With engagement at work declining, especially in younger generations, investing in the future leaders of organisations is more important than ever.
That’s one takeaway from UK human resources company WorkL’s Global Workplace Report 2024.
The report notes that 70% of organisations believe there is “significant flight risk” amongst employees. Additionally, 70% say that a significant gap exists between what employees expect to be paid and the salaries organisations can offer.
As economic challenges persist, pay will continue to be a concern — both for workers looking for a new role and for organisations seeking to retain employees.
The report, based on responses from over 60,000 organisations in more than 100 countries, said that cost-of-living concerns have affected Generation Z (Gen Z) significantly. And globally, 68% of respondents agreed with the statement, “I am fairly paid.”
If pay can’t keep up with the cost of living, then organisations are focusing on upskilling and hoping that they can provide meaningful work. According to the report, this could mean that organisations reduce staff but increase the rate of pay for their remaining employees.
Leading with purpose
Work perceived as meaningful and purposeful shows lower retention risks. This, along with better pay, may take precedence for Gen Z workers who wish to find a career with purpose and employers who share their values.
“Our data indicates that employees generally feel that they are doing something worthwhile in their work, and this perception has been stable over time,” the report said. “Employees working in the nonprofit organisations and charities [had] a respectable global engagement score of 73% in 2023, indicating that employees in this sector find value and purpose in their work.”
Other industries with lower flight risks include the technology sector (16%); financial services (21%); and marketing and advertising (21%), the report said. Industries with the highest flight risk include defence (35%); retail (32%); and chemicals, mining, and metals manufacturing (32%).
“Managing the engagement of [Gen Z] — a generation that has faced great challenges, and who probably started their careers either being furloughed or fired — is something employers should prioritise,” the report said. “These are the future managers and CEOs and by investing in them, employers will reap rewards and, in turn, future-proof their business.”
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.