On boards across the Philippines, leaders are asking the same common questions.
Why is employee engagement declining despite competitive pay and benefits? Why is succession planning so urgent, but younger employees seem reluctant to step into leadership roles? Why are small customers difficult to convince even when the products are strong? And why does adapting to change feel slow, tedious, and fragile?
Behind these challenges is a deeper problem: Common needs – as consumers and as workers – are either misunderstood or oversimplified. When organizations rely on outdated assumptions about what motivates people at different stages of life, the true costs are often underestimated.
These costs are manifested in real ways: disengaged employees who may be competent and confident but no longer fully committed; brands are slowly eroding in the minds of customers; new initiatives struggling to gain power; and changing static programs before value is created. Over time, these blind spots translate into missed market opportunities and increased organizational risk.
Let’s take a closer look at two levels – the business and the organization – where the barriers are evident.
HIDDEN COSTS OF BUSINESS LEVEL
- Product deterioration
Brands rarely fail. They fade away.
When production needs are neglected, brands gradually lose the conceptual space among emerging customer groups. The products may still work, the price may still be competitive, and the distribution may still be wide — but the product is no longer resilient.
If the narrative of one brand tries to speak to all generations in the same way, it doesn’t sound very deep.
Messages become mundane, postures dissolve, and emotional connections weaken. A decline in customer perception follows – not because the competition is superior, but because the brand feels increasingly disconnected and irrelevant.
Although all generations may share similar values, their views differ – influenced by different experiences and expectations.
For example, while money continues to be a high value for Filipinos, financial motivation varies by generation. Gen Z wants to be independent and not dependent on parents. Gen Y aims for financial freedom — the power to spend without constant exchange. Gen X prioritizes a comfortable life for you and your family. Boomers focus on continued family support, including grandchildren. When brands treat “financial value” as a single concept, these nuances are easily missed.
Hidden costs: Marketing spend increases for awareness, while conversion, advocacy, and loyalty weakens.
- New Lackluster results
Many organizations believe they are innovating because they introduce new programs, features, or formats. However, many also complain about not doing well in these efforts.
Increasingly, companies are turning to Project Alphabet to understand what opportunities open up when they look beyond demographics and instead determine deeply held values, fears, desires, and lifestyles by generation.
When production needs are not well understood, innovation resolves internal thinking rather than real human conflict; new offerings become incremental improvements rather than profitable shifts; and adoption lags despite technically sound solutions.
Different generations have unresolved conflicts. If these differences are not accurately determined, innovation is separated from living reality. Products and services may make sense on the inside, but fail to make sense on the outside.
This explains why organizations often ask, “Why hasn’t the market responded?” – and this question is raised long after the launch, investment, and effort have already sunk in.
Hidden costs: Innovation investments bring low returns, create burnout, and increase risk aversion to future projects.
HIDDEN COSTS AT THE ORGANIZATION LEVEL
- Low engagement and weak talent attraction
Engagement goes down long before people quit.
Project Alphabet’s findings show that the meanings of rewards and recognition are no longer straightforward.
Younger generations tend to prefer the flexibility of money and experience, while older workers continue to value symbolic recognition. At the same time, changing definitions of family have raised expectations for inclusive benefits – such as the inclusion of pets or LGBTQ+ partners.
The workplace is increasingly where values collide. Bright spots appear in predictable ways: work-life balance as a baseline versus something to be achieved; brief, visual communication versus a formal, direct message; income as an entry requirement versus culture and transparency as drivers of savings. This tension also breaks down stereotypes – loyalty is not limited to the older generations, just as the younger ones will remain where the culture serves them.
However, employer marketing often lags behind these changing expectations. Most organizations continue to demonstrate stability, scale, and tenure, while young talent looks for growth, purpose, speed of learning, and a sense of progress that feels meaningful.
Over time, organizations struggle not only to retain talent, but also to attract the energy and potential needed for future growth.
Hidden costs: High attrition, rising hiring costs, long vacancy cycles, and a fully committed workforce.
- Sequence planning is at risk
Succession planning is critical to the sustainability of any organization.
When productivity needs are neglected, leadership pipelines become depleted, not because the ability is lacking, but because leadership methods are felt to be inappropriate or undesirable. Potential high-powered employees may not see leadership roles as worthy of personal trade-offs, while senior leaders may struggle to trust readiness that looks different in their careers.
Linear career paths are no longer the norm. Most employees are free to remain non-contributors or prefer neutral corporate cultures. Without embracing these changes, organizations risk misreading skepticism as a lack of ambition.
Over time, leadership changes become dangerous as institutional knowledge diminishes. When changes finally occur, organizations often realize too late that readiness was imagined rather than intentionally built.
As the mix of employees continues to evolve, companies must carefully consider the implications for leadership continuity.
Hidden costs: Continuity of leadership threatens long-term sustainability.
COMBINATION OF THE TWO
The business and organizational costs of ignoring productivity needs are mounting.
Weak product fit reduces market momentum. Lackluster innovation slows growth. Low engagement and slow implementation make recovery difficult. Succession risk involves long-term uncertainty.
To truly work across generations, organizations need productivity agility – the ability to see beyond labels and harness the strengths of all generations to inspire teams, connect with consumers, and grow business. – Barbara Young, Vice President of Business and Commercial Strategy, Acumen (www.acumen.com.ph)
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