Today and tomorrow’s workforce has a different state of mind and psychology. People are looking for purpose, happiness, autonomy, and to be appreciated for the work they do. They are more open to working in a hybrid or remote workplace environment. While the workforce is urging for this, work is seen as the fifth cause of death due to stress. Today’s workforce expects their managers to care about them and that their managers are creating a psychologically safe work environment and culture. They are looking to work in an environment where their managers care for them. Unfortunately, many organizations have not kept up with these changes.
This is probably why many organizations face a disengagement problem. It does not help that sometimes those in management and their workforce seem to be on separate pages. In the book, The Mind of a Leader, the authors point to a study where 86% of the leaders saw themselves as inspirational and good role models while 82% of the workforce saw them as discouraging, in another study where 35% of the workforce was willing to pass up a pay raise to see their manager fired.
While this psychological shift happens in the workplace, organizations in particular in the U.S. have a growing older workforce. The average life span has doubled from 47 in the early 1900s to 87 today. Presently there are more 60-year-olds than 5-year-olds and by 2035 there will be more 60-year-olds than 18-year-olds (Wilner-Golden, 2022).
This is happening while artificial intelligence and other changes are forcing organizations to reskill their workforce, particularly interpersonal skills, which is something that the older workforce has had an opportunity to polish up over their long careers. The U.S. also has a major skills shortage that is anticipated for at least the next ten years if not forever as cited at the 2030 People Conference hosted by the Conference Board (Aguh & Etzwilier, 2023). This is not helped by a segment of society known as Dual Income No Kids (DINKs) which do not want to have children shortly and has implications for the long-term workforce. This will create an interesting competitive advantage for those organizations that address these issues.
Forbes recently had an article that made the point that the fastest-growing demographic in 2023 is those over the age of 75 (McGregor & Poinski, 2023). This growing segment in the workforce is partly because people are living longer, want to leave a legacy, and/or need to work for financial reasons. Unfortunately, and not surprisingly there have been some challenges as the AARP and others have cited the numerous myths, ageism, stereotypes, and discrimination that occur in the workplace.
Some of these are the areas in which the older worker is not productive enough compared to their younger counterpart. Yet there is research that highlights that 65% of the older worker tend to be more committed and engaged (Taylor & Lebo, 2019). The above is further accentuated by myths and unproven beliefs that older workers are too expensive. There seems to be no research supporting this point and what is not included in this belief and compensation formula is the older worker’s experience and expertise.
Organizations need to adapt and change while creating inclusive human-centered organizational cultures that capitalize on their growing diverse workforce.
- Is your organization addressing these changing trends and the changing psychology of today’s workforce?
- Are they ready and what are the implications?
- Last, are you aware of the biases that might exist in your leadership
ranks as highlighted by some of the myths and are your leaders positioned to address the changing workforce
psychology?
There is also a belief that older workers are not tech-savvy. Yet the cellphone is credited to have been created by Martin Cooper who was in his mid-40s (not exactly a young adult) when he made the first cellphone call in what has come to be known as the “Brick” when it came out due to its size. The support for some of these myths was reinforced by a 2019 study that found that two-thirds of 10,000 organizations considered an aging workforce a “competitive disadvantage” (Bersin & Chamorro-Premuzic, 2019).
The present and future workforce will be multi-generational, increasingly older, and with the younger generations increasingly diverse. In addition, today’s workforce has different expectations from their organizations and leaders irrespective of age and demographic. Is your organization and your leaders ready for these changes?
Organizations need to adapt and change while creating inclusive human-centered organizational cultures that capitalize on their growing diverse workforce. Leaders will play an increasingly important role in creating a healthy, inclusive, and positive workplace experience. Organizations that proactively address the changing psychology of today’s workforce by creating human-centered and human-intelligent workplaces will have an advantage. Those that address the changing demographic trends with progressive 21st-century HR policies, such as allowing older workers to work part-time instead of retiring among others will gain a human capital competitive advantage.
Some organizations have been cited as working to be progressive while the workforce ages and grows more diverse. Companies like Nike, Home Depot, and Marriott among others have recognized the changes taking place and they are working to stay ahead of the competition when it comes to these changes.
- Is your organization addressing these changing trends and the changing psychology of today’s workforce?
- Are they ready and what are the implications?
- Last, are you aware of the biases that might exist in your leadership ranks as highlighted by some of the myths and are your leaders positioned to address the changing workforce psychology?
Great opportunities ahead for those organizations that proactively address these changes. As Mr. Spock would say “live long and prosper”.
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