15 April 2024
WEC The Work We Want
A global shift in workplace demographics is under way. In many leading economies, ageing societies are experiencing a wave of retirement that is contributing to a global talent crunch and leaving employers struggling to replace the missing workforce.
But the other consequence of this shift is equally important: younger generations will represent a larger share of our workers. In 2024 Gen Z (anyone born between 1997 and 2012) is set to overtake the Baby Boomers generation in the full-time workforce, and Millennials will be the dominant generation in work for many years to come.
Younger generations, then, are the future of the workforce. As such, employers are striving to understand their priorities and meet their expectations. But are politicians equally attentive to this important demographic?
“There is a clear juxtaposition of the younger workers entering employment and the older workers who are creating the policies,” comments Denis Pennel, managing director of the World Employment Confederation (WEC). “Policymakers may be stuck to a dogma, and making assumptions about what workers want, based on their own experiences.”
The gap between lawmakers and younger workers
In many countries around the world, there is a representation gap between politicians and younger workers. Globally, researchers found, young people aged 18 to 35 are significantly under-represented in legislatures: the proportion of younger people in the general population is three times smaller than the proportion of legislators representing that group.
The average member of the US House of Representatives was about 20 years older than the average US citizen during the 2020-22 legislative term. A similar lack of representation was found in counties such as Japan and India. In Europe, the average age of Members of the European Parliament is 53, compared with a median age across the EU's population of 44.5 years in January 2023.
Such an age disparity may lead to legislators underestimating the change in mindset of many members of the workforce.
For example, new global research from WEC, which surveyed 715 senior business executives, finds that 83% of respondents say that, since the pandemic, workers place as much value on flexibility in terms of when and where they work as on compensation. That data relates to all workers, but there is substantial evidence to suggest that younger people are particularly keen to secure flexibility in their working lives.
[Pullout/highlighted stat]
- 83% of senior executives believe that since the pandemic, workers place as much value on flexibility in terms of when and where they work as on compensation
A 2022 LinkedIn survey found that Gen Z workers were the cohort most likely to have left a role owing to a perceived lack of flexibility (72% fell into this category, compared with 69% of Millennials; 53% of Gen X; and 59% of Boomers). As a US report by McKinsey found, the desire for flexibility is also part of the reason why 18‒24‒year‒olds are more likely than other age groups to work multiple jobs: 25% do so compared with 16% across all other age groups.
Yet the policy discussion often sets up a dichotomy between permanent full-time roles and flexible contract working in a way that seems to ignore the priorities of younger people. While McKinsey found that most young people with multiple jobs hoped ultimately to find permanent roles, they also discovered that a substantial proportion chose to take multiple roles because they enjoy the variety of work (28%) or because of the autonomy and flexibility such an arrangement offers (24%).
Similarly, research by Deloitte found that, while money was the primary driver for Gen Z and Millennials taking on second jobs, substantial numbers also did so for other reasons, including to monetise a hobby or pastime; to provide them with a change in focus; and to expand their networks. The problem in much political debate is that the conversation effectively excludes and dismisses the preferences of those young people who want varied work and value flexibility.
WEC’s new research suggests that employers are developing a more balanced approach. Executives say their organisations offer a range of benefits to both permanent and agency workers: 59% say they offer training opportunities to agency workers, for example, while 46% offer job-rotation opportunities. Such considerations can help meet young people’s appetite for self-development. Our recommendations include a call to create more rewarding and diverse experiences for workers on all types of contract.
Supporting mental health
Policymakers also need to heed the particular challenges facing younger generations of workers. For example, there is evidence of high levels of anxiety and mental health issues among younger workers, with a recent study finding that, in the preceding six months, more than half of 16‒24‒year‒olds had taken time off work owing to mental health problems. Some of these difficulties may be attributed to the lingering effects of the Covid-19 pandemic, but modern working practices can also have a negative impact.
“There's evidence that remote working leads to a blurring [of the line] between work life and private life,” points out Stijn Broecke, senior economist at the OECD. When everyone can read emails or instant messages on their phone, employees can be made to feel that they should be available and responsive outside of working hours. This harms their ability to switch off and recharge.
A number of European countries have followed France’s lead in introducing rules about workers’ right to disconnect, as have countries such as Argentina and Chile. “This is where policymakers need to be looking: legislation around the right to disconnect,” says Broecke.
Another way for organisations to support their employees’ mental health is through career support. Ensuring that career pathways are visible, and building development programs, can help individuals feel in control of their careers and increase their sense of empowerment. This in turn reduces frustration and anxiety, and builds happiness.
Agile lawmaking for the changing world of work
Ultimately, the current crop of lawmakers can’t change the representation gap; that may come through systemic change in the future. What they can do is reflect on the fact that, collectively, lawmakers govern the workplace experiences of the young. With more young people seeking to start flexible contracts that suit their life priorities, the challenge for policymakers is recognising and supporting younger workers in finding the sort of work they want.
Employers are waking up to the mindset changes of the young people they are trying to attract, but they are still bound to operate by legal frameworks that sometimes feel ill-designed to accommodate the preferences of younger workers. Policymakers around the world could do more to meet those needs, and bring forward rules that support the development of more flexible job markets. This could help younger workers to find the diverse and rewarding opportunities that they seek.