As businesses transform their models to accommodate new technologies and affect megatrends, we see Millennials replace Baby Boomers. The demographic change in workforce brings some challenges of its own. So, the question is: are Luxembourg firms able to handle them?
What turns Millennials on – the longer term of employee engagement
By 2020, Millennials will form 50% of the worldwide workforce, consistent with our study ‘Millennials at work’. Their use of technology clearly sets them apart. one among the defining characteristics of the millennial generation is their affinity with the digital world. Millennials tend to be uncomfortable with rigid corporate structures and turned off by information silos. They also expect rapid progression, a varied and interesting career and constant feedback. In other words, Millennials need a management style and company culture that’s markedly different from anything that has gone before – one that meets their needs. These particular characteristics of Millennials need, therefore, a focused response from employers.
Our latest HR survey shows that in Luxembourg, companies have come to understand how important it’s to live the engagement of their employees. Two-thirds of them regularly measure the commitment and satisfaction of their employees through individual/group interviews and regular satisfaction surveys. For over 60% of the respondents, a scarcity of career opportunities within the corporate and therefore the managerial practices are the foremost frequent reasons why they lose employees. With Millennials coming, however, they have to figure on improving their employee engagement. The drivers for better retention rates they’ve identified are the expansion of responsibilities, the look for purpose and a balance between private and business life . So, companies in Luxembourg seem to get on the proper track; They now need to implement the proper actions to activate these drivers.
Luxembourg companies specialise in managerial and behavioural skills
Millennials expect to stay on learning as they enter the workplace and spend a high proportion of their time gaining new experiences and absorbing new information. 35% said they were interested in employers who offer excellent training and development programmes for this reason and saw it because the top benefit they wanted from an employer.
Over half firms we’ve interviewed in Luxembourg believe their training programmes are appropriate to extend the extent of skills of their employees. Helping their employees acquire technical skills and obtain familiarised with the business and its processes may be a straightforward, simple process. Yet when it involves developing managerial and behavioural skills, it’s harder . 67% of respondents say managerial skills are their highest priority for the year to return and 48% of them put behavioural skills on an equivalent level of importance.
Millennials need a flexible approach to figure , but very regular feedback and encouragement. additionally , they need to feel their work is worth it which their efforts are being recognised. Our survey shows there’s room for improvement in terms of performance management. 75% of our respondents think training managers within the evaluation of their teams’ performance is difficult. They also believe they might use better assessment tools and coaching/mentoring programmes, healthier for his or her situation.
The HR function must become strategic
At the instant , companies activate their HR function on a need-by-need basis, mainly for administrative projects. only a few of them see it as a serious player in their business transformation. The arrival of Millennials could, however, give the HR function the prospect to say its role of enabler of cultural, organisational and technological change. So, a robust HR function, embedded within the core strategy, would enable companies to:
Build a digital strategy and develop a robust employer brand to draw in new talents;
Develop innovative recruitment strategies;
Develop career paths that “infuse” the digital world within the organisation and thus increase retention;
Build tools and new models of collaboration within the company;
Be the guts of the digital transformation programmes (including through training);
Digitalise all HR processes;
Modernise HR management.