How cohort-based hiring can ease Gen Z anxiety – and improve retention

'They legitimately have concerns we've not seen for many, many years': McGill’s Karl Moore discusses study showing benefits of cohort-based hiring

How cohort-based hiring can ease Gen Z anxiety – and improve retention

A new study from the the U.S. has found that cohort-based hiring — where groups of employees are brought in and trained together — can significantly shape whether new hires stay or go.

Based on data from 650 employees across 32 cohorts at a global IT firm, the study from the University of South Florida and the University of Cincinnati identified a “contagion effect”: when a few members of a group of employees begin job hunting, their peers often follow — unless, that is, those peers are either personally connected to the organization’s geographic location – or have a strong sense of social belonging.

That social belonging is where cohorts come in, the study finds, by giving employees emotional attachment to not only their peer group but the organization as well.

Karl Moore, associate professor of strategy and leadership at McGill University, who has done extensive research and writing on Gen Zsays that cohorts present a “unique opportunity” for organizations to improve retention while also supporting young talent during tumultuous times.

Cohort hiring can help ease growing anxiety among Gen Z

Moore notes that Gen Z is disproportionately anxious about money and work. HR leaders are advised to keep this in mind when hiring Gen Z cohorts, he says.

“Right now, my students are genuinely worried about summer jobs, in a way I've not seen for years. It's the state of the economy, thanks to President Trump and everything else that is going on."

With high levels of uncertainty affecting their decision-making and sense of security, Gen Z employees may find additional comfort in starting roles as part of a connected, supportive cohort.

As the USF/Cincinnati report notes, when a sense of belonging is established early, newcomers are more likely to remain in the organization — even when external stressors persist.

Moore recalls his nine-month training cohort when he started working at IBM, and how that group of people bonded and have stayed connected over the years; “It’s kind of like university or college, where you have your friends, and you spend time together, and you are of a similar age and similar concerns, and you have a lot in common.

“So there's an opportunity for organizations to build that cohort effect … and recognize the strength of that and then do things that build that up.”

Why HR should treat cohorts like social systems

According to the study, Gen Z now makes up more than 25% of the workforce — and 65% of them leave their jobs within the first year.

But this isn’t necessarily a given, Moore says; although Gen Z will never stay in the same jobs for as long as generations before them did, employers can deepen loyalty by designing cohort programs that create meaningful bonds early on.

“Having a sense of a cohort and a group of friends, or friends ‘lite’ is a good way for them to bond with each other and bond with the organization,” he says.

“So from a viewpoint of ‘Why [are we] spending this money … we'd rather have them for a longer commitment’ – this might be one way of helping accomplish that. I think you can improve their circumstances and work with them in a way that they're more apt to stay longer.”

Hiring Gen Z cohorts: reverse mentorship and leadership listening

The study’s authors highlight the importance of peer influence in driving cohort sentiment toward an employer – but Moore explains that the consequences of the contagion effect (turnover) can be mitigated by strong leadership skills such as listening and importantly, acting.

“You can increase retention rates by appropriate policies, and part of that is a lot of listening and a lot of giving room to what their needs and desires and wants are, where you learn from them and let them teach you a bit,” he says.

This idea of “reverse mentoring” is a crucial aspect of retention in cohort groups and also a valuable learning opportunity for more experienced managers to stay abreast of what their employees are experiencing.

This means speaking to employees on their level and openly receiving feedback and strategy ideas. This is especially valuable to Gen Z, he explains.

“A boss that allows you to teach them, and help them with strategy, means that I have a great boss that I want to work for,” he says, adding that when employees share positive stories about leadership with their peers, it reinforces loyalty.

“It reinforces that it's a good place to be,” he says. "They won't stay the time earlier generations did, by and large, but I think you can improve on that.”

Be aware of context with Gen Z cohort hiring

Moore says context is critical when trying to connect with this group, who experienced lockdowns, remote schooling, and social disruption during COVID-19.

He points out that most of them would have been in their first years of university during lockdowns, and many would have faced tough, even traumatizing choices. HR and management shouldn’t forget that.

“There's genuinely more of a sense of angst and worry,” he says.

Leaders can use that awareness to build embeddedness early, through cohort experiences such as group training programs and geographic alignment: “You give them lots of love, you give them lots of attention, you listen to them, you listen to their ideas.”

Build connection through training and time

The report encourages investing in training during the onboarding window, which Moore says can act as both skills development and social integration.

“Something we can do is bring them in and have training, weeks of training,” he says. “Legitimate training, which is a way of teaching them about some of their tasks or some of the skill sets they need in order to be successful.”

While generational trends matter, Moore stresses that HR professionals must avoid forgetting that Gen Z employees are individually focused and diversity aware. Therefore, face to face interactions are vital to leadership success with this group.

“They honestly believe... they are unique individuals. So you don't want to lump them all together and ignore who they are and what they are,” he says, and adds that this goes for leaders themselves, too, as Gen Z will appreciate leadership vulnerability.

“Understanding who you are, not being too judgmental of yourself and leaning into it is a helpful thing to do,” he says.

“I would encourage CEOs and other senior executives to be reverse mentored by their new employees, and sit down and have breakfast with them once a month.”

Watch the room — and the zoom with Gen Z cohort hiring

The report advises HR leaders to proactively track mood and morale within cohorts – Moore agrees.

“Keeping your ear to the ground, but also just watching their interactions,” he advises. “Just go down and have a coffee and chat with them and say, ‘Hey, how's it going?’”

With remote teams, it’s just the same, he says, still highlighting the necessity of the personal relational tone: “Remote, you may have to do things where it’s ‘Hey, let's have a zoom coffee and just get caught up.’”

Moore says being present and curious can shift groupthink in a positive direction; by giving cohorts attention and relating to them where they are, on their level, “group think” can be guided in a positive direction.

This also applies to introverts and extroverts within a cohort — a factor that Moore says should influence how HR manages group discussions and meetings.

“So when they have concerns, listen to them and do what you can,” he says. “It would not guarantee success, but it would be more apt to lead to success.”