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Retention of Millennial and Gen Z Employees Rests Heavily on Digital Employee Experience

Survey of Over 1,800 IT Business Decision Makers Finds CIOs, IT Teams Acting as Chief Talent Officers
Mike Marks
Riverbed

As Gen Z and Millennials become a larger part of the workforce, expectations for the Digital Employee Experience (DEX) have never been higher, according to Riverbed's Global Digital Employee Experience Survey of 1,800 IT business decision makers worldwide.

The rising influence of these digital natives, the shift to hybrid work, and limited resources have put tremendous pressure on IT teams to deliver exceptional DEX — or risk losing talent and productivity. Because of the need to attract and retain top-level Gen Z and millennial talent, some HR teams are calling CIOs and their IT teams the new Chief Talent Officers.

Millennials and Gen Z have the highest technology and digital experience expectations in the workforce, with 91% of IT leaders stating that they must provide more advanced digital experiences to meet the digital natives' needs to keep them engaged and productive at work. Respondents (89%) also believe that younger generation employees place increased pressure on dwindling IT resources, including smaller staffs.

Other key findings from the survey include:

■ 95% of business and IT leaders surveyed said delivering a seamless DEX is important to remain competitive.

■ 68% said younger employees may leave the company if digital needs aren't met.

■ 95% can identify at least one major obstacle to delivering a seamless DEX.

■ 94% said Unified Observability is important to competitiveness and DEX.

Survey respondents also believe that delivering better digital experiences is getting harder – not easier. They identified several obstacles in their path, including budget constraints (36%), IT talent/skills shortages (35%), lack of sufficient observability tools (29%), too much data to manage (28%), and a lack of appropriate SaaS or cloud services (29%). To counter these challenges, 81% of IT leaders polled have set aside budget to retrain their staffs, with 86% believing that the use of Unified Observability technology with greater automation and AI support can help close the skills gaps.

Unified Observability Is Key to Exceptional DEX

The move to hybrid/remote work, rapid cloud deployments and the need to keep digital native workers engaged on the job has resulted in IT leaders taking on bigger roles across their organizations. Technology is now a strategic driver of business growth as well as a recruiting tool to keep newly arriving younger workers as engaged and productive as possible at work. Given these trends, 89% of survey respondents plan to accelerate digital experience adoption and implementation, with 91% stating that they must make greater investments in Unified Observability solutions.

Unified Observability enables organizations to effectively monitor and analyze their entire digital infrastructure, including networks, apps, and user experiences. This holistic view allows them to proactively identify and address issues or bottlenecks that may impact performance, productivity, and employee or customer satisfaction. With real-time insights into their digital ecosystem, organizations can make informed decisions, optimize operations, and deliver a seamless digital experience for both employees and customers.

In addition to Unified Observability, survey respondents will also rely heavily on a mix of new and familiar technologies to shape the future workplace and improve DEX. These technologies identified below are expected to play a larger role in enhancing business operations, employee productivity and overall digital experiences over the next 18 months:


In late 2023 and throughout 2024, we will see IT leaders make deeper investments in DEX and in solutions such as Unified Observability and AI, particularly as the hybrid/remote work trend continues to flourish. By placing greater emphasis on these areas, they will empower their teams to dramatically improve their digital workplaces while helping their organizations attract and retain top young talent, outperform competitors, and drive sustainable long-term growth. By prioritizing the IT initiatives and investments that heighten DEX, IT teams can create a more productive work environment that, in turn, leads to higher employee engagement, greater customer satisfaction and overall business success.

Mike Marks is VP of Product Marketing at Riverbed

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

Retention of Millennial and Gen Z Employees Rests Heavily on Digital Employee Experience

Survey of Over 1,800 IT Business Decision Makers Finds CIOs, IT Teams Acting as Chief Talent Officers
Mike Marks
Riverbed

As Gen Z and Millennials become a larger part of the workforce, expectations for the Digital Employee Experience (DEX) have never been higher, according to Riverbed's Global Digital Employee Experience Survey of 1,800 IT business decision makers worldwide.

The rising influence of these digital natives, the shift to hybrid work, and limited resources have put tremendous pressure on IT teams to deliver exceptional DEX — or risk losing talent and productivity. Because of the need to attract and retain top-level Gen Z and millennial talent, some HR teams are calling CIOs and their IT teams the new Chief Talent Officers.

Millennials and Gen Z have the highest technology and digital experience expectations in the workforce, with 91% of IT leaders stating that they must provide more advanced digital experiences to meet the digital natives' needs to keep them engaged and productive at work. Respondents (89%) also believe that younger generation employees place increased pressure on dwindling IT resources, including smaller staffs.

Other key findings from the survey include:

■ 95% of business and IT leaders surveyed said delivering a seamless DEX is important to remain competitive.

■ 68% said younger employees may leave the company if digital needs aren't met.

■ 95% can identify at least one major obstacle to delivering a seamless DEX.

■ 94% said Unified Observability is important to competitiveness and DEX.

Survey respondents also believe that delivering better digital experiences is getting harder – not easier. They identified several obstacles in their path, including budget constraints (36%), IT talent/skills shortages (35%), lack of sufficient observability tools (29%), too much data to manage (28%), and a lack of appropriate SaaS or cloud services (29%). To counter these challenges, 81% of IT leaders polled have set aside budget to retrain their staffs, with 86% believing that the use of Unified Observability technology with greater automation and AI support can help close the skills gaps.

Unified Observability Is Key to Exceptional DEX

The move to hybrid/remote work, rapid cloud deployments and the need to keep digital native workers engaged on the job has resulted in IT leaders taking on bigger roles across their organizations. Technology is now a strategic driver of business growth as well as a recruiting tool to keep newly arriving younger workers as engaged and productive as possible at work. Given these trends, 89% of survey respondents plan to accelerate digital experience adoption and implementation, with 91% stating that they must make greater investments in Unified Observability solutions.

Unified Observability enables organizations to effectively monitor and analyze their entire digital infrastructure, including networks, apps, and user experiences. This holistic view allows them to proactively identify and address issues or bottlenecks that may impact performance, productivity, and employee or customer satisfaction. With real-time insights into their digital ecosystem, organizations can make informed decisions, optimize operations, and deliver a seamless digital experience for both employees and customers.

In addition to Unified Observability, survey respondents will also rely heavily on a mix of new and familiar technologies to shape the future workplace and improve DEX. These technologies identified below are expected to play a larger role in enhancing business operations, employee productivity and overall digital experiences over the next 18 months:


In late 2023 and throughout 2024, we will see IT leaders make deeper investments in DEX and in solutions such as Unified Observability and AI, particularly as the hybrid/remote work trend continues to flourish. By placing greater emphasis on these areas, they will empower their teams to dramatically improve their digital workplaces while helping their organizations attract and retain top young talent, outperform competitors, and drive sustainable long-term growth. By prioritizing the IT initiatives and investments that heighten DEX, IT teams can create a more productive work environment that, in turn, leads to higher employee engagement, greater customer satisfaction and overall business success.

Mike Marks is VP of Product Marketing at Riverbed

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...