gti breakfast news 16 september 'putting millennials to work
TRANSCRIPT
#BNews15
The AnthologistWednesday 16 September 2015
PUTTING MILLENNIALS TO WORK
#BNews15
Director, GTI
Simon Rogers
#BNews15
#BNews15
Thursday 5 March Is it time to make a more meaningful connection?Thursday 30 April Gen Z effectThursday 25 June Can we still get their attention?Wednesday 16 SeptemberPutting millennials to workThursday 26 November Conclusive research
2015 dates
#BNews15
#BNews15
We want to hear from you via twitter
#BNews15
How do we calculate our index?We ask students two questions:
1. How long do you think it will take you to find your first graduate job?
2. How many applications do you think you’ll have to make?
We then use their answers to produce our Confidence Index scores.
#BNews15
The overall confidence of the UK’s students
100
The Confidence Index scale:
What does an ‘average’ confidence score mean?
Number of job applications:
22Months to find employment:
5
120
160
80
40
AVERAGE confidence
More confident than average
“I’ll get a job in five minutes.”
Less confident than average
“Help.”
The average score
#BNews15
UK students’ confidence: Autumn edition
94
#BNews15
UK students’ confidence: Autumn edition
Part 1 Part 2 Part 3 Part 4
Gra
duat
ion
Recovery of Student
Confidence
#BNews15
Confidence: diversity cuts
#BNews15
provides the Confidence Index Datatrendence UK
Our research provides insight to recruiters by:
• Examining the UK market and competitor landscape
• Informing social diversity strategies
• Identifying how to engage early talent
• Refining university campaigns
#BNews15
Our social mobility expertisetrendence UK
Our social mobility data covers:
• State educated/privately educated• Means-tested funding• Parental education
#BNews15
Leicester Exchange DebateSocial Mobility2 December 20156-8.30pm at EY (London HQ)
#BNews15
Launching THIS WEEK!
#BNews15
#BNews15
#BNews15
#BNews15
#BNews15
#BNews15
• 1.5M users will be using TARGETjobs every month over the coming 4 months
• More employers than any other UK graduate job site
• 764,228 members are currently subscribed and we can email them NOW
• We can segment and target users in more diverse ways than ever before
• Employer content pages will be the most visited parts of the site
#BNews15
#BNews15
TODAY’S AGENDA PUTTING MILLENNIALS TO WORK
Welcome Simon RogersThe economic updateDeclan Curry, Broadcaster, Business & Economics journalistWhy on-boarding matters for millennialsApril Bryce, Creative Director, Havas PeopleLet’s talk about my generation: what does the workplace look like from a generation Z perspective – and what can be done to change it?Dr. Paul Redmond, Director of Student Life, University of ManchesterTransitions – Gen Z: Get to work!Stephen Isherwood, CEO, AGRThe millennial challenge – do we need to adapt the workplace?Lucy Adams, MD Firehouse, Founder, Disruptive HR and the former HR Director of the BBC
#BNews15
Declan CurryBusiness and Economics Journalist
THE ECONOMIC UPDATE
#BNews15
STUFF YOU SHOULD KNOW• USA – End of cheap money ?• China – An entirely expected slowdown
• UK – Year of the pay rise• UK – Still not an export-led recovery• UK – Govt Spending Review
#BNews15
END OF CHEAP MONEY• US Federal Reserve decides interest rates Thu
PRO RISE: ECONOMY REVIVING- Businesses investing, creating new jobsANTI RISE: BIG RISKS- What impact from China slowdown?- World Bank, IMF warn of “disruption”
• It’s WHEN rates will rise, not IF ….
#BNews15
CHINA• Economy growing by 7% or less – SLOWDOWN• Years of big growth from investment / production
- led to debt, inefficiency• Transition to consumption & consumerism
- slower but more sustainable ?
• Political impact in China – omnipotent no more
#BNews15
YEAR OF THE PAY RISE• Wages rising faster than prices
– after 6 years of getting poorer • Avg Wages: +2.4% Apr-Jun ‘15, y/y• Inflation: 0.0% Aug ’15, y/y
- food and fuel prices keep falling• Retail sales rise 29 months in a row• CONSUMER recovery, not EXPORT-led
#BNews15
TRADE GAP WIDENS• Sales of British goods hit by strong pound
- makes our stuff more expensive overseas- need more €€ to pay £STG prices
• Lowest exports in 4 years• Total exports in July = £22.8 BN, down £2.3 BN• Could cut economic growth: WATCH Q3 GDP
#BNews15
POUNDING INDUSTRY • Sterling strongest in 7½ years vs “basket”
- NB: Not ALL currencies
At 31 Aug:• £1 = €1.37 UP 9% year/year
… Cheaper holidays in Tuscany!• £1 = $1.54 DOWN 8% year/year
#BNews15
AUSTERITY AD INFINITUM• New Govt spending review on November 25th
• Sets departmental spending until 2019/20• Total spending reduction = up to £18bn pa (6%)
but NHS, schools, defence, aid protected(NHS = 1/3 of all departmental spending)so much larger cuts at other depts
• Welfare spending EXCLUDED (£217bn pa)
#BNews15
GROWTH • Economy 5.2% bigger than before crunch• LATEST GDP: +0.7% Q2 ‘15
+0.4% Q1 ’15• Expected to slow - impact of strong pound• FORECAST: +0.6% Q3 ‘15 (BoE)
• **Productivity: +0.3% Q1 ‘15 vs Q4 ‘14
#BNews15
SOURCES OF GROWTH
Q2 ‘15 vs Q1 ‘15• Services: +0.7%• Manufacturing: -0.3%• Construction: +0.2%• Household spending: +0.7% (16 qtrs)• Government spending: +0.9%• Business investment: +0.9%
#BNews15
FASTEST IN THE WEST? • Annual growth figures (Q1 2015, y/y):
UK: +2.9%USA: +2.9%Germany: +1.0%France: +0.8%EU: +1.0%Japan: -1.0%
#BNews15
2015 GROWTH FORECASTS• IMF forecasts for 2015 (revised Jul ‘15):
UK: +2.4%USA: +2.5%Germany: +1.6%France: +1.2%EU: +1.7%Japan: +0.8%
#BNews15
JOB MARKET• 31.03m people in work Apr-Jun 2015
DOWN 63,000 from Jan-Mar 2015UP 354,000 over last year
• 1.85 million unemployed Apr-Jun 2015 (ILO)UP 25,000 from Jan-Mar 2015DOWN 221,000 over last year
#BNews15
CONFIDENCE
Business Confidence (CBI)• Becoming less positive – but still expect growth• Index down 4pts on month; down 11pts on yearConsumer Confidence (GFK)• More consumers cheerful about money & econ• Index 3pts higher on month; 6pts higher on year
#BNews15
HOUSE PRICES
UK GOVT INDEX: +5.2% Jul ‘15, y/yVS: +5.7% Jun ‘15 y/y
England: +5.6% Jul ‘15, y/yWales: +0.3% Jul ‘15, y/yN Ireland: +7.4% Jul ‘15, y/yScotland *DOWN* -1.3% Jul ‘15, y/y
#BNews15
PERSONAL DEBT
Household debt largely flat• Debt = 145% of disposable income Q1 2015
risen from 144% in Q3 2013Peak debt = 169% in Q1 2008.
• 18,866 insolvencies England & Wales (Q2 ‘15)DOWN 29% over the year; lowest since ‘05
#BNews15
GOVERNMENT DEBT• Govt to borrow new money every year until 2019
- a year later than forecast in March Budget
• New borrowing 2014: £88bn• F’cast borrowing 2015: £70bn• Total debt 2014: £1,486bn• F’cast total debt 2015: £1,532bn
#BNews15
MARKETS (at 31 August 2015)• FTSE 100: 6,247.9
DOWN 7% on month; DOWN 8% over year• Oil: $53.0 per barrel
UP 3% on month; DOWN 48% over year• Gold: $1,135 per Troy ounce
UP 3% on month; DOWN 12% over year
#BNews15
April Bryce, Creative Director, Havas People
WHY ON-BOARDING MATTERS FOR MILLENNIALS
#BNews15
“The induction or assimilation of a new employee into a company or organisation.”
- Collins English Dictionary
#BNews15
Based around the 4 Cs• Compliance• Clarification• Connection• Culture
#BNews15
#BNews15
Let’s talk Millennials• More casual relationships
with employers*• Career restlessness**• “Wet behind the ears”
*HighFliers – sharp rise in numbers turning down or reneging on job offers.**Adecco – 50% of Gen Z expect to stay in their first job for less than 2 years (in London that figure is 18 months)
#BNews15
And yet…• Ambitious*• Want meaningful
employment**• More connected than
previous generations
*Adecco – Millennials expect to receive promotion in their first year of employment**The Intelligence Group – a defining characteristic of Gen Z is that they care about the world around them
#BNews15
It’s really a culture thing
#BNews15
I’m peculiar
#BNews15
#BNews15
#BNews15
Maybe culture itself has shifted
#liveauthentic
#BNews15
So, does onboarding matter?
• Less likely to have a part-time job• Insufficient careers advice• Lack of the skills that employers say they need• Yet more focused than ever on career choices
#BNews15
#BNews15
Onboarding for Millennials• Technology can help build further-reaching
connections and present new opportunities• Learning styles could adapt to reflect millennial
behaviours• Data presents the chance to increase
personalisation
#BNews15
Meanwhile over at Havas People
#BNews15
Dr Paul Redmond, Director of Student Life, The University of Manchester
LET’S TALK ABOUT MY GENERATION: WHAT DOES THE WORKPLACE LOOK LIKE FROM A GENERATION Z PERSPECTIVE – AND WHAT CAN BE DONE TO CHANGE IT?
#BNews15
#BNews15
Recap: Generation Z• World’s first ‘digital natives’• Aspiration: freedom and flexibility• Attach value to 1:1 engagement• 24/7 connectivity• Civic-minded• global mind-set• Entrepreneurial• Credentialist• Referenced by social media
#BNews15
Research focus • Do current employee engagement activities meet the needs of
Generation Z? • How do Generation Z’s needs contrast and compare with other
generational cohorts?
• Is the language and media used by organisations to engage Generation Z appropriate? In what ways could it be better fit for purpose?
‘Talking about my generation,’ Photiou, K. & Redmond P. (Barclays White Paper 2013)
#BNews15
Organisation benefits (and risks)• Organisations that engage effectively with Gen. Z employees have
40% lower turnover rates. Within them, Total Shareholder Return (TSR) is 40% higher than average.
• Engaged Gen. Z employees perform 20% above average while being 87% less likely to resign.
• The New Evangelists: as a result of social media, when engaged and motivated Gen. Z employees have been found to act as a powerful magnet for other Z applicants (and vice versa).
#BNews15
Key Points• 20% of Gen. Z respondents were confused about what their
organisation had to offer them. • 12% were actively considering changing organisation. • Overwhelming numbers of Gen. Z employees felt that their
organisation had an inbuilt bias towards Boomers: “Built by Boomers, for Boomers.”
• Result: A significant ‘reality gap’ now existed between Gen. Z’s expectations and actual workplace realities.
#BNews15
The New Psychological ContractBaby Boomer Psychological Contract
• Work for organisations• Command & control• Job for life• Career clarity• Employer-provider• Rising income and security• Promotion and progression• Save now, spend later
Gen. Z Psychological Contract
• Work with organisations• Functional teams• Job for now• Portfolio careers• Employer-enabler• Rising income, reduced security• Personal development• Spend now, save later
#BNews15
Summing up
#BNews15
1. The 10 Intergenerational Flashpoints
#BNews15
The 10 Intergenerational Workplace Flash-Points
1. Time-keeping2. Communication Preferences3. Spelling & Grammar4. Customer Service Expectations 5. Conventions Around Dress / Appearance6. Too Informal / Too Formal7. Attitudes To Technology8. Attitudes To Confidentiality9. Use Of Social Media10. Career / Life Aspirations
#BNews15
2. Gen. Z learning styles
#BNews15
Generation Z: Preferred learning styles
• Experiential learning: 64%• Face-to-face training: 64%• Further qualifications: 56%• Seminars/workshops: 53%• E-learning: 26%
Gen. Y respondent: ‘Generation Y: releasing the potential’ (Mercer/ACCA, 2010)
#BNews15
University is worth it if you have the following six experiences (Gallup-Purdue Index, 2015):
1. A member of staff who makes you excited about learning.2. A member of staff who cares about you as a person.3. A mentor who encouraged you to pursue your goals and dreams.4. The chance to work on a long-term project.5. A job or internship where you can apply what you’re learning at
university.6. The opportunity to become extremely involved in extra-curricular
activities.
#BNews15
Work is worth it if you have the following six experiences:
1. A colleague or manager who makes you excited about your work.2. A colleague or manager who cares about you as a person.3. A mentor who encourages you to pursue your goals and dreams.4. The chance to work on a long-term project.5. A project where you can apply what you’re learning at university.6. The opportunity to become extremely involved in broader
activities.
#BNews15
3. Knowing when to Nudge
#BNews15
#BNews15
How much would you choose to save?If you save the following
percentage of your salary …You could expect to accumulate the following amount by age 65
0% £0
4% £125,000
6% £200,000
10% £295,000
11% £350,000
12% £365,000
15% £475,000
16% £499,000
18% £545,000
19% £595,000
26% £795,000
28% £875,000
31% £950,000
41% £1,250,000
Sources: Benartzi and Iyengar, in progress
#BNews15
CROMWELL ROAD, LONDON, SW5 1 Bedroom, 1 Reception, 1 Bathroom. This lower ground floor apartment consists of a living room with wood flooring, an open plan kitchen and one bedroom. Wood floors and quality fixtures.
PENYWERN ROAD, LONDON, SW5 Studio. Newly refurbished studio apartment. A refurbished studio apartment consisting of a studio room with storage space, a fitted kitchen and a bathroom with shower room.
If you do not save for retirement, you might end up living on the street.
0% 4% 12%
How much would you choose to save?
Sources: Benartzi and Iyengar, in progress
#BNews15
#BNews15
Final Point
#BNews15
#BNews15
Stephen Isherwood, CEO, AGR
TRANSITIONS – GEN Z: GET TO WORK!
#BNews15
Generation Born US Population
Traditionalists 1922-1945 50 Million
Baby Boomers 1946-1964 76 Million
Generation X 1965-1981 46 Million
Generation Y 1982-2000 80 Million
Generation Z 2000-
Source: Pew Research Institute, US Census Bureau, Strausse & Howe
#BNews15
Student life• The student as
consumer• Clear tasks• Flexitime• Quest for
perfection• Peers
Employee life• The employer as
consumer• Ambiguous tasks• Working week• Quest for
efficiency• Hierarchies
#BNews15Sources: CBI Education and Skills Survey 2014; Prospects and Work Ready Graduates, 2015. Exact wording of categories varies between surveys e.g. top green bar is “self-management/resilience” in CBI survey.
#BNews15 Source: UKCES 2015 “The Death of the Saturday Job”.
#BNews15
£8,861Per Head
#BNews15
Lucy Adams, MD, Firehouse, Founder, Disruptive HR and the former HR Director of the BBC
THE MILLENNIAL CHALLENGE – DO WE NEED TO ADAPT THE WORKPLACE?
#BNews15
Next eventThursday 26 November