The NextGen Hub / Volume 01
The Loyalty Contract
Default loyalty died with Gen Z. Conditional loyalty lives, and it costs both sides more than they think.
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The NextGen Hub / Volume 01
Default loyalty died with Gen Z. Conditional loyalty lives, and it costs both sides more than they think.
The opening
The stakes
The narrative that Gen Z can't be retained is costing organisations more than they realise. As long as organisations believe attrition is inevitable, they don't invest in what prevents it. As long as young talent doesn't use their agency to ask for the things they are missing, they confirm the cliché written about them.
The paradox at the heart of it
of Gen Z want to stay with their current employer as long as possible.
Research by Ormit Talent
CIAO
GOODBYE
are considering leaving anyway.Yet, 43 % is currently planning to leave.
Source: iVOX survey by Ormit Talent & D'Ieteren 2021, 1695 Gen Z respondents in Belgium & the Netherlands
Read the 65% on its own, and you get the reassurance organisations crave: they want to stay. Read the 43% on its own, and you get the panic line LinkedIn loves: this generation can't be retained. Read both in the same breath, and you finally hear what Gen Z is actually saying: we'd rather stay than leave. We'll leave if we have to.
The same dual sentence is being spoken on the other side. Organisations name retention as their biggest worry, and design the work in a way that doesn't prevent the exit.
Both sides have skin in the game. Organisations could equip their managers, build the path, and stop treating coaching as an "if there's time" line item. Young professionals could ask for the feedback they say they want, name their ambitions out loud, and learn to navigate an organisation that isn't (yet) perfect.
The 65% is the offer on the table. The 43% is the ticking clock attached to it. The gap between them isn't a personality trait. It's a set of conditions: observable, fixable, and shared.
The table, from both sides
Two sides naming the same problem.
Neither side is acting on it yet.
The organisation's half sounds like a scorecard that already knows the answer.
40% of companies grade themselves insufficient
on retaining young talent.
Only 20% rate
their own retention as very good.
35% name talent exitthe risk of early exit as their single biggest challenge.
And there's a second admission, harder to see until you put two questions side by side. We asked 573 organisations what their biggest challenge with young talent is. We got the cliché back: not loyal enough, exit too fast, too much guidance. We asked the same organisations what they actually do for that talent. What is left is the solution staring back: the gap between what employers say about young talent and what they admit they're not doing for them.
“It's like handing the keys to someone who just passed their driving test and expecting them to survive rush hour from day one. At the same time, you ask the driving instructor to coach them, but only at red lights, because the rest of the time he's too busy steering his own school bus full of screaming toddlers. And then we wonder why nobody enjoyed the ride.”
"We hebben KPI's voor wervingskosten, maar van de kosten van verloop hebben organisaties geen goed beeld. En daar zit het grootste deel."
We have KPIs for recruitment cost. But most organisations have no clear picture of what attrition costs them. And that's where most of the money goes.
There's something quietly telling about the word retention. It belongs to the language of things, not people. We retain water, we retain heat, we retain whatever would otherwise slip away. Built into it is the assumption that talent is already halfway out the door, and that the job is to hold on a little harder.
But no one's ever been held into loyalty. The tighter the grip, the sooner they go. What keeps someone around is having a real reason to stay: work they care about, people who notice them, some sense of where they're headed. So we keep the word, but we turn it on its head. Retention isn't about holding people in. It's about building something they'd never choose to leave.
The organisation's side
Gen Z's side of the contract
Both sides walk in with assumptions. Talent assumes the growth will arrive as a logical consequence of doing good work. Organisations assume loyalty will arrive as a reward for hiring well. Neither assumption survives the chaotic reality of day-to-day collaboration. The contract only takes effect when both parties sign it.
The contract is put to the test by three key drivers, each shaping what working life really feels like. Together, they reveal whether the contract between employer and employee holds up in practice. And each one calls for commitment from both sides. Let's take a closer look at these retention drivers, one by one.
The manager tells young talent they are not alone. Growth tells them where they are going. Connection tells them the journey is worth making. When all three are present, the data shows something remarkable: people stay not because they have to, but because they want to.
When one is missing, the others start to erode. A good manager without a clear path feels like being supported toward nothing. Growth without connection feels like climbing alone. Connection without a future feels warm but empty. The three are not independent levers. They are a system, together forming the core of the loyalty contract between employer and employee.
That is what the data shows. And that is where the real work begins.
The Drivers go where the hot takes won't.
Sometimes your manager is the only reason you stay. Sometimes they're the reason you go. The hour, every week, that retention quietly turns on.
Young talent doesn't just need someone who believes in them. They need somewhere to go.
What belonging actually looks like, and why your ping-pong table, buddy system, and Friday drinks aren't it.
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