Deloitte: ‘Millennials sceptical of corporate ethics’
Millennials are still sceptical of companies’ ethics, even as firms step up their efforts to take stances on social issues.
Following a year marked by significant geopolitical and social change, millennials and Gen Z are sounding the alarm for businesses to work to make a positive impact on the broader world, according to Deloitte’s seventh annual Millennial Survey.
Although leaders have indicated a desire to tackle social issues, millennials have become more sceptical overall of business’ motivation and ethics, found the survey, which collected the opinions of 10,455 millennials across 36 countries, including 1,850 Gen Z respondents across six countries who are just entering the workforce.
Deloitte’s past two surveys suggested millennials felt increasingly more positive about business’ motivation and ethics. But in 2018, there was a dramatic reversal as opinions of business reached their lowest level in four years. Today, less than half of millennials believe businesses behave ethically (48% vs 65% in 2017) and that business leaders are committed to helping improve society (47% vs 62%).
As highlighted in the past six years, millennials, and now Gen Z, are acutely attuned to business’ wider role in society, and overwhelmingly feel that their success should be measured beyond financial performance.
Business’ priorities, a majority of respondents said, should be job creation, innovation, enhancing employees’ lives and careers, and making a positive impact on society and the environment. But when asked what their organisations focus on, they cited generating profits, driving efficiencies and producing or selling goods and services — the three areas they felt should have the least focus.
Millennials recognise businesses must make a profit to achieve the goals that younger generations desire, but should also set out to achieve a broader balance of objectives along with financial performance.
“The results of this year’s survey indicate that the rapid social, technological and geopolitical changes of the past year have had an impact on millennials’ and Gen Z’s views of business, and it should be a wake-up call to leaders everywhere,” said Punit Renjen, global chief executive.
The consulting firm said these cohorts feel business leaders have placed too high a premium on their companies’ agendas without considering their contributions to society at large. Businesses need to identify ways in which they can positively impact the communities they work in and focus on issues like diversity, inclusion and flexibility if they want to earn the trust and loyalty of millennial and Gen Z workers, said Mr Renjen.
TRUST GAP PROVIDES OPPORTUNITY
While millennials’ view of business has declined sharply, their trust in political leaders is even lower. When asked whether certain groups — including leaders of NGOs/non-profit, business leaders, religious leaders and political leaders — were having a positive or negative impact on the world, only 19 % of millennials believe politicians are having a positive impact. In contrast, more than 75% said politicians are having a negative impact.
By comparison, 44 % of millennials believe business leaders are making a positive impact, and they still have some faith in business’ ability to enact meaningful societal change.
Three quarters of millennials believe multinational corporations have the potential to help solve society’s economic, environmental and social challenges. These findings suggest millennials believe business has an imperative to become involved in improving society beyond creating jobs and generating profits.
As Loyalty levels recede, diversity and flexibility are keys to increasing retention. Loyalty levels have retreated to where they were two years ago. Among millennials, 43% envision leaving their jobs within two years, and only 28% are looking to stay beyond five years.
This represents a 15-point gap, up seven percentage points from the year prior. Among millennials who would willingly leave their employers within the next two years, 62% regard the gig economy as a viable alternative to full-time employment. Loyalty is even lower among the emerging Gen Z employees, with 61% saying they would leave their current jobs within two years if given the choice.
Both millennials and Gen Z place a premium on factors such as tolerance and inclusivity, respect and different ways of thinking. While pay and culture attract this cohort to employers, diversity, inclusion and flexibility are the keys to keeping millennials and Gen Z happy.
Those working for employers perceived to have diverse workforces and senior management teams are more likely to want to stay five or more years. And among millennial and Gen Z respondents who said they intend to stay with their current employers for at least five years, 55% note greater flexibility in where and when they work now compared with three years ago.
YOUNGER WORKERS FEEL UNPREPARED
Millennials and Gen Z are highly aware of how Industry 4.0 is shaping the workplace and feel it has the potential to free people from routine activities to focus on more creative work. But many are uneasy about its arrival. Some 17% of all surveyed millennials and 32% of those whose organisations already use Industry 4.0 technologies extensively, fear part or all of their jobs will be replaced.
Deloitte said fewer than four in 10 millennials and three in 10 Gen Z workers feel they have the skills they’ll need to succeed, and are looking to business for guidance beyond technical knowledge. Young professionals particularly want help building confidence, interpersonal skills and — particularly for Gen Z — ethics/integrity aptitude. But they say businesses are not being responsive to their developmental needs.
Just 36% of millennials and 42% of Gen Z respondents said their employers are helping them understand and prepare for the Industry 4.0 era.
“The fluctuating loyalty levels showcase a unique opportunity for businesses to double-down on attracting and retaining talent,” said global talent leader Michele Parmelee. “Businesses need to listen to what millennials are telling us and reimagine how to approach talent management in Industry 4.0, placing a renewed focus on learning and development to help all people grow in their careers throughout their lifetimes.”