Working with, not for, the boss

A study of 250 Australians aged 18-55+ found it’s never been harder for employers to retain staff, with 20-24-year-olds three times more likely to change jobs in a year than their Generation X and Baby Boomer colleagues.

Social researcher Mark McCrindle, who conducted the study, says the trend will force bosses to change the way they manage to a more collaborative style where power is shared and workers’ career progression is a top priority.

McCrindle says the survey revealed the two top attraction and retention factors for Gen Ys are management style and development opportunities, with 89.6 per cent agreeing that regular training from their employer would motivate them to stay longer.

But workplace management consultant Tony Wilson says it’s not just Gen Ys seeking good leadership.

“Ninety per cent of employees who resign are leaving because of poor managers, not their job,” Wilson says.

“When an employee resigns, many managers point the finger at reasons beyond their immediate control. In most cases they should point it straight at themselves.”

Wilson says most managers spend too much time on operations, systems, strategy, products and services.

“While these are important pieces in the performance puzzle, they spend relatively little time developing their people – their greatest competitive advantage,” he says.

While the global financial crisis meant many employers had less time and money to spend on training and nurturing their staff, Skye Recruitment director Kye Macdonald says the economic downturn had a positive effect on Gen Ys’ loyalty levels.

Macdonald says many Gen Ys now have a greater appreciation of their employment and display more loyalty in the workplace.

“But they still like to work with the boss, not for them,” he says.

McCrindle says good management and leadership will become even more important across all age ranges over the next decade, as the working population ages and more people leave the labour market than enter it.

“Generation Y currently comprises 18 per cent of Australia’s workforce and in 2020 this number will double to 35 per cent,” he says.

“In addition to this we have an ageing population.

“Our average age in 1980 was 29, today it’s 37.

“We’ve also reached the point of `peak labour’ as from next year (which means) more people will retire from full-time roles than will enter into full-time roles.”

Wilson says bosses will need to build relationships with their workers.

Research from Indiana University found a worker’s relationship with their boss is nearly equal in importance to their relationship with their spouse when it comes to overall wellbeing.

“In other words, managers simply cannot afford to ignore the magnitude of their roles,” he says. Wilson says most managers are promoted according to their ability to do a job well, and suddenly find themselves measured on a new set of criteria such as how well they can build a team and get the best out of people.

“Almost always, a manager is expected to easily transition without the necessary support and skill development,” he says.

What workers want

So, how do managers inspire employees to work harder and stay, rather than switching jobs when things get difficult?

McCrindle’s research offers insight into what workers want:

* Power sharing

Australians are moving away from the traditional authoritative structure, towards a partnership model that puts more power into the hands of the employee.

Nearly two-thirds (63.1 per cent) say they prefer an empowering, collaborative leader who believes you should use all the resources at your disposal to solve your own problems and develop your own solutions.

More than 40 per cent want a challenging role and a broad job description, compared to 5.6 per cent who want little responsibility.

More than two-thirds respond best to a leader who is more relational than positional and 23.6 per cent prefer the traditional autocratic leadership style.

Just 13.3 per cent like a controlling leadership style where policies and procedures are set and managed.

* Gender doesn’t matter

Women hold only 8.3 per cent of board directorships, 2 per cent of chief executive roles, 10.7 per cent of senior executive positions and 5.9 per cent of executive line management positions.

Despite this inequality, almost two-thirds (64 per cent) say it doesn’t matter whether their leaders are male or female. A quarter say they prefer a male compared to 10.7 per cent who prefer to be lead by a female.

* Age before beauty

More than 42 per cent like the person leading them to be older than them, although a similar amount of people (46.2 per cent) say it doesn’t matter to them.

* Characteristics of a great leader

The three most appreciated sets of characteristics in a leader are:

* Honest, reliable and confidential.

* Inspiring and energetic.