The world of work is changing: How do you ensure your business can keep up?

Written by Karen Robinson from KR 4 HR Coaching & Consultancy

There was time when we were quite happy to send kids up chimneys, it was acceptable to sack a woman because she was pregnant and people were made to work in horrendous conditions that were severely damaging to their health.

We used fax machines, typewriters and our phones were attached to the wall. Smoking was considered good for you and tattoos and piercings were only for Sailors. Girls wore dresses and grew up to be housewives; boys wore trousers and grew up to be the sole breadwinner. Racism and homophobia were accepted in society and neurodiversity just “didn’t exist”.

But look how times have changed!

Driven by tech, social change, economic shifts, and global pandemics, people’s expectations of work have shifted too. It’s no longer just about a salary and a desk. It’s about meaning, flexibility, culture, and a sense of belonging.

So let’s explore both sides of the change: the generational expectations, what’s pushing us forward, and what could happen if leaders don’t evolve. Think of this as your “crystal ball” for the world of work.

The different generations

I have spoken to a few business leaders lately and there seems to be an unsettling, but common thread. Young people have become entitled and no longer want to work for a living.

To be fair, this is a bit of a generalisation and stereotype, but the truth is, times are changing. Not just technologically, economically, and socially but we also have a new generation entering the workforce, tomorrow’s leaders, who view the world very differently to nearly everyone else.

It’s not that they don’t want to work, it’s that they want to work differently.

Each generation brings something unique to the workplace, which can often be seen as strengths. But as technology evolves, and people are staying in work longer, it’s easy for the generations to clash.

The Baby Boomers (1946 – 1964*) are loyal to their company because they value job security, hierarchy, and see a job is for life. Working hard is their number one priority above all else.

Gen X (1965 – 1980*) are pragmatic, independent, resilient and having lived through several recessions, they are used to doing a lot with very little. They don’t expect much from their employer.

Millennials (1981 – 1996*) value a work/life balance where work is meaningful. They crave purpose, flexibility, constructive feedback and quick progression. They can be seen as “entitled” when really, they are just not willing to sacrifice their happiness.

Gen Z (1997 – 2012*) Born in the digital, AI era. They have seen burnout, epidemics, climate concerns and economic instability, which leads them to question everything. They want to align their personal values with those of the business, which means ethical leadership, inclusivity, flexibility and mental health support.

(*Dates are an approximation.)

And herein lies the problem. 49 per cent of Gen Z say their biggest frustration is not being taken seriously by older colleagues. They are branded entitled because they want flexibility, mental health support and alignment between their personal and professional values.

On the opposite side of the fence, 40 per cent of Baby Boomers say the younger generations don’t understand what hard work is (Deloite 2024) but are often branded as resistant, afraid of change and lacking accountability.

And Gen X and Millennials? Well, they’re just stuck in the middle trying to hold it all together.

It’s easy to view younger workers as entitled, but if you look beneath the surface, you see people who are more educated than before, more aware of inequalities, mental health and social justice, more driven by values and ethics than titles and tenure and a strong digital fluency.

They want to know why they should burn out in a job where they are no more than just a number and why shouldn’t they expect to be developed, supported and heard?

The truth is, entitlement without effort is unproductive and tenure without adaptability is stagnant. The most important thing to remember though, is that behind the stereotypes, every generation has something to teach, and something to learn.

What’s Covid got to do with it?

Can you believe Covid was six years ago? Yet we still seem to be suffering the aftereffects. It wasn’t just an economic and social disruption; it was the catalyst for psychological change. It proved that change can happen quickly, that the world still turns without everyone being in the office and that any deeply unprepared businesses fell down when it came to technology and supporting their people.

It was also a huge wake up call for many people about how important and precious the life aspect of work/life balance is. 52 per cent of people say they have re-evaluated their career priorities since Covid. It was an opportunity to re-evaluate their careers, relationships and personal values. And this re-evaluation is still going on. All generations are now looking to employers who authentically promote flexibility, autonomy, psychological safety, and a people centred culture. These are no longer perks, they are non-negotiables.

In just four years’ time, 2030, Gen Z and Millennials will make up 75 per cent of the global workforce and they won’t tolerate outdated cultures. They will only want to work for the businesses who put their people first – Happy people are productive people – you do the math!

The new Employment Rights Act 2025

The new Employment Rights Act 2025, to be introduced in stages between 2025 and 2027 is also forcing the evolution of how we work.

Day one rights around unfair dismissal, the bans on zero-hour contracts, fire and rehire and some settlement agreements. Changes to trade union recognition, stronger protection for whistleblowers, AI and data protection laws. There is a lot!

And although some greatly believe that these laws will support people who work for unscrupulous, toxic and unethical businesses, it will hurt other businesses out there who can’t afford to keep the wrong people, want to do right by their people and want to avoid the reputational and financial fallout of non-compliance. This is not to mention the knock-on effect on an already broken tribunal system.

In truth, today’s legal requirements are tomorrow’s expectations. The law is only just catching up with what employees have been demanding for years.

Why cutting culture is not an option

This economic, political and social uncertainty is forcing businesses to cut costs. People are struggling with higher stress levels, and burn out, inevitably leading to them walking away. Why? Because they harbour a deep yearning for purpose, because if we’re all struggling, at least let it be for something meaningful.  Simply put, if we are all reduced to just a payroll number, why do we owe anyone our loyalty?

And although cost cutting is an option to support a struggling business, cutting culture is not. Neither is shallow, tick boxing exercises and lip service. It’s no longer enough to do token DE&I initiatives, one time mindfulness webinars and allowing people to work from home one day a week. Because when the going gets tough, people will only want to stay loyal to a business where they have felt valued, looked after and where they belong.

The impact of these changes is far beyond the scope of any HR department. It’s business leaders, the government and society as a whole, who need to support and make these changes, so that business can attract and retain the next generation of talent and in turn, survive into the next decade. In short, if nobody works to proactively keep up with the changes it will eventually lead to lower productivity, increased pressure on public services, widening inequality and widening global competitiveness

Traditional disengagement V modern engagement

In simple terms, an old fashioned, traditional and dictatorial culture, no longer maintains the status quo with everyone knowing their place in the hierarchy. It now costs a business money. High people turnover on average, costs £30,614 to replace just one person. Micromanagement causes lack of trust, loss of psychological safety, flexibility, innovation and growth. People who challenge the status quo are seen as problematic with a target placed on their back. Not to mention the financial and reputational damage associated with bullying, discrimination and the quiet need for NDA’s to help brush these issues under the carpet, rather than deal with them head on. 

This accumulation of increased people turnover, high absenteeism, low productivity and customer complaints are easily attributed to disengagement, burnout, poor wellbeing and lack of diversity and inclusion. Ultimately leading to the stagnation and decline of the business.

By contrast a modern engaged culture encourages trust, autonomy, development opportunities, and purpose driven work. They reward growth, honesty, innovation, emotional intelligence and diversity. People feel safe to be themselves, contribution is measured in output not hours, and change is embraced not ignored. Engaged cultures attract top talent, have high retention, boost productivity, minimised legal risk and drives innovation and resilience. Ultimately a modern engaged workforce will contribute to a healthier bottom line.

And the data to back this up…

Engaged employees are 87 per cent less likely to leave their roles and are 21 per cent more productive (Gallup 2023).

61 per cent of Gen Z said they would leave a job that didn’t align with their personal values even if it paid well (BCG 2024)

Engagement increases production by 21 per cent, absence is 41 per cent lower and there is 59 per cent less people turnover (Gallup 2023).

Psychological safety, autonomy and flexibility lead to up to 21 per cent higher performance (People management.co.uk)

A fear of change

We live in an ever-changing society. So, it’s understandable that we have change fatigue. We’re tired of the constant high pace of new tech, laws and ideas. In times gone by, we could just ride the wave or put our heads in the sand, unfortunately that time has gone and to avoid change is no longer safe when it comes to keeping up with the market and our competitors.

The old phrase of “We’ve always done it that way” is redundant. By failing to change, business won’t be able to attract the top talent because the talent will favour the more progressive competitors. Stagnant businesses will struggle with high absenteeism and people turnover. They will suffer increasing internal conflict, high tribunal/settlement agreement fees all due to an old-fashioned toxic culture. They will fall behind their competitors because of a lack of innovation brought about by a workforce that is neither diverse nor inclusive. All of this will ultimately lead to an irreversibly damaged brand and reputation.

At the same time change is not a tick in the box exercise or lip service. Real transformation takes intention. So, although change is inevitable, people engagement is a choice.

Workplace evolution is plagued by generational conflict, economic uncertainty, tech disruption and legal reforms, but they are not problems to solve, they are more signals that it’s time to adapt. The businesses that thrive won’t be the ones with the flashiest perks or the longest history; they will be the ones that build cultures that make work worth it.

Putting it simply. Businesses will either adapt and thrive or resist and decline!

What does the future look like?

It’s people centric, encourages mentoring and coaching, and promotes empathetic, compassionate and inclusive leadership.

It’s about rebuilding policies with people not just leaders, equipping leaders to manage with empathy instead of ruling by fear, embedding people centric values into everyday decisions not just a dusty employee handbook or a poster in the wall.

Change happens through clear communication, collaboration, and transparent performance. Culture is effectively what the business will allow to take place, it’s about how people feel and experience. If you can get that right, the bottom line will take care of itself.

Change isn’t easy, but it is possible, and the businesses who figure it out, won’t just thrive, they will lead.

How can you future proof your business?

But all is not lost.

Invest in Leadership development. 75 per cent of people don’t leave a business, they leave their line manager. Guide people leaders to be emotionally intelligent, change ready and people centric. Support them to move away from command and control to more holistic coaching and support. Reward creativity not conformity.

Promote a health-conscious culture. Normalise flexibility, make wellbeing part of the business KPI’s. Give support and training. Ensure that presenteeism and burnout are no longer seen as a badge of honour.

Give employees a voice. Allow them to part of the decision-making process, ask them for their ideas, listen to what they have to say, give real time and constructive feedback. Be transparent and act on what you say you will. They do their job day in day out, they are the experts.

Trust your people, set clear expectations and boundaries, encourage autonomy and don’t micromanage.

Move away from rigidity. Ask yourself how can you support your team through flexibility in hours, approaches, output, rewards and progression? Different doesn’t have to mean less. Real flexibility is about trusting adults to manage their time and workload. Concentrate more on the output and impact rather than the hours behind a desk.

Promote a positive and inclusive culture ensuring people feel that they belong. This could be through cross generational mentorship, support and allyship. Gen Z bring innovation, Baby Boomers bring experience, Gen X and Millennials can bridge the two. Focus on integrated learning, mutual respect and a shared purpose.

Inclusivity isn’t just about age, think about how other demographics can bring a wide and diverse range of experience, knowledge and ideas.

Be proactive with the changes to employment legislation. Update policies, train managers and get support from the experts, before it becomes law.

Focus on developing your people, not just through their career pathway, but their wellbeing and life skills.

Be clear about the bigger purpose. People want to know that they have a purpose and why their work matters. Be clear about company values, social impact and sustainability efforts. Not just posters on the wall.

To evolve or to erode?

It’s not overly complicated, each business has the option to either evolve with the changing times or erode away into nothing. And the secret to which outcome is preferable, all depends on the people.

By not embracing change businesses will struggle to attract top talent and suffer from skill shortages. Leading to stagnation and disengagement.

Toxic cultures will lead to high attrition, whether it’s a bad higher, or tolerating poor behaviour ultimately leading to high levels of conflict management, stress, disengagement, settlement agreements and tribunal claims.

Social media now means that company reputations can be damaged at the touch of a key. It takes decades for that to be remedied.

Eventually businesses lose touch with their people, their customers, their community and society at large. And that’s how brands fail. Slowly and painfully.

But if they do embrace the change and the generational differences, they can expect to see a loyal, engaged workforce, who have an emotional connection to the business and want it to succeed. There will be better innovation and product development because they will have a diverse and psychological safe range of ideas to consider and work together. Businesses will be resilient and agile in the face of further changes to technology, the economy and society as a whole.

Imagine being an employer of choice, where top talent competes to work in your forward thinking, people centred organisation! You have the advantage over your competitors, and this all shows through the bottom line.

Hi, I'm Karen Robinson, HR consultant and business leader coach. I am a great believer that "Happy People are Productive People" and I help ambitious, SME Leaders to grow their business through their greatest asset - their people.