Next generation leadership

Ask anyone over the age of 40, and they’ll likely say the same thing: promotion, reward, the steady ascent up the corporate ladder are all earned and paid for by commitment to the job, loyalty to the company and perhaps more than anything else, by putting in the time. It takes time – several years – to really learn the ropes and to demonstrate readiness for more responsibility. However, our youngest generations in the workplace have turned much of this accepted wisdom on its head.

HR leaders and managers describe a new wave of workers who are prone to leave their jobs with ‘frightening’ rapidity. This is a generation that stays around for two to five years before moving on to the next opportunity; a cohort that cleaves more to purpose than to material reward, that demands to know why as much as what they are required to contribute or accomplish, and whose primary allegiance is not to the organisation but to the immediate team and the individuals who surround them.

A generation on the move

Generation Y and Z are, of course, our leaders of tomorrow. And they are starting to agree to positions of influence already. They are also causing friction with incumbent leaders who don’t know how to manage them.

In researching my book, Next Generation Leadership: How to Ensure Young Talent Will Thrive With Your Organization, I had plenty of opportunity to survey, interview and observe Generations Y and Z, as well as the organisations and managers who hire them.

The core issue is a shift in priorities, expectations and values; a sea-change in the paradigms of work and leadership that set the upcoming generation apart from (and very often at odds with) the incumbents. And it’s not their fault. 

Economic and social realities impacting younger generations

You have to remember that this is a generation that won’t have the security of retiring on a defined benefit (final salary) pension. The golden handcuffs and a job for life simply don’t exist for them. They’re also the first generation that will experience the 100-year life as a reality, as explained by London Business School Professors Lynda Gratton and Andrew Scott. Now, as we live longer, the expectation is that we’ll also have to work longer; the luxury of retiring at 65 will be replaced by the necessity to go on working into our 80s. Many Millennials will be spending probably sixty years of their life working, and that has shifted expectations and driven a feeling of optionality in terms of where they work, who they work for and how long they choose to stay.

These young colleagues are also demonstrably less ‘material’ than their forebears. Salaries, bonuses and promotions, while important, compete nonetheless with concepts like purpose, development, culture and work-life balance. Capitalism is a ‘fungible concept,’ and as these emerging leaders assume influence, we are likely to see a swing in focus from outcomes to outputs: from returns and share prices to impact and value for customers, employees, communities and the world.

The need for leadership recalibration

To manage this new generation more effectively and to ensure that they thrive, deliver value and feel better connected to the business, organisations need to start thinking differently.

I believe there’s an onus on today’s leaders to recalibrate their own ideas and expectations when it comes to managing the leaders of tomorrow. There are things that the Baby Boomer and X generations have to let go: the idea that young talent will stick around forever, that investment in things like development and training are tied to tenure, or that emerging leaders must be 100% dedicated to their job at the expense of all other interests or activities. We need to embrace their agility and recognise that the workforce can be fluid without its always damaging our long-term prospects.

But how do we enact this kind of shift in thinking?

My work over fifteen years with emerging ‘hi-po’ leaders and their companies yields key insights. I surveyed such talent across 44 countries, complementing quantitative evidence with qualitative analysis across a sample that spans highly diverse industries and sectors. My findings point to a broad homogeneity in their priorities – a generational ‘tightening’ that stems from having much in common. They are the first truly global generation, the first to be digitally connected from the start, and a generation who will live – and work – longer than their predecessors by a considerable margin. This consistency or homogeneity makes it possible to see Generations Y and Z as a more coherent group, while recognising that to discuss generations does force one to generalise, but I urge us not to dismiss the findings merely because one can find an exception: If we can better understand patterns and trends that are more true than not, then this can only benefit our ability to manage and empathise with our youngest colleagues.

Six strategies for managing young talent

And this, in turn, makes it possible to distil insights about them into actionable ideas for their managers: practical frameworks, strategies and tools that he shares to ensure that young talent can thrive within today’s organisations.

The following are six tips to help manage young top talent:

#1: Articulate your purpose

Be proactive in terms of helping employees articulate their purpose and help them connect it to the mission of your organisation. An impactful and cost-effective means of doing this is to put together a workshop. Build this around two central ideas: Why should talent work here versus anywhere else? Why should customers come to us versus anyone else?

#2: Hold each other to account

Organisational culture is something that needs to be engineered versus emerging organically. Aim for transparency, responsibility and accountability as a rule, and be clear about the kinds of behaviour that model your organisation’s ethos. Consider what behaviours, if shared among your bellwethers, would become new norms.

#3: Be fluid about development

Understand that development opportunities should not be tied to tenure. There are a host of cost-effective measures your organisation can take to weave training and development into everyday life, from shadowing to coaching to international placements to secondments. Aim to think more dynamically about development.

#4: Re-consider what work-life balance means

The number one thing that Gens Y and Z ask for from their employers is work-life balance. Too many organizations have resisted this request, but we all are now confronted with the necessity of remote working. Even when we exit the pandemic, our global, digitally connected workforce will inevitably have to get a lot better, and a lot more comfortable, with managing virtual teams. We will not go back wholly to the way things were. One insight that I discovered after running an experiment is that some tasks lend themselves better to a virtual environment than others. In fact, some types of activities will yield better results if they are conducted virtually instead of face to face. For example, brainstorming innovations or solutions to intractable challenges require as many insights as possible and reducing the noise of voices who dominate the conversation. An asynchronous virtual discuss board to solicit and respond to ideas before coming together will disintermediate a lot of the dysfunctions of dominating voices due to factors such as status, gender, culture or personality.

Work-life balance has been a contentious topic. Too often there is a semantic discord between the generations when it comes to understanding work-life balance. For Baby Boomers and Generation X, asking for work-life balance is a ‘when’ request, concluding incorrectly that young people want to work less so they’re lazy. For Generation Y and Z, work-life balance is more often a ‘where’ request: they see the 9-to-5, chained to the desk, face-time model as archaic when technology makes it possible to have constant access to work. Emerging leaders want greater flexibility and a higher degree of agency or autonomy – some margin to choose where and how they work. Be sure that you are all on the same page in terms of your organisation’s policies and that they don’t mean different things to different people. Our current world environment amidst self-isolation is a good time to practice working remotely yet effectively.

#5: See the value in side-hustles (projects on the side)

Talented young people often have interests that go beyond their role or your organisation. Whether it’s charity work, a personal website or projects that leverage professional skills, try to reframe these activities as sources of dynamism – both intra- and entrepreneurial development. Encourage your employees to pursue opportunities to learn – and to share that learning.

#6: Be flexible about people leaving

After all, they might well come back. Try to onboard new staff faster. It shouldn’t take two years to learn the ropes. Encourage a sense of fluidity that leaves the door open so that your leavers build new skills and knowledge to bring that back to your organisation should they choose to return further down the line. Embrace this fluidity and find ways to make it work to your advantage. Many professional services firms are world-class at cultivating an alumni network of former colleagues, even hosting reunions! 

The Future of Work: A More Human Approach

As Generation Y and Z accede to leadership, I believe that our world of work is set to become more ‘human’. The real challenge for today’s employers is to leverage this forward momentum to the advantage of the organisation.