Recently, many leaders have found themselves at the center of controversy for making statements that clash with public sentiment. Although the true intentions behind these statements and their interpretations by the audience can be debated, the resulting uproar is undeniable. Unfortunately, there is a persistent trend of such actions and reactions, prompting us to question the existing disconnect.

If we set aside our criticisms regarding top management—such as their personal lives, lifestyles, relationships, authority and power, astronomical salaries, organizational inequalities, work culture, and potential influence over stock prices—the fundamental question remains: Why do leaders think the way they do? Why do the majority of others think differently? What are the potential outcomes of this discrepancy, and what can organizations do to address it? Let’s delve deeper into possible answers.

A Little Background

India has undergone significant transformation since gaining independence. In particular, it has advanced rapidly over the last two decades and has become increasingly integrated with more advanced economies. The different periods of growth in the country have coincided with various generations, each developing their perspectives on work and life based on the circumstances of their time.

Perspective of Leaders

For example, senior leaders are part of a generation that faced numerous challenges early in their lives while striving for success in an era when opportunities were few and far between. This generation tends to value financial security, a work-centric lifestyle, and loyalty to their organization. From their perspective, the more time and effort one invests in work, the greater the potential for professional and financial growth, ultimately leading to a better life.

Perspective of Youth

In contrast, today’s youth have enjoyed a more luxurious upbringing than their parents and grandparents, benefiting from a wide array of options and having fewer concerns about survival, savings, and security. Moreover, globalization, technological advancements, and a thriving startup culture have created a spectrum of opportunities and put an end to the overdependence on limited routes to professional success. These different conditions have fostered values such as flexibility over stability, work-life balance, independence, entrepreneurship, purposeful careers, skill development, two-way feedback, and even skepticism toward employers.

The Implications of Discrepancy

The discrepancy in perspectives between these generations is concerning, as evidenced by the public reactions to leadership perspectives. However, it also indicates a more serious issue: the misalignment of mutual expectations between leaders (and their organizations) and the younger workforce.

Disparate expectations can lead to divergent goals regarding employee commitment, investment of time and effort, jobs and tasks, and career development. Such misalignments may not only result in ineffective policies and work structures but also dampen employee motivation, engagement, and retention, ultimately impacting organizational performance.

The Solution?

To start with, the leaders must open up their minds to the viewpoints, expectations, and goals of the current workforce, relook at what kind of workforce they need to have in terms of competencies and abilities, and prepare the organization for the workforce they can expect to have, given the values and motivations of the current generation.

Leaders must rethink the structure and culture that form the foundation for organizational performance. Gen Z employees prefer fluid, collaborative, and technology-driven workplaces over rigid hierarchies. A flatter and project-oriented structure with clear lines of authority may work better for them. Besides, they value a diverse and inclusive culture that allows continuous learning. They may be more productive when the culture is fair, psychologically safe, and learning-oriented.

Organizations can take certain initiatives that support such a structure and culture:

Job Design

• Autonomous and flexible roles that allow for multi-skilling
• Project-based work to keep tasks dynamic and engaging
• Purpose-driven work by aligning tasks with social impact and sustainability

Recruitment & Selection

• Clear and flexible career progression paths to attract long-term commitment
• Consideration for skills and experience instead of qualifications and past salaries

Learning & Development

• On-demand, modular learning on job-related competencies
• Mentorship programs for career guidance.
• Skill development in emerging technologies and leadership.

Performance Appraisal & Career Development

• Continuous feedback models
• Outcomes- and results-driven evaluation
• Career paths based on individual interests and strengths

Work Policies & Practices

• Hybrid or remote work options with flexible hours
• Diversity, equity, and inclusion initiatives

Communication Processes

• Open communication channels and anonymous feedback platforms
• Asynchronous communication (recorded meetings, shared documents) to support remote work

Conclusion

The evolving generational differences underscore the need for leaders to recognize and adapt to the shifting values. Leaders need to unlearn and relearn the dynamics of employee-employer relationships and the psychological contract between them. Experience and wisdom may guide leadership's current views. However, failing to comprehend the priorities of younger employees can be detrimental to their organizational performance.

By encouraging two-way dialogue, embracing structural and cultural changes, and implementing initiatives aligned with the preferences of the modern workforce, leaders can not only bridge this generational divide but also build a workplace where employees feel valued and motivated.

Times are indeed changing, and the success of organizations will depend on the leader’s ability to change with them.