According to Allianz, by as early as 2025, as much as 75% of the global workforce could be millennials, bringing a whole new set of demands and expectations on the modern workplace. What is most important, is the fact that they will also bring new digital skills and tech savviness that will be critical to transforming business.
Addressing millennial employees will be one of the great business challenges in the next five years. This is the conclusion reached in the AGCS Trend Compass 2019, a report that identifies the most important technological, business and socio-economic developments of the future.
Millennials are distinctly different compared to previous generations. They are, for example, the first generation to have grown up in the digital era, which means they have the digital, solution-oriented, socially active skills considered essential for future business success. For companies, nothing is more important for survival than recruiting and retaining the next wave of talent. It will become an existential challenge to create environments that this generation not only wants to work at, but to stay at for a number of years
stated Bettina Dietsche, AGCS Board Member for Operations, including Human Resources.
Many European economies have already reached a peak, with more employees retiring from the labor market than entering. This trend towards an aging workforce is only partially balanced by the inflow of millennials, so it is sparking a ‘war for talent,’ explains Dot Cownie, Global Head of Human Resources at AGCS.
Competition is fierce to attract new employees with digital competencies in artificial intelligence, data science, or ‘frontier risk management,’ like managing cyber or reputational risk, as most of these jobs did not exist 10 years ago. What is more, it is not only the scarcity of millennials that is causing competition, it is the digital skills they bring that are considered so valuable by companies.
The AGCS Trend Compass 2019 assesses 25 trends, such as digital platforms, green mobility and machine learning, with the challenge of the millennial workforce identified as one of the socio-economic trends to have immediate impact on companies within the next two to five years.
Regarding the likes and dislikes of millennials want, a 2017 study by Allianz of more than 5000 millennials in five countries, ‘Millennials: Work, Life and Satisfaction,’ showed that most of them indicated a desire for more traditional career paths. When it comes to work, they value security and stability over change and flexibility. Only a small minority of around 15%, of those surveyed job-hop out of preference.
When it comes to what millennials value most in their careers, Vertafore said that they value a work-life balance, while they also want a job that provides them with a healthy compensation and allows them to travel and enjoy different experiences. They also want to feel like they are contributing to their community and to be able to grow in their careers.
In addition, Allianz noted that millennials prefer agile environments that respond quickly to changes, instead of having a strict process or procedure. This also means limited formalities and a greater sense of autonomy and flexibility in almost respect, from working conditions and scheduling, to work-life balance, and remote working opportunities.
Moreover, many millennials are possible to leave a company within the next two years if they are unhappy with their development.