And the gig economy is their next port of call.
Of the 43% of millennials who envision leaving their jobs within the next two years, 62% regard the gig economy as a viable alternative to full-time employment according to Deloitte’s seventh annual Millennial Survey.
Loyalty is even lower among the emerging Gen Z employees, with 61% saying they would leave their current jobs within two years if given the choice.
The findings, based on the views of almost 12,000 millennial and Gen Z respondents across 36 countries, including 202 in Ireland and 815 in the U.K., highlighted three key areas of concern amongst this cohort of workers – business ethics, flexibility and preparedness for the future of work.
Trust gap between workers and business leaders
Millennials believe there is a growing mismatch between how responsible companies should behave and how companies actually behave. As highlighted in the report over the past six years, millennials—and now Gen Z—are acutely attuned to business’ wider role in society, and overwhelmingly feel that business success should be measured beyond financial performance.
Only 48% of respondents now believe corporations behave ethically. Nearly 75% of respondents believe businesses are focusing solely on their own agendas rather than considering the wider society. Nearly 40% say business leaders are having a negative impact on the world.
They overwhelmingly feel that business success should be measured beyond financial performance.
They believe business’ priorities should be job creation, innovation, enhancing employees’ lives and careers, and making a positive impact on society and the environment. However, when asked what their organizations focus on, they cited generating profit, driving efficiencies, and producing or selling goods and services—the three areas they felt should have the least focus. They recognize businesses must make a profit but believe businesses should set out to achieve a broader balance of objectives along with financial performance.
Loyalty levels recede; diversity & flexibility keys to retention
Loyalty levels among millennials have declined over the last two years: 43% envision leaving their jobs within two years, and only 28% are looking to stay beyond five years.
Among millennials who would willingly leave their employers within the next two years, 62% regard the gig economy as a viable alternative to full-time employment. Loyalty is even lower among the emerging Gen Z employees, with 61% saying they would leave their current jobs within two years if given the choice.
Among respondents who said they intend to stay with their current employers for at least five years, 55% note greater flexibility in where and when they work now compared to three years ago.
How can business hold onto these employees?
Both millennials and Gen Z place a premium on factors such as tolerance and inclusivity, respect and different ways of thinking. While pay and culture attract this cohort to employers, diversity, inclusion and flexibility are the keys to keeping millennials and Gen Z happy.
Among millennial and Gen Z respondents who said they intend to stay with their current employers for at least five years, 55% note greater flexibility in where and when they work now compared to three years ago.
Not only do millennials appreciate not being tied to strict hours or locations, they also value the trust their employers demonstrate in granting that flexibility.
The Gig Economy
The recent rise of the gig economy has seen large numbers of people leave full-time employment or supplement their income by taking on short-term contracts or freelance work.
What is it about gig-based work that makes it so attractive? The short answer is the promise of (or need for) a higher income. More than six in ten (62%) of those millennials who would consider gig employment cited “increased income” as an explanatory factor. Flexibility and freedom are important secondary considerations.
Young professionals are especially seeking help building softer skills like confidence and interpersonal skills
Industry 4.0 leaves workers feeling unprepared
Millennials and Gen Z are highly aware of how Industry 4.0 (automation of technology) is shaping the workplace and feel it has the potential to free people from routine activities to focus on more creative work. However, many are uneasy about its arrival.
17% of all surveyed millennials, and 32% of those whose organizations already use Industry 4.0 technologies extensively, fear part or all of their jobs will be replaced. Also, fewer than four in 10 millennials and three in 10 Gen Z workers feel they have the skills they’ll need to succeed, and they’re looking to business to help ready them to succeed in this new era.
Respondents are looking for guidance that’s far broader than technical knowledge. Young professionals are especially seeking help building softer skills like confidence, interpersonal skills and—particularly for Gen Z—ethics, integrity and aptitude. In their view, though, businesses are not being responsive to their developmental needs. Just 36% of millennials and 42% of Gen Z respondents reported their employers were helping them understand and prepare for the changes associated with Industry 4.0.
For the full report see www.deloitte.com