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Future-proofing the workplace

HR Guide: Future-proofing the workplace

A whole new generation is entering the workplace. Loosely labelled Generation Z, their attitude to work will be vastly different from those of previous generations; this attitude will soon be shaping our workplaces, and even how we work.

As the CIPD’s “Gen Up” research highlights, each generation’s attitude to work is fostered by the environment in which they grew up. Generation X, born between 1964 and 1978, experienced strikes, Thatcherism and then recession and a housing crash. This is in contrast to the Baby Boomer generation who grew up during a period of positive change after a period of rationing and hardship.

The resulting contrast between the two is interesting – Baby Boomers tend to be more loyal to one single company, working their way up the ladder internally, while Generation X tends to be slightly less loyal and perhaps more cynical, moving from company to company in order to further their careers.

Generation Y, born between 1979 and 1991, have by and large been shielded from the worst effects of recession – until now. Their attitude to work is that change is inevitable, and the career certainties of old no longer apply to them. What is becoming clear is that they are beginning to lose trust in employers.

Recent research highlights an increasing lack of trust. Nearly a third (32.2%) of Generation Y-ers told recruitment consultants Badenoch & Clark that they refuse to believe either most or any of what they are told by their employer – up from 18.2% in a similar survey last year. Only 1 in 10 ‘totally trust’ their employer.

So what does this mean now that Generation Z is about to enter the workplace? It means that workplaces have to radically alter themselves in order to find, engage, motivate, and retain talented individuals. The ever-increasing lack of trust in employers will have a financial impact, so HR professionals have to find ways of making the workplace more meaningful to Generations Y and Z.

Use the technology they use

E-mail and the internet revolutionised the workplace in the 1990s, but many organisations have simply stopped there. At least 15 years on from the first e-mail systems, younger generations have almost abandoned e-mail entirely, preferring to network through social media.

Organisations need to recognise that Generations Y and Z need greater, more immediate interaction through technology. This need not be a cost – these media are free to use. However, this represents a mind-shift.

Organisations need to channel information quickly and efficiently, whether this be through, for example, Twitter feeds or internal social media channels. While this does require a certain sensitivity in terms of information, the advantages for employer brand are clear.

Be clear, honest and up-front

The immediacy of information that Generations Y and Z are used to has had two main effects:

• there is more ‘clutter’ – i.e. more information available than ever before
• it is more distilled – i.e. ‘bite-size’ and refined

There is a greater impatience for the right information, but also a greater ability to ‘pick through’ communication for the essentials.

Internal communication within an organisation needs to be clear and to-the-point, as well as honest and up-front. That increasing lack of trust comes as a result of job losses, redundancies and pay freezes. Only those organisations whose communication has been clear and honest have fostered resilience in the recession.

It’s not all about money

Salary used to be the deciding factor, but this is no longer the case. Generations Y and Z tend to be more attracted to appropriate benefits, and even Corporate Social Responsibility, meaning that attracting and retaining talent takes even more skill than before.

In a time of pay freezes, however, this is not bad news. Offering flexible or voluntary benefits (e.g. shopping discounts) is a low-cost way of personalising reward packages, and boosting employee retention as a result.

Charity work is also proving popular. Many organisations are now allowing employees to take ‘charity days’ in which they take leave to volunteer for a designated charity. Many larger organisations have their own charity, to which employees can contribute via their payroll directly, and for which they can raise money through fundraising events. Ceridian UK’s PayBack charity, for example, raises £25,000 a year through Give As You Earn and fundraising events.

Ultimately, the future of the workplace will be shaped by these younger generations. In ten years’ time, we may be working on iPads, with instant communication through internal social networks, in a workplace that is more interactive than ever before.

However, in the here and now, businesses have to adjust to new employees who view work in a radically different way.

This means that HR professionals need to become internal marketers – understanding the ‘segments’ of employees and crafting a workplace that stimulates people of all ages and makes them want to stay with the business. The financial impact of losing talented employees can be significant, but the financial gain of recruiting – and retaining – your best employees is obvious.