Navigating the Changing Tide

As spring brings forth a new wave of college graduates, businesses are grappling with uncertainty about their workplace cultures and how to create the most productive and effective environments. It’s these types of fundamental questions that inspired Terry and Tina Lundgren to create the Lundgren Retail Collaborative through a $5 million gift to the University of Arizona.

As a joint endeavor of the Eller College of Management and the Norton School of Human Ecology, the Lundgren Retail Collaborative is a dynamic research center with an outreach mission. It brings together experts in marketing, consumer science, retail management, and business operations to solve challenges within the retail sector and translate findings into practical business applications for retailers.

Established in 2022, the Collaborative recently released its first white paper titled “Evolving Voice: Future of the Workplace.” The white paper explores Next-Gen preferences related to work settings as well as beliefs and experiences that shape preferences.

"For this younger generation, school was impacted by COVID-19 and now they are entering a workplace that's been transformed, but they have few references for what work was like prior to the transformation,” said Lance Erickson, Lundgren Retail Collaborative co-director. “With this research we hope to add to the conversation around the changing workplace by providing data and insights related to the unique perspective of young people just entering the workforce.”

To investigate the preferences of the younger generation, the research team conducted a multi-phase study, focusing on University of Arizona students. The study revealed that, contrary to common misconceptions about younger workers wanting fully remote work, the majority of Next-Gen workers prefer a hybrid option. Sixty-eight percent of participants preferred a hybrid work option, and 23 percent chose in-person work.

In addition, the research showed that preferences are more nuanced than in-person versus remote. There are other macro drivers of changes in workforce planning that employers should consider, including increased cost of living in many of the urban centers, concerns about sustainability, and Next-Gen’s commitment to mental health and work-life-balance.

What does this mean for companies looking to hire recent graduates? For senior leaders coming to terms with the need for more flexible arrangements, the good news is that the expectations of recent college graduates may be more in line with the preferences of senior leaders than many have thought. While flexibility still reigns at the top of Nex-Gen workers’ expectations, there’s a strong desire for in-person work environments.

The research also underscores the mutable nature of work preferences and highlights the potential for organizations to optimize talent allocation based on these insights. Its implications extend beyond this demographic.

“Based on our findings, we advise organizations to view their workforce through a market segmentation lens, acknowledging diverse preferences for remote, in-office, or hybrid work environments,” adds Jennifer Savary, Lundgren Retail Collaborative co-director. “It's essential to recognize that preferences may evolve over time. By aligning individuals with their preferred workstyles, companies can enhance productivity and job satisfaction.”

Ultimately, by recognizing and accommodating evolving preferences, companies can cultivate inclusive work environments that support the well-being and success of their workforce.

To learn more, download the Evolving Voice: Future of the Workplace white paper