How to Hire and Retain Gen Z Talent: A Small Business Guide
Generation Z… those born roughly between 1997 and 2012... are an interesting bunch! I have one in my house, so I have hands on experience with this topic. And currently, in my full-time job, I am managing three Generation Z employees, so I continue to learn more each and everyday. Much like when I discussed millennials, I’ve found that understanding what makes Gen Z tick is crucial for building a dynamic, thriving team. Over my career, which began in management when I was just 23 back in 2001 (and I’m 46 now), I’ve led teams ranging from two to twelve people, spanning ages 23 through 55. I’ve seen firsthand how different generations bring unique talents and challenges to the workplace.
In this post, I’ll share some best practices for recruiting and retaining Gen Z employees—integrating anecdotes from my own experiences, including my time as the Director of Digital Media at the Minnesota Timberwolves, where I managed an entire team in their early-to-mid 20s. I’ve managed teams with a wide range of ages, but there’s something distinct about Gen Z. Let’s dive in and explore why they’re so vital to the growth of small businesses, and how you can attract and keep them on your team.
Understanding the Gen Z Mindset
Although every individual is unique, Gen Z tends to share certain traits that set them apart from previous generations:
Digitally Native: This generation grew up with smartphones, social media, and instant access to information. They’re naturally adept at leveraging technology.
Cause and Purpose Driven: Gen Z cares deeply about social, environmental, and ethical causes. They want their work to have meaning and align with their personal values.
Entrepreneurial Flair: With platforms like YouTube, TikTok, and other social channels, Gen Z is accustomed to side hustles and innovative thinking outside the traditional 9-to-5.
Diversity and Inclusion Focus: Growing up in a more diverse cultural environment, they place a premium on workplaces that respect and celebrate different backgrounds, identities, and perspectives.
Flexible, Fast-Paced Communication Style: They respond well to immediate feedback, quick updates, and real-time collaboration tools.
During my time leading young professionals recently at Homes for Heroes and the Marine Retailers Association of the Americas, I quickly discovered that speed, transparency, and genuine social impact resonated powerfully with younger team members. We found that by aligning our goals with values that mattered to them—like community outreach and digital innovation—our projects gained energy and momentum.
Why Small Businesses Need Gen Z
Small businesses have a unique opportunity to shape the work experiences of the newest generation. Here’s why it’s crucial to bring Gen Z on board:
Fresh Perspective: Their tech-savvy outlook and entrepreneurial spirit can revitalize outdated processes and open doors to new, innovative ways of doing business.
Emerging Consumer Insights: Gen Z is already shaping consumer trends. By hiring them, you gain direct access to insights about one of the most influential markets.
Long-Term Growth: Younger employees, when properly engaged, can become the future leaders of your organization.
Diversity and Adaptability: They can help create an inclusive culture that benefits everyone. By listening to Gen Z voices, you can more readily adapt to changing social and market dynamics.
In managing teams across wide age ranges, I’ve always been amazed by how younger individuals can challenge the “we’ve always done it this way” mentality. They bring a hunger for progress that, when harnessed, can push a small business to new heights.
Best Practices for Recruiting Gen Z
Recruiting Gen Z goes beyond posting a job description on LinkedIn. Here are some strategies I’ve found useful:
1. Leverage Digital Channels
Social Media Outreach: Tailor your recruitment campaigns to platforms Gen Z frequents, like Instagram or Snapchat.
Visual Storytelling: Incorporate video tours of your workspace, “day in the life” reels, and employee testimonials. Gen Z responds to genuine, behind-the-scenes peeks into your culture.
2. Highlight Authentic Values
Mission-Driven Messaging: Emphasize your company’s ethics, charitable initiatives, and any community-focused projects.
Inclusive Language: Show that diversity and respect are core to your business. Use messaging that welcomes all backgrounds and perspectives.
3. Offer Flexibility and Growth
Adaptable Work Arrangements: Consider remote or hybrid options. Gen Z appreciates the freedom to work in ways that suit their productivity.
Pathways to Leadership: Outline how entry-level roles can advance to higher responsibility. Show them there’s room to grow, not just a stagnant position.
Back when I was building digital teams, I found it extremely helpful to map out a professional trajectory for candidates. If they’re stepping into a social media coordinator role, I paint the picture of how that can evolve into a broader digital marketing or analytics leadership path. It adds real value to their sense of long-term potential within the company.
Best Practices for Retaining Gen Z
It’s one thing to hire Gen Z talent—it’s another to keep them engaged and committed. Here’s how you can do just that:
1. Cultivate a Positive, Inclusive Culture
Collaboration Over Competition: Create an environment that encourages peer support, open brainstorming, and combined victories.
Celebrate Milestones and Innovations: Even small successes can be big morale boosters. A quick shout-out in a team meeting or a public acknowledgment on social media goes a long way.
Work-Life Integration: Gen Z often blurs the line between “personal” and “professional,” looking to do meaningful work that fits comfortably into their lives.
Over my 23 years of leading teams, I’ve learned that the culture you build is everything. I’m proud to say only two employees have ever left my teams during that time, which I attribute to a culture that values everyone’s input and encourages personal growth.
2. Prioritize Continuous Development and Feedback
On-the-Spot Coaching: Don’t wait for annual reviews; Gen Z thrives on quick, real-time input.
Peer Mentorship Programs: Pair newer employees with seasoned staff, creating a sense of community and mutual learning.
Recognition of Individual Progress: Celebrate personal growth just as much as team accomplishments.
In my experience, a 23-year-old fresh out of college can quickly gain confidence when they have consistent feedback. During my Homes for Heroes and MRAA days, weekly one-on-ones with my junior staff boosted their performance and fostered long-term loyalty.
3. Encourage Autonomy and Innovation
Project Ownership: Allow Gen Z employees to take charge of smaller projects or initiatives where they can truly make their mark.
Tools and Resources: Whether it’s the latest marketing tech or an opportunity to learn new analytics software, invest in cutting-edge tools that align with their skill set.
Celebrate Calculated Risks: If a project fails, use it as a learning moment rather than a punitive measure. Show them you value the courage to try something new.
One reason I was able to lead a productive digital team of twenty-somethings was because they had the freedom to test fresh ideas. Sure, not every initiative worked, but the ones that did often fueled meaningful improvements and boosted overall creativity.
The Long-Term Impact on Small Businesses
By successfully integrating Gen Z into your workforce, you position your small business for:
Rapid Innovation: Their digital expertise and out-of-the-box thinking can help you stay ahead of industry changes.
Stronger Brand Appeal: Companies known for championing young talent often gain a competitive edge in recruiting and marketing.
Talent Pipeline Growth: As you nurture Gen Z employees, you’re effectively building the next leadership tier in your business.
Organizational Resilience: With Gen Z’s adaptability, your business is better equipped to handle market shifts and technological advancements.
Reflecting on my decades of managing teams, I firmly believe that investing in younger generations is a key strategy for sustaining growth. By offering them a platform to contribute meaningfully and a clear path for development, you create an environment where both the business and the employees thrive.
Bringing It All Together
Gen Z isn’t all that different from other generations in wanting respect, opportunities for advancement, and a positive work culture. What sets them apart is their native comfort with technology, their emphasis on social values, and their desire to see immediate impact. For small businesses looking to grow and remain relevant, embracing these traits can be a powerful catalyst for success.
Throughout my journey, whether managing a team of two or twelve, I’ve learned that clear communication, thoughtful feedback, and a people-centric culture go a long way toward building loyalty and driving innovation—especially with Gen Z. By focusing on authenticity, inclusivity, and professional growth, you can harness the full potential of today’s youngest professionals, ensuring they not only join your ranks but also help shape the future of your business.
If you have any questions or would like to share your own experiences, feel free to drop a note. I’m always up for a conversation about leadership, team culture, and how we can all grow together.