Forget Wellness apps: we need to create meaningful work for Generation Z
Writing in the FT (8th Feb) Emma Jacobs talks of the “Tyranny” of wellness products. This includes spa packages and mindfulness apps being targeted at our young people. Jacobs goes on to refer to a recent McKinsey report that Generation Z now spends more than “older consumers on mindfulness related Wellness products such as meditation classes mindfulness apps and therapy sessions.” This may be great business for the Wellness industry, but our recent experience at Threshold, working with our client organisations, suggests that a major part of both the problem and the solution can be found in the workplace.
Growing Tomorrow’s Leaders
A young person entering the workplace at the current time, is likely to have a fairly dehumanizing experience. This point was driven home to us while carrying out research for our recent white paper, Growing Tomorrow’s Leaders.) Their application will be sifted by AI. If they make it to interview stage, this is likely to be through an onscreen interview in which their performance is AI assessed. A number of young people to whom we talked felt that they are being assessed on questionable criteria such as the direction of their gaze. As one early careers recruit put it.
“You have no idea how many are going for the job. You don’t know what you’re being assessed on, and you know that there’s a fair chance that no one will even look at it.”
If you get the job, you are unlikely to have much in-person contact with your new human colleagues and even less with your line-manager. And with some tech enthusiasts evangelising about line managers being replaced by digital alternatives – ostensibly reducing bias, errors and other inefficiencies – the human line-manager contact will become less and less. Does all of this matter? The evidence suggests that it does.
61% of employees under 35 reported feeling lonely in the workplace
The impact of remote work on social interactions report, published by the National Bureau of Economic Research in 2022, found that remote work has resulted in far fewer social interactions. This leads to an increase in social isolation and mental health issues.
Social isolation has affected Gen Z more profoundly than older workers. In 2021, the APA’s annual Stress in America report found that Gen Z were the most stressed and anxious age groups. 81% of Gen Z adults reporting that they were significantly stressed.
The Harvard Business Review study (2021) ‘Managing People’ found that 61% of employees under 35 reported feeling lonely in the workplace. Loneliness being a key driver of mental health decline.
McKinsey’s research indicates that Gen Z employees place high importance on their relationships with managers. This generational cohort seeks transparency, support and guidance. When these needs are unmet, they are likely to seek out employers who can provide a more supportive atmosphere.
Empathetic and emotionally intelligent managers
When it comes to managing Millennials and Gen Z, empathy and listening are themes that emerge consistently. To retain this talent with its pipeline of future leaders, corporations need line- managers who are empathetic and emotionally intelligent. They need to be capable of authentic, deep listening. They need to be able to create psychological safety and communicate clearly.
Line-managers of Millennials and Gen Z will need to develop the capability to engage with their people remotely and engineer more face-to-face encounters. They will need to develop and deploy these new capabilities rapidly. The battle to attract and retain talent moves on relentlessly. The actions that organisations take now will determine their pipeline of future leaders, as well as retaining talent now.
High value on workplace culture – Create more meaningful work
Millennials and Gen Z place a high value on workplace culture, leadership quality and the opportunity for development. A study by Deloitte found that Millennials are 22 times more likely to stay at a company where leadership focuses on developing their people’s interpersonal skills and emotional intelligence.
The financial impact of losing talent is substantial. The SHRM estimates that the cost of replacing an employee can range from 150% to 200% of that employee’s salary, factoring in recruitment, training, and lost productivity [SHRM, 2018].
Invest in the emotional intelligence of leaders
The evidence paints a picture. Organisations that invest in the emotional intelligence of their leaders will have the edge over those that don’t invest. They will be more likely to create the sort of working climate and culture that inspires and retains the high-value talent of the future.
This is our role at Threshold. We have been working with our client organizations to develop the emotional intelligence of their line managers. Unlike IQ, there is increasing evidence that emotional intelligence can be learnt. We are seeing it pay dividends in helping organizations to rebuild that all important social capital. This means that the organization cultivates a generation of early careers talent who feel connected to a community at work. To find out more, visit us at www.threshold.co.uk
At Threshold, we are currently helping our clients get in shape for the technology revolution. We ensure that the human workforce is committed engaged and resilient. We do this by bringing about small shifts in line manager behaviour that make a big difference. To find out more visit our ‘What we do’ Page. Additionally, you can also watch our latest video series on our YouTube channel.
