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Millennials moving on up
A Boston Business Journal series
Baby Boomers are retiring. Organizations must prepare for the shift in their workplace identity.
Planning for the future
An employer’s perspective, as shared by William K. Bacic, New England managing partner, Deloitte LLP
Over the course of the next five to ten years, some organizations may face an identity crisis among their workforce. As members of the Baby Boomer generation retire, they are replaced by members of Generation X, Millennials, and members of Generation Z. Recent research shows that Millennials will make up 75 percent of the workforce by 2025.
As business leaders, we know that succession planning is vital for the long-term survival of companies. For privately-owned organizations, working without a succession plan can invite disruption, uncertainty, and conflict and endangers future competitiveness.
While many privately-held businesses display solid professionalism and understand the importance of succession planning, they can fail to properly plan for and complete the transition to the next generation of leaders.
According to the National Association of Corporate Directors, fewer than one-in-four private company boards say they have a formal succession plan in place.
There are many benefits for organizations and owners who plan properly and strategically for an orderly transition of management and ownership. When a proper succession plan is in place, business owners can have peace of mind knowing they have the ability to retain control of the process instead of having someone else make decisions.
No matter how a business defines legacy, it has a long list of stakeholders who rely on it. We can all agree that there are no easy steps in running a business. While doing the work to pass it on intact may be complex, it also offers great potential for those who will carry on the business.
Succession planning is a complex process, but a necessary one. For more information, I encourage you to read the Deloitte business succession planning series.
The Deloitte Millennial Survey 2016: Winning over the next generation of leaders
Read the 2016 Millennial survey to learn more about Millennials in the workforce.
Millennials, in general, express little loyalty to their current employers and many are planning near-term exits, according to Deloitte Touche Tohmatsu Limited’s fifth annual Millennial Survey. This remarkable absence of allegiance represents a serious challenge to any business employing a large number of Millennials, especially those in markets—like the United States—where Millennials now represent the largest segment of the workforce. However, because most young professionals choose organizations that share their personal values, it’s not too late for employers to overcome this “loyalty challenge.” Deloitte surveyed nearly 7,700 Millennials from 29 countries during September and October 2015 to learn more about Millennials’ values and ambitions, drivers of job satisfaction, and their increasing representation in senior management teams.