Millenial Managers Are Already Having an Impact on Workplace Planning

Millenial Managers Are Already Having an Impact on Workplace Planning

As members of the millennial generation enter the managerial ranks, they are bringing new approaches to hiring and workforce planning, according to a report recently published by freelancing website Upwork.

The third annual “Future Workforce Report,” released on March 5, explores the hiring behaviors of more than 1,000 U.S. hiring managers surveyed in October 2018. The focus of this year’s report is on generational impacts on the workforce, and specifically on how millennials, as well as some older members of Generation Z, are shaping the future of work.

The study found that 48% of the younger generation managers surveyed have already reached the director level or higher, and are thus having a major influence on workforce planning. Researchers noted that this influence will continue to grow, as these younger generations will make up 58% of the workforce by 2028, up from 38% today.

The findings also indicated, however, that the “always-on” workplace is taking a toll on younger managers, as 84% of millennial managers have reported experiencing job burnout. The study further suggested that conventional methods of hiring are no longer providing much relief, as 42% of younger generation hiring managers said they believe hiring has become more difficult in the past year, while just 18% said they think it has become easier.

In addition, the results indicated that supporting remote teams is the new norm, with 69% of the younger generation managers reporting that they have team members who are allowed to work remotely. Of the managers who said they have approved remote work options, 74% reported having team members who spend a significant portion of their time conducting their jobs remotely. By contrast, just 58% of baby boomer respondents said they have workers who work a significant portion of their time remotely.

The study also found that younger generation managers are 28% more likely to utilize remote workers than baby boomers, and anticipate that two out of five full-time employees will work remotely within the next three years. The study projects that by 2028, 73% of all teams will have remote workers. The results were approximated for future projections based on the current results for the respondents of the youngest cohort, Generation Z.

The report further emphasized that younger generation managers are particularly likely to recognize the need for better access to rapidly-changing skills and constant reskilling. However, younger generation managers were found to have a greater tendency than older managers to express support for a more independent workforce approach, as the survey indicated that younger generation managers were nearly three times more likely to say that individuals should be responsible for their own reskilling than baby boomer managers.

The study predicted that by 2028, non-traditional, flexible talent, like freelancers and temporary and agency workers, will account for 24% more of departmental headcount than they do today.

According to the report, the younger generation managers were more than twice as likely as the baby boomer managers to have increased their usage of freelancers in the past few years, and they are projected to continue increasing their usage in 2019.

The younger generation managers were also found to be more than twice as likely as the baby boomer managers to report having engaged freelancers for ongoing, strategic partnerships across multiple projects, rather than for one-time, one-off projects. The primary reasons respondents cited for using more freelancers are to increase productivity, access specialized skills, and drive cost efficiencies.

From Benefit Trends Newsletter, Volume 62, Issue 4

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2019 Liberty Publishing, Inc. All rights reserved.

Optimism About the Economy Shows Signs of Declining

Optimism About the Economy Shows Signs of Declining

The level of optimism about the outlook for the U.S. economy declined among business executives in the fourth quarter of 2018, but most of these leaders continue to hold a strongly positive view of their own company’s prospects, the results of a quarterly survey of executives and senior financial managers at U.S. companies conducted by the American Institute of CPAs (AICPA) indicated.

The survey, which was conducted November 7-28, 2018, included 938 responses from certified public accountants who hold a leadership position in their company, such as CEO, CFO, or controller. While 57% of survey respondents expressed optimism about the U.S. economy over the next 12 months, researchers noted that this share was down 12 percentage points from last quarter, and represents a steep decline from the post-recession high of 79% set at the start of 2018.

When the respondents who said they have a negative view of the U.S. economy were asked about their reasons for pessimism, they cited concerns about trade issues, rising interest rates, the U.S. deficit, and underlying issues such as corporate and personal debt levels. Meanwhile, the respondents who expressed optimism tended to cite the continued strength of a broad range of economic indicators.

However, when asked about the outlook for their own company, the share of respondents who reported having an optimistic outlook held relatively steady at 69%, down just a single percentage point from the third quarter. Similarly, the percentage of survey respondents who said they expect their company to expand in the next 12 months fell only slightly, from 70% to 67%. Researchers pointed out that from a historical perspective, this rate remains high.

The results of the fourth quarter survey also indicated that the availability of skilled personnel is the top challenge respondents face, followed by employee and benefit costs. Almost half of respondents (48%) said they plan salary, wage, or commission increases in the next 12 months to improve their company’s chances of recruiting and retaining employees in the tight labor market, while 18% said they intend to improve their company’s benefits. A majority (62%) of respondents who said they plan to increase compensation indicated that they expect the increases to be in the 3% to 5% range.

In addition, the survey showed that hiring plans continue to be strong, although many of the executives reported facing a scarcity of candidates with the right skills and experience. Around half of respondents said their company currently has the right number of employees. Of the 42% of respondents who indicated that their company has too few employees, 14% reported they are reluctant to hire, while 28% said they intend to start hiring immediately.

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2019 Liberty Publishing, Inc. All rights reserved.