Paolo, companies used to provide food and housing as a perk, but today Gen Y and Z don’t see it as a big benefit, and it hasn’t helped with loyalty or reducing turnover. Why do you think this approach isn’t working, and what’s the real issue?

You’re touching on something that’s critical here—the shift in what really matters to Gen Y and Gen Z. Companies have tried, and are still trying, to replicate the old model of loyalty: "We give you security, and you give us loyalty." But it’s no longer working, and here’s why: we’re no longer in a transactional world where a paycheck, a company gym, or even housing equals loyalty. Those things, while appreciated, don’t hit the deeper emotional or existential needs of the younger generations.

Let me be blunt—security in the traditional sense doesn’t hold the same weight anymore. Gen Y and Gen Z have grown up in a world where security was revealed to be an illusion. They’ve seen financial crashes, witnessed companies that promised stability suddenly implode, and lived through a global pandemic that obliterated any sense of certainty. So when companies today offer things like housing or extra benefits, it’s like they’re trying to bribe loyalty with the wrong currency. It’s not that these generations are ungrateful, it’s that they’re looking for something deeper, something more meaningful than just material perks.

Here’s the real problem: it’s a mismatch in values. Companies are offering "stuff" when Gen Y and Gen Z are seeking purpose, autonomy, and personal growth. They don’t want to be chained to a desk, even if that desk comes with a shiny benefits package. The old model assumed that people would stay loyal if their basic needs were met. But these generations are not driven by survival—they want fulfillment. They don’t just want to know where their next paycheck is coming from; they want to know that their work matters, that it has impact, and that it aligns with their values.

And here’s where the gig mentality comes in: freedom. Gig jobs offer freedom—freedom to work on their terms, freedom to balance life the way they see fit, freedom to not be locked into a contract that doesn’t serve their greater goals. The high turnover we’re seeing isn’t because people are flighty or uncommitted; it’s because traditional companies are asking for loyalty without giving them the deeper connection they crave. Loyalty can’t be bought with perks anymore—it’s earned through trust, shared values, and the sense that a company genuinely cares about their personal and professional growth.

The reason those efforts—like housing, food, and even flashy benefits—aren’t solving turnover is that companies are still thinking in terms of transactional loyalty. But Gen Y and Z are thinking in terms of relational loyalty. They don’t want a transactional exchange of "you work, we pay." They want a relationship built on mutual respect, purpose, and shared goals. They want to know that the company isn’t just using them to fill a role, but that the company is invested in who they are as individuals.

So what’s wrong? It’s simple: companies are trying to solve an emotional need with material offerings. Perks, bonuses, even higher salaries aren’t the answer. The answer is creating environments where employees feel a sense of belonging, where they see a path for personal development, and where they know their work is aligned with a bigger vision. It’s about creating a company culture that reflects the deeper needs of these generations—purpose, flexibility, impact, and autonomy.

The gig economy is thriving because it offers freedom, even if it doesn’t offer security. If traditional companies want to compete, they need to offer both—but the kind of security that’s personal, not just financial. Emotional security, the security of knowing that you are valued beyond your productivity, that you have the autonomy to shape your own path, and that you are part of something bigger than just the company’s bottom line.

The solution? Companies need to stop thinking of employees as assets to be managed and start treating them as partners in a shared mission. They need to offer flexibility, create genuine opportunities for growth, and most importantly, build cultures where purpose isn’t just a marketing slogan—it’s lived, breathed, and embodied every day. It’s not about perks, it’s about meaning. And that’s where the future of loyalty will be won.