How Younger Generations are Reshaping the Future Workforce
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Younger generations of managers are reshaping the future workforce in key ways: - They are more likely to support remote teams, with 69% allowing remote work and estimating that 40% of employees will work remotely in 3 years. - 96% see reskilling as important and are more likely to believe individuals should take responsibility for reskilling. - They prioritize future workforce planning at higher rates and are more likely to have strategies in place, recognizing the workforce is evolving rapidly. - Younger managers are leveraging freelancers at more than double the rate of baby boomers, seeing them as strategic partners to increase productivity and access specialized skills.
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How Younger Generations are Reshaping the Future Workforce
- 1. 2019 Future Workforce How Younger Generations are Reshaping the Future Workforce March 5, 2019
- 2. 2 Topic Page Study Objectives 3 Research Methodology 4 Key Findings 5 Hiring is Getting Harder 7 Younger Generations are Supporting Remote Teams 12 Younger Generations See the Need for Reskilling 19 Younger Generations Recognize the Workforce is Evolving 23 Younger Generations are Leveraging Freelancers at a Higher Rate 30 Younger Generations are Shaping the Future Workforce 35 Profile of Respondents 37 Appendix 41 Table of Contents
- 3. Study Objectives Upwork commissioned Inavero, an independent research firm, to conduct a study on the generational impact of Millennials and Gen Z in the U.S. workforce, with these objectives: 1. Assess the hiring challenges Millennials and Gen Z face today 2. Learn how the younger generation is influencing workforce evolution 3. Examine how younger generations are restructuring teams 4. Explore how Millennials and Gen Z will shape the future workforce This deck is organized in sections to detail results on each objective.
- 4. • An online survey of 1,014 workforce hiring decision makers obtained through a third-party, independent online sample. • Data collected October 19, 2018 – October 30, 2018 by independent research firm Inavero. • This is the third year the survey has been conducted. • Overall margin of error of ±3.08% at 95% confidence level. 4 Research Methodology
- 5. 5 Hiring is getting harder • Nearly 2.5 times as many Millennial and Gen Z hiring managers felt hiring had gotten harder in the past year than felt it had gotten easier. The number of these managers reporting hiring challenges increased 7 points from 2018. • 53% of younger gen hiring managers say talent scarcity and access to skills are their biggest hiring challenges. • Over half (51%) of Millennial and Gen Z managers find hiring to be stressful in their organization. These managers are 2x more likely to say hiring is more stressful than not within their organization. Key Findings
- 6. Key Findings 6 Younger generations are rethinking how work is done • 48 percent of younger gen managers (composed of Millennials primarily, with early Gen Z managers included) are director-level or higher already. • Younger gen managers are more likely to: • Support remote teams: 69% of managers allow members of their team to work remotely. They believe that 2 out of 5 full time employees will be working remotely in the next three years. • See the need for re-skilling: 96% of managers believe reskilling is important. Millennials managers are almost 3X more likely to believe individuals should be responsible for reskilling than Baby Boomers. • Prioritize workforce planning: Nearly 3X more likely to rank future workforce planning as a top priority for their department, and are 60% likely to have a future workforce planning strategy in place than Baby Boomers. • Leverage freelancers at a higher rate: More than twice as likely than Baby Boomers to have increased their usage of freelancers in the past three years, and are projected to continue increasing their usage in 2019.
- 7. 7 Hiring is getting harder
- 8. Hiring continues to get harder for younger generations 8 Q2.7. In your opinion, how hard has hiring for the following roles been this past year compared to prior years? Nearly 2.5xas many younger generation managers said hiring got more difficult in 2018 than said it got easier. 7 point Increase compared to 2017 in the percent of younger generation managers that said hiring became harder compared with past years. 42% 18%
- 9. Hiring difficulties have increased for accounting/finance, HR and Engineering roles 9 Q2.7. In your opinion, how hard has hiring for the following roles been this past year compared to prior years?
- 10. Access to skills and talent scarcity are the biggest hiring challenges for younger gen managers 10 Q2.8. [If hiring got harder for any role] What are your biggest hiring challenges?
- 11. Younger gen managers are more than 2x as likely to say hiring is stressful 11 Q2.9. How stressful do you find hiring to be within your organization? Younger gen managers are more than 2xas likely to say hiring is more stressful than not within their organizations.
- 12. 12 Younger generations are supporting remote teams
- 13. Younger gen managers allow their team to work remotely at higher rates than other generations 13 Q5.1. Are team members allowed to work remotely? Younger generations are 11 percentage points more likely to allow their workers to work remotely compared to Baby Boomers.
- 14. They have more team members who work a significant portion of their time remotely than other generations 14 Q5.2 Do you have any team members who conduct a significant portion (e.g. 2-3 business days) of their work from a remote location? Please consider remote workers as anyone you work with who spends half of their time or more remotely. Younger gen managers are 16 percentage points more likely to have workers who work a significant portion of their time remotely compared to Baby Boomers.
- 15. Departments with younger managers more often have the resources and processes in place to support a remote workforce 15 Q5.5. Do you feel your department has the resources and processes in place to support a remote workforce? Younger generations are 16 pointsmore likely to believe their department has the resources and processes in place to support a remote workforce vs. Boomers.
- 16. Younger gen managers without remote workers say technology/tools is the missing resource needed to support a remote workforce 16 Q5.9. What resources are missing from your department in order to support a remote workforce? Note: Question was only asked to those who said they didn’t have resources/processes in place to support a remote workforce.
- 17. Younger gen managers are more likely to have internal policies in place to support remote workers 17 Q3.11. Do you have an internal process in place for engaging external talent (i.e. freelancers, agency and temp workers)? Younger generations are 12 points more likely to have a process in place for engaging external talent compared to Boomers.
- 18. Younger gen managers estimate that 2 out of 5 full-time employees will work remotely in three years 18 Q5.3. What percentage of your overall team would you estimate works remotely at least half of the time today? / Q5.4. What percentage of your overall team do you anticipate will work remotely at least half of the time in the next 3 years? Younger generations believe that 2 out of 5 full time employees will be be working remotely in the next three years. *The percentages above reflect teams that currently have remote workers.
- 19. 19 Younger generations see the need for reskilling
- 20. Younger generation managers are prioritizing reskilling the workforce 20 96% Of Millennial and Gen Z managers say it is important to reskill or train their workforce. Q4.6. What are the top 3 areas that you feel are most important in a future workforce strategy? Q6.2. How important is it to reskill/train your workforce?
- 21. 1 in 3 younger gen managers believe that individuals should be responsible for their own reskilling 21 Q6.4. Who should be responsible for training and reskilling employees? Younger generations are almost 3x more likely than Boomers to believe individuals should be responsible for their own reskilling.
- 22. They are more likely to leverage freelancers to help fill skills gaps 22 Q6.1. How are you currently filling skills gaps within your organization? Younger generations are over 50% more likely to leverage freelancers to fill skills gaps within their organizations compared to Boomers.
- 23. 23 Younger generations recognize the workforce is evolving
- 24. Millennial managers are in management roles, and have hiring-decision making authority 24 Q1.3. What best describes your role in the company? 48% Of Millennial and Gen Z managers are in director level roles or higher.
- 25. Younger gen managers are prioritizing workforce planning 25 Q4.3. Rate the level of priority that future workforce planning is in your department. Younger generations are nearly 3x more likely than Baby Boomers to believe that future workforce planning is a top priority in their departments. 57% Of younger gen hiring managers say future workforce planning in their departments is a top or high priority
- 26. Younger gen managers are more likely to have a workforce planning strategy in place 26 Q4.4. Does your company have a strategy for future workforce planning? More than 1000 employees, 29% 251 to 1000 employees, 37% 50 to 250 employees, 31% Millennials/Gen Z with a strategy by company size Less than 50 employees, 3%
- 27. They are implementing technology and strategies to adapt to a changing workforce 27 Q4.2. What level of progress has your department made in the past year in the following strategies for adapting to a changing workforce? Developing a more agile, flexible talent strategy. Investing in technology to support a remote/distributed workforce. 2x younger generations are nearly two times more likely than Baby Boomers to have made significant progress in developing a more agile, flexible talent strategy, and investing in technology to support a remote, distributed workforce.
- 28. Younger generations are more likely to embrace flexible talent as part of their future workforce strategy 28 Q4.6. What are the top 3 areas that you feel are most important in a future workforce strategy? Total Ranked
- 29. They are more likely to be on track with their workforce planning strategies 29 Q4.5. How confident are you in your company’s future workforce planning strategy? Younger generations are nearly 2x more likely to say they are ‘very confident’ in their company’s future workforce planning strategy compared with Baby Boomers.
- 30. 30 Younger generations are leveraging freelancers at a higher rate
- 31. Younger gen managers increased their usage of freelancers at higher rates than other generations 31 Q3.7. In your opinion, how has the usage of freelancers by your department changed in the past 3 years? Younger generations are more than 2xas likely to have increased their usage of freelancers in the past three years compared to Baby Boomers.
- 32. They are using freelancers to increase productivity, access specialized skills and drive cost efficiency 32 Q3.2. What is the primary reason you will be using more freelancers in 2019? The primary reason younger generations are utilizing more freelancers is to increase productivity (33%).
- 33. They are more than twice as likely to utilize freelancers for ongoing strategic partnerships across multiple projects 33 Q3.6. How would you describe your relationship with the freelancers your department works with? Younger generations are nearly 2.5x more likely to use freelancers in ongoing partnerships.
- 34. Younger generations are more than twice as likely to increase their utilization of freelancers in 2019 34 Q3.1. Compared to 2018, our department will utilize freelancers _______ in 2019.
- 35. 35 Younger generations are shaping the future workforce
- 36. 36 By 2028... The projections above are calculated using current results by age range, and mapping these results onto Bureau of Labor Statistics’ workforce projections to 2028. By 2028, 73% of all departments will have remote workers. By 2028, non-traditional, 'Flexible' talent will comprise 24% more of department headcount compared to today.
- 38. 38 Millennials and Gen Z respondents by primary industry and functional area of work Q1.4. Which of the following best describes your organization’s primary industry? (Only industries above 1% are shown) Q1.5. Which of the following functional areas do you currently work in?
- 39. 39 Millennials and Gen Z respondents by company size and company revenue Q1.2. Which of the following best represents your company’s size? Q1.1. Which of the following best represents your company’s total revenue for calendar year 2018?
- 40. Younger gen managers rank Google, Amazon, Apple, and Microsoft as workforce innovators 40 Q8.6. Rank the top 3 companies you feel are embracing workforce innovation.
- 41. 41 Appendix
- 42. About this Study This study commissioned by: Upwork Upwork (UPWK) is the largest freelancing website, as measured by Gross Services Volume. It enables businesses to find and work with highly skilled freelancers. As an increasingly connected and independent workforce goes online, knowledge work -- like software, shopping and content before it -- is shifting online as well. This shift is making it easier for clients to connect and work with talent in near real-time and is freeing professionals everywhere from having to work at a set time and place. Our company’s mission is to create economic opportunities so people have better lives. This study conducted by: Inavero Inavero is a global leader in human capital management research. The firm powers satisfaction and thought leadership studies for hundreds of top firms within the space and leverages more than 300,000 survey responses annually to provide insight into the millions who work in the gig economy and the companies who hire them. 42