The young talents, a central issue
Let me show you that innovation gets rid of the bad bosses ! As you already know, we are facing a fierce battle for the young talents. Where do the new generations want to work ? In general, they want to work in the major banks, in the cosmetics major groups… But the digital start-ups are accelerating the destruction of the major firms, as specified in the first part of the article, by the roots, recruiting the best talents.
Currently, the major Europeans companies do their utmost to try to reinvent themselves. They started to get rid of the tie wearing, remove the leaders’ privileges. They also deleted several positions. You certainly know this ranking which pompously publishes the presentations of the companies and chooses “the 10 most coveted companies where everybody wants to work in”. It could look like this ranking, don’t you think?
The entrepreneurship, more than a passing fad
A London interim agency stated that 50% of the under-30 year olds want to leave the company where they are working. This agency offers jobs which bring a feeling of gratitude for those who apply. It also helps the young talents start their own business. We often talk about entrepreneurship, which seems to be a trend, a solution to the crisis. But the willingness to undertake a project is a significant aspect that the digitalization accelerates too.
A study from Telefonica about the Y generation states that 1 young person out of 10 in Spain, in Europe, or in the USA, could turn to entrepreneurship in the 10 next years. However, in several countries such as Colombia, only 1 young person out of 4 will undertake in these 10 next years. This shows the changes in vision that there may have been in the most developed economies.
Give a meaning to your job
This transformation in the ambition of our young talents shows us that they want to give meaning to their job. The new technologies give us new possibilities to start a project. Indeed, they facilitate the access to the labour market which is drastically evolving. For your information, 53 millions of Americans are auto-entrepreneurs (freelancers), 34% of the American workforce is self-employed. According to the previsions, by 2020, it will be true for half of the American workers. The world is moving and the digital start-ups, the entrepreneurship, the freelancers are making things happen. The companies that want to survive have to eliminate the authoritarian management. They need to reduce the intermediates and adopt the principles of self-management and/or collaboration.
What is self-management ?
Let me give you an example that I really like: a Brazilian textile company, which a family’s friend inherited from his father in 1995.
After really tough acquisition phase of the company, he decided that it needed to stop. He had to transform the corporate culture. He started by removing the privileges from the senior managers: cars, parking spots, personal secretaries, exorbitant salaries. Then, he decided to grant a decision process to the workers and to the employee representative committee by creating committees. Besides, the employees could decorate their workspaces as they wished, choose the color of the walls etc. He then initiated the schedule flexibility, and finished by implementing the principle of “test and learn”. This allowed him not to loose the focus on the customer.
Twenty years later, the company is now one of the most fruitful industrial companies of the Brazilian market, while managing to survive different financial crises.
The end of the hierarchical organizations
This is a company where the level of self-management is very high and where the employees decide themselves the amount of their incomes. The redundancies are decided collectively. There is no hierarchy, only autonomous and independent groups, where a person is a coordinator, without it being a definitive position. Every year, there is a democratic vote to elect the coordinator. If the person appears to be not so great at his work, then the workers will have to vote for a new one.
This company is not the only one using the self-management. The autonomy at work is today accepted in a lot of surveys as a strong asset for the companies.
The researchers of the Cornell University did a study on 320 SMEs, where half of the companies were giving a lot of autonomy to their employees while the other half were more bossy. Those which left the most of autonomy to their employees developed 4 times faster and have ⅔ of turnover less than the others. But the self-management alone is not enough. We also talk about principles and digital values. It is a sweet utopia and today it can’t always be set up because of the lack of collaborators’ engagement.
The bad bosses won’t resist the transformation
Indeed, during the transformation of a company, the role of the different bosses (CEO, executive officers, intermediate management) will take a significant importance. Unfortunately here, the bad bosses will get lost, showing a lack of empathy, of emotional intelligence, or adaptability. The fear of change is a fact and in general, the companies don’t think enough about this point before boarding into major projects of recast.
The CEO must gather these different directors and managers, explain the strategic goal and the way this new culture will be implemented. The objective is clear: all the collaborators move in the same direction to face the new market challenges. This “education” phase is unfortunately not taken enough into consideration by the management. This can jeopardize the firm. We come back to a mantra that is dear to my heart… The bad bosses dictats, the good bosses educate and help.