Unlocking Potential & Purpose in the Next Generation

UNLOCKING POTENTIAL AND PURPOSE IN THE NEXT GENERATION

Even prior to the alleged “Great Resignation” (re-interpreted here ), many managers believed their NextGen (Millennials and GenZ) workers were less productive, less committed, and more unrealistic in their expectations than previous generations. We hear it repeatedly in working with new clients at Always About People (aap) . These aspersions have been cast upon what is now almost half of today’s entire workforce, so before we jump to conclusions or throw half of our workforce under the bus, let’s take a look at some data and weigh this carefully, because if those beliefs were true, it would be a troubling indication of what lies ahead for the future of business.? Sadly, the latest data from The Conference Board (Sept ‘22) reveals almost another one-third decrease in employee engagement in just the last six months, with Millennials near the top of disengaged employees. Location (in-office, remote, or hybrid) is not a factor here, but having a caring manager is.? This decrease in engagement is speculated to be partially the result of external factors such as looming layoffs and recession, decreasing retirement funds, impending war, and many others. Although the latest stats are unsettling, people leaders who understand people’s values and the value of people, can make a tremendous difference in the lives of NextGen and all employees.

Every generation in the workplace has found satisfaction in similar values: fair pay, workplace safety, social community, career advancement, and caring leadership. Depending on each person’s particular needs, the order of importance may change, but the actual contributors to overall satisfaction will only vary slightly. NextGen shares many of the same concerns that have been common to all generations, but we are seeing some new themes emerge. Pay is no longer the primary contributor in retaining knowledge workers (still important, just not always top priority for everyone). And even if increased pay moves an employee, it likely won’t keep them long. This new trend is called “the boomerang effect”. The other side might have looked greener with more money, but it wasn’t greener after all. A sense of belonging and feeling valued can be even more compelling.

In a recent article on Quiet Quitting , Gallup concluded employee resignations were “especially related to clarity of expectations, opportunities to learn and grow, feeling cared about, and a connection to the organization's mission or purpose -- signaling a growing disconnect between employees and their employers.”? Each of those resignation reasons is based on the relationship between managers and employees. This disconnect needs to be addressed by employers (a one-on-one is the perfect place) to develop and retain NextGen teams. While surveys always suggest several factors in employee retention and satisfaction, aap has found two specific priorities that are slightly different from prior generations: Technology and Purpose. They will be two basic keys to understanding and unlocking the potential in NextGen employees, and we want to show you how a company can address these issues and create a culture where all employees thrive.

NextGen are the employees who will inevitably replace managers and executives, so it is leadership’s responsibility to find a way to create a succession plan, a development plan. Without current leaders intentionally taking time to develop NextGen’s business skills and acumen, there will be far less success in the future of our organizations, regardless of current organizational performance. At aap, we are beginning to see the answers to this dilemma in preparing the next generation for future leadership success, and we want to help equip them to carry our future.

Technology

Specifically, Gen Z will thrive in a technological environment that is reflective of their “pre-wired” personality. Wired Magazine calls them “the screen-swapping, painstakingly curated, social-good-performing Gen Z’er.”? They are the most educated and technically savvy generation in history. They can only imagine life before cell phones and instant access to all information on any subject, and that cell phone empowers them. A recent Barna study on Gen Z’ers found:??

“The internet is at the core of Gen Z’s development, a uniquely powerful influence on their worldview, mental health, daily schedule, sleep patterns, relationships and more. Devices are almost constantly on their person and on their minds.”

Their understanding of how to deploy technology to increase productivity and their comfort with that ever-changing tech is far beyond previous generations. If Millennials were digital natives, GenZ are pre-wired: expecting to be connected at every moment. Everything is connected for this generation, and that deeply affects their sense of meaning and purpose in the world, in both positive and negative ways. For them, a lack of hybrid work options may not only reflect an out-of-date infrastructure, but a resistance to adaptability. They often choose to “go in” to the office (social connection is important) but also see the ability to work remotely as necessary to maintain a healthy work-life blend. Their lives have been built around options and flexibility! Consider how many new and individualized options didn’t even exist just ten years ago in education, retail, communication, healthcare, and entertainment. To the Gen Z’er, those options are more than just internet access; they are what life is about. Interestingly, a Dell study found that more than 80% believe social media is critical to business success. Restricted social media access, as well as out of date equipment, systems and workspaces can indicate a lack of commitment to innovation and career growth.? They expect more access, not less, in their new working environment. Fortunately, the knowledge-based workplace is well-suited for the NextGen worker, and statistics are showing office workers are less likely to resign than employees in other work environments. Today’s managers can and should maximize this “pre-wired” knowledge and expertise in Gen Z to enable both their employees and their companies to achieve full potential. Investment in this area could be the difference-maker for sustaining your business.

On the other side of this technology equation is humanity. Helping them experience the value of human connection, face to face communication, psychological safety, and time away from tech that creates a healthy work-life blend (we would also add conflict managemen t and difficult conversation skills to that list). We like Tim Elmore’s “L.E.G. policy”: listen, empathize, guide. NextGen can struggle with mental health, and although no one has all the answers, helping someone with their people skills (some call them soft skills) is going to benefit all people. If a leader does not experience this healthy blend for themselves, they cannot help others find it either. Start at the top of your org chart and encourage healthy humans all the way through.

Purpose

While employees have always wanted to work for a company with a well-designed vision and purpose, our younger teams are even more committed to working for a shared and meaningful purpose. Many studies have highlighted the contemporary need for meaning and purpose. Additionally, there is a swell of interest from thought leaders in the ?Meaning Crisis . Lever’s survey showed 42% of Gen Z’ers would work for less money in order to have a meaningful purpose.?

While it is possible this intrinsic need could be fulfilled by family, friends, and community/civic activities (and was in previous generations), Gen Z’ers often need to find their meaning in the workplace. Finding higher meaning in work is a generational shift we at aap are thoughtfully weighing when advising our clients, but we will expand on that in another newsletter. ? Ironically, the rise of social media and digital communication has increased the longing of the younger generation for deeper, interpersonal connection and meaning. ”Swipe right” has been unable to provide for true connection after all. Finding purpose at work is an opportunity for them to see that what they do matters. To accomplish that, organizations need to do a couple things: examine and listen. Examine your Purpose Statement (aka Mission, Vision, Your Why) and ensure it is meaningful to your workforce (and customers!); and listen with empathy (remember L.E.G.) when employees are questioning their purpose at work. Help them aim higher individually, as your entire team is aiming higher in the organization’s Purpose. That creates incredible synchronicity, harmony, and alignment. There is every opportunity for knowledge-based companies to recognize and promote a purpose that is far more than just making money for their shareholders. It may require a thoughtful process to discover it, but a purposeful meaning exists beyond simply financial return on investment. Discover it and connect it to each person’s role. It is imperative for a thriving culture. We cannot overstate its importance.? The best way to connect the Purpose to each person’s role is through the weekly one-on-one. This is the crucial key in Purpose that too many leaders miss: take Purpose to the individual level!? It’s one thing to have a meaningful organizational purpose, but if it can’t be directly connected to the individual’s role, it won’t mean much. ?

A meaningful purpose statement is not about shareholders. It is about the direct impact a company will have on a greater cause: their customers, a marketplace, or a defined community. Lofty purpose statements may sound admirable at first but provide little sustainable motivation to employees who realize their personal contribution will have no effect on unattainable goals. Help them connect their individual skills and strengths to the Purpose of the organization. A compelling and connected purpose may be the reason Gen Z’ers are still working with you 10 years from now, despite offers to work elsewhere for more money.??

Understanding and Unlocking Both??

Effective managers will understand how to use both these keys in unlocking the potential technological capabilities of their new hires, and in connecting them to meaningful purpose in their work. Your “pre-wired” employees are exceptionally prepared for a knowledge-based position through their familiarity, skills, and comfort in a hyper-connected world. They are furthermore drawn to a company that has a positive and measurable impact, a larger purpose, more than any previous generation. Leaders who respond to these needs find their NextGen workers demonstrate exceptional technological skills and extraordinary loyalty to a company that provides conditions for their success. One day soon, you will be entrusting the future of your company to this talented generation. As Arthur Brooks, Harvard social scientist observes, “When you’re young, you have raw smarts. When you are old, you have wisdom. When you are young, you can generate lots of facts. When you are old, you know what they mean and how to use them.” ? It is essential that organizations recognize the value of both.

Recommendations:

1. ?Review your company Purpose statement (aka Mission, Vision, Your Why):?

· ? ? ? Have you clearly identified a purpose that is “bigger than your company’s success” and focuses on impacting the lives of your customers and employees?

· ? ? ? How well is your purpose communicated and reinforced throughout your company (from interviews to exits)? Is your language compelling, relevant, and effective?

· ? ? ? Go Deeper: Do your managers connect your company purpose to the activities, skills, and goals of the individuals on their team, regardless of generation? (done through a weekly one-on-one meeting )

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2. Review your technology environment for meeting the needs and expectations of your workers.?

· ? ? ? Do you have a hardware and applications infrastructure that is taking advantage of the technological savvy of your NextGen workers? (again, one-on-ones are a brilliant place to ask these questions)

· ? ? ? What is the ROI of upgrading hardware and software… and Go Deeper: are you underestimating the true impact it is having on employee retention, satisfaction and productivity?

· ? ? ? What is your plan to communicate to staff about how technology will be improved in the future?

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At Always About People, we have spent the last 25+ years creating cultures that encourage people to thrive, businesses to grow, and leadership to aim higher and go deeper. We are convinced organizational culture is at its best when people flourish, and leaders feel confident and equipped to affect change for the better.