Study: Millennials demand more diversity in companies

As Millennials, the generations born between the 1980s and the late 1990s, take over companies, expectations of leaders are changing. Millennials, for example, demand closeness, strong values and visionary thinking from their bosses - and demand personal mentoring and encouragement. According to the study, the gap between the generations is greater than the difference between the sexes: "Women and men of the younger generation have almost the same demands on the leadership qualities of their superiors and on diversity in their companies," says Simone Stebler, consultant and head of the Diversity & Inclusion Practice at Egon Zehnder.

The most important results of the study

Diversity

• A diverse workplace is of paramount importance to younger generations: Millennials (65 percent) and members of "Gen X," born roughly between 1965 and 1980 (61 percent), cited diversity as particularly important. Among Baby Boomers, the figure was 51 percent. 62 percent of Millennials also said a diverse work environment was very important to the success of their organization.

• More than half of all respondents agreed with the statement that equal opportunities exist in their company. However, only 57 percent of female Gen Xers agreed, but 63 percent of female Millennials.

leadership expectations

• When asked about the most important trait of leaders, those under 35 most often cited "approachability." This preference was even more pronounced among younger men: 55 percent of male Millennials agreed with this statement, but only 32 percent of male Baby Boomers.
• Baby boomers value resilience in leaders - 35 percent cited this as an important trait, but only 21 percent of Millennials.

• Millennials were also more likely to agree that their leaders embodied the qualities they desired (38 percent). By contrast, only 22 percent of Baby Boomers and 26 percent of Gen Xers agreed.

Career development

• An overwhelming majority of all respondents (86 percent) reported encountering resistance along their career path. However, one-third of baby boomers said they had not encountered barriers in their career development.

• When asked about factors limiting their professional development, more than twice as many Millennials (35 percent) than Baby Boomers (17 percent) cited a lack of mentors and sponsors.

• The career aspirations of women and men have almost converged: 27 percent of women and 31 percent of men said they wanted to reach the strategic management level of their organization. For women, however, the path to the top is incomparably more difficult: Dem Egon Zehnder Global Board Diversity Tracker of 2018, women make up only 3.7 percent of CEOs and 12.2 percent of CFOs globally.

Motivation

• Millennials (86 percent) are more likely to agree that their work-life balance is right. This compares to 80 percent of Gen Xers and 78 percent of Baby Boomers.
• Men and women gave almost identical answers to the question about their personal and professional priorities. For 27 percent, their job comes first, 17 percent named their private life and 56 the balance between the two.

Expectations of the boardroom are changing noticeably. "In order to adequately address the needs of younger generations, leaders today need to demonstrate above all visionary thinking, a strong set of values and humility," says Simone Stebler. "The study impressively demonstrates how important diversity and equal opportunities are, especially for younger leaders."

The study was prepared in the context of the Leaders & Daughters initiative launched by Egon Zehnder in 2016 and can be found on www.egonzehnder.com