The EIU: What is the biggest social trend that will affect the future of work?

Professor James Baron: The most obvious social trend is the changing generational and demographic make-up of the workforce, and this could have major implications for employers. While it is always very difficult to accurately predict the future, the attributes and aspirations of young workers, and also of baby boomers staying in the workforce, are creating a fresh and strengthening set of demands for employers to meet. Some are ready for this, and others have much to do.

One thing that is ever apparent is that the millennial generation is much more focused on issues of mission and purpose than other generations that preceded it. Meanwhile, for older generations in the workforce there are real issues about how long they will stay on, and how employers will help them transition to working with the newer workforce. There are, equally, issues around how managers will deal with ageism, and how the number of total jobs available in the marketplace will be affected.

What are the changing aspirations of millennials, and what will effective businesses do in response?

More and more we hear about millennials aiming to make a difference, to help the environment, improve the quality of life and achieve more audacious goals than simply focusing on doing well at existing work tasks.

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AspirAtionAl shiftHow changing demographics in the workplace call for new approaches to motivating staffWorkplace demographics are changing dramatically, transforming how the people that make up businesses think and act and how managers engage with them. Changing needs and beliefs, and an evolving economic situation, mean that organisations are faced with substantial shifts in perspective, but also great opportunities to evolve.

As Professor James Baron, William S Beinecke professor of management and professor of sociology at Yale University, explains in an interview with The Economist Intelligence Unit (EIU), the “millennial generation” – those born between 1980 and the early 2000s – is seemingly motivated more by making a difference than by making money.

This affects how companies must motivate their workers, moving from “performance management” to “aspiration management”, Professor Baron argues. Getting this right offers businesses the chance to attract and retain bright and engaged employees.

This interview is part of an investigation into the future of work by The Economist intelligence Unit, sponsored by Ricoh Europe. For more, visit http://bit.ly/eiufuturework

Professor James Baron Yale University

Effective organisations are going to need to look at how to appraise, motivate, reward and manage the performance of these people. An organisation that takes mission and purpose seriously will find it less convenient to outsource things it could have pushed outside. It may also notice the much more pressing need to define jobs that suit the people.

What are the changing strategies businesses will adopt in this area?

Companies will start to move from performance management to aspiration management: helping and allowing people to achieve their real goals. Part of this will be careful and shared job crafting, and it will be increasingly important for businesses to develop and shape the right jobs to suit the employees they want to hire and retain.

There are studies by experts, including Professor Amy Wrzesniewski of Yale School of Management, of businesses that have focused on opportunities to allow the crafting of jobs by employees around their skills and aspirations. A study at Google, in which people were able to shape their roles around their deeper purposes and ambitions, showed that there was a strong and positive effect on employee performance and well-being, with staff finding their roles more satisfying and productivity-enhancing.

A number of organisations that have developed a high commitment to their staff in this respect are among those that are emerging in a strong position from challenging economic years, and organisations that continue to take this seriously will be well placed to attract and retain staff.

What are the issues around managing older generations in the workforce?

Many generations, as they begin to approach retirement, are concerned about how much of a pension they will have and how long they will to need to work.

Increasingly, these baby boomers are staying on longer in the workforce, and employers will need to learn how to manage the disparate age groups. They may also face complex issues of ageism and need to address how the different groups work together effectively.

There are also concerns around the total number of jobs available in the marketplace when people are staying on longer in their workplace. On this issue some businesses are better prepared than others, but it is definitely a management issue that requires advance planning.

Are there other social trends that will affect the nature of work?

We are entering a period where the degree of economic inequality is unprecedented. Surprisingly, so far it doesn’t seem to have created major problems or tensions over economic and other inequalities within most workforces. As an example, the protest movement Occupy Wall Street principally addressed problems of income inequality and wealth distribution in the US between the wealthiest 1% and the rest of the population.

What is more likely to attract the attention of organisations is if the difference between the top and bottom levels becomes so great that workers are totally disengaged. There is a real potential effect on worker morale and performance in such an environment, and therefore a threat to the success of the entire business.

The combination of changing demographics and aspirations and the potential for questions over unequal wealth distribution does present major challenges for businesses. It is impossible to predict the future accurately, and we must always look to existing empirical data, but there are significant social shifts that workplaces must consider and address. Those that are able to mould work around the distinct abilities and aspirations of different elements of their labour force will be in a strengthened position to grow and succeed.

An organisation that takes mission and purpose seriously will find it less convenient to outsource.

Professor James Baron Yale University

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