career GrowthDE&IHuman Resources (HR)Leadershipwellness
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Sheya Michaelides

Sheya Michaelides

Based in London, U.K., Sheya Michaelides is a freelance writer, researcher and former teacher dedicated to exploring the intersections between psychology, employment, and education – focusing on issues related to the future of work, wellbeing and diversity, equality, and inclusion (DEI). With a varied employment background across the public and private sectors, Sheya brings a nuanced perspective to her work. She holds an undergraduate degree in Organizational Psychology and Industrial Sociology and a first-class Master's degree in Applied Psychology.

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