The New Workforce: Retention Strategies for Gen Z Engineers in a Digital Era

In the context of rapid digital transformation, the engineering sector faces increasing challenges in retaining skilled professionals, especially among younger generations. This study examines the retention of Generation Z employees within Portugal’s technology and engineering sectors, offering insight into what motivates these professionals to remain with their organizations. Drawing on qualitative interviews, the research reveals that while competitive compensation is essential, long-term retention hinges on a broader combination of factors, including flexible work models, meaningful career progression, and a culture of well-being and inclusion. These findings highlight a generational shift in work values, where purpose, autonomy, and personal development are as important as financial incentives. The study contributes to the evolving field of human resources in engineering by emphasizing the need for integrated, future-oriented talent strategies tailored to the expectations of Generation Z. Organizations that adapt to these new dynamics are more likely to foster commitment, reduce turnover, and enhance innovation capacity.