Millennials and Gen Z hold the key to digital growth. How leaders can lean in (and why getting the post-Covid phase right is critical)

Gens Y and Z think differently and want different things. ?Unless leaders manage this well, a divide can open up between the bottom and top of organizations, and the opportunity costs of this are high and unnecessary. These cohorts are focused on growth, they are central to digital sustainability. They are not simply digital natives, they are social natives. If you have or want to Gen Y and Z customers, then you need Gen Ys and Zs really involved in key decisions. We need their insights to master a platform world.?

I carried out over 100 interviews for my last book, including focus groups with Gen Y and Z, and with their managers. Here are the big takeaways (download the book free from Oxford University’s Reuters Institute here https://bit.ly/3rpIyY6).

What are the key differences?

• Generations Y and Z and Millennials are value-driven. They want their work to have meaning. Their values and those of their company need to be in harmony. If push comes to shove, they will jump in favor of their personal values.
• These generations have a very strong self-actualization drive. They want to learn, grow, and develop. They are in permanent skill-acquisition mode. The more you can meet this need, the higher the motivation and performance.
• They are looking for fast career progression. They want to feel they are on an upward trajectory. It is important that strong performance is acknowledged.
• They are highly mobile. Even if they love their job, their desire to grow and experience new things mean they generally don't plan to stay that long anywhere.?Work on the basis you have them for three years max.
• Their work-life balance, how they have designed their lives, really matters. ?Compensation and classic status indicators are less important than the opportunity to shape a life around specific values or goals.
• Frequent feedback is important - and this can be the biggest day-to-day pain point. Even if managers completely understand this need, often they lack the time or skills to meet it (especially if that feedback may not be positive). And if managers lack the budget or scope to reward performance, they may try to avoid feedback situations.

Shifts to unleash the Gen Y and Z potential

Even in companies with constrained resources, small shifts can make a huge differences to unleashing the potential of these cohorts: ?

• Let them hit the ground running. Shorten onboarding and accelerate training. How quickly can you get them doing what they joined the organization to do?
• If you can't accelerate their speed to the top, accelerate their speed to impact. Create opportunities for them to connect with top leaders. Put them on projects that matter. Reverse mentoring and shadow boards work really well.
• Leadership needs to major on EQ (emotional intelligence) rather than IQ. The one leadership trait these groups look for is empathy. Leaders who are open about their own development path, who really listen, and who coach rather than tell, will succeed in leading organizations where they need to go.
• Feedback, feedback, feedback. Few of us have inbuilt coaching and mentoring skills. If you invest in one area, invest in building coaching and performance management skills in all team leaders.
• Offer routes to learn and build skills - companies have more options than they may think. ‘Promote’ juniors to more senior roles temporarily while their managers are on annual vacations. Provide opportunities to work with different parts of the organization or swap departments for a while. And these individuals are perfect for cross-functional projects, which are becoming the basic building block of digital transformation. Build communities where they can grow and learn together.
• Give them scope to work on passion projects that match their personal values.

Getting the Post-Covid phase right

The lower you are in an organization, in general, the lousier your experience during Covid has been. ?Younger colleagues tend to have less comfortable living arrangements, are at greater risk of social isolation, and have less financial and job security.?

As you plan the post Covid return, take time to understand where these groups stand. They may be longing to get back into the office, but if not, don’t push it. Be as generous as you can – if you force talent back into offices before they are ready, you will lose that talent. We need to get people to want to go back. The ideas here may help with that task.