International Youth Day on August 12 was not only a celebration of young people and their contributions to social advancement, it was a timely reminder of the need for businesses to understand their values, outlook and needs if they want to stay ahead.
The need for understanding and incorporating young people’s perspectives into corporate strategies cannot be overstated. Generation Z – those born between 1997 and 2012 – are expected to make up about 27 per cent of the global workforce in 2025. Meanwhile, the average age of independent directors on the boards of S&P 500 companies is about 63, despite many of these firms having a mandatory retirement age of 70.
The gap is more than one of age. Many large firms that thrived in recent decades are struggling to understand the challenges and potential of Gen Z and millennials as future customers, employees and business leaders.
Being out of touch with young people can have serious consequences. Consider the downfall of Yahoo, which failed to retain users and made a series of corporate missteps. Above all, Yahoo’s decline can be attributed to its inability to adapt to and evolve with the trends.
On the other hand, the turnaround of Abercrombie & Fitch in changing its image from the “most hated retailer” in the US in 2016 and regaining the favour of Gen Z customers attests to the need to prepare for the wave of change driven by younger generations, both in terms of workforce and business strategies.
Some companies and research institutes are increasingly aware of the need to learn more about young people’s views. However, a truly future-proof strategy requires corporate leaders to attach as much importance to the youth factor as artificial intelligence, climate change or geopolitics as a key aspect of corporate strategy.
02:14
Gen Z in Japan more likely to pick up a mocktail, instead of a cocktail
Gen Z in Japan more likely to pick up a mocktail, instead of a cocktail
One way to do this – as some organisations are already doing – is to create dedicated seats on corporate management or advisory boards. The way to make change happen is to empower young people with decision-making abilities. These younger board members can help companies bridge the generational gap and adapt to today’s changing business environment.
For example, in 2015 Gucci created a shadow committee of millennials who regularly held meetings with senior executives. The insights from younger employees across the company provided a wake-up call for leadership.
Similarly, the Financial Times launched its Next Generation Board in 2020, with members drawn from all business areas to figure out the potential challenges facing the media group and potential solutions. Each selected member is paired with a member of the management team to provide reverse mentoring and exchange feedback and ideas.
Closer to home, the Hong Kong government has established the Member Self-recommendation Scheme for Youth, as set out in Chief Executive John Lee Ka-chiu’s 2022 policy address and the youth development blueprint. Its role is to engage more young people in public affairs, promote dialogue and enhance mutual trust.
The Youth Advisory Board comprises young people from diverse backgrounds, providing regular feedback on strategic initiatives and serving as a sounding board for new ideas. With the city government actively engaging young people, there is no reason for corporations not to do likewise on a decision-making level.
In addition to empowering younger generations, firms should strengthen their commitment to stakeholder capitalism and attract talented young people and tap into their visions, energy and creativity.
According to Deloitte, environmental sustainability is a top priority among Gen Z and millennials, with about 60 per cent of respondents to its 2024 Gen Z and Millennial Survey saying they felt worried or anxious about climate change in the past month. With genuine commitment to youth engagement and empowerment, organisations can foster stronger connections and brand loyalty.
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China’s young abandon consumerism in favour of fulfilling experiences
China’s young abandon consumerism in favour of fulfilling experiences
The young athletes competing at the recent Paris Olympics have exemplified honour and glory while taking part in one of the greenest Olympics in history. Much like the increasing diversity of the Games, it would be a mistake to think of our youth as a unitary social group.
They are more diverse than any generation in terms of background, upbringing and talent. Young Chinese have redefined the socioeconomic landscape by challenging entrenched norms and traditions, defying stereotypes of those having grown up in a system of conformity.
In a changing world, businesses must be sensitive to the cultural heterogeneity of Gen Z and millennials. Any attempt to view them through an old lens, whether in the implementation of workplace policy or the introduction of new products to the market, risks their ire.
Wai-Hong Tang is an independent researcher on the international political economy of East and Central Asia
Neville Lai is an independent international affairs strategist focusing on East Asia
