In 2025, organisations are navigating a fiercely competitive job market, often referred to as the "war for talent." With Gen Z and Millennials now making up the majority of the workforce, their unique expectations and values are reshaping how employers approach recruitment and retention. It’s no longer just about offering attractive pay and perks; it’s about positioning your company as an employer of choice. Central to this effort is building a compelling employer brand that resonates with today’s most sought-after talent.
The Current State of the Workplace
With 2025’s arrival, Millennials are now set to comprise 75% of the global workforce, with Gen Z hot on their heels as they’re expected to overtake Baby Boomers in numbers. This shift means organisations must cater to the values and preferences of these generations to stay competitive. Gen Z, often referred to as ‘digital natives,’ who value flexibility, inclusivity, and purpose, are increasingly rejecting assignments and employers that don’t align with their personal ethics. Deloitte’s 2024 Gen Z and Millennial Survey highlights this further as 44% of Gen Z respondents have turned down an employer based on their beliefs, and a further 50% have rejected assignments based on personal ethics.
Both generations are also highly focused on their mental health at work, with only 51% of Gen Z and 56% of Millennials rating their mental health as "good" or "extremely good." The stress levels in both groups remain high, underscoring the need for employers to address mental wellbeing as a priority.
Shared Priorities: For both generations, meaningful work, ethical leadership, and a workplace culture that aligns with their values are crucial. Flexibility, work-life balance, mental health, and opportunities for growth often take precedence over salary. In fact, 50% of employees would forgo a pay raise for more flexible working patterns.
What is Employer Branding and Why Does It Matter?
Employer branding is about crafting and promoting your organisation as an attractive and desirable place to work. It's not just about how you’re perceived externally but about cultivating a culture that encourages employee engagement and loyalty. A strong employer brand leads to lower turnover, improved job satisfaction, and more effective recruitment.
According to studies, companies with strong employer brands see up to a 28% reduction in employee turnover and a 50% decrease in cost-per-hire. It's clear that a well-defined employer brand is crucial in attracting and retaining the talent that will drive your business forward.
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6 Key Strategies For Becoming an Employer of Choice
1. Showcase Your Company Culture & Values
Company culture is about more than values—it’s how those values are demonstrated daily. Be intentional about articulating your company’s values and ensuring they are reflected in actions. Use social media to highlight your culture by sharing employee stories, behind-the-scenes glimpses, and real examples of your values in action. Authentic content resonates most with potential candidates and employees alike.
2. Invest in Leadership Development
Strong leadership directly impacts employee engagement. Invest in training leaders to be supportive, transparent, and communicative. Managers play a critical role in shaping company culture and employee satisfaction, ensuring employees feel valued, supported, and inspired.
3. Prioritise Employee Wellbeing & Flexibility
Flexibility is a top priority as noted above with 50% of employees willing to forgo a pay rise for more flexible working patterns. Promote mental health and wellbeing initiatives as core elements of your employer brand. Provide resources for mental health support, remote work options, flexible hours, and a work-life balance culture that demonstrates your commitment to employee wellbeing.
4. Enable Growth & Development
Both Gen Z and Millennials are eager to grow in their careers. Offering clear career progression, continuous learning, and upskilling opportunities not only addresses the skills gap but also helps retain talent. 6 out 10 workers will require retraining by 2027, so providing these opportunities can really give you a competitive advantage.
5. Foster Engagement Through Transparent Communication
Open, honest communication is key to employee engagement. Keep employees informed with regular updates, actively seek their feedback, and celebrate achievements. Employee Net Promoter Score (eNPS) is a great tool to measure engagement and gather insights on employee satisfaction. By using eNPS surveys, you can gauge loyalty, identify areas for improvement, and ensure your employer brand evolves with employee needs.
6. Champion Diversity, Equity & Inclusion (DEI)
Gen Z and Millennials value inclusivity. Organisations that champion DEI through recruitment practices, training, and employee resource groups are more likely to attract diverse talent and foster innovation. A diverse workforce leads to a more dynamic and resilient organisation, ensuring a broad range of perspectives and ideas.
Conclusion
To become an employer of choice in 2025, organisations must proactively meet the needs of Gen Z and Millennials. By building a strong employer brand—one that focuses on culture, leadership, growth opportunities, wellbeing, transparency, and inclusivity—you can attract and retain top talent.
In this ongoing war for talent, the key is to create and promote an environment where employees feel supported, valued, and empowered to thrive.
About SmartPA
SmartPA leads the transformation of admin and business support services through technology and education, while our mission is to unleash potential by supporting young people and women to become business role models for future generations. Powered by a global team of passionate and accredited SmartPAs, we accelerate the success of over 5,000 businesses worldwide, delivering impactful outsourced support that allows organisations to focus on what they do best. With a Centre of Excellence in the UK, near shore hubs in South Africa and Uganda, and an offshore hub in Malaysia, we are dedicated to making a difference.
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