Gen Z employees to be more productive with technology: Survey

Vantage point: Insights from cutting-edge research

Balancing pricing schemes based on buyer and product 

A research paper published by the Indian School of Business defines new guidelines for helping firms pick the right pricing scheme based on the nature of heterogeneity in buyers’ consumption levels and valuations for the product. The service industry is rife with dilemmas involving choosing between usage-based pricing and access-based pricing, or how best to combine the two. Consumer-oriented services such as Netflix and Office 365 and enterprise variations of “software as a service” offer access-only pricing, i.e., unlimited use for a flat fee, with a subscription model tied to a time duration such as a month. The other extreme of simple pricing is the per-unit plan, also often employed by firms that sell digital goods to consumers as well as businesses such as YouTube movies. Firms may also combine the two into a two-part tariff model, where consumers are charged a fixed membership or access fee and then a per-unit price based on actual consumption. Simple pricing plans show glaring weaknesses in the face of heterogeneity or differences among consumers.

In the new paper, authors Hemant Bhargava and Manish Gangwar develop a new way to jointly capture and vary the two forms of heterogeneity (valuation and consumption), obtaining richness of representation and maintaining computational tractability. They define a new metric, Relative Variation in Satiation Levels (RVSL), to measure variation in satiation (maximum consumption at zero marginal cost) levels compared to variation in first-unit valuations. The authors find that between the two simple pricing plans, per-unit pricing is more profitable when RVSL is high; alternatively, flat-fee pricing is a better choice when variation in satiation levels is low compared to the variation in first-unit valuations.

Gen Z employees to be more productive with technology

According to a survey which covered interns at the 21st Annual International Intern Leadership Conference by E&Y, Generation Z feels more confident about their future than their parents. Around 63 per cent of the 1,600 Generation Z interns surveyed felt confident that they would be financially better off and happier in their jobs than their parents. The survey found that the technology/automation and a firm culture of inclusiveness were the reasons for their bright future.

Generation Z is optimistic that technology will have a positive impact on their working. Around 76 per cent of the interns believe new technology will change the way they work, while 66 per cent believe it will increase their productivity. Fifty-two per cent feel that new technology will add more value to their work, while 17 per cent of the respondents are of the opinion that new technology will limit the number of jobs for them.

This generation is very passionate, flexible and open-minded. About 84 per cent of the respondents like to work with people from various backgrounds, so as to differentiate them from the older generation. The individuals in this generation are very much concerned about their career growth. Around 84 per cent give priority to professional development, while considering an employer. Also, this generation gives importance to work flexibility. Around 50 per cent of the respondents were in favour of work flexibility. Only one per cent gives importance to salary, 16 per cent to maternity and paternity leave and 24 per cent to working abroad.
 

The survey reveals that 67 per cent of the Gen Z respondents would like to have a millennial manager over a Gen X or baby boomer. 66 percent of the Gen Z respondents consider job satisfaction and financial stability to be equal goals.