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Employee engagementCareer developmentLatest NewsRecruitment & retentionRetention of staff

Retention: businesses must tackle the generation divide

by Adam McCulloch 16 Feb 2023
by Adam McCulloch 16 Feb 2023 Research has identified a generation split in retention
Photo: Shutterstock
Research has identified a generation split in retention
Photo: Shutterstock

Fresh insights on the relationship between job satisfaction, retention and age have been set out in new research. 

Most strikingly, the study, commissioned by corporate wellbeing firm Westfield Health, found that most younger workers (55% of those aged 18-24) were considering leaving their posts despite being satisfied with their current jobs.

By contrast, workers aged 55-64 were less satisfied in their roles (54% as against 73% of younger workers) but less than a third were thinking of moving jobs (30%). The researchers called this trend “resenteeism”.

The study’s authors said this posed the question of HR’s level of awareness in job satisfaction across different age groups, to ensure they were being engaged and retained. And for employers that have shed workers, it raised the question of whether the job satisfaction of existing staff could be maintained as organisations “made do with less”.

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But primarily, said the research, the figures raised questions over HR’s approach to retaining younger employees who may leave firms with next to no warning, and engage older workers who might be unhappy in their role.

Westfield contended that a blanket approach was not adequate for addressing the problems of a multi-generational workforce; businesses needed to consider the challenges employees were facing at different points in life. Simply asking younger workers if they were happy was insufficient, the study suggested, because the research showed that their answers were not a reliable guide to whether they stayed with their employer.

Vicky Walker, group director of people at Westfield Health argued that younger workers went “under the radar as a flight risk, but this could have a huge impact on employee turnover”.

She added: “With businesses in the middle of a testing financial crisis, having a more strategy-led approach to talent retention is important; this means it’s no longer enough to track job satisfaction and happiness.

“As young workers are more satisfied with their job yet more likely to leave, HR teams need to be more proactive. Engage with your younger talent and ask them what’s important to them and use this to inform a talent retention and benefits strategy.”

In-depth exit interviews, Walker added, gave businesses the intelligence needed to review where their strategies ought to be reshaped and could help establish links between job satisfaction and employee turnover.

“Different generations have different approaches to work and there will always be individual preferences on what support and benefits people want,” she said.

There was a danger that older workers’ “resenteeism” could permeate the workplace culture and affect wellbeing and productivity, the research found, with the trickle-down effects of a negative workplace culture having a major impact on the talent retention strategy.

To counter this, said the authors, organisations must ensure that older employees’ views are heard and respected. The research found, for example, that older workers were less likely to prefer benefits such as working from home or gym memberships to younger workers, but more likely to prefer private healthcare and health check-ups.

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Walker concluded: “The best way to keep people engaged is to create a culture of continuous improvement where their team members are encouraged to seek out new projects and skills. All these factors can help toward keeping workers engaged, bringing out their best and happiest selves.”

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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