Why your company must understand the new generation of workers

The younger generation of workers is as vital as any other to the success and survival of a company. And while businesses often focus training efforts on managerial and leadership teams, they can sometimes forget that the next generation of leaders are currently new graduates.

Inspiring these younger people can help create loyalty and mould their abilities. It can even bring new skills to a company. So, let’s look at three reasons why you should be focusing some of your efforts on a new generation of employees.

1. The problem of loyalty

We’re becoming increasingly aware that our younger workers are already planning life away from our organisations. A 2018 survey of 10,455 Millennials (born between 1981 and 1994) and 1,844 Gen Z (born between 1995 and 1999) across 36 countries found company loyalty among these groups is on the wane. 

When asked how long they would prefer to stay at their employer, 43% of Millennials and 61% of Gen Zs said they would leave within two years. 

This ‘job hopping’ is bad news. Replacing top talent in an emerging economy like the UAE can be difficult and expensive. The Willis Towers Watson 2016 Global Talent Management & Rewards study collected 2,004 employer respondents representing over 21 million employees. It found that 71% of responders in the Middle East reported problems recruiting high potential employees. 

Once you have them, keep them. And with the younger generation this means inspiring them to stay.

How to inspire loyalty 

You can inspire loyalty among newer generations by having a diverse workforce (especially among management and leadership) and also through benefits.

In the survey on Millennials and Gen Z mentioned above, those younger employees who reported being likely to stay beyond five years saw a diverse organisation (69%) and diverse senior management team (56%) as a key reason for this. They were inspired by the possibilities open to them.

In terms of rewards programme, nothing inspires people more than money – no matter their age. But for younger workers, one of the key rewards is flexibility. 

2. The problem of training

“In a hierarchy every employee tends to rise to his level of incompetence.” This statement was made by Laurence Peter in 1969. He meant it as a tongue-in-cheek way to describe the observation that at some point workers appear to get stuck in a position that demands more than they can give. A phenomenon we call the Peter Principle.

In the UAE, this is generally overcome by offering the right training at the right time to make sure people stay motivated and have the skills to move up. An alternative is the Cravath System, which employs an “up or out” policy. Get promoted or get fired. 

Given what we know about the younger generation of workers, the Cravath System is unlikely to inspire loyalty in younger staff. But by concentrating on their current and future training needs, we can help them overcome the Peter Principle and remain motivated as they rise through the company. 

How to put the right training in place

Graduate programmes are the perfect way to start. They help you shape employees to the company ethos and demands of future roles. Of course, many companies offer these as a way to attract the best graduates. But what happens once the employee moves up? 

Sometimes the training can slow, or even grind to halt. 

The new generation of workers are aware of the need to keep their skillsets evolving, especially in the face of artificial intelligence (AI) transforming human roles. Companies need to offer graduate-style training to employees for life, to make sure staff keep adapting well into the future.

3. The problem of staying current

As companies, we’re not great at keeping up to speed with change. Take technology as a prime example. Social media, cybercrime, AI, automation – the pace of the digital revolution can seem out of control.

Willis Tower Watson research demonstrates that businesses are struggling to keep up. The 2016 Global Workforce Study showed that globally just 47% of employees thought their company was good at using technology to help them advance their careers.

This inability to stay current is a problem for the new generation of workers. Even Millennials, many of whom remember a time without huge technological influence, are unaccepting of digital incompetence. 

A recent survey showed that 81% of Millennials said state-of-the-art technology is important for creating the ideal workplace. 

So focusing time and energy on inspiring younger people can help a company solve two problems in one. It will help you retain younger workers and stay current.

Strategies to stay current

Survey the skills available in your workforce, especially in terms of technology. Many of us are surprised to find just how many of our employees, especially younger ones, have coding skills, knowledge of software developments, and social media expertise. Much of this may have been built through experience and interest rather than specific courses or education. 

Build teams of young workers who can offer creative and innovative solutions to specific company problems. By doing so, you will inspire the new generation to feel like a vital cog in the organisation.

Inspire a new generation

So these are three key reasons why we should be focusing time and energy on our younger employees. It’s vital to ensure they have everything they need to make a success – of themselves and the company.

Al Futtaim Willis is a commercial insurance broker and consultant operating within the UAE since 1976. Across geographies, industries and specialisms, Al Futtaim Willis provides its local and multinational clients with resilience for a risky world. For more information please call +971 4 376 0200.