The Leadership Cliff
Gen Z born after 1995. Largest generation in the workforce is Millennials (1). 22 to 38-year-olds. Oxford Economics calls this "The Leadership Cliff" in their report focused on preparing the workforce for 2020 (2). Employers are not prepared for leadership challenges. Over 2700 employees and 2700 executives surveyed in 2014 stated that lack of adequate leadership was cited as one of the top two impediments to meeting future workforce goals.
If you are entering the workforce, you may expect those in the latter parts of their careers will steadily leave, paving a path for your future leadership in the world. But don't assume so quickly - there are four generations in the workforce today and the oldest Baby Boomers aren't leaving soon. "People between 45 and 65 rule our societies: the median age of an incoming US senator is 51, the average age of a British member of Parliament is 50, and the average age of a CEO in Fortune 500 and S&P 500 companies is 53" (3). The retirement age is up too. Gallup reported that 62 is the average retirement age in their 2021 workforce report, the highest in the 20-year tracking.
The Millennials may start to see the organization meeting the needs of older employees and spark feelings of 'generation inequality'. This is exacerbated by the fact that the generations want different things from their employers. In their 2021 workforce analysis, LIMRA and Ernst & Young reported that the generations differ in how they expect their employers to care for their well-being. The highest expectations are from Millennials, at 47%, followed by Gen X (33%), Gen Z (29%), and Baby Boomers (24%) (4). Any separation of the Millennials and Gen Z from employer goals will cause commitment problems that make them feel less tied to the organization--not something you want for future leaders. They want to work remotely--a change that will require different ways of leading and motivating.
Millennials also see performance management differently (5). They want more feedback and want it faster. They don't want to wait for annual or bi-annual reviews and are likely to not agree with the feedback. A traditional way of leading again will be a problem with these workers.
But is all this worry in vain? The average Millennial will stay at an organization for two years. So what should organizations do to not fall off 'The Leadership Cliff'?
Topics
Engagement, Leadership Development, Leadership Skills, Performance Reviews, Feedback, Succession Planning, Retention
Student Discussion/Assignment
Leadership. How can leaders adapt or can they adapt? What will leadership development look like? Is there a chain of succession that the organization has strategically put into place.
Feedback. Students can design new performance management strategies. How can organizations formally change the method of appraisal to fit younger generations?
Retention. Relate retention issues to engagement issues. Will it be possible to increase younger generations' attachment to the organization? Their average tenure is 2 years (Millennials). How much is realistic to retain them longer and is it even realistic to think you can develop leaders who will stay?
References
Delgado, D., Hill, N., Regalado, A., & Waldman, N. (2020). Millennials leading the workforce. Journal of Business Studies Quarterly, 10(2), 35-42. http://ezproxy.emich.edu/login?url=https://www.proquest.com/scholarly-journals/millennials-leading-workforce/docview/2478619108/se-2
https://www.oxfordeconomics.com/recent-releases/workforce-2020-the-looming-talent-crisis
Roache, R. (2019, Sep). The new midlife crisis. MIT Technology Review, 122, 46-47. http://ezproxy.emich.edu/login?url=https://www.proquest.com/magazines/new-midlife-crisis/docview/2285057861/se-2?accountid=10650
Chillakuri, B. K. (2020). Fueling performance of millennials and generation Z. Strategic HR Review, 19(1), 41-43. http://dx.doi.org/10.1108/SHR-02-2020-175