The role of organisational value alignment in retaining Gen Z representatives in the IT-industry

Abstract

Retaining Gen Zers, the representatives of a generation comprising nearly 30% of the workforce by 2025 has become a strategic challenge for organisations. Prior research suggests that this generational cohort is less committed to their employing organisations and Gen Zers have been a prominent generational cohort in organisational research in recent years. The prior studies have showcased Gen Zers highlighting e.g. the importance of open communication, autonomy and value alignment between their own values and an organisation’s values.

Even though value alignment and retention from the perspective of Gen Zers has been previously studied, there is a research gap in organisational value alignment and its impact on the retention of Gen Zers. Prior research has not studied how Gen Zers perceive the potential alignment and misalignment of organisational values and how this impacts the retention of this generation. Thus, this research examines how alignment between espoused (officially declared) and enacted (actual) organisational values influences the retention of Generation Z representatives in the IT-industry. The research question guiding the research is “How does the alignment between espoused and enacted organisational values impact the retention of Gen Z representatives in the IT-sector?”.

This research is directed to the IT-industry due to the distinct nature of the industry. Researchers describe the industry as booming yet one facing acute talent shortages and struggling with finding skilled professionals. The issue is described as especially prominent in Finland, where the economic importance of the industry is distinguishable.

The theoretical framework of this paper is grounded in the integration of generational theories, organisational culture and value conceptualisations and employee retention theories, such the P-O Fit framework. The research was conducted through a qualitative study with six semi-structured interviews with the representatives of Gen Zers. The empirical findings are presented through an abductive lens and analysed through three themes arising both from theory and data.

The findings of the study suggest that the alignment between espoused and enacted organisational values showcases significant influence in retaining Gen Z representatives in the IT-industry. The findings indicate that when organisations in the IT-industry display authenticity through consistently translating their declared values into action, the trust and engagement of the Gen Z representatives enhances thus reinforcing their loyalty and ultimately their retention. The findings contributes to the existing literature and provides managerial insights for organisations willing to attract and retain Gen Zers in the IT-industry.