The Millenials cometh
Allison Shirreffs
April 1, 2008
Amy Griswold first logged onto a computer when she was 3 years old. At 13,
she launched her own Web site. Like others born between 1982 and 2000,
Griswold is dubbed a "Millennial," also known as a member of iGen (the
Internet Generation), GenY or an Echo Boomer. Unlike the GenXers and baby
boomers who preceded her, Griswold and her fellow Millennials grew up in a
digital age. When Griswold graduated from college, her top job criteria were
to "love what I was doing" and have "the skill set required fit my
personality," she says.
Griswold, now an account manager at Spunlogic, an interactive marketing and
technology agency, is one of an estimated 75 million Millennials. By 2010,
this age group will outnumber both baby boomers and GenXers.
So what does this mean for employers who will have a burgeoning body of
Millennials on their payroll?
Before HR departments roll out initiatives and programs targeting the newest
demographic wave, a soon-to-be-published study by global professional
services firm Towers Perrin indicates the things that make Millennials happy
and engaged at work are also, give or take a little, what make GenX and Baby
Boom-aged employees tick. The successful workplaces will be those, says
Ginny Olson, principal, Towers Perrin, that "Take a step back and take a
look and ask, ‘Who are our employees?'"
"The good news is that if you're doing all the right things [as an
employer], you'll minimize the differences," Olson says. "But if you're
doing the wrong things, you'll maximize them."
Millennials aren't much different
Towers Perrin's 2007-2008 Global Workforce Study is the largest polling
study on the views of the global workforce. The firm collected 88,600
responses from employees in 18 countries (42,000 in the United States). The
study focused on the drivers of attraction, retention and engagement through
the eyes of workers at mid-sized to large companies in a broad range of
industries.
One of the study's findings suggests the overall value system of Millennials
is not as different from that of GenXers or baby boomers as anecdotes might
suggest. There are dozens of articles that emphasize the younger
generation's push for work/life balance to be standard in any job.
But Olson advises caution about assigning generational labels to
expectations. It's true that GenY considers work/life balance paramount. But
the study indicates work/life balance is a significant retention driver for
every age group. The data show that work/life balance is one of several
issues that play out across generations, not just when talking about
Millennials.
For example, the No. 1 driver of job attraction is competitive base pay.
Each age group – 18 to 24, 25 to 34, 35 to 44 and 45 to 54 – ranked base pay
No. 1. Only the 55 or older group did not (this group ranked it No. 2). The
top driver of retention-in every age group-was "excellent career advancement
opportunities."
For Millennials, "satisfaction with the organization's business decisions"
came in second, as it did for a few other age groups. Younger workers ask
themselves questions about what the organization does to inspire them to do
their best work, Olson says. Most employees, young and old, are willing to
put in extra effort for a company they feel better about than one they
don't.
Overall, Millennials were more interested in how their jobs impact the
quality of work. Like other age groups, having a good relationship with
their supervisors was important. "I've never felt clueless in my job, but if
I ever do, I want people there to help," Griswold says.
Better training
Tailoring programs to engage workers early on – better training, good
relationships with supervisors, programs making them more effective at work
– help raise engagement scores. "It's positive for employers. If they do the
right things, they're not going to have to be concerned with generational
differences," Olson says. "People want to be engaged by what they do every
day."
A separate Towers Perrin one-year global study showed companies with high
employee engagement averaged a 19.2- percent increase in operating income,
whereas companies with low employee engagement experienced a decline of 32.7
percent in operating income.
"Higher performing companies are able to raise scores considerably in those
younger categories," Olson says. These companies tend to bring on board
better candidates; have better training; implement more diverse programs to
make new hires more efficient at work; and are more willing to tailor
programs to make them more effective.
Emory HealthCare listened to its employees when they asked for a blended
learning approach – traditional classroom work coupled with online
instruction. The organization is automating its electronic medical records
and other forms of documentation, and understands this might be an easier
transition for the GenYers.
"Our younger workforce is most comfortable with the automation and takes to
it quickly," says Peg Bloomquist, chief HR officer. "They also support the
more mature employee who may take some more time to learn these automated
systems and adjust to the environment."
Mobile Millennials
Multiple reports indicate Millennials are more willing to change jobs than
their elders. While the data does show Millennials are more likely to leave
an organization than other age groups, Olson doesn't believe it's because
they're GenYers. "They have more job opportunities. [They tell themselves]
there are opportunities knocking out there. If a company doesn't do things
to engage me, I'm going to leave. It has to do with their age and the
opportunities they have, not the fact they're ‘Millennials.'"
Emory HealthCare does see a 25- percent turnover in the first year, but
Bloomquist attributes that to "our younger population," she says. "They
move, get married, change jobs quickly for more pay or because the job match
is not the best for them."
The Global Workforce Study suggests Millennials are concerned more with
impacting the "quality of work/product/service" than their counterparts. As
Griswold says, "I like knowing where the company is going and if my role is
going to be important to the company."
But this isn't only of interest to younger workers. "Employees want to do
things differently and add value to the organization," Olson says.
"[Companies have to] think about the type of work they're asking people to
do. The different career paths. Different assignments. That crosses
generations as well. Almost anyone gets bored."
Millennials also want to work for an organization that encourages innovative
thinking, and they'd like their manager to be aware of what motivates them.
Innovation is easier to encourage in some industries – like IT – but
innovation is not limited to technology companies. "If you can create an
entrepreneurial environment, people will flock to that," Olson says. "People
want to be in that culture."
Changing communications
How employers communicate with their workforce is changing, clearly
influenced by the younger generation and the digital age. Employees like
Griswold grew up texting; are more likely to blog than chat by the water
cooler; and would rather you drop them an e-mail through their MySpace
account than leave a voice mail.
"This is how employers are going to have to communicate going forward,"
Olson says. "They might not prefer it, but they have to think about that."
At Spunlogic, where the majority of the 70-plus workers fall in the GenX
category, there are quarterly town meetings where management gives employees
updates and employees can ask questions. The company, which has experienced
278 percent growth in three years, also publishes a blog where employees
post ideas, give feedback, pose questions and provide the occasional
sarcastic – but in good fun – jab at one other. Recent posts include "What
Adobe Air Brings to the Table" and "What is Love?" a post inspired by a
Valentine's Day conversation.
"We use our blog to engage each other," says Dave Church, Spunlogic's
recruitment manager. Church considers the blog an excellent recruitment tool
because potential hires – it's published through the firm's Web site – can
pick up on the company's culture by reading the postings.
Large companies get on board
Small companies aren't the only ones finding new ways to engage employees
and use technology to communicate with them. With more than 300,000
employees, AT&T is one of the largest telecommunication companies in the
world. The company recently added a "Work With Me" Facebook application (the
company uses its employees' Facebook networks to push its jobs), and plans
to launch a new recruiting Web site with animated navigation, employee
profile videos and a preview of the company's new products.
"Some 74 percent of U.S. Internet users view video online and we'll tap into
that interest to give prospective job candidates a glimpse of what our jobs
entail," says Scott Smith, VP of staffing for AT&T. "Our online recruitment
strategies are rapidly evolving, and there is no question that we will
continue to see increased use of these types of tactics as we, out of
necessity, become more creative in how we attract talent."
At Stiefel Laboratories, a privately held dermatology company based in Coral
Gables, Fla., with 3,800 employees worldwide and a strong presence in north
Atlanta, Mary Cianni, VP of global human resources, meets with employees
regularly in what she dubs "listening sessions." What she's hearing is that
employees are looking for an understanding of "how they fit into the
organization – what role they play, how they're making a difference," she
says. "They want to know about the strategic direction of the company and
how they fit in."
Cianni says it's not just Millennials who feel that way. She hears that from
most of the employees with whom she speaks, many of who fall in the 30- to
40-year-old range.
Opportunities for recognition
Cianni and other HR executives are seeing a growing trend toward employees
seeking opportunities to recognize each other. "If someone goes above and
beyond, they want an opportunity to acknowledge one another," she says. The
company is designing PEAK recognition program as a vehicle for employees to
do so.
"It's about being a team player and being held accountable," she says.
"There is competition between employees, but it's less around getting to the
next position. It's a competition about ‘Am I adding value?' ‘Am I making a
contribution?' It's not just about vying for a title of a promotion."
At Spunlogic, the Employee of the Year Award is given to an employee who is
nominated by fellow employees, not by upper management. When new work is
completed, an e-mail highlighting those who worked on the project is sent to
everyone in the company so that fellow employees know who was behind it.
"GenX and GenY are demanding more feedback on their work and performance
than before," Olson says. Upper management needs to be concerned about how
it communicates, how it brings employees on board and it monitors and
manages its employees' career development.
"The onus is on employers," Olson says, adding it's their job to create a
workplace where people have the tools they need to do their jobs, where they
feel supported and where they are shown clearly how to do their jobs.
And it may be a simple thing, but Olson encourages companies to be more
transparent in terms of how they define things. "‘Dress casual' means
different things to different people," Olson says. If a younger worker shows
up in a Radiohead T-shirt, low rise jeans and a pair of flip flops, it
doesn't necessarily mean he's being disrespectful. It just means his closet
is more likely to be stocked with DIESEL jeans than Dockers.
The good news is that if employers in any industry are able to offer what
the majority of employees want – including competitive base pay and
work/life balance in an innovative environment – employees of any age are
going to stay and work harder because they know they're making an impact.
And that's good for employers.
Before she took her first job, Griswold made a pact with herself. "I promised myself I
wouldn't work somewhere I hated being," she says. "The minute I hated coming to work every day,
that would be it." Griswold's sentiments aren't just that of a new demographic; they are the
sentiments of an entire workforce.