JEDDAH – Leaders and CEOs have to change their leadership style and approach in dealing with new changes, including a younger generation in the Saudi workforce, according to director general of Ashridge Middle East Rory Hendrikz. "As Generation Y enters the job market, they're shaping a different expectation of leadership," said Hendrikz who heads a business school specialized in executive training with more than 20 years of experience. "They want to come to work and feel they want to make a real contribution and have meaning and purpose. They don't want to come to work for an obscure shareholder for revenue growth." He added "they want to have a different relationship with their bosses by learning from them but not directed. For leaders today, they have to adjust their style to engage the young folk." In a population of about 70% under the age of 30, Saudi Arabia is witnessing a transformation in the workforce. Moreover, economic recessions pose a major challenge for leaders of organizations. With such turbulence, Hendrikz says it is imperative for organizations to move away from inflexible and bureaucratic structures to make adapt to a fast-pace volatile world. He says, "If you have a rigid, command-and-control and slow-decision making organization, it won't survive." Adapting to a knowledge-based economy requires a skilled workforce that is analytical, cross-cultural, and cross-generational. In a population that is technologically literate and have a high uptake in mobile usage, new digital enterprises like Uber and Airbnb entering the market have an extra edge ahead others. "For established players, there's increasing competition and potential threat that they're going to need to address," he further said. "Leaders have to prepare for them coming out." Moreover, corporate social responsibility and environmental sustainability is on the rise with more and more leaders aware of the spillover effects of their decisions. "Never before has the challenge for leaders been so great and the skills and capabilities of leaders been more important," he says, adding that there is a growing need for executive education and learning to adapt to these changes, including coaching, training, personality assessments, and other programs. When asked whether Saudization will impact leadership of organizations in the coming years, he said "it's an important strategy but needs to be well supported to be successful." Learning communication skills is crucial for leaders today, said young entrepreneur Khalid Alkhudair. "It's important for leaders to work on personal connection to understand to how to manage people, communicate with and appreciate people." Saleh Alsulami, founder of Kaizenhaa, an initiative promoting youth in volunteer work, says young people choose a job for its leader and not its organization. He further said "leaders today need to attract the young people by being more open to new strategies, communicate openly, and use technology. Since Saudis are one of the most tech-savvy people in the world, they need to adapt more digital technology and social media in the work environment." He added "young people will seek a leader who is not authoritative but is willing to engage in an open and informal relationship." Mohamed Tomalieh, equity research analyst at Alahli Capital, agreed that young people are attracted to entrepreneurial environments rather than authoritative ones. "I believe monetary reward remains an essential element," he pointed out. "However, Generation Y has a more intrinsic definition of utility which encompasses self expression and development." Social media, he added, played a big role in changing the youth's perceptions of the dynamics of today's professions.
