dealing with demanding millennials

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Speakers: Ladan NikravanSenior EditorDiversity Executive magazine

Dan SchawbelManaging PartnerMillennial Branding

Dealing With Demanding Millennials

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Ladan NikravanSenior EditorDiversity Executive magazinelnikravan@humancapitalmedia.com

Dealing With Demanding Millennials

“Today’s rising youth workforce is not a liability and a challenge, but an asset and an opportunity.”— Reena Nadler, coauthor of the book “Millennials in the Workplace.”

Ask a Gen Y Blog

Words of Wisdom

• “The best way to learn and move forward is to try things out fast and let the result speak for itself. Most of the inspiring and relatively successful entrepreneurs are not afraid of failure or even embarrassment.”— David Chen, CEO of Strikingly.

• “As any millennial in a truly honest moment will tell you, though we’re a smart, capable, technically savvy, and talented bunch, we still have a lot to learn. And if we can find an environment where that experience gap isn’t shameful but is instead embraced, we can thrive.”—Michael Terrell, managing partner of the Terrell Leadership Group.

Words of Wisdom

• “For millennials, it’s not all about paying your dues to work your way up the ladder. It’s not about “up or out.” Millennials want to contribute to meaningful work, and it’s more about the career lattice or career scaffold where you can take steps up, down, out or across to create a meaningful career.” — Courtney Templin, author of “Manager 3.0: A Millennial’s Guide to Rewriting the Rules of Management.”

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Dan SchawbelManaging PartnerMillennial BrandingDan@MillennialBranding.com

Dealing With Demanding Millennials

Comparing Generations

Gen Y Gen X Baby Boomers

Born 1982 - 1993 1965 - 1981 1945 - 1964

Size 80 million 45 million 76 million

Core values and attributes Realism, confidence, achievement, confidence, diversity, morality, competitiveness, attention seekers

Skepticism, fun, informality, balance, education, pragmatism, adaptable, manager loyalty, independent

Optimism, involvement, anti war, equal rights, involvement, work ethic

Career goals Build multiple careers Build a portable career Build a single career

Management style Collaboration Self-command Command and control

Work ethic Goal oriented, looking for meaningful work, collaboration

Care less about advancement, outcome oriented

Loyalty, process oriented, value ambition and teamwork

Your Future is Gen Y

2020

2015

2010

0% 20% 40% 60%

The American Workforce by GenerationBaby Boomers Gen X Gen Y Gen Z

By 2025, Gen Y will account for 75% of the Global Workforce

Bureau of Labor Statistics, Business and Professional Women’s Foundation

Gen Y accounts for 60% of Ernst & Young and 55% of Quicken Loans.

The Retention Rate Problem

10752

Tenure Rate Across Generations

Silent GenerationBaby BoomersGen XGen Y

It Costs ~$20,000 to Replace each Gen Y employee.

Millennial Branding & Beyond.com

How Are Companies Reacting?

48%

37%

12%

40%

11%

10%11%

What are you doing to retain millennial workers?

Workplace flexibility programs

Internal hiring programs

Rotational programs

Mentoring programs

Entrepreneurship/in-trapreneurship programs

Community service programs

Other

Millennial Branding & Beyond.com - http://millennialbranding.com/2013/08/cost-millennial-retention-study

The Generational Clash Problem

1. Experience

2. Wisdom

3. Willingness to mentor

1. Unrealistic salary expectations

2. Poor work ethic

3. Easily distracted

Gen Y Their Managers

Millennial Branding, PayScale and American Express

Today 15% of Gen Y’s are already Managers.

The Generational Clash Problem

Beyond.com Study

What Do They Want?

Constant feedback & mentoring Transparency Social media Internal career opportunities Freedom & flexibility Intrapreneurship Community support

Constant Feedback

Helps them improve.

Shows that you care.

Example) Adobe’s “Check-in” approach Abolished the annual performance review. Expectations are set annually but feedback is given

along the way. 2% decrease in voluntary attrition globally

80% of Millennials prefer to receive feedback in real-time.

Achievers - http://www.achievers.com/sites/default/files/WP_ClassOf2012_0.pdf

Mentoring Programs

They seek career support

Knowledge transfer

Reverse mentoring

Example) PepsiCo Conn3ct• Executive sponsorship and support• Idea and voices are heard

Transparency

Transparency is 1 of the 4 characteristics Gen Y wants in a leader.

Time - http://business.time.com/2012/03/29/millennials-vs-baby-boomers-who-would-you-rather-hire

Social Media & Gen Y

40% check their cell phone every 10 minutes

45% check social media as part of their daily routine

Connect and engage with them.

Don’t block Facebook at work.

56% of Gen Y won’t work at your company if you ban it!Cisco - http://www.cisco.com/en/US/netsol/ns1120/index.html

Showcase Your Culture

50% of employers believe Gen Y will stay if there is a good cultural fit.

Millennial Branding & Beyond.com Study

What is Your Office Like?

Who Works For You?

Social Recruiting

Build your employer brand

Be a content source

Engage by responding

Activate your employees

92% of companies use social networks for recruiting.Jobvite - http://recruiting.jobvite.com/company/press-releases/2012/jobvite-social-recruiting-survey-2012/

Case Study: Sodexo Tools used:

• Facebook, LinkedIn, Twitter, Flickr, Mobile App, Widget

How they use it:

• 18 properties

• Employee and event pictures

• Recruiters answer candidate questions in under 24 hours

Results:

• 46% of 2012 hires used Sodexo social media profiles

• Traffic increase of 26% every year

• Built a talent pipeline of 300K

• 10,700 fans and 6.8 million media impressions per year

Case Study: Salesforce.com

What they do?• CEO emailed sales team to spread

job opening on social networks.• Posted 350 status updates on

LinkedIn. Benefits

• Free referrals• Employer branding

Results:• Postings visible to 159K

professionals from 40K companies.

• 60% increase in sales employee referral submissions in week one.

“Employee referrals are 10 times more likely to

be hired than other sources.”

- Kate Israels, Talent Acquisition, Salesforce.com

Coca Cola: http://coca-colacompany.com/stories/hire-power-how-social-media-is-changing-the-way-people-search-for-jobs

Internal Hiring Programs

Saves you money (costs 1.7x to hire externally)

Increases employee morale

Allows talent to develop

The #1 reason Gen Y leaves is lack of career opportunities

40 – 60% of external hires are unsuccessful compared to 25% of internal hires.

Time - http://business.time.com/2012/08/15/the-power-within-why-internal-recruiting-hiring-are-on-the-rise/

Case Study: Novelis

What did they do?• 41% of new hires are placed internally

• Employees get first shot at new openings Benefits

• Increased engagement

• Weeks to fill positions instead of months

• Cost avoidance Results

• Contributed $2 million in cost avoidance over the last two fiscal years.

• 411 employees put through innovative development programs

“We have found that internal candidates

get to peak performance faster than do externals.”

- Leslie Joyce, Chief People Officer at Novelis

Case Study: Intel

What did they do?• Created DOT, an employee

development opportunity tool.

• Connects talent to short-term needs to match development goals.

Benefits• Fosters collaboration.

• Good for employee career development.

Results• 178 assignments in 2010 and

2,371 in Q1 2013.

• 36 employee profiles in 2010 and 2,933 in 2013 so far.

Workplace Flexibility

Want to work from home• More productive• Save money

Less barrier between personal/professional

Collaboration

Cisco - http://www.cisco.com/en/US/solutions/ns341/ns525/ns537/ns705/ns1120/cisco_connected_world_technology_report_chapter2_press_release.pdf

69% believe office attendance is unnecessary on a regular basis.

Case Study: Aetna

Wall Street Journal: http://online.wsj.com/article/SB10001424127887324677204578185180450152760.html

What did they do?• All workers (35,000) can work from

home after they have proved their worth.

Benefits• Culture of trust• Lower turnover• Improved productivity/health• Decrease costs

Results• Real-estate and related costs are 15% to

25% lower • Annual savings of about $80 million.

Case Study: American Express

What did they do?• Introduced BlueWork, an innovative

program designed to support and promote flexibility, workplace collaboration and business optimization

Benefits• Increase employee engagement and

satisfaction• Cost savings through better utilization of

resources and real estate• Support a highly collaborative and results-

oriented culture Results

• The BlueWork program has delivered not only improved employee productivity, but also saved millions in real estate cost savings.

Intrapreneurship

Need to adopt a startup culture to attract Gen Y.

Create programs, contests and hire EIR’s.• LinkedIn’s [in]cubator • Google’s 20% program• Facebook Hackathon’s• Microsoft Garage• 3M’s “Skunk Works”

46% of Gen Y wants to start a business in the next 5 yearsFortune - http://money.cnn.com/galleries/2012/smallbusiness/1206/gallery.gen-y-entrepreneurs.fortune/index.html

Case Study: DreamWorks

What did they do?• All workers can pitch new ideas to

executives and can take pitching courses.

Benefits• Lower turnover• Cater to entrepreneurial

minded Gen Y’s• Harness new ideas• Build a sense of

meaning/belonging Results

• Invested millions in a new social media mobile application created internally by a Gen Y employee.

“Ideas flow up and down the organization

very very quickly.”

- Dan Satterthwaite, Head of HR, DreamWorks

Case Study: Quicken Loans

What did they do?• Launched “Bullet Time,” a weekly

four hour period every Monday in which technology team members can work on any personal project.

Benefits• Gen Y can explore passions,

network and make a big impact. Results

• More than 1,150 IT team members have participated since 2011.

• 67 Bullet Time innovations have been implemented into daily business processes.

• 146 new projects started since January 1st, 2013

“We make sure our team members have

the freedom to create.”

– Linglong He, Chief Technology Officer at

Quicken Loans

Community Matters

92% believe that business should be measured by

more than just profit and should focus on a societal purpose.

Deloitte: http://www.deloitte.com/view/en_GX/global/press/global-press-releases-en/cce7dc2887cf4310VgnVCM1000001a56f00aRCRD.htm

Case Study: Ernst & Young LLP

What did they do?• EY Connect Day - a day of

community service for employees

Benefits• Appeals to Gen Y employees who

want to give back

• Encourages community building

Results• 61,500 volunteer hours in 2012

• 48,500 participants in 2011

Case Study: Panera

What did they do?• Opened up “Panera Cares,” a

café where only donations are accepted.

Benefits• Millennials want to work for and

purchase from companies that give back.

Results• Press in the Boston Globe, ABC

News, The New York Times, etc.• 700 transactions for the Boston

opening.• Expanded to five locations

already.

Millennial Job Seekers Can Be Consumers

1/3rd won’t buy from you if they don’t receive a response to their

job application.

55% share bad experiences on social media.

YouGov – http://www.prweb.com/releases/2013/5/prweb10722718.htm CareerBuilder - http://business.time.com/2013/03/21/make-sure-job-applicants-have-a-good-experience

The Future of Work

No firewallsGamificationNo 9 to 5Flat hierarchyResults-orientedCommunity driven

What You Can Do Right Now

1. Set expectations2. Become a mentor3. Introduce them to

executives4. Create an open

environment5. Allow for flexibility6. Give regular feedback

Your Future is Gen Y

Continue Your Journey

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