cem.cefa.graz.2011.junior procurement in the exhibition industry, taking account

CEM – Cefa Graz 18.11.2011 Britta Holert

taking account of the development of need structures relative to

the generations Y and Z and the demographic trends

Table of contents

1. Introduction

2. Bases

Demographic trends

Generation Y&Z

Darwiportunism

Summary

3. Junior Procurement

Status quo

Goals

Instruments

Employee marketing

Employer branding

Recruiting

Retention management

4. Critical consideration

5. Conclusion

CEM.Cefa.2011 Dipl.oec. Britta Holert 2

1. Introduction From Generation Y to Z......

Robert May – Managing director at leading IT Solutions Consultancy Ramsac:

“Understanding new ways of working

is vital to any enterprise.

Generation Y is already changing the

world interacts.

It is a strong indication that we are

witnessing a noticeable shift in the

way in which the future workforce

wants to communicate, and

consequently will have a huge impact

in the way future business leaders

want to do business.”


1. Introduction

Generation Y present the upcoming market as well as future employees

it is vital to accept the new ways of working

to ensure business is blooming for the inevitable rise of generation Z

Today‟s trainees determine professionals of tomorrow

new ways of working

more low & incapable performer

more switchers & high potentials

demand to education and training rises

Junior procurement ensures future viability

change in the need structure of the generations

divergent development demographic change


1. Introduction

Company competitive factors

competent & powerful

employees

a significant improve of productivity

increasing profile

Company needs

raising the bar for costumer

service

opening the door for new business

opportunities

an ultimate understanding of the human side

of change management

Company goals

having a well managed,

proactive and rapidly reactive

workforce

embracing new ideas to attract

new talents

developing a perpetually

moving culture


2. Bases – Demographic Trends Demographics are no destiny

•as people are born 20 years before they are hired

•societies and companies can prosper by preparing for the change about to come

Post - World War development:

• “baby boom”

• significant strides in healthcare

• relatively low level of warfare

• reduced death rate

Created a spike in population growth

Result:

• larger workforce

• higher standard of living

• greater equality

• women enter the workforce

• acceptance of birth control

• downward pressure on the birth-rate

This dynamic began in western countries in the mid-sixties


2. Bases – Demographic Trends

Fertility rates Consequences:

•1,85 Albania

•1,39 Austria

•1,21 Bosnia Herz.

•1,57 Bulgaria

•1,47 Croatia

•1,36 Germany

•1,32 Hungary

•1,41 Italy

•1,44 Macedonia

•1,50 Moldova

•1,64 Montenegro

•1,38 Romania

•1,40 Serbia

•1,53 Slovenia

the replacement fertility rate is 2,1

some countries, like the US, reach this level and maintain population growth

central & eastern Europe has low fertility rates and slowing respectively decreasing population growth

the result is an aging workforce

the dependency ratio is increasing rapidly

this means that the proportion of the non-working population to working population will be bigger in the future


2. Bases – Demographic Trends - dependency ratio

1. Nascent countries e.g.

Africa, South Asia

2. Momentum countries e.g. South America

3. Partially developed countries e.g. Russia, Eastern

Europe

4. Advanced developed countries e.g. Western Europe, Japan


time

overa

ll d

ependency

low

m

ediu

m

hig

h

area of increasing youth dependency

area of decreasing overall dependency

area of increasing age dependency

1

2

3

4

Developed countries are characterised by a moderately high or very high levels of economic development and a minimal increase in prosperity and equality

2. Bases – Demographic Trends – Arc of Growth


aging Index

Pro

sperity

and E

quality

Index

low

mediu

m

hig

h

NASCENT Youth Dependency increases

MOMENTUM Overall Dependency decreases

DEVELOPED Age Dependency increases

Eastern Europe

Western Europe

trajectories of knowledge-based economies are not set in stone, which makes the active use of demographic analysis a powerful policy tool

2. Bases – Demographic Trends - Consequences

• improving the quality of the education system

• increasing workforce productivity

•raising the retirement age

• integrating immigrants into society

Tasks of the government

•taking demographics into account when plotting the corporate strategy

•adjusting products and services for countries at varying points of growth

•changed demographic profiles made for new consumer priorities

Company strategy

•accommodating changing market needs by developing a more diverse workforce

•creating a culture of lifelong endeavour

•revisiting the structure of career paths that allows employees to gradually ramp down in their 60s and 70s instead of retirement

Company as an employer


2. Bases – Generation Y&Z


- A part of them are interested in working for larger, more conservative and well established companies and

rather than the new dynamic organizations that have not been

around for too long.

- As a reaction to the 'dot com' collapse they may distrust many new

start-up companies.

- They fear that they are unstable and risky.

- A part of them prefers organizations that have stood the test of time.

- The other part is interested in building up a start-up by themselves..

(e.g. Silicon Valley)

- Generation Z will be in the workforce shortly, showing what "technological

savvy" really is.

- This will happen quickly and all the oldies will have to catch up!

Generations Y&Z


- thinks doing is more important than knowing

- has a low boredom threshold - takes the trial and error approach to

problem solving

- is multitasking and working parallel

- has a need for immediacy visual, non-linear and virtual learning

- collaborative learning

- constructivist approach

- does well in face-to-face interaction

- is changing the way of communication and doing business with WWW and

social networking

- is educated better and more savvy with technology

- has more of a 'work to live' rather than 'live to work' attitude

- possibly supervisors of earlier generations that may have more

experience

- seems to be more willing to work longer hours than their predecessors

Generation Y

children of the Baby Boomers



- strives for creative challenges, individual development, and significant careers

- requests mentors and supervisors who are highly committed in their expert

development - requires supervisors to enforce structure and stability and works hard to cultivate a

team-oriented environment

- is inspired and motivated by immediate feed-back and praise

- will be kept keen and engaged by frequent meetings and reassurances

- has high expectations of self, strives to work more quickly and better than other

workers

- is often disrespectful of authority if trained in leadership

- wants to work for themselves, primarily not for the cash, but a flexible, life-style driven own vision, not someone else's

- has high expectations to their bosses, expects managers to be fair, equitable and

active , who are highly committed and have developed expertise

- is committed to ongoing learning and regards colleagues as a resource from

which to gain additional knowledge

Generation Y children of the Baby Boomers



– will not be team players like GEN Y – will be an individualistic generation

- will be more self-directed, because their childhood was more “self-discovery”

- will process information rapidly(neuroplasticity)

- will be smarter (by neuro-enhancers)

- are the “spoilt” children of wealthier and

older parents with less siblings - is more complicated and appear older

than their age - is aware of brands, marketing and

online choices

- has highly developed multi-tasking skills and can move quickly from one task to

another, putting more emphasis on speed rather than accuracy

- can suffer from information overload and will not check the source nor check its

reliability - have the opportunity for more

entertainment and high-tech choices

Generation Z children of Generation X



- expects media to be delivered to them where and when they require it

- expects everything to be delivered online, including most software

- will have an advantage in the workforce because they will start work at a time

when the baby boomers will leave

- will be ideally suited to take up the high-tech occupations for which they are more

suitable than generation X and Y

- need to have an enjoyable workplace

- are likely to be more mobile in terms of work location and will both embrace and

demand new technology

- has grown up in a world with widespread equality of the sexes and where single

parent and same-sex parent families are commonplace

- wants to be valued at work and to have their individual differences and needs met

Generation Z children of Generation X




...from their boss

•help navigate their career path

•give them straight feedback

•mentor and coach

•Sponsoring of their development programs

• is comfortable with flexible schedules

...from their company

•Development of their skills for the future

•strong values

•customizable options in their benefits/reward package

•granting integration work in live

•clear career path

...to learn

•technical skills in their area of expertise

•self-management and personal productivity

• leadership

• industry or functional knowledge

•creativity and innovation strategies

...from life

•equilibrium ethics rather than subordination

•Work-Life-Balance

• living heterogeneous patterns

•sense of fulfilment

What Generations Y&Z want

2. Bases – Generation Y&Z - Secure employability: five strategies (Horx)

Maintain passion

• for own talents and profession

• since separation between work and life is getting more indistinguish-able

Remain curious

• new experiences should not lead to irritation, but happiness

• find everlasting powerful learning not as burden, but as a blessing

Learn saying “no”

• to jobs not suitable for

• or putting people on the wrong path

Acquire the ability to balance work and life

• professionals should keep the balance between profession and private, and economize their effort

Remain mobile with a centre of life

• constant uprooting is not efficient

• but professionals have to insert practical learning phases beyond the centre of life


2. Bases – Darwiportunism (Prof.Dr.C.Scholz)


Darwiportunism

a conceptual approach of Prof.Dr.C.Scholz

Darwinism

• Darwinism can be found on the side of the companies, who are facing increasing competition on saturated markets and passing this pressure down to their employees

Opportunism

• Opportunism can be found on the side of employees, who are no longer willing to work for a lifetime for the same company. They are looking for opportunities and tend to change employers very fast if better conditions are offered elsewhere



Darwiportunism

a conceptual approach of Prof.Dr.C.Scholz

Developed exactly 10 years before the current global

financial and economic crises.

This concept helps us to understand recent

developments not only on a global scale but also within the

company

We get four different

combinations of Darwinism and

opportunism when using the

idea of psychological contracts

•“Good Old Time”

•“modern Feudalism”

•“Kindergarten”

•“pure Darwiportunism”



•Means low Opportunism and low Darwinism

•Employees are loyal and get rewarded by job security “Good Old Time”

•Can be found when well educated employees know of their market value and the company only has the chance to fulfil their demands

•This contract is characterized by low Darwinism and high Opportunism

“Kindergarten”

•Is the opposite extreme, here are companies in the stronger position

•They demand employees‟ performance but also reward it “Modern Feudalism”

•Darwiportunism is the psychological contract in which companies act darwinistic and employees act opportunistic

•They just form a shot-term-relationship in which performance is measured and rewarded by target agreements

“Pure

Darwiportunism”



Modern

Feudalism Labour Supply > Labour

Demand

Pure Darwiportunism

Good Old Time „Kindergarten“

Labour demand > Labour Supply

Darw

inis

m

low

hig

h

low high Opportunism

Balance Imbalance

Balance Points



em

plo

yers

change b

ehavio

ur

Modern

Feudalism - employer : short-time

agreement

- employee: long-time agreement

Pure Darwiportunism

- short-time agreement

Good Old Time

- long-time agreement

„Kindergarten“ - employer : long-time

agreement

- employee: short-time agreement

employees change behaviour

Balance Imbalance

Balance Points



•Balance -> long-time retention-> ROI on educational investment by loyalty “Good Old Time”

•Labour demand > Labour Supply

•Imbalance -> long-term thinking meets short-term thinking -> no ROI on employer educational investment

“Kindergarten”

•Labour Supply > Labour Demand

•Imbalance -> short-term thinking meets long-term thinking -> no ROI on employee educational investment

“Modern Feudalism”

•Balance -> short-time retention -> ROI on educational investment by paying for performance or mentoring the older employees -> intergenerational learning

“Pure

Darwiportunism”

For Diversity & Inclusion concepts in high performing companies “pure Darwiportunism” is the place to be!

Regarding Generation Y, we see the following situation: Companies face increased competition. Commitment to performance has been the consequence. Now it is generation Y‟s decision which contract they will prefer.



Mentoring

This approach shifts the responsibility for organizing mentoring to line employees

who learn from senior executives by mentoring them.

Reverse Mentoring

A Millennial is matched to an executive and assigned to

teach him how to use social media to connect with

customers etc.

Common Responsibility for Employability

Thereby, the younger generation has a better

understanding of the business when the older generation

retires.

Future Viability today & tomorrow

It is an effective way to give junior employees a window into

the higher levels of the organization.

Darwiportunism

“tit for tat”

2. Bases – Summary

Management Approaches

for the Mix of Generations

Each generation has a different set of values

- concepts of loyalty - expectations from the work

environment - view of work / life balance

Employers should be aware

of the differences

- each group has a unique communication preference

- the need to chose the language appropriate to their lifestyle

characteristics and background

- a variety of methods from letters, to emails, to texting, and social media

channels


2. Bases - Summary


Junior Procurement is influenced by:

Demographic change

decreasing and aging workforce

Divergent development

more low & incapable performer

more switchers & high potentials

Darwiportunism

change of work behaviour

by GEN Y&Z

change in the need

structure of these

generations

3. Junior Procurement – Status quo

Organizations are quickly realizing the effects of

the upcoming retirement boom

the aging and diversification of the workforce

a shift towards higher-skilled

jobs

an increase in competition for

talents

a change in employees' values and

expectations


Organizations need to assess their readiness for a workforce planning

Build a business case and return-on-

investment methodology that

clarify organizational value

Design a sustainable program including key components appropriate to environment

Develop specific criteria to identify and evaluate high-

potential talent within your organization environment

Identify critical competences for

leadership that are matched with the long-term strategy

3. Junior Procurement – Status quo


Most organizations are not prepared to manage the new generations:

they underutilize their managerial and professional

talents

they do not understand the kind of support knowledge employees need to perform

at their best

they use industrial-age talent management practices despite receiving less than

optimal results

Many organizations are already struggling to effectively manage next-generation talents:

most employers have difficulties recruiting skilled

staff even in a down economy

half of employers are having difficulties retaining

employees

one out of two workers worldwide is currently

disengaged

3. Junior Procurement – Goals

Future Viability

Withstand market pressure

Change ability

Profitability

Innovations

Learning organization

Competitiveness

Optimal utilization of human capital

Balanced age structure

Competent & powerful employees for the future

employee satisfaction and emotional retention




•Right potentials in right quantity at the right time and the right place

•Requirement of business success 1. Basic Staff Goal

•Optimal staff benefits under given circumstances

•Principle of business success 2. Basic Staff Goal

•Balance of interests

•Business success as a dynamic benefit balance 3. Basic Staff Goal



Junior Procurement planning

to adapt anticipated demographic change

to provide strategic methods

for addressing current and anticipated workforce needs

to identify and develop competences

for the present and the future


3. Junior Procurement – Instruments

Instruments Staff demand analysis

Manpower analysis

“Make or by” decision

Employee marketing

Employer branding

Recruiting


in relation to demographic trends

in relation to the employee needs

3. Junior Procurement – Instruments

Quantitative and qualitative staff demand analysis

• identification of the competence needed for the future

Quantitative and qualitative manpower analysis

•evaluation of the bonded human capital, human capital inventory


•new skill needs must be developed

•over demand existing qualifications can be found in the labour market


Instruments Staff demand analysis

Manpower analysis


in relation to demographic trends

3. Junior Procurement – Instruments - Employee marketing A little story:

A boy of the late Gen Y was very smart, learned quickly to do the right things and also to do things right.

He was very successful in school, perfected his learning strategy at university and completed with an excellent Bachelor’ Certificate.

Then he made one year internships in various companies. Everywhere he got great references.

Now the companies steadily encourage him with their personal marketing efforts, because he is a high potential.

Before he began his Masters, he was offered a job for the time after he will have his Master‟s Certificate. This was an extremely offer was good.

After thinking about it, he signed the contract and began his Master's studies with the knowledge having a good job after studies.

Also he is very active in his private life. He has many friends, makes a lot of sports, travels and has fun in life. He seems to be a very good state.

His mom asked him about his feelings in relation to this very good state.

He replied: “Ha-ha^^Mom, I’m fine, but I don’t know yet if I will be entering this job. Perhaps a better opportunity comes in the meantime :-)“.


3. Junior Procurement – Instruments Employee marketing


Generation Y&Z candidates

understand there is a war for talent

see themselves as being in big demand

feed their self-confidence

have different manners

are also very focused on their rights

Professional services managers should be on the lookout for top

candidates who exhibit these traits:

Responsiveness

Innovation and creativity

Distribution competence

Cost consciousness

Companies which integrate Generation Y&Z candidates into their organizational

culture will have a competitive advantage due to the demographic trends



Employee marketing

Classical marketing 1.0 Social marketing 2.0

Is no longer an enthusiastic factor Is an enthusiastic factor

meets people were they are •you can

•perceive each other •evaluate each other •get their attention •interact •record their way of thinking •make up your mind about each other

satisfies just the need of information •they

•perceive it •evaluate it •do not really care •will laugh at it if is not proper •make up their minds about the company

Employee Procurement concept



Employee marketing 1.0 Brochures &

poster

Announces

Internet 1.0

Reports

Television & radio

Lectures

Promotional items

Employee marketing 2.0 Exhibitions

Events

Competitions

Internship

Blogs

Facebook

Other social media


The generic concept of employee

marketing includes

all transactions

between employers and

employees

beginning with maintaining the image

recruiting

the staff

up to retaining the

staff


External & internal employer branding is a milestone in this process

3. Junior Procurement – Instruments Employer branding

Popular employers need personality success, innovation, competitiveness and learning organization

The appeal of employer brands positive image, trust, reliability and humanity

A brand for every aspect of human resources

communication, work-life-balance, development and EVP

Development of an employer brand,

definition of brand values and determination of direction



Attempting to win new clients and customers, the task of improving the company image is nothing less than a matter of course

Attempting to attract applicants and retain employees, the image as an employer is often overlooked

A proper application of employer branding to right potentials has great possibilities

An appeal can provide a clear and distinct competitive advantage




Employer branding Stable working condition

Frequent feedback

Thanks and praise

Advise how things are going

Regular employee meetings

Chance to share ideas

Open communication

exemplary values to communicate

to the target group


Employer Brand

principles

EVP

Commu-nication

Develpo-ment

Work-life-balance


„Work smarter than harder“

“Companies with an excellent brand have an USP, they are ranked high”

„Attractive location“

„Use product image“

„Be a role model“

„Create a world others want to be part of“

„Think positive““

„Have fun“

„Walk your talk“ Employer branding is an important part of employee marketing



•to effectively engage all employees in crucial conversations

•to encourage honest and for an open dialogue that understands diversity in expectations

Make sure that the managers have the skills

•making improvements

•developing the processes

•solving problems

Involve your

employees in

•„walk your talk“

•make the workplace a more enjoyable place Create a world others want to be part of

•to recruit, engage and retain staff

•to ensure them that they matter This helps

3. Junior Procurement – Instruments Recruiting


Recruiting - internal

posting

intranet

directly addressing

assessment

centre

internal blogs

Recruiting - external

newspaper

internet

headhunter

exhibition

social media

Movement from

communication 1.0 to 2.0

3. Junior Procurement – Instruments Recruiting Movement from communication 1.0 to 2.0


Company sets the conditions

Applicants try to match

Employers and employees

are moving

to each other

to occupy

the workplace

Employees set the conditions

Companies try to match

They have to interact

to point the settings

•is the Personal matching to corporate culture is more important than current professional performance •this can be find out by interaction goal = finding right potentials

3. Junior Procurement – Instruments Retention Management

• it is not enough to find potentials

•the potentials need to be retained

•therefore the target group has to be pointed out


•that the candidates fit to your culture

•that their needs get served

•that they fit into the environment

Make sure

•that not all retained employees are emotionally bonded

•that a short-time retained employee could bring more added value

Be aware

•also working with free lancers also

•setting up an environment catering young women's needs

• integrating aged employees

Think about


4. Critical Consideration Greater span and mix

at all levels

There will be a wider span of ages in the workforce because many older people are working past 65. Also the generations are mixed at all levels

Companies are not well stratified, with boomers in senior positions, Xs in mid-management and Ys in the junior entry-level positions

Often young graduates will be managing people older than them, and senior managers will often supervise across a couple of generations

They often do not connect well with the younger staff, because their values and work ethics differ markedly


4. Critical Consideration

BUT

High staff turnover due to poor communication brings tremendous costs about

Job satisfaction is directly linked to the work environment and the orientation provided for new employees

so that they understand what companies want from them

Employees need to know all about the expectations of companies, the environment, structure and opportunities in which their performance

will be assessed

Only by choosing effective methods companies will be able to communicate with each group and engage with them


5. Conclusion Junior procurement taking account of the development of need structures

relative to the generations Y&Z and the demographic trends

This is the challenge for the future!

Generation Y&Z

They are smaller generations,

they have different needs,

we raised them,

they will change the world,

they have to work smarter,

we are the mentors,

they are the reverse-mentors.

In a way the world will be turned on its head.

Let„s take the challenge … it will be worth it.

They are „good kids“…. I have tree of them...

I have mostly learned from them.

I am thankful for this ))))))))))))))



Thank you for your Attention!