Gen Z internal mobility and retention strategies for federal agencies

Federal agencies are navigating a transformative period in workforce demographics. With a significant portion of the Baby Boomer workforce approaching retirement, the demand for younger talent, particularly from Gen Z, is increasing. 

According to the OPM, the Federal workforce is made up of 29% of Baby Boomers (aged 59-77), so when over a quarter of employees will be looking at retirement over the next decade, TA teams are looking for younger talent.

Enter Gen Z—a generation with wildly different expectations for workforces than the generation they are replacing. 

This generation comes with unique workplace expectations that agencies must address to attract and retain them effectively.

Below are insights for your internal mobility strategy from HireVue’s new guide titled Gen Z Internal Mobility and Retention Strategies for Federal Agencies.

Why focus on Gen Z?

Gen Z employees thrive in environments where they feel supported and are learning skills for future growth. According to Deloitte, Gen Zers who feel cared for and see opportunities to develop are significantly more likely to stay with their employer. Federal agencies must adopt innovative approaches to meet these expectations.

Internal Mobility: A Retention Powerhouse

Internal mobility, or the process of moving employees within an organization through promotions or lateral moves, is key to retention. Agencies with well-designed programs can:

• Build career blueprints for employees.
• Adapt to changes in workforce needs.
• Retain top talent during economic and demographic shifts.

Best Practices for Internal Mobility

1. Hire right from the start: Use structured interviews and skills-based assessments to place candidates in roles that align with their abilities and interests.
2. Promote awareness of opportunities: Formalize the opportunity process beyond random USAjobs pages and formalize application processes to make career paths visible and accessible.
3. Set clear review timelines: Responding to internal applicants promptly boosts trust and engagement.
4. Measure growth potential: Evaluate employees not just for current roles but for adaptability and future leadership.
5. Foster inclusivity: Ensure internal mobility programs reflect diversity and equity, showcasing success stories from varied backgrounds.

Technology as a solution

Leveraging technology like HireVue’s can streamline internal mobility and hiring processes. Features such as pre-hire assessments, on-demand interviews, and agile mindset evaluations empower agencies to make data-backed decisions. These tools also enhance employee experiences, building trust and engagement.

The impact of retention

Statistics highlight the importance of internal mobility in retention:

• According to SHRM, employees promoted within three years have a 70% chance of staying.
• According to a Gallup study, “High attrition rate can also lead to higher labor costs. Gallup estimates that in an agency of 10,000 employees, with an average salary of $50,000, low engagement contributes to $66 million in annual costs.”

Building tomorrow’s workforce

As skills gaps widen, federal agencies must prioritize upskilling and reskilling employees. Creating a fair, inclusive, and empowering workplace ensures young talent sees a future within the agency. Tools like HireVue’s Agile Mindset Assessment help identify candidates who can navigate change and drive innovation, ensuring long-term success. The assessment measures:

• People agility: These candidates know themselves well and learn from their experiences. They also treat others respectfully and remain calm under pressure.
• Results agility: These people are often goal-oriented and are willing to do what’s necessary to achieve results, especially in new situations. They constantly inspire others and move quickly up the ladder to leadership positions.
• Mental agility: Workers who display mental agility often enjoy tackling complex situations. They think before they act, make fresh connections, and are usually good at explaining their point of view.
• Change ability: Those adaptable to change are a rare commodity in the workforce. They don’t mind deviating from everyday routines and usually have a passion for experimentation.

Federal agencies must adapt their talent strategies to attract, retain, and grow Gen Z employees. When backed by science and technology, internal mobility programs can future-proof the workforce while fostering a culture of empowerment and inclusivity.

Download the Gen Z Internal Mobility and Retention Strategies for Federal Agencies guide here.

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