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Addressing Healthcare’s Retention Crisis by Understanding Gen Z

A committed, resilient future workforce starts by understanding the difference between an environment that sustains staff and one that actively invests in long-term engagement.

Healthcare organizations today face a dual challenge: finding qualified talent while adapting to the diverse expectations of a multigenerational workforce. Even with an influx of recent graduates, a gap persists — and the influence of shifting generational values is often underestimated.

By mid-2023, Gen Z — those born between 1997 and 2012 — overtook Baby Boomers in the labor force, making up nearly one-fifth of it, and they’re on track to compromise 30% of the global workforce by 2030. In healthcare, many Gen Z view their profession as a calling. Yet, over 22% plan to leave within their first few years. This “disconnect” between initial interest and long-term commitment means better understanding Gen Z’s priorities is critical — not just to attract and retain them but to ensure the next generation of caregivers is equipped to meet our future needs. 

Why they’re leaving and how to keep them engaged

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Here’s a closer look into key challenges Gen Z faces and strategies to support them before they lead to greater turnover:

1. The silent killer of retention – Unsurprisingly, the central challenge here is burnout — and for good reason. A recent survey of nearly 13,000 frontline workers, including healthcare professionals, found that 83% of Gen Z reported feeling burned out. While Gen Z’s drive to help others is a strong motivator for entering healthcare, the intense pressures of the job quickly takes a toll. This generation is not afraid of hard work, they’re just not willing to sacrifice their well-being for it.

The mindset here starts at the top. If leadership doesn’t model work-life balance and mental wellness, it sends a message that these priorities aren’t important. When managers consistently deny shift changes, discourage taking vacation days, or rarely take time off themselves, it creates an atmosphere where staff feel unsupported and stressed. This quickly impacts morale, productivity and turnover. 

Leaders can take small but meaningful steps to support their teams. They should lead by example, champion policies that promote balance and well-being and encourage employees to take their personal or mental health days. When Gen Z workers feel like they’re not just a cog in the machine but valued individuals who can manage their own balance, they’re more likely to stay with an organization for the long haul. It’s simple: when people feel supported, they stick around — and they thrive.

2. Low tolerance for unsupportive workplace cultures – Gen Z consistently shows the weakest sentiment towards workplace culture compared to other generations. Competitive salaries and benefits remain priorities for everyone, but Gen Z is especially drawn to environments that genuinely values employees as individuals and fosters open communication. 

Leaders can respond by implementing regular listening sessions — short, informal meetings where staff can voice concerns in a safe space. A suggestion box, physical or digital, can also provide an avenue for anonymous feedback, which should be regularly reviewed and addressed in quarterly town hall meetings. “Management by walking around” is another effective practice — leaders should engage with staff often, ask about challenges and gather informal feedback. For a lighter approach, creating a “gratitude board” allows staff to publicly recognize colleagues, building a culture of appreciation and respect. 

3. Generic, inadequate training and onboarding: Starting a healthcare career without enough real-world experience has left many Gen Z workers feeling unprepared and anxious about the demands of patient care. For those who graduated during the pandemic, training often took place online or was adjusted in ways that couldn’t replicate hands-on practice. This gap can make them feel as though they’re playing catch-up from day one, which can erode confidence and compound stress.

Instead, consider a more nuanced approach that meets Gen Z where they are. Tailor onboarding to their individual comfort levels, offer immersive training experiences (like simulation labs) and create mentorship programs that connect new hires with people who’ve recently been through the same process. Normalizing the idea that skill refreshers are part of the job, encourages continuous learning and removes stigmas around needing extra support. Gen Z doesn’t need to be coddled — but they do need real support to succeed. 

4. Lack of clear career advancement pathways: Gen Z healthcare workers are driven by the desire to continuously learn and advance in their careers. They’re not just looking for a paycheck; they want to grow, develop new skills and take on responsibility. This generation prioritizes employers who are committed to their professional growth, including supporting continuing education, covering certification costs and providing opportunities for career progression.

This is where transparency is key. Healthcare leaders should avoid sugarcoating career advancement opportunities or playing it by ear. Be honest about what roles are available, what skills are needed and how employees can progress. Regular check-ins and clear performance feedback can help set expectations and keep Gen Z engaged in their growth. If they can’t see a future with their current employer, they’ll find it somewhere else.

Gen Z’s commitment to healthcare is driven by a desire to make a real impact, but their expectations go beyond a paycheck. They seek environments that prioritize growth, mental health, transparency and clear career progression. Without these elements, healthcare organizations risk losing the talent they need. Healthcare leaders must understand the difference between an environment that sustains staff and one that actively invests in their long-term engagement and growth. This is the key to building a committed, resilient workforce for the future.

The new perspectives, talent, skills and traits Gen Z brings to the workplace should excite us all as we navigate economic challenges, cause-driven work and the variability of the labor force. After all, we all share the same goal: to make a real difference in the lives of others.

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Photo: zhuweiyi49, Getty Images

Ron Washburn has over 30 years of experience in healthcare staffing and recruitment. As Executive Vice President at Soliant, he collaborates with hospital systems and organizations nationwide to address workforce challenges by developing effective recruitment and placement strategies. His expertise covers both contract and permanent staffing, as well as strategic workforce solutions. Ron holds a master's degree in strategic management and entrepreneurship from Georgia State University.

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