There are four generations in the Latvian labor market – what should companies consider? – Work, career

There are currently four different generations in the Latvian labor market, each of them has its own values ​​and expectations in relation to the employer. Companies must take this into account and adjust their management methods accordingly. Comparing the situation in Latvia, Lithuania and Estonia two years ago, it could be observed that the Estonian labor market was more flexible and inclusive. Since then, the situation has begun to level off, but all three countries still have great development opportunities.

In recent years, the competition for attracting and retaining talent in the labor market has become fiercer. Diversity and inclusion are more relevant now than ever, and employee expectations have risen significantly. Many companies are focusing on DEI, or Diversity, Equity and Inclusion, and not only incorporating these concepts into the organization’s mission and vision, but also actively integrating them into their day-to-day work because it also affects growth. According to research by McKinsey & Company, companies with diverse teams are 70% more likely to conquer new markets, while women or ethnic minorities in leadership can make a company more profitable and successful. If an organization wants to provide quality and competitive global services or offer global products, a global mindset is necessary, and therefore the diversity of the team is of great importance.

Employers who care about employee well-being, fairness and equality in the labor market, who create a diverse and inclusive work environment and demonstrate this through real actions, are undoubtedly winners. Employee expectations in this area are becoming increasingly high and they expect DEI issues to be addressed not just “on the fly” but also in everyday work, including recruitment and career development, organizational culture and workplace events. It is important to remember that equality does not only refer to a level playing field for women and men, it also applies to various minority groups, people with special needs or disabilities, people on low incomes and people who have historically been discriminated against.

Employees should be as diverse as the company’s customers. When thinking about team development, it is important that it includes both introverts and extroverts, employees with different educations, representatives from different age groups, cultures, etc. If all team members are very similar, they will think alike, but diversity in a team means diverse thinking, generating new opinions and solutions. These different ways of thinking, diverse experiences and knowledge will help drive innovation and create more competitive products and services, which will also positively affect the company’s overall results. A Forbes study shows that inclusive companies are 1.7 times more likely to become innovation leaders in their markets and 1.8 times more ready for change. Organizations that continue to operate “as usual” will find it increasingly difficult to remain competitive and attract and retain talent, which will once again reflect in business results, this time negatively.

How to adapt to change

To stay competitive, many companies have implemented more flexible working arrangements, for example allowing employees to work semi-remotely. It is the “new normal” and allows people to better combine their personal and professional lives, improving overall work-life balance. In order to motivate international talent to join your company, not only exciting work but also flexible working hours are crucial. For example, Wise has 5,500 employees of various nationalities worldwide, but the largest office with more than 2,000 employees is located in Tallinn, Estonia, where cultural diversity is as important as in London. As companies return to office work after remote work during the pandemic, the flexibility offered is more important than ever.

Technological advances have enabled organizations to not only become more inclusive, but also to adapt to any change more quickly. By fully or partially automating tasks that were previously done manually, employees can spend more time on complex tasks and innovation and collaboration, while employers can focus more on employee well-being and create an environment where their teams can thrive. When thinking about technological advances or any other change, it is important to remember that different groups of employees adapt to change differently. Businesses need to take this into account and carefully manage these changes while providing the necessary support to their employees.

In order to successfully implement diversity, inclusion and equality initiatives, it is important that organizational leaders buy in, truly believe in the idea and see its benefits. We recommend a data-driven approach to ensure meaningful progress. For example, we regularly conduct employee engagement surveys that show high levels of inclusion and organizational ownership, among other things. Data is critical for planning and continuity, especially in situations where a company has employees with very unique and rare skills or knowledge. It also helps employees grow and ensures gender balance, including at management level. Our company’s current overall gender balance is 51% female and 49% male, with women making up 47% of senior management. However, at the top management level, the representation of women is currently 27%, and one of the main goals is to reach at least 40% by the end of 2025. To achieve this goal, we integrate clear messages into job postings, collect and monitor data to see progress, offer mentoring and various leadership development programs, and other carefully planned initiatives.

Tūliki Pooma, global senior partner in human resources at Wise