Diversity, women, Millennials, mental health, the future of business – it will all make sense once you read this!
Business success today hinges on addressing an increasingly diverse workforce and customer base, and navigating radical technological change in a fiercely unpredictable economic and political environment. The agenda of the day for companies is thus to focus on the inclusion of underutilised groups, such as women and generational groups, while riding the societal trends and preparing for paradigm-shattering technological changes.
While workforce diversity in the face of the LGBTQ+ community gained visibility and received more HR focus in organisations and funding, LGBTQ+ people only represent a small fraction of the population, four to five percent globally and about seven percent in the Western world, according to Gallup.
We are eager to address the diversity of sexual (self-)perception, yet, we have not addressed the opportunities and the needs of 50% of the population, and in the Western world – nearly half of the workforce – the women.
As a thought experiment, let’s go back to the little forgotten topic of women diversity in the workplace and then transition to the Millennials’ and Gen Z’s distinct needs and expectations from an employer.
- Moulding the future workforce by integrating critical diversity groups
- Take care of your women
Though currently not at the top of the political agenda, there needs to be a catch up on the topic of women in the workforce. There could be no gaps in addressing gender diversity, it should be addressed alongside the generational shifts that are happening.
Women have a very distinct psychology and physiology that cannot withstand prolonged stress and heightened levels of adrenalin. Working long hours and with high intensity is very taxing to the female physiology and mental health. Yet, the majority of high performing environments require work modus that is unfit for women.
And how could this be, you would ask? Are half the world’s customers not female? How can a company compete effectively, if it’s products and services do not integrate women’s distinct perspectives?
It is well documented that women’s perspective is different on all levels: psychological, physical, sociological, etc. And who can better create a product, or a service for women than a woman?
The real human potential in an organisation is thus not deployed. Rather, at the current state of affairs, women are made to fit in men’s boots and to forego their distinct creativity and full productivity.
- Millennials and Gen Z’s are the future
The same principle applies to Millennials (and Gen Z’s). A company that wants to include this group as customers (and they will have no choice, because life goes on), will have to adapt its culture and HR policies to the needs and expectations of this group.
By now, you have probably come across studies that point to where these young people place value on. One particular study from 2023 clearly shows that Millennials (and Gen Z’s) are likely to reject a job that does not provide personal development, health and mental health support and that does not align with their values. Specifically for Gen Z, the line between social interaction at work and private interaction is blurred, as they see ‘work’ as an integrated part of their life.
To put a disclaimer upfront, this is a generalisation of generations. While status may still be important to some Millennials (more than to Gen Z’s) at work, the majority is driven by social approval and social contribution. They seek an environment that is fertile to their contributions.
As this generational shift is happening, the Millennials (and the Gen Z’s) continue to work in environments and culture shaped by baby boomers. This will inevitably change, as the baby boomers pass the baton and retire, and possibly even more so because of the rapid technological change.
So, what are some ways to start engaging the Millennials in organisations and tapping into their capacity? Well, what do they want?
They want meaning. Meaning is created by the alignment of a few factors:
- Firstly, address their need for personal growth and well-being. What should you as a leader do? Hire coaches, start opening your pocket for health and mental health trainings. Integrate them in your culture: a one-time surfing and yoga retreat won’t do.
- Millennials need an integrated lifestyle, a constant connection between their values and working environment. So, nourish a collaborative culture.
- Involve them in your innovation initiatives, strategy talks and customer journey experiences – Millennials (and Gen Z’s) are eager to make a positive impact!
- The rise of the independent employee and project-based work
In parallel with the expected diversity shifts, we are seeing a change in the way people want to work. There is a demand for more flexibility from both the workforce and the companies.
In the past two years, I have spoken to close to 200 ex-management consultants, ex-CXO’s and coaches on my Grownlearn podcast. Quite a few of them had decided to go on their own after a burnout, or mistreatment from their employers, some had been let go off during the pandemic. They now provide services as independent consultants; at a fraction of the cost their former employers do. (FYI, in 2021, in the US alone, more than 47 million people had left their jobs, among them highly skilled employees (what was coined the Great Resignation).)
We are seeing the demand for independent, project-based jobs but also more demand for flexible, on demand expert skills. As businesses navigate the political and economic uncertainties, they need to be able to ramp their employee base rapidly up-and-down. The skilled experts, on the other hand, want to stay independent for a lot of reasons, one of the major ones being life well-being.
- The future of business
But there is a potential third development – the possible introduction of radical technology that could cause a paradigm shift in business, economy and society.
Consider as one example the announcement of Black Rock of its plans to develop the asset tokenization space, which could reshape entire industries and economic structures. Could this be the end of independent business and the beginning of decentralised industry service providers?
While this is only a speculation on my side, my point is that looking into the future is not only about integrating diversity groups in the workforce and riding the trend waves. It’s about pre-emptively addressing rapid technological change and adjusting your business model on the fly.
Finally, who in your company is closely observing and interpreting the technological (and other) trends? Are you doing trend-analysis pro-forma or are you actively running ahead and envisioning the new business models in your industry space?
Did it all come together for you for you at this time?
