Tips for Creating a Positive Culture That Appeals to the New Generation
Attracting and retaining employees is one of the biggest challenges for small business owners. And with Gen Z projected by the U.S. Bureau of Labor Statistics to make up about 30% of the nation’s workforce by 2030, the challenge is only growing. This isn’t just another generational shift; it’s a complete rewiring of workplace expectations. To connect with this group, employers need to know what makes them tick.
Gen Z, the generation born in the late 1990s through the early 21st century, brings unique strengths and challenges compared to their predecessors. As true digital natives, they’ve grown up with a phone in hand and the world at their fingertips. This lifelong connectivity hasn’t just shaped how they communicate, it’s rewritten the conventional workplace wish list. And while they may not expect their employer to join their latest TikTok challenge or master Instagram Reels, they will expect a work culture that’s just as engaging, fast-moving and authentic as the content they consume.
About Gen Z Employees
According to Fit Small Business, 31% of new employees quit within the first six months of employment, and 93% of companies are concerned about employee retention. Keeping top talent has become a pressing challenge — and with Gen Z on track to become the largest segment of the workforce in the coming years, the stakes are even higher.
What makes it more challenging is that this generation arrives with both high expectations and a set of stereotypes. One of the most common is a perceived lack of work ethic and unrefined social and verbal skills. But is this generalization really true?
Of course, every generation criticizes the ones that come after it, but this group has been born into uncharted territory, navigating uncertainty at a pace that’s mind-blowing. They’re coming of age in an era shaped by AI’s rapid rise, the looming impact of global climate change and constant global connectivity. It’s no wonder their priorities and expectations look different.
GWI reports that 25% of Gen Z spend six or more hours a day scrolling on social media — yet their ambition remains strong. Many juggle side hustles, creative projects and ongoing education, showing they’ll go the extra mile when engaged and valued.
For employers, especially franchise owners, the takeaway is clear: tap into this generation’s drive by understanding what motivates them. Here are seven ways to attract, engage and retain Gen Z employees.
How to Recruit and Retain Gen Z Employees
Offer Flexibility
Raised on digital tools and instant access to information, Gen Z values efficiency over rigid schedules. The pandemic fast-tracked this mindset, proving productivity isn’t tied to an office. A FranchiseWire article noted that remote work is not only viable for Gen Z, but preferable to the typical 9-to-5 commute. Flexible options signal a modern, forward-thinking workplace — a major factor in whether they sign on and stick around.
Prioritize an Inclusive Culture
As the most diverse generation in history, Gen Z expects its workplace to mirror that reality. They want employers who go beyond performative inclusion and actively foster environments where all identities are respected and represented. In fact, 56% of Gen Zers say they would not accept a job without diverse leadership, according to the World Economic Forum. Franchise owners who invest in DEI (diversity, equity and inclusion) initiatives are more likely to attract loyal, motivated Gen Z talent.
Emphasize Awareness of Mental Health
Gen Z seeks employers whose values align with their own. Gen Z reports the highest levels of stress and mental health concerns compared to any other generation, according to the American Psychological Association. As mental health challenges continue to rise, forward-thinking business owners must make well-being a priority. For franchise owners, this can mean promoting work-life balance, offering access to resources or simply normalizing conversations about mental health.
Respect Individuality
Gen Z values autonomy and personal growth. The great news for employers is that Gen Z may be the most entrepreneurial generation yet. By supporting their sense of identity — whether through creative input, leadership opportunities or space for self-expression — franchise owners can cultivate a more engaged, future-focused team.
Keep Work Interesting
Gen Z has grown up on constant stimulation: social media, streaming and instant feedback have wired their brains to crave frequent rewards and rapid engagement. These experiences trigger repeated releases of dopamine — a neurotransmitter linked to motivation and pleasure — which conditions them to seek novelty and quick gratification. While this environment has sharpened their ability to multitask and adapt quickly, it also means they can become disengaged when tasks feel repetitive or slow-paced. According to a Gallup report, only about 35% of Gen Z workers feel engaged at work, compared to higher rates in older generations. To keep their attention, franchise owners should offer variety, set clear goals and create ways for employees to see progress and celebrate wins.
Make Work Meaningful
Gen Z sees work as a way to support a fulfilling life, not the centerpiece of their identity. Loyalty to employers is lower in Gen Z than other generatons, as their focus is on personal passions and experiences. For franchise owners, the key is to make work purposeful and impactful. Roles that connect to bigger goals or benefit the community can make even entry-level jobs feel meaningful.
Leverage Social Media
For Gen Z, social media isn’t just entertainment — it’s how they communicate, learn and build community. According to Pew Research, over 95% of Gen Z use social platforms regularly. Franchise owners who leverage these channels to showcase culture, celebrate employees and engage authentically can build stronger connections with this generation. Using social media for recruitment, recognition and feedback fosters a sense of belonging and keeps Gen Z employees engaged beyond the workplace.
Create a Sense of Team
Despite stereotypes of being digitally connected but socially isolated, Gen Z values genuine community and teamwork. A Deloitte study found that 77% of Gen Z prefer collaborative work environments where they can learn from peers and build relationships. Franchise owners who foster a strong team culture — with regular check-ins, mentorship and opportunities for group collaboration — can boost morale and reduce turnover. Creating a workplace where Gen Z feels connected and supported helps build loyalty in a generation known for valuing meaningful relationships.
Hiring Gen Z isn’t without its challenges, but the payoff can be huge. Unlike their Gen X parents who accepted rigid 9-to-5 jobs without question, Gen Z questions everything. They’ve seen their peers build brands from a bedroom and become influencers overnight, and learned that anything is possible. If they take a job, they want it to matter — with purpose, connection and flexibility. Give them that, and franchise owners gain employees with fresh ideas, bold thinking and tech-savvy skills that come naturally to a generation raised in the digital age.
