When it comes to choosing an employer, younger staff (eg, Generation Z, Millennials — and particularly recent graduates) are typically increasingly likely to look beyond salaries and the packages being offered. This is a generalisation, but they’re interested in what companies stand for, their values, and even their positions on contentious issues. As Deloitte’s Global 2024 Gen Z and Millennial Survey notes, “Nearly all Gen Zs and Millennials want purpose-driven work, and they’re not afraid to turn down work that doesn’t align with their values.” But what does this mean in practice?
Something old, something new
Fundamentally, people want to take pride in their work — and a big part of this is working for companies they feel good about. This has long been the case, but what has changed is what makes people feel a company is “good”. In the past, it might have been working for a business that dominated its sector and had lofty goals. More recently it has meant great global brands or companies with strong reputations. ESG (environmental, social, and governance) concerns have risen up the agenda and, as social media has driven personal activism, prospective employees increasingly choose organisations whose values they like.
What are those values?
The E in ESG is a good starting point. Climate change, for instance, is an issue of broad concern, and many people (of all ages) will not consider a company that isn’t taking steps to reduce its carbon footprint. The S — social — starts easily (eg, reasonable steps towards diversity and inclusivity, safe working conditions, and fair wages) but can quickly become very complex, particularly around political views and gender. Governance is perhaps slightly more abstract but includes companies maintaining strong ethical standards, implementing rigorous anti-corruption practices, and ensuring fair and transparent executive compensation. In general, people like transparent, well-run companies.
Does everyone have these values?
The younger generations tend to be idealistic, so the attraction of values is strongest amongst younger graduates and employees. However, with so-called “geriatric Millennials” now in their early 40s, that idealism is by no means confined to these younger groups. It is a generalisation, but workers from older generations, regardless of their own views, tend to be more pragmatic, simply because they’ve worked for longer and recognise that not everything is black and white. Regardless, companies that want to be an employer of choice and attract the best talent need to think about what they stand for.
It’s not just potential employees
Organisations that have strong values are more likely to keep staff engaged and improve employee retention. So, companies need to talk about these values internally and the kind of business they are. This type of branding communication to your own staff can go surprisingly far. It’s one of the reasons professional services companies advertise a lot at airports. Yes, they’re talking to potential clients, but they’re also talking to their staff who travel a lot. And they’re often talking about the kind of company they are (as well as demonstrating an international presence).
Are all companies the same?
Not all companies are the same. There are a large number of purpose-driven businesses — where strong views on issues and even activism are baked into their corporate DNA. Such companies often find it easy to talk about their values (and recruit individuals who are aligned to these values). But they are also likely to find themselves held to high standards. Strongly activist businesses may also find themselves attracting staff who are more interested in issues than their core business.
Be authentic — and communicate it
If you have a company with the right culture — one that is transparent, values-driven, and built on trust — and communicate this to potential staff, you should be fine. In general, authenticity is a good starting point. We’ve seen some values-based PR disasters over the years. These tend to happen when companies align themselves with a cause that is fashionable but not true to their values (and they get found out) or when they take a position that is far from their core business.
Companies can also run into trouble when they have passionate employees who feel strongly about issues and want corporate involvement. It can be a difficult balancing act — companies want to do the right thing and keep staff happy, but ultimately, they are businesses, not activist pressure groups.
The recent rollback of DEI (diversity, equity, and inclusion) in a number of large companies has shaken up the conversation around values. It’s done this in two ways — first by questioning (and sometimes reversing) a trend that has largely been going one way. But secondly, it has forced people to recognise that there are those who have values that are diametrically opposed to their own. Smart businesses need to keep an eye on this. But again, authenticity helps — if your values reflect who you really are, you’ll probably be OK.
Don’t forget that it’s work
People want to feel good about their jobs and, all other things being even, are more likely to choose companies that have strong values over those that don’t. However, companies still need to offer an attractive package. Not least because people’s priorities can change sharply when they want to start a family or buy a house. Values are great, but they don’t on their own pay the mortgage.
Visit the Global Career Hub from AICPA & CIMA for help with finding a job or recruiting.
— Rhymer Rigby is a business writer and columnist. To comment on this article or to suggest an idea for another article, contact Oliver Rowe at Oliver.Rowe@aicpa-cima.com.
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Articles
“The Role of Managing Age Diversity in the Workplace”, FM magazine, 28 August 2024
“Notable Gaps Between What Gen Z Expects and What Employers Offer”, FM magazine, 29 January 2024
“Demystifying What the Next Generation Wants From Employers”, AICPA & CIMA Insights Blog, 30 September 2023