Bangkok--4 Jul--PwC (Thailand)
Next generation leaders are more optimistic than CEOs about global growth but they're concerned about cybersecurity, education and business trust, a study by PwC in collaboration with AIESEC says.
The report – Tomorrow's leaders today – polled 216 leaders under the age of 30 from 104 countries to explore how companies can attract the best young talent and what CEOs can learn from those who will most likely to succeed them.
The study between PwC and AIESEC, one of the world's leading international student organisations, compares and examines the results from PwC's 19th Annual Global CEO Survey with the views of young leaders on growth, education, technology and business responsibilities.
It found that young leaders have more confidence about the outlook for economic growth than today's CEO. Some 60% of respondents expect economic growth to improve over the next 12 months, compared with just 27% of CEOs.
Such optimism reflects how the digital revolution stands to provide boundless business opportunities even though current CEOs generally see costs and risks, the report showed.
Despite that, young leaders are more pessimistic about certain threats than CEOs. Some 86% of respondents say companies should be worried about cybercrime, while 61% of CEOs are concerned about this.
A lack of trust in business also ranked high: 83% of the respondents are worried about it, compared with 55% of CEOs.
"Young leaders — many of them potential CEOs of tomorrow — see the world differently from other generations," said Sira Intarakumthornchai, CEO of PwC Thailand.
"They believe businesses should be concerned about the long-term impact of social and environmental issues rather than over-regulation and geopolitical uncertainty.
"However, they agree the world is becoming more divided and that business success in the 21st century will be defined by more than just financial profit."
Company's values, culture matter to young leaders
By 2020, the 'Millennials' as well as 'Gen Z' (the generation following millennials) will make up about 50% of the workforce, the study shows.
These younger workers have different ambitions, and often want a sense of connection and purpose in their work more than other generations.
Only 18% of the surveyed respondents plan to stay in their current role for the long term. They are also seeking international experience and volunteering in the early stages of their careers.
This underlines the importance of corporate values and a working culture that fits the character of the new generation.
"While every generation matters to an organisation, the Millennials jump out because they are the future of our business," Sira said.
"Pay and benefits are still key, but what's more important is the connection we create as well as making them feel valued, that the work they do is worthwhile."
When asked what makes an organisation an attractive employer, both CEOs and young leaders say the pipeline of future leaders is the priority for business success.
Education will make or break the leaders of tomorrow
The education system is the single most important factor in shaping and preparing young people for leadership roles in the future, according to 64% of respondents.
Even so, 70% believe the education system in their own country is failing to fully equip students with the skills they need to survive and thrive in the digital age.
When asked about the skills needed in the future workplace, 66% of them said that every employee must be able to demonstrate leadership skills, not just those in managerial positions. This was followed by passion and enthusiasm (51%), creativity (46%), and problem solving skills (43%).
Employees in the 21st century will also need to be as skilled in 'emotional' qualities as they are in more traditional professional and intellectual capacities.