As we know, the COVID-19 pandemic played a huge role in changing what work has looked like over the last few years. By forcing organizations to let office workers do their jobs remotely, the pandemic accelerated adoption of new technologies. At the same time, generational shifts such as the rise of the Millennials and Gen-Z’s debut in the workforce have had a major impact on attitudes at work, especially when it comes to diversity and inclusion in the workplace and flexibility.
Now, HR leaders must have conversations they could never have imagined in 2019 about remote or hybrid work, people coming into the office, and what the company culture should look like. Explore how workforce changes have affected company culture trends for organizations of all sizes and what that means for your organization, culture, and employee engagement strategies.
The Rise of Millennial Leaders
The influx of Millennials into leadership positions has had a profound effect on HR transformation. With the oldest Millennials well into their 40s, this cohort that makes up nearly a quarter of the world’s population is quickly taking over for retiring Boomers and Gen X C-suite executives. According to Forbes, one Pew Research study from 2018 found that anywhere from 5-11 million Millennials would take on upper management roles by 2028. With Millennial leaders stepping up, there are bound to be changes in company culture.
Millennials have always had a different attitude about work than their parents or grandparents, but just what those differences are has often been rolled up into stereotypes. According to the Center for Creative Leadership, Millennials want to impact the company and for their jobs to have meaning. Contrary to some stereotypes, Millennials are more than willing to work overtime – if the work isn’t repetitive and boring. They also value feedback and support and are more likely to prioritize those qualities as leaders.
Technology use is another differentiator for Millennials. Many Millennials started using technology when they were younger and see it as a tool to automate repetitive tasks, collaborate more efficiently, and keep in touch with colleagues. This means that Millennials are often more available than may be healthy for their work/life balance.
Finally, Millennials want organizations they interact with to positively impact the world, whether they’re working for them or buying their products. Organizations with Millennial leaders will quickly adopt social responsibility initiatives. They’ll also expect transparency within the organization, including around fair pay and compensation.
Don’t Forget About Gen-Z
Born between 1997 and 2012, Gen-Z is the youngest generation entering the workforce. According to the Washington Post, they are even more concerned with diversity and inclusion in the workplace than Millennials and are more educated and socially conscious. They’re not as interested in organizational loyalty as previous generations and care more about taking care of themselves and their loved ones than climbing the corporate ladder. Like Millennials, they believe in autonomy and meaningful work, but they’re more likely to focus on work/life balance.
However, Gen-Z has higher reported levels of stress, mental illness, and poverty than previous generations. Like Millennials, they’ve lived through major world upheavals that have shaped their adulthoods in bleak ways. They have a less hopeful view of the world and the future, especially when it comes to climate change and the economy.
One stark change between Gen-Z and other generations is that they’re not afraid to ask their employers to provide them with what they need. They may demand better compensation, meaningful benefits, and flexibility and will leave a job if it won’t give them what they want. This means that organizations have had to become more competitive to gain and retain Gen-Z workers.
Evolution of Company Culture Trends
Organizations that want to stay competitive in today’s work environment have had to adapt their company cultures to meet the demands of new workforce dynamics. For example, the Journal of Accountancy reports that 82% of workplaces offer some flexibility for their employees. HSA Bank’s 2023 Health & Wealth Index showed that employers covered more mental health benefits in 2023, up to 27% from 23% the year before. Workplaces are more committed to providing healthy and supportive workplaces to reduce burnout and increase retention.
There are still other gaps in how organizations are keeping up with employee expectations. The American Psychological Association’s 2024 Work in America survey showed that nearly a quarter of U.S. workers don’t believe they have enough opportunities for growth or development at work. And a 2022 Pew Research Center survey showed that this is one of the top reasons Americans leave their jobs. According to Pew Research, fewer than half of U.S. employees have training initiatives around DEI at work. About a third of these employees reported that their organization offered salary transparency and even fewer (26%) reported their organization has employee resource groups.
Engaging All of Your Employees
As Gallup reported in 2022, nearly one in five workers is actively disengaged and only about one-third are engaged in their work. Organizations need to implement innovative engagement strategies to keep up with workforce changes and attract and retain the best talent of all ages.
Organizations that provide a better workplace environment see improved engagement and its benefits. These workplaces work to improve the relationship between employees and the organization through feedback, reasonable workloads, and fostering a supportive workplace culture. Committing to inclusion every day is another way to increase engagement.
Another way to engage workers of all generations is through reverse mentoring, where a younger employee shows an older employee how to use new technology or educates them on how they see the world. These conversations between employees help foster engagement and well-being at work while building community.
HR transformation must be intentional for organizations to create and maintain the kind of company culture that fosters engagement and employee well-being. Listening to employees is the first step in implementing changes to increase productivity and employee satisfaction.
Consider Your Company Culture
Understanding the changing dynamics of company culture trends can significantly impact your company’s culture and success. Many of the most successful organizations have had to undergo major HR transformation in the past five years, implementing new employee engagement strategies and concentrating on an inclusive company culture.
Leaders and stakeholders must evolve and adapt their company cultures and management practices to meet the changing needs of their workforce. Start by evaluating your company culture and consider what’s missing. Leverage Velocity Advisory Group to better align your organization’s values, beliefs, and behaviors to improve employee engagement. Contact us today to learn more.
