Background & Purpose: Generational shifts and the entry of Generation Z into the workforce have created new challenges for human resource management, particularly in the area of employee retention, within public sector organizations. Bureaucratic organizational structures often fail to align with the values, expectations, and work preferences of Generation Z employees, leading to a range of negative outcomes. Therefore, the present study aimed to explore the lived experiences of Generation Z employees regarding employee retention and to develop a conceptual model of Generation Z retention in public sector.
Methodology: This applied study adopted a qualitative approach based on interpretive phenomenology. The research population consisted of Generation Z employees (born in 1996 and later) working in Iranian public sector organizations. Participants were selected through purposive and snowball sampling, and data collection continued until theoretical saturation was achieved. A total of 25 semi-structured, in-depth interviews were conducted. Following verbatim transcription, the data were analyzed using thematic analysis. To enhance the trustworthiness of the findings, participant validation, peer debriefing, and continuous monitoring of the analytical process were employed.
Findings: Generation Z retention in public sector organizations is a multidimensional and dynamic phenomenon shaped by the interaction of five major dimensions: retention facilitators, including opportunities for growth and learning, participation in decision-making, supportive relationships, perceived organizational justice, and workplace flexibility; retention barriers, including bureaucracy, authoritarian leadership styles, unclear career paths, ineffective compensation systems, and insufficient attention to generational needs; contextual conditions, encompassing the cultural, structural, and managerial characteristics of public sector organizations; the cognitive and behavioral strategies adopted by Generation Z employees in responding to the workplace environment; and the consequences of retention or non-retention at both the individual and organizational levels. Based on these themes, a conceptual model of Generation Z retention in public sector organizations was developed and presented.
Conclusion: The findings indicate that the effective retention of Generation Z employees cannot be achieved solely through financial incentives. Rather, it requires a fundamental transformation in human resource management policies and practices aimed at creating a meaningful, participatory, learning-oriented, flexible, and psychologically supportive work environment characterized by organizational justice, trust, and opportunities for professional growth and career advancement. The proposed conceptual model provides a practical framework to guide managers and policymakers in redesigning human capital retention strategies within public sector organizations.