INCREASED MORALE AND TURNOVER REDUCED BY 12%
Over the past decade, due to the increased adoption of information technology and greater use of management information systems, many companies have become more astute in measuring the true performance of their assets, including human capital.
These companies are imposing greater scrutiny on the return on investment of their resources.
The unintended consequence of the new way of business is that companies, although they require greater levels of skill for single, specialised tasks, fall short of the current generation of job seekers’ expectations of development, variety and mobility (“Generation Y & Z”).
A large part of the problem is that a fundamental misunderstanding exists between employers, who are overwhelmingly drawn from the “Baby Boomers” and “Jonesers” generations, and employees, who are drawn from “Generation X, Y and Z”.
This misunderstanding is real, but somewhat ironic, since generations X, Y & Z (who are overwhelmingly the creators of new technologies) find themselves increasingly stifled by what they see as the rigid and inflexible employer practices that relentless and detailed measurement capability have given rise to.
The most important symptom of the generation gap is declining tenure, which is increasingly a pressing problem facing many companies.
The Alfred P. Sloan Foundation estimates that the percentage of employees expecting to leave their current employer within the next year is 43% (“Baby Boomers”), 52% (“Generation X”) and 70% (“Generation Y”). Generation Z are just joining the job market, so as yet unmeasured.