By Maggie Mancini
Gen Z has entered the workforce in droves, outnumbering baby boomers for the first time this year and ready to make up 30% of the labor force by 2030. Like many of the generations before them, they are challenging the norms of the time—seeking out opportunities for career progression, purpose-driven work, and transparent leadership.
“The workforce has indefinitely changed and evolved, especially in the last five years, not only because of the lingering effects of the pandemic changing work as we know it, but also because younger generations are pushing back against traditional workplace norms and burnout is at an all-time high,” says Greg Hill, chief people officer at Exos.
Gallup’s State of the Workplace report finds that 34% of employees were thriving in life in 2023—a one-point decline from 2022—following five years of improvement. This decline was felt mostly by younger workers, Hill says. The report finds that well-being among workers under 35 fell from 35% to 31%, while well-being increased for those over 35, from 35% to 36%.
“Younger workers have been vocal that their top workplace priorities are employee wellness, work-life balance, and flexibility,” Hill says. “To attract and retain this younger generation of workers, employers must understand younger workers’ values and adapt their strategies to showcase how they prioritize these factors for their employees. It’s important to note that these changes do not need to be major shift in the workplace to be effective.”
A recent study conducted by Exos and the Wharton School of Business’ Adam Grant and Marissa Shandell finds that small but impactful shifts to current workplace norms to incorporate daily recovery can address employee concerns and increase retention and engagement, reducing burnout, Hill says.
During Exos’ six-month pilot, the organization studied how incorporating pro-recovery practices throughout the workday and work week could support employee well-being and workplace effectiveness. These practices included:
daily microbreaks to help employees recharge;
improved meeting metrics to reduce burnout;
intentional scheduling; and
a day of the week for balance between work and rest.
Incorporating “You Do You Days,” which typically occur on Fridays, allows employees to use a full day for recovery in a way that makes the most sense for them, Hill says. This could mean spending leisure time with friends and family or catching up on individual work uninterrupted so that employees are prepared for the following week.
After piloting a new approach to work, Exos finds that 91% of employees believe they spend their time effectively at work—whereas only 64% felt this way prior to the pilot. At the same time, 91% believe they are productive at work, compared to 67% prior to the pilot.
Through these changes, Exos finds that 91% of employees believe they spend their time effectively at work—whereas only 64% felt this way prior to the pilot. At the same time, 91% believe they are productive at work, compared to 67% prior to the pilot.
Exos has seen a 34% reduction in employees who experience burnout at least some of the time—from 70% before the pilot to 36% after. The study demonstrates the impact of prioritizing recovery and flexibility over simply offering employees a condensed work week. The results show that organizations do not have to sacrifice well-being to reach business goals, with a 211% sales pipeline increase year-over-year from July to December.
Flexibility is no longer just “nice to have” when it comes to retaining Gen Z—it's a must-have. A recent study from Deloitte finds that work-life balance is the top consideration of this cohort when it comes to choosing an employer, with flexibility following closely behind.
“Allowing employees this flexibility fostered further trust to be built between employer and employee and unexpectedly increased community engagement, as employees now have a larger capacity to engage meaningfully with their coworkers when they aren’t feeling burnt out,” Hill says.
Exos created the Readiness Culture Code (RCC) as a blueprint for employees and employers to rethink their approach to work. The shifts made in the RCC contribute to Exos’ year-over-year retention rates improving, with the turnover rate falling from 47% in 2022 to 29% in 2023.
“The RCC serves as a model for organizations seeking to address similar challenges with employee engagement and retention and can be adapted to fit any workplace culture to increase employee ‘readiness’ so that they can bring their fullest self to work each day,” Hill says.
The goal, Hill says, was to provide ways for organizations to create a workplace environment for sustainable performance. The key to this is to adapt the tactics within the RCC to fit a company’s unique needs, and understand that reducing burnout can be achieved through meaningful change.
“By exploring things like microbreaks, intentional meetings, and experimenting with the flexibility that a ‘You Do You Day’ provides, other organizations can cultivate a pro-recovery culture to combat the burnout crisis,” Hill says.
Research from iHire finds Gen Z employees are seeking out organizations that offer flexibility, opportunities for work-life balance, and mission-driven culture. With Gen Z challenging workplace norms, it’s important for HR leaders to explore ways to meet those expectations.