UK 
United States
Whether we like it or not, we’re living through a period of rapid change and business disruption. Organisations are rethinking their entire approaches to structure, leadership and people management.
New concepts, such as ‘flatocracy’ are being introduced alongside a belief that management is as much about creating a ‘followership’ as it is about ‘leadership’.
Lines between functions and roles are being blurred. Collaboration, matrixed working and fluid team structures are becoming a necessity.
We now have as many as five generations in the workplace, with the newer generations bringing with them attitudes that challenge conventional thinking. With a third of the workforce likely to retire in the next ten years, these new thinking generations are forcing organisations to radically rethink the workplace. In this context, the biggest challenge for leaders – likely to be baby boomers or GenX - is not to assume that other generations share their values and attitudes to work, recognition and reward.
Five generations with very different attitudes and expectations
The wider global context
If having newer generations challenging the status quo were not enough, there are two other megatrends that are driving disruption and organisational transformation:
- Expotential technology change: whole industries are being disrupted by the pace of technological change and the rise of disruptive competitors. Customer and employee expectations have changed, with the ‘right here, right now’ attitude permeating all areas of life. And the ubiquity of social media means that nothing remains secret. With social networks helping overthrow governments, employers are increasingly alive to the potential damage to their organisations.
- Political, social and economic change: originally used by the military, VUCA (volatility, uncertainty, complexity and ambiguity) is now more widely used to describe both the global political and economic landscape and the environment in which businesses operate. Organisations are increasingly asking themselves what the future might hold and having to adapt their planning horizons accordingly. Becoming more agile and flexible is now a business requirement.
A new world of work has emerged
A ‘new world’ organisation has evolved in response to market conditions, the impact of technology and the differing expectations of Gen Y and Digital Natives in the workplace. What has emerged is a flatter, more agile organisation where alignment around a common purpose, employee empowerment and collaboration are the norm.
The very idea of what makes a leader has changed
The once tried and tested traits of decisiveness, extraversion and motivation as the key markers of effective leadership have now been matched, and even superseded, by the likes of abstract thinking, communicative approaches and collaboration. These are attributes which are often more prevalent in female leaders.
Alongside this, the concept of ‘leadership at all levels’ is gathering pace. In the new world of work, all employees at all levels need to be informed, enabled and empowered to achieve company goals. A recent Harris poll found that 70% of adults consider themselves as leaders, regardless of their job title. There is a growing sense that people are itching to lead, irrespective of whether it comes with the traditional leader name tag. Younger generations are more expectant; give them the opportunity first, and look to them to prove their worth.
Rethinking career planning
One of the major generational differences lies in attitudes to career planning and career trajectories. In the past, careers ladders that just went straight up, title by title, were accepted. In the new world of work, the emphasis has changed to gaining more experiences, driven by the attitudes of the younger generation of workers.
Rather than thinking in terms of a “career ladder’ with an upward trajectory, organisations are increasingly responding to demand for a sequences of experiences and creating opportunities where people can move both side to side as well as up and down.
The ‘war for talent’ becomes a ‘war for mindset’
When we think about the ‘war for talent’ it’s generally in the context of organisations competing for in-demand skills. What is emerging however is a radically different way of thinking: recruiting for attitude or mindset as well as well as core skills.
This new approach is fuelled by the recognition that not all skilled developers or digital marketers, for example, are capable or want to work within an agile, fluid environment where the lines between functions are blurred and cross team collaboration is the norm.
Instead, employers are increasingly using mindset measures, such as Hudson’s unique PULSE MINDSET™ to assess natural attitudes and capabilities. As the co-founder of We Are Social puts it: “When we recruit, we focus on what can’t be taught. Natural abilities such as openness and willingness to collaborate are essential; other skills can be embedded over time”.
Learning revisited
As employees seek experiences over structured career paths, organisations are rethinking their approach to learning to embrace real time, always-on learning that allows individuals to build knowledge quickly, remotely and on their own terms.
The annual appraisal is proving to be an outdated concept
The ‘right here, right now’ approach is increasingly being applied to the concept of feedback and performance reviews, driven by the younger generations’ desire for continuous feedback and the increasing use of agile, fluid team structures. Instead of the annual appraisal, organisations are introducing regular, informal 360 feedback, project reviews and real time engagement surveys.
Thinking beyond established headcount
Increasingly employers no longer see their “workforce” as employees on their established headcount. Today “workforce” can include gig economy, freelance workers and even crowdsourcing environments, driven by the new thinking of workers.
Hudson research shows that, unlike their predecessors, 16 to 34 year olds are far more open to the prospect of freelance or contract work and portfolio careers, reflecting very different attitudes to career development and learning:
| 16 – 34 years | 35+ years |
Likely to freelance in the near future | 67% | 46% |
Likely to contract in the future | 54% | 31% |
Likely to have a portfolio career in the near future | 56% | 25% |
5 questions all organisations need to ask themselves
The new world of work brings with it a fresh set of challenges. Organisations of all shapes and sizes are beginning to ask themselves:
- What type of leaders do we need now and in the future?
- How should we be structured?
- What type of employee will we need and how will we differentiate ourselves to attract the right talent?
- How will we manage and drive productivity in a changing and unpredictable environment?
- How will we drive engagement and retention in an organisation with five generations, all with different expectations?
For further information on the New World of Work: https://uk.hudson.com/latest-thinking/new-world-of-work
