'Organisations are wrestling with mentoring new employees'

The election highlighted the despair amongst many younger adults - struggling in their 20s and 30s - to make the progress that their parents did. Few seem to think elections make much difference. Disappointment is demotivating and causing widespread anxiety, undermining the roots of society. Creating opportunity and building resilience in the next generation should be a high priority.

The problem is not unique to the UK, although our solutions will differ. Post-pandemic, and with low unemployment, the economic environment seemed at first to look better for the young. Labour shortages and flexible working were expected to create demand for talent and more choice in working conditions. Instead, many have found that working from home is not delivering the training opportunity and advancement that are so important early in a career.

Organisations are wrestling with the challenge of engaging and mentoring new employees at a time of financial pressure and rapid business change. Younger employees need facetime with clients, senior professionals and peers. Office attendance for just two or three days per week is not delivering that in most organisations, missing the structure of work that helped earlier generations begin their careers. Teams meetings and online coaching are a poor substitute for social interaction.

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Firms themselves see that this is creating problems in sickness and absence. Recent years have seen rapid growth in the provision of therapy and online support services for employees, as employers hope to achieve a happier more productive workforce.

This has spread the growth of the new sector of digital therapy and it is estimated that up to three quarters of the working population now have access to one of these services. But unlike the health service, this has become more of a financial model than one driven by needs and solving problems. Certainly, it helps some, but what are business-to-business services do not look like the whole answer for anxiety and depression.

There are no easy explanations for the apparent increase in these problems in younger age groups. Studies have tried to quantify the impact of more social media use, less sports participation, and family influence – often superficially cited as the causes – and found that these factors actually explain little of what is happening.

It is clear that a generation is taking much longer to achieve what were once seen as norms; moving out of home, and getting their own home and car. In the early 1970s, the average age of mothers at the birth of their first child was 24 – this decade it is five years older. Now one quarter of young adults in their 20s have a holiday with their parents to save money. Continued pushing back of these key life stages makes many doubt they will ever get there.

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Some of the changes may have positives, but overall traditional milestones are being delayed and this is a big part of the loss of hope in a generation. Often, financial issues underlie this. Establishing a home is a key stage in personal development – addressing availability and cost will take time but should be seen as a priority. The undermining effect of financial uncertainty must be recognised – good mental health and a fair society needs home security.

Over the next few months, Scotland’s census analysis will deliver more up to date demographics, giving insight into the characteristics of this generation. We already know that this group, Generation Z, represents almost 20% of the workforce and has distinctive values and skills. There is an opportunity to use the new data to understand the pressures faced by younger people. The census work matters because it is a group where projections are more exposed to change from birth rates and migration patterns.

Society and organisations have much to gain from a group who are fully digitally literate, having experienced a lifetime of immediate access to the internet. It is a generation with a belief in fairness and a global perspective with potential to drive Scotland’s economy in decades to come. We need their technological expertise, enthusiasm and world view. Society would lose if disengagement and lack of motivation prevented them from fully contributing. Social cohesion is underpinned by trust; many embarking on attractive careers still feel let down. Some see a democratic deficit and question whether markets work.

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While those in their 20s feel disfranchised in the political process, they could be given a voice in other ways. All organisations could gain by bringing younger employees into their longer-term thinking. Some of the benefits that firms once granted to staff may now look paternalistic but the generation entering work in an uncertain world value support and assurance. Employers need to understand today’s concerns and anxieties and offer genuine help, not just online therapy. Team-building exercises and carefully crafted corporate culture must match the values an organisation demonstrates internally.

Organisations need to build resilience in the face of environmental and and geopolitical risks. This needs to be more than just keeping secure supply chains and low costs. Employees must be in a good place, with each having the ability to cope with life’s pressures. Employers should see mental health and financial security as key to organisational resilience and devote energy to finding solutions. As a start, the career development problems from working from home should be addressed.

It is not too late to turn things around for much of this generation. Organisations have a need to develop their future leaders and workforce. Politicians have an incentive to capture this part of the electorate and deliver.

Longer term, young people should encouraged and helped to develop their own coping mechanisms. In Scotland some of this is already happening. Joining up all the initiatives could build the right foundation for the future.

Colin McLean is a director of SVM Asset Management