In this series of articles, I take a look at the HR and workforce trends that are building momentum to help businesses understand what the workforce of the future will look like and how they can prepare for these workforce evolutions. In our last article we looked at how the traditional 9 to 5 is becoming an outdated working concept and how and why the labour market is looking for more flexible, fluid working options. In this article we look at how younger working generations are also influencing working patterns further and how this may impact the future world of work.
Sadly the notion of a ‘job for life’ is no longer a priority for employees and candidates. The average job tenure in the UK is now only 4 years (3-5 years depending on the industry). This means that employees entering the workforce today may move companies and jobs around 11-12 times in their working careers rather than remain loyal to one or perhaps a couple of employers. The development of AI, technology, social media and the accessibility of the internet; means that individuals can more easily access career deciding information such as vacancies, benefits, training and development, professional development, advice and company information. This enables them to make career decisions and access new jobs more easily than ever before.
In addition to the reduction of job tenures, the way in which Millennials and Gen Z are approaching their careers is also changing. Where most would traditionally choose a career path, train in it, and develop their career progression with time; nowadays career paths are becoming less linear. Generations entering the workforce today are wanting for their career options to remain flexible and the freedom to try out a few career paths before settling on a decided path later in their career. There is interest in moving between workplaces and more appetite for returning to previous employers than before. The younger working generations have different priorities and motivations to previous working generations. The focus is diminishing on financial reward and more interest in setting themselves up for longer term employability through ‘career experiences’ and work-based learning. 40% of 16-23 year olds are combining at least two jobs illustrating a thirst for business / career knowledge and an entrepreneurial commitment to work.
So how can companies prepare themselves for the changing motivations of future working generations? Companies should be considering:
- Firstly to set company expectations that job tenures and commitment will be lower than previous generations and understanding that this is due to generational trend.
- To review whether length of services based benefits including increased holiday entitlement with service, long service awards, LTIP bonuses, shares, etc. are impactful and whether they will be beneficial for attraction and retention in future years. Companies could consider whether more flexible and individualised benefit packages would yield better results.
- To meet the needs of these trends, business could ensure that ‘side hustles’ are possible by not restricting employment options with exclusivity clauses in employment contracts.
- Retention planning and succession planning will become more important – whatever companies can do to increase employees tenure and preparing for business continuity in the event of key talent leaving would be wisely prepared for.
- Companies should look to set up a structure of ‘career experiences’ in their businesses – that can help enrich employees careers and help grown them professionally (which can simultaneously expand the companies skills and capabilities) through:
- Lateral career moves: enabling employees to move from one department to another, or to another company on an exchange scheme (various silicon valley companies have set up exchange programmes to mutually benefit from exchanges)
- Vertical career moves: enabling employees to move upwards on the career ladder through planned for progression periods
- Rotational moves: transitioning employees around different roles and departments to give them a wider business experience, develop business and operational understanding and to upskill
- Boomerang employees: keeping an open door policy for returning employees who are already knowledgeable and experienced in your company’s operations
- Its also important is for companies to consider their employer brand for attraction and retention purposes. Younger prospective employees want to buy into a company’s culture and be proud to work for them. Employers with a strong purpose, strategy and ethics, environmental and sustainability policies, clear DEI&B policy and support, wellbeing packages and pay transparency are the most attractive companies to work for, for these generations
*Capgemini The Fluid Workforce Revolution Research
In our other articles in this series, we have taken a look at the following trends:
In next weeks article we will be discussing ‘Why to skills map and the ‘half-life of skills’.
If you would like any advice on retention planning, employee benefits, HR strategy or trends, then please contact Kimberley Wallace, Senior HR Consultant on kim@nockoldshr.co.uk or 0345 646 0406.