Run a Tight Ship

Three in five Generation Z employees describe their current role as a situationship—in other words, a short-term job they never intended to keep—according to the 2025 Gateway Commercial Finance Study of more than 1,000 US workers. Half the respondents were Gen Z employees (those born between 1997 and 2012); the other half were managers or employees with hiring experience. The current average Gen Z job tenure is 1.8 years, with half of respondents in that age group planning to leave within 12 months and half ready to walk out at a moment's notice. In 2024, the US Bureau of Labor Statistics found that workers aged 55 to 64 stayed at their jobs for an average of 9.6 years, compared with 2.7 years for workers aged 25 to 34. In addition, BLS notes that "a larger proportion of older workers than younger workers had 10 years or more of tenure."

The Gateway report also highlights that Gen Z staff are increasingly ignoring the traditional two-week notice period companies expect from departing team members. Gateway found that 30 percent of Gen Zers have ghosted their employers, quitting without providing any notice or explanation, despite 25 percent of managers calling short stints on resumes a red flag. Such behavior increases turnover rates, costing organizations more money than upskilling current employees, with the Society for Human Resource Management estimating that replacing an employee can cost up to double that person's salary. Other red flags that crop up when hiring Gen Z workers include unrealistic salary or title expectations, lack of soft skills, and poor communication.

Talent development professionals face a dual challenge: recruiting younger workers effectively and keeping them long enough to see a return on investment for training or upskilling. Employers are taking proactive steps to improve their retention rates.

Gateway's study states that TD practitioners must address structural issues causing Gen Z workers to leave (such as work-life balance, overall job satisfaction, mental health, and financial stability), including solutions such as offering flexible scheduling, clear paths for growth, mental health support, transparent compensation frameworks, bonuses and raises, and purpose-driven projects, to cultivate loyalty in an inherently skeptical generation.

Companies that rethink how they engage and support young professionals can chip away at high turnover rates and build a foundation of trust, purpose, and engagement that Gen Z values. Employers that align intent with action will transform situationships into strategic partnerships.