Changing Views On Work & Workplace

1. Pulse Survey THE NEW PERSPECTIVE ON WORK Changing Attitudes and Opinions of Young Professionals about Work and the Workplace Sponsored by

2. HBR ASCEND PERSPECTIVE The skills gap, the gap between the skills employers expect employees to have and the skills employees or job seekers actually possess, is real. Young graduates feel confident that their education has equipped them to take on the world of work, but the reality is different. HR professionals are scrambling to find suitable candidates to fill open positions. Once at work, young professionals are struggling to cope with the ever-changing demands of the new workplace and finding it difficult to succeed. Barriers like office politics and unclear job descriptions are making it harder for them to perform well. The core purpose of carrying out this research was to find out where the gaps are and to understand how young professionals feel about their own abilities. HBR Ascend also wanted to understand what motivates these professionals and what influences them to choose an employer over another. The survey also delved into the specific skills young professionals think are critical to success in the future and what they would be willing to invest their own money on. On a broader level, this year’s survey aimed to find out what skills graduating students and young professionals lack and how their attitude to the workplace has evolved. It’s time to roll your sleeves and skill up.

3. THE NEW PERSPECTIVE ON WORK Changing Attitudes and Opinions of Young Professionals about Work and the Workplace The Millennial and emerging Gen Z workforce is bringing diverse perspectives toward work and places of employment, including strong interest in continuous learning and career advancement, as well as in social benefits that go well beyond personal financial compensation. These are among the findings of a survey of more than 2,700 respondents in the global Harvard Business Review Ascend user community conducted in June 2019. More about the methodology can be found at the end of the report. HIGHLIGHTS 58% EXPERIENCED DIFFICULTY IN FINDING THEIR FIRST JOB. 67% SAY THEY WOULD VALUE THE KNOWLEDGE FROM A NEW COURSE WITHOUT CERTIFICATION. The Path to Employment A majority of respondents experienced some degree of difficulty in finding their first job, with one-quarter (25%) stating it was either difficult or very difficult, and one- third (33%) finding some difficulty. Only 36% said it was easy to find their first job. Breaking it down by regions, half (49%) of respondents in the United States found it easy to find their first job, versus only 24% in Africa. Forty-two percent of respondents in Africa and 25% in India found it difficult, or very difficult, to find their first job, versus only 16% in the United States. The path to finding their first job was very evenly split between five different avenues to employment, including through a recruitment drive on their college campus, a job site, a personal network, or a friend, or by directly approaching the organization. Respondents were also asked if they believed their education had prepared them for the working world. The vast majority of workers believed their university education prepared them well enough for the working world, with only one-quarter of respondents saying they were not prepared at all. One-third said education gave them the necessary technical skills but not soft skills, one-quarter said they learned great soft skills but not technical skills, and 15% said their education taught them everything they needed to know. 67% OF RESPONDENTS WANT THEIR EMPLOYER TO TAKE A STAND ON SOCIAL ISSUES. Engagement in the Workplace Senior executives around the globe commonly believe that high levels of employee engagement are fundamental to high levels of personal and business performance. McKinsey defines employee engagement as workers spending the highest level of their discretionary time focused on their work. Thus, disengagement can be expensive and damaging for an employer. Pulse Survey | The New Perspective on Work Harvard Business Review Ascend 1

4. Barriers to Performance Respondents acknowledged that challenges in the workplace are barriers to their high performance. The top barriers to performance at work reflected cultural factors more than a lack of personal development efforts, including office politics (27%), a lack of training and development (26%), unclear/changing job roles (22%), a restrictive work culture (20%), a lack of collaboration (18%), and excessive workloads (18%). Too many meetings and a difficult boss are a problem for 11% and 17% respectively of the respondents globally. FIGURE 2 Engagement was a mixed bag of results, with only slightly more than one-quarter (29%) of respondents saying they were very engaged and excited to go to work each day. Forty percent of the respondents said they were quite engaged at work but experienced periods of disengagement. Approximately one-fifth (18%) said they were engaged only when they were working on something interesting. And fortunately for employers, only 8% said they were not at all engaged. However, these findings suggest that employers need to do more to create engaging work and work environments for their youngest employees. FIGURE 1 young workers about their hard and soft skills could indicate a blind spot for many respondents. The real picture is far from the confidence respondents have expressed in this survey. The Annual Employability Survey 2019 shows that 80% of engineers in India are not fit for any job in the knowledge economy, with only 5% being able to code correctly, compared to 19% of American candidates who correctly write code. The SHRM Global Skills Shortage report 2019 states that 75% of HR professionals who experience recruiting difficulty say there is a shortage of hard skills in candidates for job openings and 83% of respondents have had trouble recruiting suitable candidates in the past 12 months. Looking at the data by geography, in developed geographies like the United States 72% of respondents say they are confident in their soft skills (4% are not confident), whereas in developing geographies like Southeast Asia, only 50% expressed confidence. The SHRM report also stated that of the respondents, 35% felt the candidates did not have the right technical skills and 30% said candidates did not have the necessary soft skills. Half (50%) of respondents said that the skills shortages have worsened or greatly worsened in their organizations in the past two years. Selected Highlights In the United States, 40% of respondents identified office politics as the number one barrier to better performance at work. Slightly more than one-third (37%) said they were not clear about their job roles or that these changed frequently, and 30% said a lack of training and development opportunities was a barrier to performance. The data was similar for the United Kingdom and European Union, with 32% also saying that a restrictive workplace and excessive workloads were barriers to better performance. It is interesting that in Southeast Asia, 30% of respondents cited a difficult boss as a barrier to performance. Among all respondents, office politics was the number one reason that people found it difficult to step up at work, perform to their full potential, and succeed. The community’s top capabilities, chosen from a list of current skills, included working in teams (37%), strategic thinking (31%), analytical thinking (29%), time management (29%), and emotional intelligence (23%). FIGURE 3 Hard and Soft Skills Proficiency Nearly two-thirds (63%) of respondents expressed confidence in their technical and subject matter skills, with one-fifth stating they were very confident. Since these are table stakes to employment, there is generally a higher focus on technical skills in colleges and within organizations. Only 9% of respondents expressed a lack of confidence in their hard skills. Nearly all (90%) are confident in their soft (nontechnical) employability skills. Employability skills are a set of skills and behaviors, such as the ability to empathize, communicate effectively, or work well with others, that require a high degree of self- and social awareness. Such a high level of confidence in relatively FIGURE 1 POCKETS OF DISENGAGEMENT How engaged are you at your workplace? I’m quite engaged, but there are some periods of disengagement 40% I’m very engaged and am excited to go to work every day 29% ATTITUDES TOWARD EMPLOYERS The community was clearly passionate about bigger issues rather than just business, and believed their employers should make a commitment to important causes. In fact, two-thirds of respondents preferred that the organization they work for take a stand I’m engaged only when there is something really interesting to work on 18% I don’t feel engaged at all and I’m bored 8% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, JUNE 2019 Harvard Business Review Ascend Pulse Survey | The New Perspective on Work 2

5. 21%, Southeast Asia 25%, and Africa 20%. However, 2% of respondents from India felt all their work could be done by a robot and 65% felt that some of their work could be done by a robot. Respondents from regions like Africa seemed more skeptical, with 9% saying that all their work could be done by a robot. and nearly one-tenth (9%) expressed some doubt about their role being impacted by AI. Per a World Bank 2019 report, 7% to 47% of jobs in the United States are at risk of automation. Looking at this by region, we see some patterns. In developed nations such as the United States, 30% of respondents felt what they did could not be replicated by AI. In India it was on social issues, while one-quarter believed their employer should take a stand on political issues. Only one- tenth believed they should take no stand on social or political issues, while one-fifth expressed indifference to causes beyond the business itself. More specifically, as it pertains to their ideals, respondents believed an employer of choice is defined by five key characteristics. These include flexible work conditions/work-life balance (27%), a clear career path with advancement opportunities (25%), strong training and development programs (20%), a clear vision of corporate goals and mission (20%), and passionate and engaging leaders (19%). These leading characteristics were followed by a sense of empowerment in teams across the organization, and honest communication and fairness. All of these traits are ranked ahead of a competitive salary and bonus structure, indicating that Millennial and Gen Z workers are interested in many aspects of work beyond personal financial remuneration. FIGURE 4 All of this means employers have to create an organizational culture that provides the best opportunities for personal achievement, business performance, and career advancement. Looking at the data by region, flexible work conditions was the number one choice for all regions except Africa, where this ranked number four. Respondents from Africa value opportunities for training and development higher than flexible working conditions. The community also put an emphasis on working for a company where corporate goals included benefits for society and the environment, with this being one of the four top things they would look for in an employer of choice. FIGURE 2 TOP BARRIERS TO HIGH PERFORMANCE What are the most significant barriers that affect your performance at work? [SELECT 3 OPTIONS] Office politics 27% Lack of training and development 26% Unclear/changing job roles 22% Restrictive work culture 20% Lack of collaboration 18% Excessive workloads 18% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, JUNE 2019 FIGURE 3 CONFIDENCE IN CAPABILITIES From the list below, identify three skills that you think you are good at. [SELECT 3 OPTIONS] Working in teams 37% Strategic thinking 31% Analytic thinking Future Readiness A majority of respondents believed that some of their work could be replicated by artificial intelligence (AI), including 61% who said some of their tasks could be automated, with 6% saying all of their work could be automated. Nearly one-quarter (24%) believed what they do could not be replaced by a robot, 29% Time management 29% Emotional intelligence 23% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, JUNE 2019 Pulse Survey | The New Perspective on Work Harvard Business Review Ascend 3

6. FIGURE 4 CHARACTERISTICS OF AN IDEAL EMPLOYER ORGANIZATION From your perspective, what characteristics would lead you to select one employer over another? [SELECT 3 OPTIONS] vast majority across the world learn through articles, blogs, and research publications, the majority in India (57%) and Southeast Asia (56%) prefer learning through watching videos. Respondents want to improve in and would be willing to invest their own money in courses on data science (38%), creative and innovative thinking (33%), analytical thinking (30%), business communications (29%), and AI and automation (27%). As organizations become more data- driven and automated, these will indeed be the right skills to gain to be best equipped for the future. FIGURE 5 The community also placed more value on the knowledge than on credentials, with two-thirds (67%) saying they would value a course even without certification, versus only one-third (33%) stating they want to be able to showcase what they’ve learned. Flexible work conditions/work-life balance 27% A clear career path with advancement opportunities 25% Strong training and development programs 20% Clear vision of corporate goals and mission 20% Passionate and engaging leaders 19% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, JUNE 2019 FIGURE 5 RAISING YOUR GAME Which of the following courses would you be okay paying for to add to your resume? [CHECK ALL THAT APPLY] Upskilling in 2019 In a world that is fast integrating artificial intelligence into everyday work-life skills such as analytical and creative thinking, emotional intelligence, negotiation and persuasion, and stress management will become critical evaluation criteria for future employment. But is the young workforce doing enough to make itself employable in the future? The question remains. Data science 38% Creative and innovative thinking 33% Analytical thinking 30% Business communications 29% AI and automation 27% SOURCE: HARVARD BUSINESS REVIEW ANALYTIC SERVICES SURVEY, JUNE 2019 are passionate about and improving their skills to make themselves more employable. Online articles and blogs (39%), videos (37%), books, periodicals/ journals and published research papers (32%), free online education programs such as Khan Academy (26%), and talking to colleagues and friends (24%) rounded out their top five sources of knowledge. What’s noteworthy is the difference in how people in different geographies learn or choose to learn. While a Continuing to Learn The community expressed a desire to continue learning to improve their employability, with learning technical skills (23%) at the top of their wish list, followed by strategic thinking (22%), negotiation techniques (22%), networking skills (21%), business communications (20%), and analytical thinking (18%). Many were actively engaged in absorbing critical knowledge they Harvard Business Review Ascend Pulse Survey | The New Perspective on Work 4

7. METHODOLOGY AND PARTICIPANT PROFILE HBR Ascend, a digital-first learning platform for early career professionals and graduating students, conducted a survey in June 2019 to understand the skills gap and barriers to success for graduating students and young professionals. A lighter version of this survey was conducted in 2017, the results of which can be read here. A total of 4,043 members took the survey, out of which 2,756 members responded to all questions. Incomplete survey responses were not used for the purposes of this evaluation. The readers of HBR Ascend (to whom the survey was served) are heavily concentrated in the Indian subcontinent, Southeast Asia, the United States, Australia, and Africa. EMPLOYMENT STATUS 42% EMPLOYED FULL TIME 5% EMPLOYED PART TIME 8% SELF-EMPLOYED 12% NOT WORKING/ SEARCHING 33% FULL-TIME STUDENT WORK EXPERIENCE 47% LESS THAN 2 YEARS 16% 2 – 4 YEARS 7% 4 – 6 YEARS 5% 6 – 8 YEARS 24% MORE THAN 8 YEARS SEX 57% MALE 40% FEMALE 3% PREFER NOT TO SAY EDUCATION 49% BACHELOR’S DEGREE 29% MASTER’S DEGREE 3% PhD 20% OTHER Figures may not add up to 100% due to rounding.

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