Survey finds managers at a crossroads with young workers

“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.

Kenya’s population is growing by 2.6 per cent every year, placing it in the top tier of most populated countries in the world.

The rapid growth of a young adult population is expected to present new challenges for employers and a rethink of the benefits structure to one with emphasis on training, coaching and mentoring in place of perks such as car loans.

The challenge for HR managers lies in designing talent management programmes that takes these issues into account and redefine job roles.

“HR needs to focus on creating opportunities for career development, crafting growth plans and creating the right mix of benefits to suit these workers as well as ensuring the work remains challenging,” said Ms Njage.

Although they are ready to take on tough challenges and work towards ambitious goals, Generation Y would prefer to deliver on their obligations in a less stressful work environment.

A key finding of the survey is that Kenya’s Generation Ys have a higher loyalty rating than their peers around the world.

PwC found that 49 per cent of the respondents expect to remain with their current employer for the next 3 to 5 years compared to the global average of 23 per cent.

“The generational mix within the workforce has made management and leadership today even more complex and has created a case for a review of the way in which we work and manage our employees,” said Mr Muchiru.

Statistics indicate that most organisations in Kenya are likely to have a diverse group of employees representing at least three generations – the older Baby Boomers, mid-level Generation X’ers, and the youthful Generation Y.

The age group that is set to change the face of corporate Kenya is currently moving into the labour force setting the stage for older employees to work alongside 20-year-olds.

PwC anticipates that once the economy improves, the Generation Y’s will start acting more like their global counterparts and start frequently changing their jobs and careers, frustrating employers struggling to retain and recruit talented high-performers.