Dear Management-Issues...
We're a mid-sized tech company and, on the whole, I think we're in a pretty good place when it comes to retaining talent. We've invested in flexible working, we offer solid development opportunities and our employee feedback scores are consistently positive. Turnover is low compared to our competitors, and we're proud of the culture we've built.
That said, I've been reading a lot lately about how Gen Z employees are approaching their careers differently - particularly this idea of "lily padding," where younger workers hop between roles. It’s all about purpose and flexibility rather than just chasing the next promotion. It's made me think we could be doing even more to stay ahead of the curve.
How can we sharpen and optimise what we're doing to attract and retain talent?
Sarah, Bristol
Lucy Kemp's Answer:
It sounds as if the foundational basics are in place. But your instinct to look further is spot on. Lily padding is very much the shape of things to come, and the organisations that will really stand out will be the ones that feel genuinely tailored to the individual.
Research from La Fosse's Gen Z report, which surveyed over 2,000 Gen Z employees, found that 72% have either left or would consider leaving a role over inflexible working policies, and 82% said personalisation in their work environment was important to them. You're already ticking some of those boxes, but there are some other points you might like to consider.
Start by rethinking what progression looks like. Right now it sounds as if your career paths only move in one direction. For Gen Z, growth can mean a sideways move into a new team, a short-term project in a different part of the business, or developing leadership skills through mentoring rather than a formal management role. None of that undermines your existing structure. Build in the option for lateral moves and project-based work, and you'll find that people who might otherwise leave have a reason to stay and explore.
Broaden your definition of leadership. Fifty-four percent of Gen Z say they want to start their own company, which tells you something important: they value autonomy and independence. Traditional full-time management roles won't appeal to everyone in that generation. Consider offering rotational or project-based leadership opportunities. These types of roles give people real responsibility and visibility without locking them into a rigid structure. You're still developing your future leaders; you're just giving them more than one way in.
Make purpose part of the day job. Beyond routine work, younger employees want to feel they're contributing to something that matters. That doesn't have to mean a big corporate initiative. It could be a micro-project someone designs themselves, an internal community they lead, or a mentoring relationship they take ownership of.
Our own research flagged that 78% of Gen Z felt they missed out on developing interpersonal skills during early-career roles that were heavily virtual. So look for opportunities to bring people together around projects that stretch them.
Rethink how you reward and recognise people. Perks that feel generic won't land with this generation. What works is recognition that connects to what individuals actually want to achieve. For example, funding for a course they've chosen, support for a side project, or access to a mentor who can help them shape their own path.
Check in more often, and make learning ongoing. Continuous learning is also essential. You don't need to overhaul your appraisal system overnight. Start by making space for short, informal conversations about what people are learning, what they want to try next, and where they need support. Pair that with workshops or peer-led sessions, and you start to build the kind of environment that builds engagement and people feel that they matter.
Your next step: This month, take your five most promising Gen Z employees and have an honest conversation with each of them. Not a formal review: just a genuine check-in about what's working, what they wish they had more of, and where they see themselves going. Map what they say against the five areas above. You'll likely find one or two places where a small shift could make a big difference. You're already ahead - this will help you to optimise.
