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Age gap matters in Arab corporate policy-making
Published in The Saudi Gazette on 23 - 10 - 2013

JEDDAH – The Arab region has undergone significant changes in recent decades. And, these events have not affected all age groups uniformly. As a result, the different Arab generations are increasingly distinct, each with their own perceptions, needs, and priorities. As governments and business leaders seek to ensure economic growth, they must cater to each of these Arab generation's specific needs. This starts by understanding the generations themselves – their similarities and differences, and how they view the world.
In line with this, management consulting firm Booz & Company has surveyed nearly 3,000 Arabs in six countries, to gauge their views on a number of critical topics. The analysis revealed that, in terms of their working styles and their use of technology the Arab generations are quite distinct; this, in turn, means that these differences must be taken into account by governments or companies looking to shape national polices or build a stronger workforce. The research entitled “Generations A: Differences and Similarities across the Arab Generations” will be revealed today during the 2013 Abu Dhabi Media Summit.
The report – which focuses specifically on age – is about better understanding the key generations within the Arab region. More specifically, it is about recognizing that these generations have very different perceptions thanks to the socioeconomic events that they experienced most directly and the historical events that have shaped them.
The study also coincides with a time when the region's workforce is made up three main generations; it aims to identify the bridges across generations and define new ones where they are missing.
“A generational perspective is the missing variable,” said Richard Shediac, a Senior Partner with Booz & Company. “Regional governments and business leaders need to take these generational differences into consideration when crafting social and economic policies. If they are to meet the needs of a broad range of groups, policymakers must understand the diverse perceptions and priorities of the region's generations.”
As Arab region leaders formulate social and economic reforms to promote sustainable and inclusive growth, and make the region more competitive within the global economy, they must develop policies that accommodate and leverage the unique characteristics of different demographic groups. Before they can begin to tailor their policies in this fashion, they must understand the characteristics of the Arab region's generations.
To understand the generational differences within the MENA region, Booz & Company took the 15-year-old to 65-year-old working-age population and divided it into three age cohorts:
• Arab National Generation (ANG): This demographic cohort was born between 1948 and 1964 (ages 49 to 65). The key socioeconomic event that shaped this era was the rise of Pan Arabism.
• Arab Regional Generation (ARG): Born between 1965 and 1977 (ages 36 to 48), this group grew up during the expansion of oil wealth in some countries, especially in the 1970s and 1980s.
• The Arab Digital Generation (ADG): Born from 1978 onward, with the research including those only those ages 15 to 35, this age cohort experienced the onset of digital technology, along with economic globalization.
In general, the results show that all three Arab generations are more united than divided in their core values.
Yet while “generosity” and “hospitality” are shared values across all three generations, they seem to be declining over time – possibly a reflection that in many countries the ADG is facing hardships with high unemployment among youth, a high cost of living, and reduced economic opportunities. In a more competitive economic environment and times of political unrest, it is possible that these people have more pressing concerns than being generous or hospitable.
When asked about their level of satisfaction with life achievements thus far, including career and education, the least satisfied were members of the ADG, particularly in Egypt, Jordan, and Saudi Arabia. By contrast, satisfaction levels were highest among the ANG, especially in the GCC.
Unemployment levels for young Arabs are high – above 25 percent in many countries. Many young people do not believe in the quality of their education, and housing is disproportionately expensive compared to other regions, effectively restricting them to living with their parents until they are older. Demographic data from this survey shows that nearly two-thirds of ADG respondents across all countries live with their parents in large households.
When asked about values that they do not associate with their generation, all three groups cited “individuality”.
Regarding differences, the ADG associates itself more with “adventure” and “extravagance” than the older two generations. The ANG associates itself with “achievement,” possibly indicating that these people were more driven and ambitious in what they wanted to do, and have reached a point in life where they can look back on their accomplishments.
Regarding perceptions of their country and its place in the world, the results again indicate greater commonalities than differences. A positive sign is that Arabs are likely to believe their country is a leader in the Arab region in general terms.
Considering more specific aspects, however, they are less likely to believe that their country leads in terms of technology or education. This trend is more pronounced for younger respondents – members of the ADG were less likely to agree than ARG or ANG respondents that their country has a leadership position, perhaps reflecting their current diminished economic prospects.
A generational lens applied to labor trends and characteristics offers many insights to address the region's labor force challenges, including unemployment, low productivity and employee engagement, and large public sectors.
The public sector in the MENA region still acts as a magnet for young graduates attracted by high salaries, employment protection, and a special social status, in particular in state-owned enterprises. In the context of diminishing public budgets, these policies are not sustainable. The private sector is increasingly expected to create the jobs that will lower the high unemployment rates among nationals, and moreover is supposed to retain these young employees.
The survey and focus group findings regarding generational differences in the work environment are intriguing. In some areas they show friction and a lack of understanding across generations of their different work styles.
“One implication of our findings,” said Ramez Shehadi, a Partner with Booz & Company, “is that technology-oriented enterprises require the qualities exhibited by the ADG, particularly innovative thinking. As these businesses grow in relative terms and as a percentage of GDP in the region, these qualities should be cultivated”.
Most of the attributes associated with the older generation are positive: they are seen as punctual, leading by example, respectful, willing to teach, and appreciative. Significantly, the main attributes of the different groups do not overlap at all. Such differences could be a source of competitive advantage, in that diverse age groups bring complementary strengths to companies.
Gender equality in the workplace was a key area of inquiry. In general, the older generations are more likely to believe that women currently enjoy equal work opportunities with men. With some regional variations, approximately half of all ARG and ANG respondents believe this is true.
However, the ADG are less likely to agree, and this disparity is more pronounced among women in the ADG. Only 45 percent of that group believe that women have the same opportunities to work as men. One potential explanation for these findings is that younger people in the MENA region have higher expectations. Many countries have made strides toward gender equality in the workplace, and while older workers may feel that those measures represent significant progress, younger people believe that it is not enough.
More than 50 percent of all respondents, across all three generations, support women seeking employment, provided there are rules and regulations in place to respect the country's traditions and culture. Notably, the majority of these respondents are least aware of the positive impact of such measures on the overall economy. – SG


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