Stop losing Gen Z: New rules to increase employee engagement

The numbers are stark: employee engagement has plummeted to an 11-year low in 2024,¹ with Gallup reporting only 30% of workers feeling genuinely connected to their work. Even more alarming, nearly 5 million fewer employees report feeling engaged compared to the previous year - and Generation Z is leading this downward spiral.

Yet amid this engagement crisis, a select group of organizations stand out. Top performers maintain engagement levels around 70% - more than double the US average. Their secret lies not in traditional engagement strategies, which are rapidly becoming obsolete, but in recognizing a fundamental shift in workplace dynamics. According to Gallup:

Many have created hybrid working environments that fit their cultures, with clear overall expectations, supported by coaching managers who combine flexibility with accountability. 

U.S. Engagement Hits 11-Year Low (Source: Gallup)

Marlee's Gen Z at Work Study found that while Baby Boomers and Gen X traditionally thrived on "big picture thinking" and rapid change, today's younger workforce craves something dramatically different: stability, structure, and detailed approaches to work.

This generational disconnect helps explain why conventional engagement tactics are failing. As Gen Z becomes an increasingly significant portion of the workforce, organizations need to fundamentally rethink their approach to workplace connection. Our research found that what motivated previous generations not only fails to resonate with today's workforce - it may actually be driving them away.

The good news? Organizations that understand and adapt to these new engagement dynamics are seeing remarkable results. By embracing new rules for workplace connection, they're not just stopping the exodus of young talent - they're creating environments where all generations can thrive together.

Understanding communication preferences

Marlee's research found that communication preferences vary significantly across generations, with a 47% increase in preference for text-based communication among Gen Z, coupled with a 26% drop in desire for voice-based interactions compared to earlier generations. While Gen Z and Millennials prefer written communication and text-based tools like Slack, earlier generations value in-person interactions and verbal discussions. This suggests organizations must consider multiple communication channels to engage a multi-generational workforce effectively.

Source: Marlee Gen Z at Work Study

Differences in work environments

It’s no secret that the work environment has evolved. Across the generations, the Marlee study showed a 17% decline in a preference for working in environments where social interaction is a part of daily work. Earlier generations are very comfortable working in-person in offices alongside their teammates, whereas later generations are more productive in spaces where they can be alone with minimal disruptions to workflow. This could be a private space within an office, like a closed pod or quiet nook, or a working-from-home setup.

Source: Marlee Gen Z at Work Study

The rise of hybrid and remote working has impacted the kind of environments conducive to peak performance across the generations. The study highlights that although there’s a shift towards more solo working environments for Millennials and Gen Z, all generations still gain some energy from being connected and engaged with each other at work. In terms of work culture, Gen Z feels connected to their team via the digital tools they use, like Slack, online communities, WhatsApp, and video calls. 

A study on the Impact of Employees' Workplace Environment demonstrated that productivity peaks when employees can work in their preferred environment. Modern workplaces need to balance quiet, focused spaces for detail-oriented work with collaborative zones for team interactions. The key is flexibility – allowing employees to choose between remote and office work while ensuring they have the digital collaboration tools to support their preferred working style.

Bridging the generational divide

Source: Marlee Gen Z at Work Study

How to improve employee engagement in 2025

Flexible work environments are essential

Hybrid and remote work models have transformed expectations around flexibility. Companies that support remote work not only enhance employee engagement but also broaden their talent pools by attracting skilled individuals globally. To resonate with Generation Z—a detail-oriented and tech-savvy cohort—organizations should provide structured yet adaptable workflows and ensure clear guidelines on roles and responsibilities.

Transparency as a core value

Radical transparency is no longer optional; it is a baseline expectation, especially for younger generations. Regularly communicating workplace changes helps to reduce insecurities, particularly for Gen Z, who prefer written and clear step-by-step updates over ambiguous verbal instructions. Managers should focus on transparency by offering comprehensive overviews of decisions and inviting employee feedback to foster trust.

Empower employees with choices

Flexibility extends beyond remote options. While some employees thrive working from home, others may find it isolating or unproductive. Equip employees with tailored tools and resources to support their chosen work style. For remote workers, ensure ergonomic setups and access to software that facilitates seamless collaboration.

🎯 Discover your team's ideal work environment. Invite your team to answer questions on what motivates them and uncover preferences to boost engagement.

Create psychologically safe workspaces

Younger generations, including Gen Z, highly value workplaces that emphasize emotional safety and inclusivity. Building such environments involves providing channels for employees to share concerns, recognizing individual contributions, and acting promptly on feedback. These actions are vital to foster trust and loyalty, which are precursors to deep engagement.

Match roles to individual strengths

Misalignment between an employee's role and their natural motivations can result in disengagement. As highlighted by the study, Gen Z flourishes in roles where detailed planning and adherence to processes are valued. Leaders must use tools and insights to align responsibilities with individual strengths while accommodating preferences for step-by-step frameworks.

A Marlee "My Results" board showing the highest motivations

Support Gen Z’s collaboration styles

Gen Z prefers written communication tools like Slack or collaborative platforms, as they provide time for reflection and precision. Managers should balance this by encouraging occasional face-to-face or video interactions to promote connection without overwhelming introverted or detail-oriented team members.

Drive engagement through shared goals

Connecting employees with an organization’s mission remains a powerful engagement strategy. However, instead of relying on abstract goals, provide detailed milestones and metrics that demonstrate progress. This approach resonates particularly well with Gen Z, who prefer clarity over ambiguity and are motivated by measurable outcomes.

Invest in always-on employee development

Ongoing personal and professional growth is a powerful driver of employee engagement, especially when supported by cutting-edge tools like Marlee. The real-time insights and AI coaching provide scalable development opportunities for all employees—not just senior leaders. By identifying and addressing motivational shifts as they occur, platforms like Marlee foster a sense of connection and continuous improvement, ensuring that every team member feels valued and equipped to perform at their best.

Ask Marlee "What are my strengths?"

Increasing employee engagement: The path to success

Employee engagement in 2025 hinges on cultivating trust, flexibility, and inclusivity. To meet the evolving expectations of newer generations, businesses must embrace innovative tools and strategies that support high performance and personal growth. Engaged employees are the foundation of organizational success, driving productivity and fostering a thriving workplace culture. Prioritize your team’s needs to secure a competitive edge in 2025.

Start for free with Marlee and transform your employee engagement strategy.