Survey finds managers at a crossroads with young workers

Kenyan firms must make big shifts in people management to retain a new crop of highly skilled employees coming into the workplace with high expectations, love for speed and responsibility to remain competitive in the labour market, a new survey indicates.

The study by consultancy firm PricewaterhouseCoopers has found that inability of the majority of Kenyan companies to motivate young employees, commonly known as the Generation Y, is raising the rate at which they are changing employers, creating the impression that they are a restless lot.

“Kenyan companies are losing about 40 per cent of their work force due to management issues, making retention an issue that 79 per cent of CEOs worry the most about,” said Wairimu Njage, People and Change manager at PwC.

PwC estimates that Generation Y, comprising people aged below 30 years, currently accounts for 25 per cent of the working population but this number is expected to rise to more than 50 per cent in two years , making it an important demography for business managers.

This generation of workers – born between 1979 and 1990 have been found to enter the workplace with higher expectations and demands than their predecessors, prefer short engagements to long term contracts, seek good perks and require a more relaxed working environment.

This mix of demands and expectations requires complete change in employee reward schemes as the economy moves from the factory floors to a knowledge-based platform.

PwC however found that the high rate of unemployment is stifling the exercise of these characteristics at the workplace causing a major misallocation of human resources that may be costing Kenya billions of shillings annually in unused or underused talent across all sectors of the economy.

“Scarcity of jobs has made Kenya a classic example of an employers’ market, said Kuria Muchiru, Kenya Country Manager at PricewaterhouseCoopers (PwC). “Generation Y workers are being forced to accept jobs they would not consider thereby changing the dynamics within the talent pool.”

Mr Muchiru said this talent mismatch is creating a distinct disconnect between the perception of human resource managers and the needs of the young workers with negative results on employee satisfaction and retention rates.

Generation Ys are known for their unique perception of work and the workplace that is strange to most managers and sometimes in conflict with established company regulations.

They are, for instance, said to be comfortable working in T-shirts, communicating electronically and looking for flexible work hours that most employers have not provided for.

The PwC report shows that unlike their global counterparts, Kenya’s Generation Y is not necessarily driven by social networking, fast cars and technology gadgets but rather by the urge to grow, gain experience and succeed at an early age.

“For this generation of employees, work is a key part of life. They seek careers and job assignments that are challenging, stretching and intellectually stimulating. They tend to be high achievers and therefore it is important for organisations to engage fully with them,” Ms Njage. “They expect clear road maps for success with clear, consistent and constant feedback.”

PWC says Kenyan employers may be forced to come to terms with new management methods to handle an influx of new workers whose characteristics vary from the current crop of employees.

“The expectations are quite different. They look for immediate compensation - they are more loyal to themselves and are comfortable with human resource managers who are sensitive to their needs,” said David Muturi, the CEO of the Kenya Institute of Management.