With the number of Generation Y employees increasing, the role of human-resources (HR) departments in fostering social engagement between employees and companies is considered the most important factor helping to drive business growth, says a survey by Deloitte Touche Tohmatsu Jaiyos Advisory Co.
Also known as Millennials, Gen Y birth years range from the early 1980s to the early 2000s.
With a growing Gen Y workforce in the era of social networks and fast technological change, companies must find ways to retain their talent to help drive growth.
"Deloitte estimates Gen Y will account for 75% of the total workforce in 2020, up from 50% now," said Kessara Sakmaneevongsa, a partner at Deloitte Thailand.
The annual global human capital trends survey covered 3,300 executives in 106 countries and territories.
Ms Kessara said social engagement was a crucial foundation for leadership creation, requiring HR departments to find ways of addressing this issue since Gen Y needed a different approach to create social engagement among them.
Gen Y needs a clear career path and opportunities to learn as well as more responsive feedback rather than an annual performance review.
"As technology improves, people are presented with more opportunities to connect and seek new opportunities," Ms Kessara said. "This allows Gen Y to seek opportunities elsewhere rather than stay with a company or organisation. Without engagement, companies will not be able to develop potential leaders who can support growth in the future."
The major challenge for companies and organisations is making Gen Y employees feel engaged and be part of the business. Other areas of concern for businesses are leadership development among employees and the changing role of HR departments.
The role of HR departments must be changed from that of a service provider to that of a business partner, she added.