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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

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

 

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

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

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

 

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ...