There can be value in employees having side hustles

THE Covid-19 pandemic and its economic after-effects have coincided with one of the biggest generational shifts in Asia’s history, placing employers in the region in an entirely new paradigm.

As inflation increases and the global economy reorganises itself around the principle of remote work, workplace demographics are rapidly changing.

Asia Pacific’s 600 million Gen Zs aged between 15 and 24 are now entering the labour market en masse. At the same time, its millennials are rapidly climbing the corporate ladder and occupying senior positions.

As employers, we need to be aware that millennials and Gen Zs hold markedly different views to the Baby Boomers they are replacing. A recent Deloitte survey of more than 23,000 millennials and Gen Zs around the world found uniformly high levels of concern regarding financial security as well as a strong focus on work-life balance and mental health.

For example, 36 per cent of millennials and 29 per cent of Gen Zs across the globe cited ‘cost of living’ as their biggest concern while pay, burnout, and the feeling that their workplace was detrimental to their mental health, ranked as the most common reasons for leaving an employer.

These sentiments clearly show that younger workers want to know that their employer truly cares about them in a way that goes well beyond their pay packet. In particular, respondents rated opportunities to work flexibly as a key priority.

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Employers that are in tune with these changes and genuinely adopt a people-first approach will benefit from the demographic shift by attracting committed, creative, diverse, and digitally-literate young people. In contrast, employers who fail to adapt risk becoming uncompetitive in a labour market that is less captive to geography than it has ever been, courtesy of remote work.

This is especially true in Asia Pacific, where young people are more likely to be in a financially precarious situation and working multiple jobs to get by or get ahead. Around half of Gen Zs and millennials in the region say they are living pay cheque to pay cheque. In addition, half of all Gen Zs and just over one-third of millennials in the region claimed to work a second part- or full-time job.

The level of financial precarity differs country to country. In India, around two-thirds of millennials say they are living pay cheque to pay cheque while a similar number in Thailand said they were holding down more than one job.

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With so many young people in the region’s workforce working to keep their head above water, it’s no surprise burnout and mental health concerns are so prevalent. However, despite these statistics – and perhaps paradoxically – Asia Pacific’s young workers are uniquely optimistic about their future.

Despite their personal economic situation, rising inflation, and growing geopolitical tensions, almost 4 in 10 millennials and Gen Zs in the region expect the overall economic situation in their country to improve over the next year, compared to a global average of 28 per cent across both groups. They still believe in the Asian century. Indeed, almost half of Gen Zs and millennials in the Asia-Pacific expect to retire comfortably, compared to about 4 in 10 across both groups globally.

This shows that despite experiencing near-term struggles, young workers in the Asia Pacific are ambitious and hard-working, with confidence in their long-term financial success buoyed by the strength of their local economies. These are the hallmarks of a dynamic, driven, and productive workforce, and employers who are prepared to truly put their people first stand to benefit the most.

So, how can it be done? First, as employers, wherever we can, we need to be prepared to move on from the traditional 9-5pm, full-time, office-based workplace dynamic and embrace flexible, hybrid, and remote work. While previous generations embraced the ubiquitous office cubicle, Gen-Zs and millennials want the trust and flexibility to deliver via flexible hours and locations. And Covid-19 has taught us that those who sincerely empower and trust their people to work flexibly where possible, will be rewarded.

Second, as employers we increasingly need to recognise the value in employees having a side hustle. It’s not always a distraction; it’s often an enhancement that helps young people get ahead financially while enhancing their creativity, discipline, and work and life skills; the lifeblood of any modern employer and economy.

Third, employers must walk the talk when it comes to health and wellbeing. Progress is being made: 60 per cent of Gen Zs and millennials in the region say their employer has heightened their focus on workplace wellbeing and mental health since the pandemic, which is higher than the global average.

However, Asia’s young are slightly less likely to believe this has had a meaningful impact on employees. It is incumbent on employers to take this issue seriously and solicit honest feedback about the steps they have taken to enhance wellbeing.

Fourth, we must be open, transparent, fair, and prepared to reward ambition. Many Gen Zs and millennials are not content, or able, to only work entry-level positions awaiting promotion. They will go where the opportunity and money is. Employers can avoid this by creating clear pathways for younger staff while ensuring they are financially rewarded for their hard work.

Employers who provide an environment that fosters the ambition, optimism, work ethic and desire for flexibility of today’s younger workers will go ahead with flying colours. In the words of the Chinese proverb, “When the winds of change blow, some people build walls and others build windmills”.

David Hill is CEO of Deloitte Asia Pacific