CHIEF EXECUTIVE OFFICERS (CEOs) need to transform their business to cater to the five generations currently in the workforce, Management Association of the Philippines (MAP) President Rene D. Almendras said.
On the sidelines of the 22nd International CEO Conference, Mr. Almendras said improved healthcare has allowed older people to stay at work.
“What we have is a situation where we have five generations all at the same time in the workforce… These generations are now linked together by technology,” Mr. Almendras told reporters on Tuesday.
“Today, you have business leaders as young as 24 years old … and this complexity creates a challenge but also an opportunity for the business community,” he added.
A survey conducted by PwC Philippines in partnership with the MAP indicated that 76% of business leaders see as their top challenge navigating the management and leadership issues that come with a multigenerational workforce.
The CEOs also cited the need to navigate differences in communication style and work-life balance expectations.
Donald L. Lim, chairman of the MAP CEO Conference Committee, said these challenges arise from the diverging motivations of each generation.
“The challenge for CEOs today, as leaders of organizations, is how (to manage) all of them,” he said.
He said that the multigenerational concerns are not just limited to internal organizational dynamics, but also how the company responds to the market and consumer.
“Understanding the unique characteristics and preferences is crucial for organizational survival and success,” he added.
Currently, the workforce is composed of individuals from the Silent Generation (born 1928-1945), Baby Boomers (1946-1964), Generation X (1965-1980), Generation Y or Millennials (1981-1996), and Generation Z (1997-2012).
Roderick M. Danao, chairman and senior partner of PwC, said business will need to lean heavily on technology, whose adoption will be driven by the younger generations.
“The young influence a lot of what we do. But again, the wisdom, the decision-making, the ethical aspects of doing business … need to be provided by the older generation,” Mr. Danao said.
“So it is not just about tech adoption; we as people also need to upskill ourselves … the Boomers and Gen X have to reinvent themselves because that is very critical to any transition,” he added.
However, Mr. Almendras said that most CEOs are now accepting the inevitability of a leadership transition.
“People need to move on and give way to the young people. And the question is, how smooth can those transitions be?”
In the survey, 52% of the CEOs said that their organization has communicated succession plans with the next generation of senior leaders. However, 23% of CEOs said that they do not have a succession plan in place.
GEOPOLITICAL UNCERTAINTY
Aside from issues rooted in leadership change and having a multigenerational workforce, the survey also found that 62% of CEOs are wary of geopolitical developments.
“The geopolitical tensions are not necessarily about the West Philippine Sea; if you remember when Russia attacked Ukraine, fuel prices went up, there were supply chain disruptions, and wheat prices went through the roof because Ukraine is a major producer of wheat,” Mr. Almendras said.
“So geopolitical tensions may happen on the other side of the world but will still affect your business because of the supply chain,” he added.
He said that CEOs are also wary of the US presidential elections, war in the Middle East, and attacks on Red Sea shipping.
“If the war in the Middle East escalates, we all know what’s going to happen. So it keeps us awake at night … Then there’s domestic politics and there’s international politics,” he added.
Frederick D. Go, the cabinet official who heads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), said regardless of the geopolitical situation, the Philippines looks forward to doing business with the world.
“I think investors from all countries continue to come to the Philippines and signify interest to invest in the Philippines … We welcome investors from all over the world, and we’re not making any exceptions,” he said. — Justine Irish DP Tabile