The study investigates the impact of Generation Z on the job market, contextualizing it in the digital transformation and the need for organizations to retain talent. In order to respond to the objective presented, we opted for an empirical study based on a mixed approach. The quantitative approach involves a sample of 224 young people from Generation Z. The qualitative approach consists of a sample of 5 Portuguese SMEs. The objectives are to identify the benefits of digital transformation, understand the contributions that young people make to organizations and highlight talent retention strategies. The results highlight the benefits of adopting new technologies, including greater efficiency, expansion of services, sustainability and competitive advantage. Generation Z is recognized for its positive influence on the introduction of these technologies, but faces adaptation challenges due, among other things, to the diversity of generations it encounters in the job market, the little digital investment that companies make and the low value that educational institutions continue to place on the human component to the detriment of technology.