In today’s fast-paced and ever-changing world, it is crucial for organizations to embrace intellectual diversity and include young professionals in decision-making processes. The 2023 YEIP Report emphasizes the need to have young people as stakeholders in decision-making for environmental and corporate sustainability[1]. In this article, we will explore how the inclusion of young people in decision-making improves financial outcomes, nurtures future leaders, fosters creativity, and drives innovation.
Lead Authors: Amanda Chan & Gabriella Urrego
Supporting Authors: Ryan Stewart
~5 Minute Read Time
INTRODUCTION
To advance the inclusion of young people in decision-making, organizations can establish Young Employee Inclusion Networks, adopt alternative mentorship programs, and create cross-functional teams or task forces. These initiatives ensure that young employees’ needs are addressed, promote workplace change, and foster inclusion.
WHY IS THE INCLUSION OF YOUNG PEOPLE IN DECISION-MAKING IMPORTANT?
Monetary Return for Organizations
Engaging the younger generation in the decision-making process is more than just promoting diversity or tapping into new ideas, it also brings about substantial financial benefits. Their unique viewpoints and experiences can foster creativity and drive innovation within an organization, leading to the development of new ideas, products, and services[2]. The BCG Diversity and Innovation survey revealed that companies with more diverse management teams have 19% higher revenues due to innovation, which is the percentage of total revenue from new products and services launched over the past three years[3]. This survey included more than 1,700 companies from eight countries across various industries and examined the diversity of management in terms of gender, age, nationality, career path, industry background, and education.
The financial impacts become evident when examining individual companies as well. Consider Gucci, the popular fashion brand, which saw a remarkable 136% increase in sales after implementing a ‘shadow board’ comprised of young individuals in the organization[4]. This success can be partly attributed to their incorporation of young talent into marketing strategies and their adeptness in leveraging emerging technologies.
Likewise, the energy infrastructure industry stands to benefit from similar advancements, potentially in more pronounced ways. Startups and innovative companies within this sector, often started by recent graduates, are embracing tools such as machine learning and AI to improve industry safety and efficiency. The agility and expertise of young professionals in emerging technology can play a pivotal role in reshaping organizations from within, ensuring they remain competitive and are not left behind in the next digital age.
By incorporating diverse groups into decision-making roles, organizations not only amplify their diversity and stimulate innovation but also significantly enhance their financial performance.
Culture and Adaptability
As each year passes, millennials and Gen Z-ers are becoming a larger portion of the workforce[5]. These younger generations are poised to drive significant cultural shifts in the workplace, influencing the strategies companies need to employ to keep their employees engaged. They are vocal about the workplace improvements they seek such as flexible working conditions, company values, and diversity.
The Deloitte Global 2023 Gen Z and Millennial Survey found that “nearly four in 10 (44% of Gen Zs / 37% of millennials) say that they have rejected assignments due to ethical concerns, while 39% of Gen Zs / 34% of millennials have turned down employers that do not align with their values”[6]. The rejection of assignments due to ethical concerns may raise eyebrows for an employer solely focused on doing whatever it takes to create shareholder value, but for young professionals, it’s non-negotiable. For example, safety and the environment are of extreme importance for both regulators and companies in the energy infrastructure industry.
Through listening activities with our members, YEIP observes a strong pattern of these values being of top priority to young professionals[1]. Companies that promote safety and environmental sustainability as part of their culture will get more buy-in from young professionals, and elevate the industry as a whole which enhanced industry’s ability to attract and retain new talent.
Growth and Future Leadership
Empowering young individuals at the onset of their careers is crucial to fostering a sense of purpose and motivation for them to excel in their roles[7]. Furthermore, the process of recruiting, onboarding, and training new talent is a significant investment that can be wasted if new employees are dissatisfied and choose to leave or ‘quiet quit’[8]. This empowerment can be achieved by promoting their meaningful involvement by acknowledging young professionals as equal contributors in the decision-making process[4].
By dedicating resources to the growth of younger staff members and promoting a diversity of perspectives, the industry can lay the groundwork for future leaders[9]. These leaders will be equipped with well-developed corporate values and ample experience, ensuring they are well-prepared to tackle forthcoming challenges and sustain the company’s growth. It’s therefore crucial for companies to empower the younger generation so that they can retain and develop their talent for long-term success.
HOW TO ADVANCE THE INCLUSION OF YOUNG PEOPLE IN DECISION MAKING?
Young Employees Inclusion Network
Employee-led groups are vital for networking, sharing experiences, and amplifying underrepresented voices. The establishment of a Young Employee Inclusion Network can empower young staff, as seen with Cambridge University’s Young Employees Staff Network[7], fostering community, collaboration, and advocacy. Such initiatives ensure young employees’ needs are addressed, promoting workplace change and inclusion.
Alternative Mentorship Programs
The Harvard Business Review highlights that while 75% of executives attribute their success to mentors[10], there is a tendency to mentor individuals of the same gender or race, leading to a lack of diversity in mentorship. Traditional mentorship, based on bonding social capital, often fails to meet the needs of marginalized community members, contributing to their underrepresentation in upper management. To combat this, organizations are encouraged to adopt “bridge mentorships,” which foster connections across diverse backgrounds, promoting collaboration and resource exchange to bridge cultural gaps and support the advancement of individuals from socially marginalized groups.
Cross-Functional Teams/Task Forces
Cross-functional teams and task forces are designed to break down silos within organizations, foster collaboration, and leverage the unique strengths and knowledge of their members to achieve their goals more effectively. Millennials and Gen Z professionals seek opportunities for growth, meaningful work, and the chance to lead and drive innovation—goals that resonate with their values and desire for impact. By integrating young employees into such teams, organizations benefit from their fresh perspectives and innovative approaches, resulting in more holistic and effective problem-solving.
CONCLUSION
Involving young professionals in decision-making is critical for an organization’s financial prosperity, cultural agility, and nurturing of future leaders. Research highlights the significant contributions of youthful insights to innovation and their alignment with the workforce’s shifting expectations. To harness this potential, organizations should implement Young Employee Inclusion Networks, introduce diverse mentorship programs, and form cross-functional teams or task forces. These initiatives are crucial for creating an inclusive atmosphere that empowers young talent and ensures the long-term sustainability and growth of an organization. Youth inclusion is a strategic necessity that organizations must embrace to remain competitive and forward-thinking in today’s dynamic workplace landscape.
REFERENCES
[1] YEIP. (2023). YEIP Report 2023. YEIP. [https://yeip.energy/wp-content/uploads/2023/10/YEIP-Report-2023.pdf]. Accessed May 2024.
[2] McKinsey & Company. (n.d.). Why diversity matters. McKinsey & Company. [https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters]. Accessed May 2024.
[3] Boston Consulting Group. (n.d.). How Diverse Leadership Teams Boost Innovation. Boston Consulting Group. [https://www.bcg.com/en-us/publications/2018/how-diverse-leadership-teams-boost-innovation]. Accessed May 2024.
[4] Jennifer Jordan and Michael Sorell. (2019). Why You Should Create a “Shadow Board” of Younger Employees. Harvard Business Review. [https://hbr.org/2019/06/why-you-should-create-a-shadow-board-of-younger-employees]. Accessed May 2024.
[5] BBC Worklife. (n.d.). Can younger workers speak up without managers bristling? BBC. [https://www.bbc.com/worklife/article/20221206-can-younger-workers-speak-up-without-managers-bristling]. Accessed May 2024.
[6] Deloitte. (2023). The Deloitte Global 2023 Gen Z and Millennial Survey. Deloitte. [https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html]. Accessed May 2024.
[7] Cambridge University Press & Assessment. (n.d.). How can we support young employees? – Our people. Cambridge University Press & Assessment. [https://www.cambridge.org/news-and-insights/blogs/how-can-we-support-young-employees-blog-our-people]. Accessed May 2024.
[8] Linda Nazareth. (2022). Companies can’t Afford to Ignore ‘quiet quitting’. Contributed to The Globe and Mail. [https://www.theglobeandmail.com/business/commentary/article-gen-z-quiet-quitting/]. Accessed May 2024
[9] Leadership Advance Online. (n.d.). Developing the Next Generation of Leaders: How to Engage Millennials in the Workplace. Regent University. [https://www.regent.edu/acad/global/publications/lao/issue_19/Burkus_leading_next_generation.pdf]. Accessed May 2024.
[10] Christopher “CJ” Gross. (2023). A Better Approach to Mentorship. Harvard Business Review. [https://hbr.org/2023/06/a-better-approach-to-mentorship]. Accessed May 2024.