Millennials and members of Gen Z look beyond salary and benefits when considering a job, according to the report, “Employers, It’s Time to Grow Up: Engaging the Millennial and Gen Z Workforce,” released today by Allegis Group. Two areas of employer commitment rank high among millennial and Gen Z priorities: diversity and inclusion and corporate social responsibility.

Allegis Group’s survey found 49% of the more than 1,000 senior-level HR decision-makers surveyed are concerned with their organizations’ ability to attract and retain millennials and members of Gen Z. And 62% reported that issues with attracting and retaining them may lead to negative business impact. This impact may be felt in several areas, including slow company growth, limitations on productivity, obstacles to achieving business goals, curbs on innovation and costly hiring cycles.

However, the report also found few respondents are taking action to improve their results:

• 71% believe outdated work practices, unclear career paths, or limited advancements, skills development or mentoring would result in millennials and members of Gen Z leaving their organizations.
• 69% find their organizations struggle to provide incentives that most interest millennials and members of Gen Z, such as innovation autonomy, executive facetime, mentorships, fast access to promotions, flex scheduling, and workplace wellness programs.
• 31% said their companies have difficulties creating a collaborative culture to improve engagement among millennial and members of Gen Z.

According to the US Census Bureau, millennials are 46% non-Caucasian, and Gen Z is 48% non-Caucasian. So while millennials and members of Gen Z are highly diverse generations, only 12% of the survey respondents with diversity and inclusion programs in place said they believe their diversity and inclusion programs help them to attract millennial and Gen Z talent; 17% consider diversity and inclusion a key part of their employee value proposition.

“Millennial and Gen Z populations are reshaping the global workforce,” Allegis Group President Andy Hilger said. “Considering their numbers, their skills and the concerns companies have about attracting them, tapping these generations is both a priority and a challenge.”