EY: Why Workplace Culture is the Key to Employee Retention

Workplace culture has emerged as one of the most powerful tools employers have to retain talent, according to new research.

Findings from the 2025 EY US Generation Survey show that 60% of professionals say workplace culture influenced their decision to stay with their current employer “a great deal” - a figure broadly unchanged from 59% in 2022.

These findings position workplace culture as a valuable aspect of the workplace, ranking above leadership, management style and work environment. 

Ginnie Carlier, EY Americas Vice Chair, says: “As the workplace continues to evolve, success will depend on more than adapting to change. It will require building environments where people feel valued, have their needs met and are empowered to grow.” 

Generational differences

EY finds common ground among generations in their attitudes to workplace culture and values. “How people treated each other” was rated roughly as equally important by Gen Z (28%), millennials (26%) and baby boomers (34%). 

Nearly half of Gen Z and millennial employees report wanting to work for a company that reflects their beliefs, with one in five professionals saying they plan to leave their company within the next year, citing a conflict in values as the main reason.

This particularly resonates with millennials (30%), who expressed a similar sentiment in 2022 (29%).

“The US workplace continues to evolve,” says Leslie Patterson, EY Americas and US Inclusiveness Leader. “Gen Z and millennials, in particular, are driving change, but all generations are looking beyond compensation and prioritising relationships, connections and values.”

She added that while many organisations are focused on AI, they should keep their employees front and centre and “look for ways to address the needs of all generations”.

Flexibility in the workplace

EY finds a growing desire for greater flexibility in the workplace, particularly when it comes to greater hybrid work options or the ability to organise and prioritise work schedules more autonomously. The report also shows that workers are divided on what flexibility means in practice.

Though 42% of respondents are aligned on the need for some form of hybrid work option, citing it as a top three priority when accepting a new role, EY says that each generation defines flexibility differently, including:

• Gen Z workers cite the ability to take personal days or time off without negative impacts as important while millennials believe that flexibility should be reflected in their working hours.
• Gen X respondents pointed to workplace flexibility that would allow them to schedule for personal or family needs as a priority
• Baby boomer respondents are seeking flexibility and autonomy in how they organise and prioritise work

Learning and development

EY finds that though all generations value learning and development in the workplace, they don’t feel that same investment from their employers.

Thirty six percent of all respondents believe their company is invested in their professional growth and development, with Gen Z workers the most agreeable.

Early career growth and development presents several challenges, says EY, finding that 19% of baby boomers seek growth and development but feel uncertain on how to do this.

Skills development and professional growth is highest among Gen Z workers, with 99% of those surveyed saying they have focused on this aspect of their careers over the last year.

The rapid adoption and use of technology across organisations is impacting how employees are focusing on their development. Gen Z respondents said emotional and relationship skills are a key priority when it comes to development, suggesting they help to differentiate people in a tech-driven environment. 

The role of leaders in the future workplace

Leaders face an increasingly complex and challenging working environment, managing multigenerational workforces amid geopolitical tension, economic uncertainty and the rapid adoption of technology.

Success will require a careful balance, EY says, ensuring each generation is supported to contribute effectively to organisational goals.

As workforces become more multigenerational and expectations continue to shift, organisations that invest in inclusive cultures, meaningful development and flexible ways of working will be best placed to retain talent and remain competitive.