Effect of employee recognition and flexible working arrangement on Generation Z retention

Abstract

Orientation: There is limited literature on talent retention framework constructs for Generation Z (Gen Z) in the Platinum Group Metals’ (PGM) mining sector of South Africa.

Research purpose: The purpose of this study was to determine the relationship between employee recognition, flexible work arrangements and professional development opportunities as retention strategies and the ability of these strategies to influence retention of Gen Z in PGM’s mining sector.

Motivation for the study: This research was motivated by the difficulties encountered by PGM’s miners in retaining the Gen Z in the industry.

Research approach/design and method: A sequential explanatory mixed-methods approach was used in unison with a case study strategy. The quantitative data were collected through online questionnaires, with qualitative data collected through online interviews with participants from PGM. Structural equation modelling technique and thematic analysis were utilised to examine the quantitative and qualitative data, respectively.

Main findings: The findings revealed that employee recognition and flexible work arrangements were positively related to Gen Z talent retention. Professional development opportunities were not found to be positively related to Gen Z talent retention.

Practical/managerial implications: Human resource management professionals in the mining sector must be prepared for the future pool of employees by reviewing and aligning their talent management practices with the unique workplace preferences of the Gen Z cohort to retain Gen Z talent.

Contribution/value-add: This research study identified a significant mismatch between current mining industry retention strategies and the factors that Gen Z employees deem essential for remaining with their employers.