Return-to-office & AI aren't the real threat

Job layoffs, AI set to eliminate 40% of work and employers demanding a return to the office dominate our headlines. But they aren't the real problem.

If you're an employer reading this, young adults in your team aren't looking only for job security, a hybrid work arrangement and exciting entrepreneurial requirement in a role.

As I entered the workforce in 2000 right after university, we were still feeling the remnants of the Asian Financial Crisis (1997/98), celebrating surviving Y2K (who could forget that party!) and entering yet another financial crisis (FC)- the dotcom bubble burst. It felt impossible trying to find a job in those circumstances, an all-you-can-eat-buffet of negative sentiment.

Most of my peers ended up working for the government as teachers in public schools. Only one in my cohort went on to run his own business. I joined 联邦快递 and stayed there for 7 years before moving on. Partly holding onto a belief that it'll help me become a career professional in tech and with the up/down in economy, it was safer to be on that side of the grass.

Cycle forward 10 years, with the burst of cloud and the avalanche of capital-raising efforts, the tech world evolved in a blink and we saw more and more entrepreneurs from the best schools kickstart their ideas.

Boomtown! Jobs in surplus after surviving yet another FC (Lehmann Brothers in 2007/2008). I remember walking through the halls of sleek offices and beer o'clock pantries of the tech bros. Covid upset that cart!

Young adults today are entering the workforce with a different set of experiences and challenges compared to rest of us.

1. Financial Struggles and Student Debt: They often enter the workforce burdened with substantial student debt, which can impact their financial stability. This debt may result from the rising costs of education and a competitive job market. The financial strain can lead to difficulties in affording basic necessities, such as housing and food. It may also influence career choices, as individuals may prioritise jobs with higher immediate income over long-term career goals." "Defaulting on student loans affects your credit in a negative way," says William Boffi, vice president of enrollment management at Assumption University in Massachusetts. "There's a lot written about student loan debt hampering young peoples' ability to hit other milestones, like borrowing for a house and stuff like that. And I think that becomes more true when students go into default and the credit is affected more than just the fact that they have debt." "(Source: How Much Student Loan Debt Does the Average College Graduate Have?, US News, Sep 2023)
2. Living Situations: Some young adults face challenges such as living in cramped conditions in order to manage increases in the cost of living. Living situations can impact mental well-being, job satisfaction, and overall quality of life. Unstable living conditions may lead to stress and affect an individual's ability to focus on career development. See Rental prices in Australia set to increase by 10% in 2024.
3. Lack of Financial Support: Not all young adults have the financial support of parents, grants, personal savings, inheritance, or scholarships. This lack of support can exacerbate the challenges they face. Without financial assistance, individuals may struggle to access opportunities for skill development, develop a life outside of work or even basic needs. This can contribute to a growing divide between those with financial support and those without.
4. Medical Needs and Caregiving Responsibilities: Additional medical needs and caregiving responsibilities underscores the diverse challenges young adults may face beyond their professional lives. A challenge that's prominent in Asia is the rise of caregiving with an aging population. In other parts of the world, rises in cases of diabetes, heart conditions, ALS, Dementia, Alzheimer's and other similar conditions. Balancing work and caregiving responsibilities can be emotionally and physically draining particularly if you are the only child. Employers will need to acknowledge and make accommodations to these challenges to create a supportive work environment.
5. Mental Fitness and Well-Being: Young adults may be struggling more with mental fitness, challenging the traditional notion of separating personal and professional life. The pressure to conform to workplace expectations while dealing with personal challenges can contribute to mental health issues. Employers need to prioritise mental well-being and provide resources to support their employees. Are your policies doing enough to prevent workplace harassment and bullying? Are you providing enough training and support to help them develop their mental fitness?
6. Generational Differences and Expectations: Bullying and unrealistic expectations points to a gap in understanding between different generations in the workforce. Workplace dynamics, communication styles, and expectations may vary across generations. Recognising these differences and fostering a more inclusive and understanding work culture is crucial for the success and well-being of all employees.

My recommendations to businesses:

1) Create Space

Provide the opportunity and room for employees to pursue their interests independent to direct business outcomes. Consider establishing a startup lab or sandbox for testing ideas, possibly leveraging your existing tech resources. This approach, observed successfully in smaller teams and big businesses, allows employees the time and space to innovate, ultimately contributing value to your business.

2) Facilitate Personal Development & Support

Implement targeted training support programs focusing on mental fitness and leadership development. In my own business, employees reported reduced reliance on anxiety and depression medications after participating in these initiatives. Address challenging conversations, such as coping with a bullying manager.

Many years ago, I attended an in-house training in a Fortune 500 company that I worked at. The focus of the training was on the victim-hero-villain complex. It provided a safe space for me to share my struggles with one of the senior execs that I was working with. All that time, I had internalised their bullying as "better for me" but it was affecting my performance - errors were showing up. Being able to see what it truly was helped me to start shifting my approach with the exec.

3) Update your Policies

Acknowledge that social media policies are outdated - most are tilted towards recognising businesses' concerns with cancel culture. Understand the delicate balance of speaking up affecting careers while acknowledging that issues like sexual harassment and fraud persist and why whistleblower policy won't help.

In navigating this complex terrain, there is a new line in the sand that must be found.

Fostering a supportive and dynamic workplace requires a commitment to adaptability and empathy. By creating spaces for individual growth, facilitating personal development, and updating policies to align with contemporary challenges, employers can navigate the evolving landscape of work. The imperative is to acknowledge the diverse experiences and needs of employees, particularly the younger generation, and actively contribute to a culture that values both professional excellence and personal well-being. Embracing these principles will not only enhance the work environment but also position businesses for long-term success in an ever-changing world.

Are you looking for ways to improve increase mental fitness and leadership capabilities in your team? If yes, drop me a message.

I am a leadership coach, entrepreneur, best-selling author and board member.