Organisational and workplace culture is becoming one of the biggest considerations for top executives and HR practitioners globally.
A globalised world is forcing businesses to rethink the workplace. This is being compounded by changes in technology, a fast-changing demographic workforce, and increasing demands for big corporations to operate with a leaner, more nimble approach; largely due to the demands of markets and their customers.
As organisational change moves to the top of the agenda, we’re seeing the emergence of new, disruptive management structures.
According to research by Deloitte, 50% of the global workforce is made up of millennials. Forrester Research predicts they will represent 75% of the workforce by 2025.
Beyond the generational impact, other concerns for businesses include the new digital workers, global remote working, robots, artificial intelligence, and a rise in temporary workers.
After decades of operating and being structured much in the same way, businesses are starting to realise that their current way of working is limiting their productivity, their ability to innovate, and ultimately their growth, as well as preventing them from recruiting high-quality millennial talent.
The strategies that employers use to attract and retain vital millennial employees are changing. CEOs fear that they won’t be able to find the talent they need to succeed. Competition is fierce and companies need to think about how they will stay ahead of the curve, in order to attract the workforce that will take them into the future.
So, what does the workplace of the future look like?
Today, there is much debate about “millennial entrepreneurship”. The reality is that millennials are the least entrepreneurial generation in recent history. According to research conducted by the Wall Street Journal, the share of people under 30 who own a business has fallen by 65% since the 1980s. Additionally, the average age of a successful start-up founder is 40 years old (according to the Kauffman Foundation). In 2014, less than 2% of millennials were self-employed, compared with 7.6% for Generation X and 8.3% for Baby Boomers. Why the decline?
Between student debt, which the UK leads in the English-speaking world with an average of £44,000 per student, corporate dominance of large industries such as retail and technology, and the increasing impossibility of getting onto the housing ladder, it’s no surprise that the most important thing millennials crave is job security. This is according to a survey conducted by ManpowerGroup, which used a sample size of 19,000 21 to 36 year olds across 25 countries.
So why should corporate entrepreneurship be considered and encouraged? Although entrepreneurship is at an all-time low, millennials do have an entrepreneurial mentality, which unfortunately hasn’t translated into activity, largely due to financial barriers and increased risk aversion caused by financial insecurity.
Research by Ernst & Young showed that 62% of millennials have considered starting their own business, and 72% believed that entrepreneurship was essential for promoting innovation and jobs.