Millennials and Generation Z are becoming increasingly unsettled about their lives, their careers and the world around them. Their trust in traditional institutions (e.g. political, business, media and religious leaders) has never been lower, according to the recent Global 2019 Millennial Survey by Deloitte. Importantly their ambitions and values are very different from older generations. What will all this mean for our future? Will their pessimism deter economic growth, or instead encourage innovation and even create new opportunities for re-positioning brands and engaging employees?
A key reason for this lack of optimism among these younger generations is the disruptive impact from the 2008 great recession. Most Millennials entered the job market during and after this economic crisis. As a result, they have lower real incomes, fewer assets and higher debt than previous generations at comparable ages. They have also experienced significant social and economic changes – e.g. rise in economic inequality, a reduction in societal safety nets, dysfunctional government, increased tribalism and polarization fueled by social media, and less trustful relationships between employees and employers. All these factors have had a psychological effect which has created high anxieties, deep frustration and a very different set of values and aspirations from other generations. Millennials now represent the generation with the highest purchasing power, so it is critical to understand and adapt to their changing attitudes and desires:
Declining Faith in Economic/Social/Political Environment
The pessimism expressed by Millennials and Generation Z in this Deloitte survey has sharply increased. Their expectation for improvements in the future has declined significantly from 2017 to 2019, especially in 2019:
- Believe the economy will improve next year: 45% → 45% → 26%
- Believe Social/Political environment will improve next year: 36% → 33% → 22%
- Believe business has a positive impact on society: 76% → 61% → 55%
Meanwhile the top concerns of Millennials reflect worldwide trends, with environmental protection as their chief source of anxiety, including their genuine fears of online safety and privacy:
- Climate change/protecting the environment – 29%
- Income inequality/distribution of wealth – 22%
- Unemployment – 21%
- Fear of being the victim of online fraud – 79%
- Fear of identity theft – 78%
What Millennials Want Today – Values and Ambitions
Millennials tend to be very experience driven compared to previous generations that always prioritized traditional financial and family values and ambitions:
- Want to see/travel the world – 57%
- Earn a high salary/be wealthy – 52%
- Buy homes of their own – 49%
- Make positive impacts on community/society – 46%
- Have children/start families – 39%
Perhaps most stunning is that so many Millennials would actually leave their employers if they didn’t share the same social and personal values. Here are the percentages of Millennials that would expect to leave their jobs within two years if their employer didn’t prioritize such social issues:
- Diversity and inclusion – 63%
- Having a positive impact on local communities – 59%
- Support healthy work/life balance for its people – 56%
- Offering flexible working practices (i.e. hours & location) – 56%
- Supporting people’s development through training, mentors, etc. – 55%
Implications for Re-Positioning Brands and Engaging Employees
Many older people don’t understand or acknowledge these changing values, and some even resent it. But they are the reality. Millennials will soon be the primary economic force, if not already, that will shape economic growth and their contract with employers. As consumers in the packaged goods business, identifying and addressing the values or changing needs of this target audience is essential for successful branding. Management must recognize these trends and re-position its benefits and offerings to re-engage this dynamic segment of Millennials, plus Gen Z’s.
For employees, CEO’s must address their corporate brand values and policies to reflect the aspirations of Millennials. Ignoring their strong feelings about the environment, income and gender inequalities, diversity, and their desire for a more experiential lifestyle, for example, can seriously undermine their efforts to build employee trust and loyalty, more fully engage them and even inspire innovation.
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