MVP: How businesses must embrace millennials, Gen Zs for long-term success

MANILA, Philippines — With millennials and Gen Zs gradually dominating the workforce, businesses must address the gap in generational values between them and older leaders to ensure effective management.

For PLDT Chair Manuel V. Pangilinan, it starts with a better understanding of what matters to these younger generations. 

At the 77th inaugural meeting of the Management Association of the Philippines (MAP) on Wednesday, January 15, the Filipino tycoon offered advice to business managers on how to navigate the evolving workforce.

“Now, Millennials and Gen Zs represent a new breed of wolves. They are disruptive. … They have been defined as digital nomads — mobile and digital,” he said. 

In PLDT and Smart, two of Pangilinan’s companies, millennials and Gen Zs make up 74% of the employee base. The remaining one-fourth are Gen X and Baby Boomers, many of whom are already in their mid-life or senior years.

While intergenerational gaps in management hierarchies are inevitable, Pangilinan said the “differences are wider” not just due to age but also to shifts in how the world operates. 

To millennials and Gen Zs, the world may sometimes seem “magical” and at other times “collapsing,” especially with the rapid advancements in technology like artificial intelligence (AI).

Often labeled as “disruptive,” “entitled” or “self-centered,” these younger generations are most likely misunderstood especially by their seniors, Pangilinan said. 

“I don’t know if that is fair. It’s quite possible that they’re misunderstood. To them, work isn’t about the paycheck. It’s about their story,” he added. 

These younger generations seek opportunities that allow them to grow and make sense of their work more meaningfully, rather than just a means to get by and overcome economic adversities.

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“Despite the divide, I know that this new generation still craves challenges that stretch them, leaders who inspire them, teachers who mentor them, and workplaces where their jobs connect to something larger than their work,” Pangilinan said. 

The Filipino businessman emphasized that older generations have always faced the challenge of adapting to a younger generation. Today’s more senior leaders, like Gen X and Baby Boomers, also once found themselves in the shoes of millennials and Gen Zs. 

“[W]e need to understand them first, so we can manage them better. Our predecessors were similarly dismayed by us baby boomers — to them, we were hippies and activists — privileged kids who never had to go through the perils of war,” Pangilinan said. 

In sustaining a business, he explained that succession is crucial, as older generations won’t be here forever, and their wisdom may no longer be the most relevant in today's changing times.

“Succession is not merely about finding replacements and nurturing them for the future; it is about creating space for growth, about recognizing when our wisdom must give way to their energy, when our experience must make room for their ingenuity,” Pangilinan said.

Pangilinan also stressed that younger generations should be seen as allies, not enemies. With their knowledge and AI’s capabilities, businesses must learn to leverage both as tools to foster creativity and ingenuity, instead of fearing them.

“Leadership is not a chair to sit on forever — it is a torch to pass on,” he added.

Editor's Note: A unit under PLDT's media conglomerate has a majority stake in Philstar Global Corp., which runs Philstar.com. This article was independently produced following editorial guidelines.