January 2023
What Workers Want
Retention Strategies for Gen X and Gen Z Federal Employees
In a new study examining why civil servants leave their jobs—or walk away from the federal government altogether—Partnership for Public Service (PPS) researchers offer us a reminder of how the working world continues to evolve.
“The future of work is changing, as employees who were remote during the pandemic return to the office or elect to stay virtual long term,” wrote the Partnership’s Maddie Powder and Paul Pietsch in a summary of the study, conducted with support from ServiceNow.
“In 2022, many employees in both the private and federal sector do not have the same workplace expectations, values or patterns as they did before COVID-19.”
Of course, many workers have recently shown that they are willing to leave their jobs in search of other employers who will meet those expectations; those offering the type of professional growth opportunities and, importantly, the type of flexibility they crave in their work.
The federal government should be paying close attention to how employees’ needs have changed, and what it will take to retain talent going forward, the authors wrote, noting that roughly 30% of the federal workforce will reach retirement age within the next two years, and that around 25% of public employees say they’re currently considering switching jobs.
Flexibility Required
For this study, PPS focused on issues affecting retention among Generation X—those born between 1965 and 1980—and Generation Z— workers born between 1997 and 2012—as public servants in these two groups “are at vital points in their careers and occupy critical positions in the federal workforce,” wrote Powder and Pietsch.
Indeed, it stands to reason that more Gen X civil servants are settling into senior roles, while those in Gen Z “are the future of the federal workforce and represent the next generation of public servants,” the authors noted.
And, as with their counterparts in the private sector, public sector workers of all ages have come to value flexibility more than ever before, consistent with prevailing research.
Not surprisingly, the Partnership’s study finds the same. This research, however, finds Gen X and Gen Z workers seeking out flexibility in their work for different reasons.
Many Gen Z employees, for instance, entered the workforce after the start of the coronavirus pandemic, Pietsch recently told Federal News Network.
“Working in a hybrid way, working remotely or working with workplace flexibility is baked into the equation,” said Pietsch, the senior manager for federal workforce research at the Partnership for Public Service.
“It is what’s usual, [and it’s] what they expect. That is the status quo. And if it ceases to be status quo, that could present challenges,” from a retention standpoint.
“The young people we spoke with often described remote and hybrid work as an emblem of trust, of respect, that it showed that their leaders knew they could do the work, and could do it without in-person supervision on a daily basis,” he continued. “And they valued that. So, I think that’s something to keep in mind for leaders.”
Gen X workers, meanwhile, also said they valued flexible workplace policies, but many in this age group said that having more remote work and telework options has helped them better address family needs.
Naturally, factors such as a federal employee’s agency, career field, gender, location and race can affect turnover rates. For example, the PPS research noted that Gen Z civil servants at the Department of Energy had a turnover rate of 5.5% in 2021, about half the average for all Gen Z civil servants. Turnover among civil servants at the Department of Commerce sat at 1.7% in the same timeframe, half the overall federal average for Gen X, according to PPS.
The variables that influence staff retention are bound to vary from employee to employee and agency to agency. In addition to stressing the importance of flexibility, Gen X and Gen Z workers in this study cited a handful of other reasons why they remain in government service, in addition to flexibility, such as financial incentives, facilitated growth, connection to the organization’s mission and an inclusive and supportive workplace culture.
To foster better retention, the PPS researchers suggested developing “targeted strategies that engage and empower their staff,” while adding that “few agencies have developed and implemented tailored retention plans.”
More Than Just Money
Employee benefits such as pension plans, generous paid time off policies and continuing education opportunities have always been a key piece of the retention puzzle for public-sector employers, said Melissa Barker, vice president of practice development at Phoenix-based recruitment firm The Duffy Group.
Job stability is becoming a bigger factor in federal employee retention as well, particularly in a volatile economy, Barker told HR News.
“Workers want to know that their jobs will be there tomorrow. Historically, public sector employers have weathered changes in the economy with little effect on the workforce.”
“They want the opportunity to make a difference in their jobs,” added Barker, pointing to The Duffy Group’s recent work with a municipality seeking to recruit a victim’s advocate as an example.
“It was critical to uncover candidates connected with the town’s mission of helping underreported domestic violence in the community,” she said. “At the same time, candidates needed to know that the municipality was committed to delivering on the mission.”
Compensation will always be important to employees, of course. But, now more than ever, it takes more than just pay to keep workers on board and engaged, Barker concluded.
“Public sector employers who want to retain workers need to ensure that their salary and benefits package remain competitive. They should also remind team members of their mission and how their employees are delivering on this promise every day. In doing so, they must create and maintain a culture of inclusion and positive employee morale.”
Indeed, an inclusive culture that is flexible and aligned with employees’ personal values is critical to Gen X and Gen Z retention, added Kathleen Schulz, global innovation leader for organizational well-being at Gallagher.
Gen X and Gen Z workers are “increasingly socially conscious, and they want to work for organizations that put purpose over profit,” said Schulz. “Both generations also see flexibility and having control over where and when they work as important to their ‘whole life’ integration.”
For Gen Xers, the increased autonomy that many experienced during the pandemic has helped them focus more on their well-being and support their caregiving needs, she added.
Some Gen Z workers, meanwhile, may have entered the workforce for the first time during the pandemic, and only know a remote or hybrid work experience.
“A forced return to the office doesn’t make sense to them and can threaten retention,” said Schulz. “However, they strongly desire collaboration and connectedness to other colleagues.”
These employees also value opportunities for career growth, mentoring and meaningful recognition, she said, adding that workers from each generation might consider each of these areas differently.
“Career growth for Gen X is often associated with the opportunity to move into a leadership role, while career growth for Gen Z is often understanding a path for advancement and having the opportunity to work on meaningful projects.
“Mentoring and reverse mentoring can provide value in that the traditional mentoring can help Gen Z employees get desired additional feedback and the opportunity to collaborate, connect and learn from those further along in their career,” she concluded. “Reverse mentoring can be powerful in helping older generations in the workforce think differently and can be helpful in gaining new skills, particularly around technology.”
01 January 2023
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February 2023 Issue • HR News Article