The workforce of tomorrow will be existing in an increasingly multi-generational world. Understanding new generations thus is becoming critical for organisations as they form a major section of today’s working population. To better understand the evolving needs and trends shaping the current workforce and their preferences on work models and workplaces, the National Association of Software and Services Companies (NASSCOM) in partnership with Indeed, has today released a report titled “Gen Z and Millennials: Reshaping the Future of Workforce” Further, to make the analysis more comprehensive, leadership interviews were conducted with technology CHROs and HR heads to understand the various efforts they have taken to cater to the younger workforce, along with best practices that are making their journey mutually rewarding.
India is witnessing a higher share of Millennials and Gen Z as a percentage of the total population, while the developed economies of the world are witnessing a shrinking younger generation. As of 2021, India’s share of Millennials and Gen Z stood at 52%, higher than the global average of 47%. This trend is expected to maintain momentum till 2030, where the share of India’s Gen Z and Millennial population will be 50%, higher than the world average of 46%. The technology industry in India is mirroring this trend, and becoming increasingly multi-generational because of the recent increase in fresher hiring. Around 380K freshers have been hired by the Indian Tech Industry in FY22. Significant fresher hiring over the last few years in the tech Industry has pushed the share of Gen Z to 18-20% and Millennials to 68%-70% of total employee base in FY22.
The technology sector continues to be the sector of choice for Gen Z with over 70% of Gen Z’ students surveyed finding the technology sector very aspirational and interested in taking up tech jobs. This further signifies that the tech industry will continue to attract quality talent. In fact, 79% of Gen Z are willing to spend more than 2 years in their first job provided employers provide them with the right value proposition.
Sangeeta Gupta, Senior Vice President, and Chief Strategy Officer, NASSCOM said, “The workforce is changing and so are the workplaces. With newer perspectives and ideas, Gen Z and Millennials are setting the future course of employee engagement, retention, and acquisition strategies. It will be interesting to see how these newer generations shape India’s future as the talent hub of the world”
Sashi Kumar, Head of Sales, Indeed said “The time for GenZ in tech has never been riper. We want to support the aspirations of Gen Z and Millennials who will make up a large part of the workforce soon. We foresee the need to help this group of workers navigate the jobs sector whilst staying true to their beliefs. Gen Z workers prioritise a positive work-life balance. They seek work environments that are empathetic and diverse, offer learning opportunities, and align with their core values. It’ll become increasingly imperative for enterprises to continue to foster this through purpose driven work which includes initiatives around diversity and inclusion, and sustainability as well as benefits like flexibility and learning and development to continue to retain quality talent. “
While brand value tops the chart for both Millennials and Generation Z, Culture & Ethics and Learning & Growth are important criteria for the Gen Z population in selecting a company. As businesses formulate the playbook to attract and retain talent, better financial benefits, career growth and Job satisfaction are the key parameters for Gen Z to continue working in an organization. For Millennials, job stability and flexibility are important parameters in choosing to continue working with an organisation. Further, while the future of work will continue to be hybrid, the survey found that Generation Z is more willing to be in the office with 85% highlighting the preference to either completely work from the office or in a hybrid model.
Attracting and retaining quality talent has been a critical area for organisations. Companies are focusing their investments on reskilling and forming partnerships with learning platforms to conduct offline and online training for existing employees and freshers. Along with this, they are also putting emphasis on creating a good work environment whilst redesigning office spaces and policies to enhance employee experience.
Going forward, designing the future of the workforce requires the creation of an engaging partnership between both employees and employers. Building a consistent employee value proposition based on the foundation of trust, transparency, and understanding, will help them form a long-lasting and mutually rewarding relationship. CXOtoday