4 Facts Every Modern Leader Should Know about their Employees

Editor’s note –
This article is contributed by Australia based entrepreneur, Jack Delosa. The article cites research on the climate of education, personal finance, and career readiness in the author’s native country, however, the views expressed within resonate with many countries across the globe.

The dream has changed and wise leaders are changing along with it.

The Industrial Revolution of the 18^th Century helped transform the fabric of western society. Opportunities became widespread, hard work and loyalty paid off, higher education became a symbol of ability and tenacity. For this reason, most people came to adopt the traditional “formula for success”; gain a tertiary education, secure a good paying job, buy a house, work your way to the top, save for retirement.

For the centuries that followed, workplace discipline was an effective leadership tool. Leaders could demand stringent structures and expectations in the workplace because most employees would comply, motivated by the fear of losing their place on the corporate ladder. Missing a step on the path to financial freedom. Failing. But that formula doesn’t work in the modern day.

One look at the statistics and it is easy to see why most Australians are ready to turn their back on this outdated financial model. These are trends that the savvy leader should be aware of:

1. Tertiary education is, in most instances, outdated and irrelevant for real-world employment. In research conducted by The Entourage of almost 1,000 entrepreneurs, graduates rated tertiary institutions at a feeble 3 out of 10 in terms of its effectiveness at preparing them for the real world, a result that is echoed in studies from around the world. In addition, we found that 69% of graduates felt that they were not “career ready”, even after years of expensive education.
2. Young Australians are giving up on the idea of home ownership. According to realestateview.com.au, 57% of first home buyers are in their 30s and 40s before they can afford to purchase a property. Many people, particularly in large cities, have turned their back completely on home ownership as a wise and viable financial option. In my view this is a positive as the traditional, age-old advice of “save and buy a property as soon as you can” proved to be irresponsible guidance, peddled by those who profit from selling homes and mortgages.
3. Employees are more restless and more mobile than every before. A recent report revealed that Australians are changing employers every three years on average. Younger employees are twice as mobile (with average tenures of just over 18 months) but older workers are following suit.
4. Many retirement funds are inadequate and retirement at age 65 is a fading dream. At the moment, the average Australian retires with just $151,000 in their superannuation fund and many choose not to retire at all. (ABS states that 31% of the workforce aged 45+ do not ever intend retiring, and nearly 200,000 current retirees are looking to return to work to alleviate financial stress or boredom.)

The bottom line is that the dream promised to every day Australians by the cultural paradigms of those still living in previous centuries, is no longer delivering. And, because of this, people are changing what they demand from life, and from their jobs. The workforce today is restless, impatient, empowered and highly adaptable. Young and old, they are no longer motivated by job security, nor necessarily by money.

Instead, the modern employee is searching for intrinsic satisfaction; a sense of meaning. Inspiration! They are seeking visionaries and innovators; a sense of being part of something greater than themselves and, increasingly, that provides a vehicle where they feel they are giving back or contributing to society in some way.

The dream has changed and, in my view, the wise leader has acknowledged the need to change too. It is now inspiration and engagement, not discipline and performance management that are the keys to successful business teams. Employees are no longer responding well to staunch discipline or rigid procedure. They are not motivated by long-term financial goals. They are not intimidated by change or disruption.

Instead, I believe today’s workers are looking for inspired leadership; leaders with a clear vision that they, as employees, can passionately believe in, and invest in, too.