Attracting and Retaining Gen Z Talent in FMCG: Strategies for HR and L&D Professionals

Younger professionals entering the workplace have both a new set of skills and a different set of expectations. Adept at using technology, their digital proficiency and innovative spirit combines with an openness to change and a deep desire to continuously learn. At the same time, they have higher expectations of work-life balance than has ever been experienced in previous generations.

When applying for jobs, their core values mean many will place strong emphasis on DEI (Diversity, equity and inclusion), mental wellbeing and sustainability.

The widening generation gap

The gap between generations has never been more acute than in the boardroom. They are filled with experienced leaders, and when younger professionals are represented, there is a disconnect. Typically, older generations have the feeling younger talent are entitled and unrealistic about the job they are tasked with, while the younger generation feel they are not listened to.

A lack of specific leadership development together with a culture that is not aligned to the changing needs of rising talent means FMCGs are struggling to attract this much needed expertise. But if FMCGs don’t change the way of leading, and young people are not able to show how they would like to be treated, then employee turnover will remain high.

There is a concern that loyalty has all but disappeared and people are more concerned with their own agenda. For example, the focus on productivity output rather than input has changed primarily since the pandemic, where many companies had no choice but to trust their staff. Loyalty means something different to the younger generations, where they want to contribute to the world while being part of a positive working environment.

A further challenge is the overabundance of information. The availability and easy access of data means that often younger employees are more empowered than many of the more experienced leaders, who are no longer the gatekeepers of this valuable data.

The need for an appealing working environment

FMCGs need to create workplaces that not only appeal to young talent but foster long-term engagement. But achieving this requires a cultural transformation to talent management.

Organisations should answer two key questions: Why would young talent choose to join this organisation over another and secondly, what will make them stay? Creating an effective change management strategy to address these challenges will help develop the right leadership programme for current teams and prepare future leaders that are coming up through the ranks.

This learning journey should place emphasis on empowering talent to become a key part of the decision-making processes within the business, helping them to feel more valued and lead to higher employee retention. It will also result in more open communications and an employee-centric approach, creating a more nurturing workplace.

Key areas to consider when attracting young talent

Young professionals are not afraid to explore new ideas and spend time to test out and discover what they want from their career. At the same time, they have different expectations not only about their own work life balance but also about how they can make a difference in the world.

A focus on accelerated career development

Fast-tracking their career development is a high priority for many ambitious young professionals entering the workforce. To attract this talent, FMCGs must provide clear pathways and structured opportunities for growth and career progression. As well as accelerated leadership training, this could include rotational programmes in functions and departments across the business, mentoring and upskilling.

Emphasis on a better work life balance

The ability to work flexibly or on a hybrid basis is now a significant factor in a choice of employer. Young professionals value flexibility primarily to benefit from a better work/life balance and mental wellbeing. Many see traditional work models as outdated and believe productivity can be greater when they have autonomy in a more modern set up. This is coupled with the fact that younger minds are better positioned to leverage technology and digital tools that enable them to collaborate and work remotely.

Corporate Social Responsibility is key

Young professionals are more likely to consider CSR when job hunting. For FMCGs, this might require redefining jobs around social impact issues to meet the needs of this generation. This could include the chance to participate in voluntary or community projects related to improving the lives of others, promoting human rights or the climate change and the environment. Offering international exposure in the form of an inter-company transfer or a sabbatical can also be very appealing.

An environment of continuous innovation

Young professionals are drawn to workplaces that foster innovation and out-of-the-box ideas, giving them a forum to continuously challenge and develop themselves. Keeping talent engaged in this way can improve retention and promote a more employee-focused workplace. It is key to winning the next generation of talent.

Ideas include reverse mentoring where they bring new ideas and skills to more senior people in areas such as digital technology, social media, Gen Z behaviours or emerging trends. This can generate a mutual path of learning between the generations. Multi-generational teams that put young talent with more experienced staff creates diversity and innovation. And innovation labs and workspaces give staff the chance to focus on new strategies or ideas outside of the workplace.

A focus on safety culture

Elements of behaviour that went on at work 20 or 30 years ago are not acceptable today. To foster a motivated workforce, companies need to ensure their employees feel safe, empowered and valued.

Encompassing three main elements, physical, psychological and social, a safety culture should form a key part of a company’s culture, values and attitudes towards its employees. An effective safety culture not only helps reduce accidents and improve productivity but will increase employee confidence and engagement, helping to decrease absenteeism and enhance overall performance.

Embracing the future of young professionals

Attracting young talent into the FMCG sector is about creating a mindset of future-focused leadership that adapts to a rapidly changing workforce. Generation Z is demanding a new approach to their expectations and motivations in the workplace, and your organisation’s vision, mission and values needs to resonate with them. If it doesn’t, you risk falling behind in the talent race.

At Tack TMI, we help companies to transform their culture with tailored leadership development. Our programmes are designed to define and align leadership with the new generation of professionals coming through the ranks, and  help best position companies in the ongoing war on talent.