Anxious millennials are seeking more stability in an uncertain world, Deloitte global survey reveals
But in South African, they’re more upbeat about their prospects, both professional and personal
A turbulent 2016—punctuated by terror attacks in Europe, Brexit, and a fractious US presidential election—appears to have rattled millennials’ confidence, according to Deloitte’s sixth annual Millennial Survey.
Millennials indicate they’re less likely to leave the security of their jobs, more concerned about uncertainty arising from conflict, and not optimistic about the directions their countries are going. The findings were revealed through a survey of nearly 8 000 millennials from 30 countries.
A more optimistic picture emerges from South Africa and other developing markets, where millennials generally expect to be both financially (71 percent) and emotionally (62 percent) better off than their parents. This is in stark contrast to mature markets, where only 36 percent of millennials predict they will be financially better off than their parents and 31 percent say they’ll be happier.
“Looking at the global picture, this pessimism is a reflection of how millennials’ personal concerns have shifted,” explains Tumelo Seaketso, Talent Strategies leader in Deloitte SA’s Human Capital practice. “Four years ago, climate change and resource scarcity were among millennials’ top concerns. This year, crime, unemployment. corruption, war, and political tensions are weighing on the minds of young professionals, which impacts both their personal and professional outlooks.”
Crime is a major worry for millennials in South Africa, with 46 percent of those surveyed listing it as their greatest issue of concern, followed by unemployment (45 percent), corruption (30 percent), education and training (26 percent) and healthcare (22 percent).
But South African millennials are distinctly more upbeat about their prospects than many of their counterparts around the world. The study found that 41 percent of millennials here expect the overall social/political situation to improve over the next 12 months, significantly higher than the global average of 36 percent.
“It’s an encouraging sign and it indicates that South African millennials feel more hopeful and confident in their ability to affect change, both in their professional lives and in wider society,” says Seaketso.
The ripple effect of giving back
South African millennials are also more bullish about their ability to give back to society. Globally, 54 percent said they felt empowered to contribute to charities and good causes through workplace-backed initiatives. Among South African millennials this was 64 percent.
This local, small-scale change has a ripple effect that cascades from the individual to the broader workplace to society at large.
“The survey’s findings suggest those given such opportunities show a greater level of loyalty to their employers. But, we are also seeing that purpose has benefits beyond retention. Those who have a chance to contribute are less pessimistic about their countries’ general social/political situations, and have a more positive opinion of business behaviour,” says Seaketso.
In general, millennials say they intend to stay longer with employers that engage with social issues, such as education, unemployment, and health care, and those most optimistic about their countries’ progress are more likely to report their employers getting involved with wider social and economic issues.
Stability and loyalty
Millennials’ anxiety may be partially responsible for more young professionals wanting to remain in their jobs. Last year, the global “loyalty gap” between those who saw themselves leaving their companies within two years and those who anticipated staying beyond five years was 17 percentage points. This year, the balance of millennials looking to “leave soon” is only seven points.
South African millennials, however, are more open to changing jobs. While 65 percent globally said that they would prefer permanent employment, just 56 percent of South African millennials expressed such a preference.
South African millennials are also considerably more open to taking on freelance or consulting work with 43 percent of them expressing such a preference over 31 percent globally.
Flexibility improves performance, retention
Overall, 84 percent of millennials report some degree of flexible working in their organizations, and 39 percent say their organizations offer highly flexible working environments. They believe flexible working arrangements support greater productivity and employee engagement while enhancing their personal well-being, health, and happiness.
Those in highly flexible organizations appear to be much more loyal to their employers and are two-and-a-half times more likely to believe that flexible working practices have a positive impact on financial performance than those in more restrictive organizations. Three-quarters of those offered flexible working opportunities say they trust colleagues to respect it, and 78 percent feel trusted by their line managers.
“Flexibility is clearly a key contributor to retention,” says Seaketso. “While some workplaces don’t lend themselves to certain types of flexible arrangements, like working from home or remotely, other options like staggered working hours are open to employers.”
Automation – threats and opportunities
There is no doubt automation brings with it some trepidation—40 percent of those surveyed see it posing a threat to their jobs; 44 percent believe there will be less demand for their skills; a majority believe they will have to retrain; and 53 percent see the workplace becoming more impersonal and less human.
Conversely, many respondents see automation as providing opportunities for value-added or creative activities, as well as the learning of new skills. “This more optimistic view is especially prevalent among ‘super-connected’ millennials, those who engage with one other extensively on social media. This is something worth considering by employers, who generally take a negative view of workplace social media use,” says Seaketso.