For a long time, we measured employee engagement by the ruler of promotions and tenure. If they stayed and got promoted, they grew and were engaged. If they left? Then they couldn't handle it or weren't the right fit. Many people held that simple view. The corporate ladder was the only path offered, and those who didn't want to climb it were expected to leave.
Then comes the point that changes everything today. Generation Z doesn't want the ladder. They want the entire mountain.
Let's look at the facts. Deloitte interviewed more than 22,000 young people in 2026 and the result dismantled a myth that many companies still carried or continue to carry: only 25% of Gen Z want rapid progression with accelerated promotions. The majority want gradual growth, with real learning and new challenges. They are not asking to become managers in two years. They are asking to learn different things, work on varied projects, and develop skills that the market will value five years from now. But the question we can hear from them, about how long it takes to become a manager, is not anxiety. It is a request for visibility.
They also embrace lateral growth very well. Lateral growth is when a company offers a professional the opportunity to move horizontally, take on projects in different areas, learn new tools, participate in multidisciplinary squads, without necessarily changing their title or salary. For my generation, that looked like stagnation. For Generation Z, it is exactly what they want.
Randstad showed in 2025 that lack of career progression is the second leading reason Gen Z employees leave, right behind salary. But progression for them is not about title. It is about learning. When a company stops offering new challenges, they interpret that as a signal that they have hit the ceiling. And those who hit the ceiling leave.
So, here we go: what does a company need to do to make better use of this generation's characteristics?
The first move is to create development tracks that do not necessarily depend on vertical promotion. A 23-year-old can become a technical reference in an area without needing to become a manager. They can lead a project without having direct reports. They can teach what they know without holding a senior title. When a company formally recognizes this, it turns lateral growth into a strategic asset.
The second move is to invest in real training. Randstad showed that 75% of Gen Z use AI to learn new skills, more than any other generation. They are already developing themselves on their own. What the company needs to do is join that conversation. Offer courses, certifications, access to learning platforms, and time during work hours to study. Not as a benefit. As part of the work itself. Wait, wasn't this the generation that doesn't get along as well with AI as previous generations? Yes, that is true. But even though they lack the repertoire and experience of previous generations to craft more elaborate and informative prompts, this generation has no fear of using AI, and accepts that reality as nearly native to the way they think. For them, everything needs to be logical.
The third move is to give purpose to everyday work. Not the purpose from the CEO's speech at the results meeting or at the year-end party. The purpose of the task the person does every week. When a manager explains why that report matters, who it goes to, what changes when it is done well, they turn an operational task into a real contribution. That costs nothing and retains more than any benefit package.
The fourth move is to have the conversation before losing the person. The exit interview arrives too late. The problem has already walked out the door. What works is the preventive conversation, twice a year, with two simple questions: what would make you stay another two years with us? And what would make you hand in your resignation tomorrow? Those who answer the second question easily are already on their way out. Those who answer the first with enthusiasm still have energy to give.
The fifth move is the least expensive and the most ignored: weekly, specific recognition. Gallup showed that weekly recognition increases engagement by up to 36%. Not the generic compliment. The recognition that says: what you did on Thursday with that client prevented a cancellation, and because of that you will be joining the new project next week. That is the right message, at the right time.
The cost of doing none of this has already been calculated by someone. Flash and FGV-EAESP estimate that disengagement costs Brazil more than 77 billion reais per year. Every person who leaves before completing one year takes with them the equivalent of two months' salary in replacement costs. And Randstad showed that 22% of Gen Z have already left a job in less than twelve months, nearly double the rate of Millennials.
Retaining this generation is not about creating a comfortable environment. It is about creating an environment where people feel they are becoming better every week. Where they have new challenges before they ask to leave. Where they see the next chapter before closing the book.
If you understand this, you will stop losing your best employees to the competition. Those who don't will keep assuming the problem belongs to the generation.
Article originally published on GazzConecta.
