The New Challenge of Engaging Younger Workers

By now, it’s well known that the COVID-19 pandemic caused lasting disruptions to work worldwide, affecting the engagement and wellbeing of millions of employees. Gallup's latest data show that U.S. employee engagement stagnated at the end of 2023, following a slight uptick in the first half of the year, but it remains below its high in early 2020.

Perhaps less well known is that post-pandemic engagement trends vary widely across age generations, with younger employees feeling the most detached from their work and employers but baby boomers remaining engaged.

Baby Boomers Stay Engaged, Generation X and Millennials Lose Ground

Since March 2020, the percentage of engaged baby boomers (born between 1946 and 1964) has increased by two percentage points, from 34% to 36%, while the percentage of actively disengaged baby boomers has decreased by the same amount, from 17% to 15%. This means that baby boomers have maintained a positive engagement ratio of 2.4 -- for every actively disengaged employee, there are more than two engaged ones.

On the other hand, the percentage of engaged Gen X employees (born between 1965 and 1979) has declined by four points, from 35% to 31%, while the percentage of actively disengaged Gen X employees has increased by one point, from 17% to 18%. This means that Gen X employees have seen their engagement ratio drop from 2.1 to 1.7 -- for every actively disengaged employee, there are now less than two engaged ones.

But the most dramatic decline in engagement has occurred among younger generations, especially the older group of millennials (born between 1980 and 1988). The percentage of engaged older millennials has declined by seven points, from 39% to 32%, while the percentage of actively disengaged older millennials has increased by five points, from 12% to 17%. This means that older millennials have seen their engagement ratio plummet from 3.3 to 1.9 -- for every actively disengaged employee, there are only slightly more than two engaged ones.

The younger group of millennial and Gen Z employees (born 1989 or later) have experienced a five-point decline in engagement, from 40% to 35%, while the percentage of actively disengaged employees has increased by one point, from 13% to 14%. This means that the younger millennials and Gen Z employees have seen their engagement ratio fall from 3.1 to 2.5.

Understanding Generational Differences in Engagement

Gallup's research has identified 12 elements of employee engagement that measure the extent to which employees have their basic needs at work met, feel supported and valued, receive clear expectations and feedback, and have opportunities to learn and grow. Across all generations, the percentage of workers who know what is expected of them at work has declined by four or more points since March 2020, indicating a widespread lack of clarity and alignment in the post-pandemic workplace.

However, some engagement elements have shown larger generational differences than others. Millennials and Gen Z employees have seen the greatest decline in feeling cared about by someone at work, having opportunities to learn and grow, feeling connected to the mission of the organization, having progress discussions with managers, being given opportunities to develop, and feeling that their opinions count. These items have all dropped by five to nine points for younger workers since March 2020.

These findings suggest that younger workers progressively feel more detached from their organizations and managers and are less likely to see a future for themselves in their current roles. And this generation of workers, especially, is looking for an employer with a purpose they can identify with. Gallup also finds that younger workers are somewhat more likely to be working in remote jobs and are increasingly more likely to be actively looking for new jobs or watching for openings.

How to Inspire and Keep Younger Workers

The generational trends in engagement have important implications for leaders and managers who want to attract, engage and retain younger workers in a post-pandemic world. To do so, they need to create a culture that builds trust, connection and growth. Here are key actions that leaders and managers can take:

• Communicate a clear, compelling vision of the organization's purpose, values, goals and the type of culture that supports these aspirations.
• Focus on managers by revisiting their job responsibilities. Seventy percent say they have not been trained to manage a hybrid workforce and are increasingly less engaged, burned out and looking for other jobs. Help them simplify their role to coaching their employees through clear goals, accountability and having one meaningful conversation weekly with each person they manage. These regular conversations should be about employees’ performance, development, and career aspirations and show how each team member’s work contributes to the bigger picture.
• Establish clear expectations for in-person office time, particularly for young employees who need development and mentoring and want to feel connected to the larger organization. These expectations also matter for all employees to help create an environment of quick decision-making and innovation and build collaboration and trust. Set a specific number of days per week to work on-site, at least two to three, depending on the amount of independent and collaborative work. For younger workers, development and purpose are keys to moving them from having a gig-worker mindset that has emerged since the pandemic -- and is detached emotionally from the organization -- to a mindset that is more connected to the organization. In-person time helps to build the strongest learning and loyalty.
• Leaders and managers must set an example by being on-site regularly. Employees need to receive clear and meaningful communication about the benefits of in-person time for the employee, organization and customers. Managers need to initiate team member discussions about coordinating in-person time.
• Have managers provide flexible and personalized learning and development opportunities that align with each employee’s strengths, interests and goals.
• Offer flexibility options for employees who need to be on-site full time.
• Encourage collaboration and innovation by asking for and acting on younger workers’ ideas and opinions.

By implementing these measures, leaders and managers can increase engagement and loyalty among younger employees, improving performance, customer service and retention. In a post-pandemic world, engaging and retaining younger workers presents both a challenge and an opportunity to gain a competitive edge and ensure long-term success.