From Boomers to Millennials: The Change in Corporate Life Nicholas H. Lapham December 13, 2016 Northeastern University
From Boomers to Millennials: The Change in Corporate Life
Nicholas H. Lapham
December 13, 2016
Northeastern University
From Boomers to Millennials: The Change in Corporate LifeNicholas Lapham
I. This project provides analysis for the comparison between the Baby Boomer generation
and the Millennial Generation in the U.S. corporate world and the U.S. labor force.
II. Currently both U.S. corporations and the U.S. labor force face new challenges as
companies and managers see a new generation dominating the workforce. The
Millennials have replaced the Baby Boomers as the largest generational workforce in
the U.S. This project outlines and compares the differences by investigating the factors
and hardships both generations faced and how those factors molded them into the
workers they are. It also compares how companies managed the workforce prior to the
entrance of the Millennials into the workplace and how they have been forced to modify
their management styles to accommodate the influx of Millennials into the workplace.
III. The information in this paper was collected through multiple sources including prior
research by Pew Research focusing on several generations of workers between the
ages of 18-32. Their research reviewed income, education, diversity, and the economy
of each generation’s workers. Also, there was review of studies by
PricewaterhouseCoopers which focused on their employees’ wants and needs, and on
similar studies by Deloitte, the Economic Advisors to the White House, and data
collected by the U.S. Bureau of Labor Statistics.
IV. This research found great differences between Baby Boomers and the Millennial
generation’s participation in the U.S. workforce. The findings show that the average
Millennial college graduate owes $37,172 in student loan debt. This debt and the
somewhat pervasive economic instability has meant that Millennials have faced
different circumstances when first entering the workforce than did their parents. The
research found that Millennials developed their attributes in many ways by how their
parents raised them. For example, the average Millennial grew up in a time of
technological advancement with information at their fingertips. Therefore, they strive to
be able to have answers instantaneously. Their parents taught them that they can be
and do anything they want, and never to settle for less than the best. Subsequently,
Millennials keep pushing to get to the next level. Once they decide they aren’t
accomplishing what they want in the workplace, or have no upward mobility, they
change jobs. Companies have faced large Millennial turnover rates with an average
tenure of less than 2.5 years. This employee turnover forces the remaining employees
to take on more work and, on average, costs the company twice the salary of the former
employee to interview, hire, and train a new one. Additionally, it can take months and
sometimes years for the new employee to get to the skill-level of the employee who left.
This long time-frame can put excessive stress on other employees and often results in
other employees leaving.
V. The findings of this paper show that companies that cater to the needs of the Millennial
employee may have lower turnover rates and are better able to keep employees
engaged and focused on their work. Many of these companies also saw an increase in
employee-related job referrals, a healthy way to combat Millennial turnover and bring in
new employees. Technology in the workplace was also found to be significant in how
Millennials and Boomers differ. Because they grew up with it, Millennials crave and
need technology in the work place. They rely on technology for all their needs. They use
it when answering questions or doing research. They use it to connect and network with
others through social media rather than relying on face-to-face interactions like the
Boomers. This paper details how and why Millennials seek meaningful employment in
companies and why they aren’t afraid to leave their current employment in pursuit of
another company. It also describes significant factors the Millennial generation has
faced and is trying to overcome by comparison with hardships Boomers faced at the
same point in their lives. Some areas for future research might include learning more
about the Millennial Generation’s transition into the corporate world for future use as a
training tool. Additional research might determine whether Millennial employee turnover
rates slow down to Boomer Generation averages once Millennials become more
established in their lives. Also, has student debt continued to affect Millennials’ job
placements? And finally, to attract quality employees will more companies be forced to
help employees pay off their student loans?
Key Bibliographic Sources
"Pwc’s Nextgen: A Global Generational Study". PwC. Last modified 2014. Accessed November 23, 2016. http://www.pwc.com/us/en/people-management/publications/nextgen-global-generational-study.html.
"The Rising Cost of Not Going to College". Pew Research Center’s Social & Demographic Trends Project. Last modified 2014. Accessed November 23, 2016. http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/.
The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots.
Tulgan, Bruce. Not Everyone Gets a Trophy. 1st ed. Hoboken: John Wiley and Sons, Inc., 2016.
U.S. Census Bureau. "Millennials Outnumber Baby Boomers and Are Far More Diverse". The United States Census Bureau. Last modified 2015. Accessed November 23, 2016. http://www.census.gov/newsroom/press-releases/2015/cb15-113.html.
Table of Contents
INTRODUCTION 5
DEFINING GENERATIONS 5
GENERATIONAL COMPARISON 7
EDUCATIONAL COMPARISON 7
PARENTS SHAPING OF MILLENNIALS 11
WORKPLACE FLEXIBILITY 13
MILLENNIAL TURNOVER RATES 17
ENGAGING MILLENNIAL EMPLOYEES 20
GROWING AND LEARNING 24
COLLABORATION 25
DECISION-MAKING AND PERKS 26
TECHNOLOGY IN THE WORKPLACE 28
MANAGING MULTIPLE GENERATIONS 30
CONCLUSION 33
REFERENCES 35
IntroductionGeneration characterizations have been used to define distinctive groups
of individuals dating back to the 1900’s. 2 Thus, companies have had to
change their corporate cultures and best practices, not only to incorporate this
new generation into their staff but also to retain and motivate them. They also
need to rethink the way they lead and manage their Millennial employees to
compete in the new job market. For them to become successful members of the
organization, it is important to find the right balance that makes this new
generation feel both valued and challenged.
Defining GenerationsWhat defines a Millennial or a Boomer? “Generational names are the
handiwork of modern culture. Some are drawn from a historic event; others from
rapid social or demographic change; others from a big turn in the calendar.” 1
Karl Mannheim, a German sociologist, established the idea of Generational
Theory. This theory “seeks to explain how attitudes and values are shaped in
both individuals and groups; Mannheim though that the generation a person
belonged to determines to a certain extent, his or her thoughts, feelings, and
even behaviors.” 2. According to Mannheim, “A generation is defined as a group
that shares birth years and significant life events at critical developmental
stages. Youth is the key period in which social generations are formed. The
major events experienced during the time of formation are what shapes the
outlook on the world exhibited by the generation.” 2
1 Pew Research "Millennials: Confident. Connected. Open to Change". Pew Research Center’s Social & Demographic Trends Project. Last modified 2016. Accessed November 23, 2016. http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to-change/.
2 Espinoza, Chip and Mick Ukleja. Managing the Millennials. 2nd ed. Hoboken: John Wiley and Sons, Inc., 2016.
The definition of the Millennial generation differs from source to source,
but for this analysis we will use the definition used by the U.S. Census Bureau. A
Millennial is a person who was born between the years of 1982 and 2000. The
Millennial generation grew up during the age of advanced computer technology
and innovation. They were “the first generation to come of age in the new
millennium” 3 and were exposed to cell phones at younger ages. They also had
computers in their homes and at school, and had easy access to sources via the
Internet, blogs and the world-wide web. “Millennials are the first high-tech
generation, having never known life before cell phones, personal computers,
and ATM’s. The average age for Millennials entering the workforce is 21 to 23
years of age. This is because a greater number of Millennials are going to
college after graduating from high school. Millennials are a very tolerant and a
socially and racially diverse generation. 4 “Technology isn’t a tool to just do more
work or to achieve work-life blending- it is an integral part” 6 of the Millennial
generation makeup.
Baby Boomers, on the other hand, are those people who were born
between the years of 1946 and 1964 5 (based on the definition by the U.S.
Census Bureau). Their “label is drawn from the great spike in fertility that began
in 1946 right after the end of WWII”. 6 This generation grew up in an age of social
reform and change including the Vietnam and Cold Wars and social justice
3 Pew Research "Millennials: Confident. Connected. Open to Change". Pew Research Center’s Social & Demographic Trends Project. Last modified 2016. Accessed November 23, 2016. http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to-change/.
4 U.S. Census Bureau, "Millennials Outnumber Baby Boomers and Are Far More Diverse". The United States Census Bureau. Last modified 2015. Accessed November 23, 2016. http://www.census.gov/newsroom/press-releases/2015/cb15-113.html.
5 Espinoza, Chip and Mick Ukleja. Managing the Millennials. 2nd ed. Hoboken: John Wiley and Sons, Inc., 2016.
6 Patten, Eileen and Richard Fry. "How Millennials Today Compare with Their Grandparents 50 Years Ago." Pew Research Center. Last modified 2015. Accessed November 23, 2016. http://www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents/#!17.
reforms such as the Civil Rights Movement and the Women’s Rights Movement.
For Baby Boomers, “values such as professional identity, health and wellness,
and material wealth are very important” 7 .
Generational ComparisonBy comparing the Baby Boomer generation, the former largest generation
in the workforce, with the Millennial generation, currently the largest generation
in the workforce, we can evaluate how companies are changing their business
to cater to Millennials. Baby Boomers are described as “achievement oriented,
independent, in control of their own destinies, respectful of authority, loyal and
attached to organizations and diligent on the job.” 8 Millennials, on the other
hand, are described as “having the strong desire for meaningful work, holding
lifelong learning as a high priority, and viewing family as the key to happiness.
Similar to Boomers, Millennials are thought to feel a strong desire to succeed
and measure their own success by the meaningfulness of work.” 9
Educational comparisonCurrently, the Millennial Generation is the largest workforce in the U.S.
with “83.1 million members, representing more than one-quarter of the nation’s
population” 10 Of those “83.1 million, 28.2 million Millennials have a Bachelor’s
degree or higher.” 11 Research has shown that Millennials, “are more likely to
study social science or applied fields like communications, criminal justice, and 7 Espinoza, Chip and Mick Ukleja. Managing the Millennials. 2nd ed. Hoboken: John Wiley and Sons, Inc.,
2016.8 Becton, John Bret, Harvell Jack Walker, and Allison Jones-Farmer. "Generational Differences in
Workplace Behavior". Journal of Applied Social Psychology 44, no. 3 (2014): 175-189.9 Becton, John Bret, Harvell Jack Walker, and Allison Jones-Farmer. "Generational Differences in
Workplace Behavior". Journal of Applied Social Psychology 44, no. 3 (2014): 175-189.10 U.S. Census Bureau, "Millennials Outnumber Baby Boomers and Are Far More Diverse". The United
States Census Bureau. Last modified 2015. Accessed November 23, 2016. http://www.census.gov/newsroom/press-releases/2015/cb15-113.html.
11 U.S. Census Bureau, "Millennials Outnumber Baby Boomers and Are Far More Diverse". The United States Census Bureau. Last modified 2015. Accessed November 23, 2016. http://www.census.gov/newsroom/press-releases/2015/cb15-113.html.
library science - which do not fit into traditional liberal arts curricula but
correspond more directly to specific careers.” 12 Boomers, in contrast, “focused
their educations more on STEM and on education degrees while in colleges and
universities. These degrees are comparatively less sought after by Millennials
who more likely opt for degrees in the Social Sciences and Applied fields.
Nonetheless, degrees in Business and Humanities are relatively the same for
Millennials as those of Boomers.” 13 “Women of the Millennial generation are
also more likely to have a degree in Business;16% of Millennial women pursued
a degree in business, and only 9% of women in the Baby Boomer generation
earned a degree in Business.” 14
Millennials, when compared to the Baby Boomer generation, are more likely
to go to college. Per a Pew Research study conducted in 2014, “today’s
Millennials are the Best-educated generation in history; 34% have at least a
bachelor’s degree.” 15 Comparatively, only 24% of Boomers earned at least a
Bachelor’s degree or more, and between 39-41% of Boomers attained only a
high school degree. 16 Because of this and with the significant divide between
how much a Millennial with just high school earns versus that of a college
graduate, companies have a larger pool of applicants to pull from. For example,
12 The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots.
13 The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots.
14 The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots
15 "The Rising Cost of Not Going to College". Pew Research Center’s Social & Demographic Trends Project. Last modified 2014. Accessed November 23, 2016. http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/.
16 "The Rising Cost of Not Going to College". Pew Research Center’s Social & Demographic Trends Project. Last modified 2014. Accessed November 23, 2016. http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/
a Millennial with a bachelor’s degree earns an average of $17,500 more a year
than a Millennial who only has a high school education. This large gap in
potential income has caused more Millennials to strive to go to college with the
hope of entering the workforce at a higher level, thus making more money than if
they just relied on their high school diploma. On average, Boomers who were
college educated made on average $7,499 more than those who didn’t attend
college and only had a high school diploma.
For the Millennial Generation though a poor economy and a great
depression have helped to increase the amount of debt students take on and
harmed the perspective of all students who go to college of finding a well-paying
job in the field they studied in college. According to the Executive Office of the
President and his Council of Economic Advisers, “Student debt is due to greater
enrollment among Millennials and to the changing composition of student,
including a larger share of students from lower-income families who need to take
out more loans; other contributing factors include: rising tuitions, parents
impaired ability to use the equity in their homes to offset some portion of their
children’s college costs; and the fact that students are taking longer to repay
their loans.” 17
Currently in the United States, Americans owe “$1.3 Trillion in student loan
debt; and the average class of 2016 graduate has $37,172 in student loan debt,
up six percent from 2015.” 18 This massive debt, including the great recession
17 The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots
18 "U.S. Student Loan Debt Statistics For 2016 | Student Loan Hero". Student Loan Hero. Last modified 2016. Accessed November 23, 2016. https://studentloanhero.com/student-loan-debt-statistics/.
many Millennials faced during and post-graduation plays a crucial part into why
Millennials are perceived the way they are and why many continue to search for
that balance between work and life. According to the Council of Economic
Advisors,
“Early career economic conditions have a large and lasting impact on lifetime
wages, particularly for college graduates. Workers who start their careers in a
recession earn 2.5 to 9 percent less per year than those who do not for at least
15 years after starting a career. Research further suggests that one reason for
these lower earning is that new entrants take jobs that are a worse fit for them
when they start their careers in a recession.” 19
While students of prior generations had loans, they did not have them to “the
size and scope that recent grads are facing today; In 2005, the total outstanding
student loan debt was 363 billion. That means in just over ten years’ student
loans have grown by more than 350%, all while wages and family wealth for
most Americans either remained the same or went down.” 20
Many Boomers have been able to go to college and advance their careers
thanks to the Introduction and establishment of the G.I. Bill where military
members and veterans of military service could enroll in schools and colleges
with a decreased tuition. The G.I. Bill also offers unemployment pay and VA
Loans to those who serve so they can buy homes and provide for their families
which they may not have been able to afford during or post service. Other
19 The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots
20 Kelly, Patrick. "Who Bought the Blue Ribbons?". Medium. Last modified 2016. Accessed November 23, 2016. https://medium.com/@pk.patrick.kelly/who-bought-the-blue-ribbons-b71c029d273a#.7xi5ajyap.
generations have also been able to use the G.I. Bill for their military service, but
the Boomer Generation had a higher percentage at “21%” 21 of U.S. Military
participants because of multiple wars and the mandatory Draft they were forced
into. In retrospect “Millennials with military service makeup 3% 22 of the whole
U.S. Millennial Generation. This division helps to paint a picture of the
differences in which both generations faced and endure and shows an outline of
why Millennials seem to be a different generation than that of the Boomer
Generation.
Parents shaping of Millennials“Millennials are unlike preceding generation. They view the world differently
and have redefined the meaning of success, personally and professionally.” 23
Millennials come from an age where cultural differences were accepted, and
teamwork was required. Their parents constantly drove them to team sports and
pushed them to explore outside the box ideas. Their “exposure to team sports at
such a young age has made them the best team players and collaborators in
generations.” 24 Most Millennials thrive in a group and team setting because of
their upbringing. They work less efficiently when they are given too much
independence and when there is a lack of collaborative input and effort into
creating and achieving a common goal. But, there is a fine line between
21 Patten, Eileen and Richard Fry. "How Millennials Today Compare with Their Grandparents 50 Years Ago". Pew Research Center. Last modified 2015. Accessed November 23, 2016. http://www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents/#!17.
22 Patten, Eileen and Richard Fry. "How Millennials Today Compare With Their Grandparents 50 Years Ago". Pew Research Center. Last modified 2015. Accessed November 23, 2016. http://www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents/#!17.
23 Brack, Jessica and Kip Kelly. "Maximizing Millennials in The Workplace". Kenan-Flagler.Unc.Edu. Last modified 2012. Accessed November 23, 2016. https://www.kenan-flagler.unc.edu/executive-development/custom-programs/~/media/DF1C11C056874DDA8097271A1ED48662.ashx.
24 Brack, Jessica and Kip Kelly. "Maximizing Millennials in The Workplace". Kenan-Flagler.Unc.Edu. Last modified 2012. Accessed November 23, 2016. https://www.kenan-flagler.unc.edu/executive-development/custom-programs/~/media/DF1C11C056874DDA8097271A1ED48662.ashx.
independence and free thought. Millennials also require the ability to be able to
develop their own ideas and processes. They “have high expectations for
themselves; seek challenges, and work-life balance.” 25 These factors all stem
from the way their Boomer parents raised them. Millennial parents are the ones
who told them they were “special, to follow their heart, that they could do
anything they put their mind to, and who told them not to settle for anything less
than what you want.” 26 This idea can also be seen in the way in which millennial
parents rewarded Millennials through sports or other activities.
“Millennials as kids always got a participation ribbon. It didn't matter if you
were first or last, everyone got a ribbon. Putting in an effort and participating was
all that mattered. Millennials were rewarded for trying; Flash forward 15 years
and is it any wonder why Millennials; get frustrated with unfulfilling jobs, why
they continually try new projects, or why they can’t seem to find their true calling
yet? It’s because they were instilled with the idea that they should never settle
for anything less than what they want. That in the end, effort means more.” 27
Patrick Kelly a Millennial himself and the President of Change Point
Consulting a company who focuses on the voice of Millennials and Business
Culture describes the interaction he has had with his clients about Millennials
and business. He goes on to say that “It amazes me that I can talk with a Baby
Boomer leader of an organization, who in one breath talks about their kids as
the greatest thing to ever happen to the world, and how they are going to do
25 Gilbert, Jay. "The Millennials: A New Generation of Employees, A New Set of Engagement Policies". Iveybusinessjournal.com. Last modified 2011. Accessed November 23, 2016. http://iveybusinessjournal.com/publication/the-millennials-a-new-generation-of-employees-a-new-set-of-engagement-policies/.
26 Kelly, Patrick. "Who Bought the Blue Ribbons?". Medium. Last modified 2016. Accessed November 23, 2016. https://medium.com/@pk.patrick.kelly/who-bought-the-blue-ribbons-b71c029d273a#.7xi5ajyap.
27 Kelly, Patrick. "Who Bought the Blue Ribbons?". Medium. Last modified 2016. Accessed November 23, 2016. https://medium.com/@pk.patrick.kelly/who-bought-the-blue-ribbons-b71c029d273a#.7xi5ajyap.
great things, and how they are under-utilized at their workplace, all while
complaining about how Millennials these days come into their business with
inflated sense of self, thinking they can change the world and assume they can
do more than they actually can.” 28
Kelly’s description is precisely the dilemma in which many companies face,
and the idea which many Boomers have a tough time realizing, that their
children (Millennials) are in fact those same young people which they tend to
complain about entering the workplace.
Workplace FlexibilitySince this generation was brought up with everyone getting a trophy for
participation and being critiqued and given feedback right away for their work,
Millennial workers require constant recognition and comments for the work they
do. They need to be acknowledged by the other members of their team and their
managers to feel satisfied with their work output. Millennials also want flexibility
in the workplace. According to a study by PricewaterhouseCoopers (PwC), The
University of Southern California (USC), and The London Business School
(LSB), “64% of Millennials would like to occasionally work from home, and 66%
of Millennials would like to shift their work hours” 29. Encompassed in this idea of
flexibility is the need for a work-life balance, fewer hours in the office, and the
ability to travel and work in various locations. Millennials grew up watching their
parents (some of which were boomers) work long hours and sometimes not
prosper from such work. Therefore, Millennials prioritize a flexible work life
balance when looking for a new job. They are “largely unconvinced that what
28 Kelly, Patrick. "Who Bought the Blue Ribbons?". Medium. Last modified 2016. Accessed November 23, 2016. https://medium.com/@pk.patrick.kelly/who-bought-the-blue-ribbons-b71c029d273a#.7xi5ajyap.
29 "Pwc’s Nextgen: A Global Generational Study". Pwc. Last modified 2014. Accessed November 23, 2016. http://www.pwc.com/us/en/people-management/publications/nextgen-global-generational-study.html.
they would have to give up is worth such a sacrifice. Millennials value work/ life
balance, and are unwilling to commit to making their work lives an exclusive
priority even with the promise of substantial compensation later on.” 30 According
to U.S. Chairman of PWC Bob Moritz, “Millennials are less willing than Boomers
to make their work lives an exclusive priority, even when offered the prospect of
substantial future compensation.” 31 Boomers seem to take the opposite
viewpoint. They believe that long hours will equate to compensation later down
the road or in some cases will result in a lateral move up the corporate ladder.
While many generations in the current workforce want flexibility in the
workplace, Millennials truly need the flexibility of a work and life balance. They
are willing to leave a job to find that flexibility. “Boomers who are thinking of
retirement may also want to cut the number of hours they work.” 32 Companies
allowing flexible schedules, and work from home and telecommute options, give
their employees a chance to spend more time at home with their families. It also
allows them to pursue passions outside of work, rather than wasting time sitting
in traffic every day to go to their work. This idea of flexibility doesn’t just mean
the ability to work from home occasionally. Millennials also want to be able to
travel and live a more transient lifestyle. Since Millennials want flexibility in what
they do, many companies have begun to offer just that. Companies like the
“HourlyNerd, which plays matchmaker between companies seeking affordable
consultants and Millennial MBA’s looking for looser, more accommodating
30 Pwc’s Nextgen: A Global Generational Study". Pwc. Last modified 2014. Accessed November 23, 2016. http://www.pwc.com/us/en/people-management/publications/nextgen-global-generational-study.html.
31 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
32 “How to Manage Different Generations - Management - WSJ.Com". Guides.Wsj.Com. Last modified 2009. Accessed November 23, 2016. http://guides.wsj.com/management/managing-your-people/how-to-manage-different-generations/.
working relationships” 33 helps those Millennials achieve this common idea of a
flexible work environment. As a result, many companies have begun to allow
their employees to work in extended shifts in their overseas offices. The benefit
is that these employees will be exposed to other parts of the world and other
cultures, and give them the ability to work in the global market, possibly with the
ability to make them global leaders. Companies such as PwC realized that
because of their non-flexible work environment they were losing some of their
employees. To combat this, PwC Implemented programs such as “Full Circle for
people who need to stop working for a while for personal reasons; enabling
them to stay connected to the firm and reengage when their able.” 34 They have
also developed a program called “Flexibility2 Talent Network, which allows
people to work for the firm during the busiest few months and then pursue other
interests for the rest of the year; such as one individual who left to attend
medical school but returned to work for PwC during a break between courses.” 35
PWC’s new found flexibility doesn't stop there, though. They allow for
employees to schedule work around their personal commitments, and “spend
summers with their children as well as taking 23 weeks paid maternity leave, six
weeks’ personal leave, and allow mothers to take leave until their children are in
kindergarten.” 36 Also, those who have been employed with the company for a
few years are given the ability to “take life skill and leadership courses in
33 Fuller, Joseph. "How to Hire a Millennial". HBS Working Knowledge. Last modified 2016. Accessed November 23, 2016. http://hbswk.hbs.edu/item/how-to-hire-a-millennial.
34 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
35 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
36 Bannon, Shele, Kelly Ford, and Linda Meltzer. "Understanding Millennials in The Workplace". Connection.Ebscohost.Com. Last modified 2011. Accessed November 23, 2016. http://connection.ebscohost.com/c/articles/67764632/understanding-millennials-workplace .
California, or a four-week sabbatical where they can pursue an interest, travel,
volunteer, or stay at home with family.” 37 They also built a new Boston office
which allows for open and flexible work spaces. They converted their “offices
into co-working space, (known as hoteling), where employees can reserve a
seat or an office to work in using proprietary software or a mobile app; 90
percent of the company employees now hotel or share space when they are in
the office.” 38 According to one Millennial PwC employee, Amanda Miranda, “She
spends an average of one to three days a week in the office; when she isn’t
traveling she works from home.” 39 By giving their employees the ability to create
their perfect work environment, they allowed their employees to become more
engaged in their work which is one of the larger issues with Millennials.
Because of PwC’s commitment to their employees they have seen their
retention rates drastically increase, and could save $850 million in “recruiting
and training, and put a meaningful dent in overhead costs.” 40 The company has
also “increased its employee engagement by three percent” 41 since
implementation of their businesses’ new structure and culture. They are a prime
example of an organization that has adapted to a generational shift in their
workforce and offered options that allow their employees to have a more flexible
37 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
38 Colby, Laura. "How Satisfying Millennials Could Save Pwc $850 Million". Bloomberg.Com. Last modified 2016. Accessed November 23, 2016. http://www.bloomberg.com/news/articles/2016-03-23/millennial-habits-may-save-pwc-850-million-in-real-estate-costs.
39 Colby, Laura. "How Satisfying Millennials Could Save Pwc $850 Million". Bloomberg.Com. Last modified 2016. Accessed November 23, 2016. http://www.bloomberg.com/news/articles/2016-03-23/millennial-habits-may-save-pwc-850-million-in-real-estate-costs.
40 Colby, Laura. "How Satisfying Millennials Could Save Pwc $850 Million". Bloomberg.Com. Last modified 2016. Accessed November 23, 2016. http://www.bloomberg.com/news/articles/2016-03-23/millennial-habits-may-save-pwc-850-million-in-real-estate-costs.
41 Bannon, Shele, Kelly Ford, and Linda Meltzer. "Understanding Millennials in The Workplace". Connection.Ebscohost.Com. Last modified 2011. Accessed November 23, 2016. http://connection.ebscohost.com/c/articles/67764632/understanding-millennials-workplace .
schedule. Thus, they come to work refreshed and willing to work hard and can
also serve as positive promoters for the culture and balance at the organization.
Millennial Turnover RatesWhen searching for a new job, Millennials look for an environment where
teamwork and group decision-making are emphasized, and for employers where
they can make a difference and excel in the company. These needs became a
large issue for some companies as they began to see large Millennial turnover
rates and were trying to diagnose why. Before the Millennial generation joining
the workforce, “some organizations preferred to screen out applicants who had
changed jobs frequently in the past to have a stable workforce.” 42 This practice
today could harm a company. Formerly many older generations including the
Baby Boomer generation, “entered the workforce when the predominant career
management strategy was to enter a firm, work hard be loyal to the organization,
and be rewarded with job security; during one’s career path they often entailed a
sequence of jobs within a single organization.” 43
According to a study by the Bureau of Labor Statistics, in 2014 the
“median job tenure for workers aged 20-24 was shorter than 16 months, for
those aged 25 to 34 it was three years.” 44 Studies have also shown that “21% of
Millennial workers had left their job in the last year to do something else, a
number that is more than three times higher than that of non-Millennials.” 45
Millennials’ needs in the workplace play a significant role in their turnover rates. 42 Becton, John Bret, Harvell Jack Walker, and Allison Jones-Farmer. "Generational Differences in
Workplace Behavior". Journal of Applied Social Psychology 44, no. 3 (2014): 175-189.43 Becton, John Bret, Harvell Jack Walker, and Allison Jones-Farmer. "Generational Differences in
Workplace Behavior". Journal of Applied Social Psychology 44, no. 3 (2014): 175-189.44 Gellman, Lindsay. "Millennials: Love Them or Let Them Go". WSJ. Last modified 2015. Accessed
November 23, 2016. http://www.wsj.com/articles/how-employers-wrangle-restless-millennials-1430818203.45 Rigoni, Brandon and Amy Adkins. "What Millennials Want from A New Job". Harvard Business Review.
Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/05/what-millennials-want-from-a-new-job.
Studies have shown that “20 percent of lost employees went directly to
competitors.” 46 A Deloitte study has also demonstrated that “During the next
year if given a chance, one in four Millennials would quit their current employer
to join a new organization or to do something different. That figure is increased
to 44 percent when the time frame is expanded to two years. By the end of
2020, two of every three respondents hope to have moved on.” 47This study by
Deloitte in 2016 also showed that “50 percent of male and 48 percent of female
respondents feel they are being overlooked for potential leadership positions,
and that business is not doing enough to bridge the gap to ensure a new
generation of business leaders is created.” 48 This alone should cause
employers to look at what they could change for the betterment of their
workforce, and what their competition is doing better to prompt their employee to
jump ship.
Employee turnover can cost companies more than just that employee. On
average, “it can cost anywhere from 30-400% (the average being 150%) of an
employee’s annual salary to replace them depending on their level, experience,
and skill set.” 49 This cost is associated with the amount it will cost to advertise
the open position, the cost of interviewing candidates, the cost of on-boarding
and training those new candidates, the lower productivity of the new hires, and
the impact and productivity on other employees because of the increase in 46 Gallant, Melany. "Does Your Organization Have Healthy Employee Turnover Rate?". Halogen Software
Talent Management Blog. Last modified 2013. Accessed November 23, 2016. http://www.halogensoftware.com/blog/does-your-organization-have-healthy-employee-turnover.
47 Deloitte "MS2016: One Foot Out the Door | Deloitte | Social Impact, Innovation". Deloitte. Last modified 2016. Accessed November 23, 2016. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/gx-millennials-one-foot-out-the-door.html.
48 Deloitte "MS2016: One Foot Out the Door | Deloitte | Social Impact, Innovation". Deloitte. Last modified 2016. Accessed November 23, 2016. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/gx-millennials-one-foot-out-the-door.html.
49 Gallant, Melany. "Does Your Organization Have Healthy Employee Turnover Rate?". Halogen Software Talent Management Blog. Last modified 2013. Accessed November 23, 2016. http://www.halogensoftware.com/blog/does-your-organization-have-healthy-employee-turnover.
workload, and loss of a colleague. There is also the threat of other employees
following their lead and leaving because they see that their former colleague is
more successful in a different environment.
A company could continue to lose the rest of their workforce or see
increased costs in onboarding and training if it fails to engage Millennials and
meet their needs. When an employee leaves, it puts a burden on the rest of the
team to pick up the slack. Managers must redistribute the workload, leading to
higher stress levels, lower quality of work and production, burn-outs, disputes,
and ultimately more lost employees. With the multi-generational workforce of
today, this vast percentage of turnover can also lead to generational bias in the
workplace. When an employee leaves, Millennial or Boomer, it creates a loss for
the company. This is because it could take up to 6-8 months for the company to
find a replacement and, in some cases, “a new employee could take up to two
full years to reach the same level of productivity as an existing staff member.” 50
So, is the cost of failing to recognize the needs of the Millennial generation worth
the loss to companies? Many organizations believe that it isn’t worth the cost
and that the cost of engaging their Millennial employees is worth the funding and
effort.
Engaging Millennial EmployeesTo keep with the ever-changing make-up of the new Millennial corporate
world, companies have begun to restructure the way they lead, manage, and run
their corporate culture. Millennial employees have a different style of work and
expectations compared to other generations. As Millennials have become the
50 Kantor, Julie. "High Turnover Costs Way More Than You Think". The Huffington Post. Last modified 2016. Accessed November 23, 2016. http://www.huffingtonpost.com/julie-kantor/high-turnover-costs-way-more-than-you-think_b_9197238.html.
largest workforce in the country, companies have had to take a hard look at the
way their organizations are managed. Otherwise, they run the risk of being left
behind by losing their staff and going out of business. They must work with
Millennials to make sure they have the work life balance, reward and recognition
programs and team-based environment they need to be successful.
Many Millennials put a high priority on being engaged in their work and at
the workplace. In 2015, a Gallup Research poll found that “Millennials are the
least engaged cohort in the workplace, with only 28.9% saying that they are
engaged at work.” 51 These findings were also seen in the NexGen Study by
PWC, USC, and LSB. A PwC Millennial employee said “If the work doesn’t
interest you, you can quit in two or three years. It doesn’t matter. You can
change the place you work - Liking your work is more important.” 52Employee
engagement issues are why companies need to develop new engaging,
exciting, and flexible work environments and projects that encourage Millennials
to want to work hard and commit long-term to their job and career. This
atmosphere has been created in companies such as “Google, Facebook,
Morningstar, Orbitz, Zappos, and the Big Four Accounting firms; have created
environments that meet Millennials’ needs and expectations, which include open
workspaces and cutting edge technologies.” 53 The Millennial generation’s focus
and need to enjoy the work they do can be traced back to watching their parents
regularly work long hours, and then lose their jobs when the economy
51 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
52 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
53 Bannon, Shele, Kelly Ford, and Linda Meltzer. "Understanding Millennials in The Workplace". Connection.Ebscohost.Com. Last modified 2011. Accessed November 23, 2016. http://connection.ebscohost.com/c/articles/67764632/understanding-millennials-workplace.
plummeted, gaining nothing from their hard work and dedication to their jobs.
This is also the reason why many people in this generation do not trust big
businesses - where they feel their work is not valued. To engage the Millennial
worker companies such as Facebook instruct new engineer employees to “go
find the place you’re going to make the most impact, and think very, very
carefully about what that means for you and the world. Think about where you
are going to have the impact, and go do it.” 54
When searching for a new job, another important selection criterion for
Millennials is a company’s involvement in their community and volunteer
opportunities. Millennials are different than other generation, “almost 70% say
that giving back and being civically engaged are their highest priorities.” 55
Companies who have a volunteer or community outreach page on their website
can effectively draw in Millennial candidates because it clearly shows that they
are involved in their communities and are looking for staff who have similar core
values. Studies have shown that this generation is “keen to see their work as
addressing larger societal concerns, a factor that has affected their career
choices more than those of older generations.” 56 This growing ambition to help
others is why many Millennials chose their current employers. “60% of
Millennials said a sense of purpose is part of the reason they chose to work at
their current employer.” 57 Many companies have acted on this by creating 54 McCracken, Harry. "How Facebook Keeps Scaling Its Culture". Fast Company. Last modified 2015.
Accessed November 23, 2016. https://www.fastcompany.com/3053776/behind-the-brand/how-facebook-keeps-scaling-its-culture.
55 Gilbert, Jay. "The Millennials: A New Generation of Employees, A New Set of Engagement Policies". Iveybusinessjournal.Com. Last modified 2011. Accessed November 23, 2016. http://iveybusinessjournal.com/publication/the-millennials-a-new-generation-of-employees-a-new-set-of-engagement-policies/.
56 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
57 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-
programs that help make a difference. For example, GE’s Power and Water
business established the Ecomagination Nation Initiative. “Over the first three
years of this program, more than 8,000 employees worldwide engaged in
community volunteer activities, reducing greenhouse gas emissions by 31
percent and water use by 42 percent.” 58 PwC also found that by engaging in
their communities and abroad that they saw a slowdown in turnover rates in their
employees. PwC, for example, developed a program called Project Belize,
“Which is part of Earn Your Future, a $160 million commitment to increasing the
financial literacy of students.” 59 In their NexGen study they found that “those
who participated in Project Belize or more than one CR (Corporate
Responsibility) program had an average tenure of 7.4 years while those who
took part in none stayed with the company an average of 6.3 years.” 60
By engaging in corporate responsibility, companies held on to their
employees longer than they would have if they didn’t engage at all. It appeals to
the personal side of people rather than just their need to perform well at work.
This idea of corporate responsibility and giving back to the community allows for
a company to market themselves more towards the Millennial generation. It can
also serve as word-of-mouth advertising for recruiting other Millennials to their
businesses. Being a part of a community by reaching out and giving back and
being a part of a culture is a huge draw for many young people because they
takes-more-than-flexible-work-policies.58 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business
Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
59 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
60 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
can build and develop relationships with their peers and colleagues, as well as
do something that makes them feel valued.
Growing and LearningThe Millennial Generation also puts great emphasis on developing
professionally at an organization. This simply means that they want to be able to
learn, develop, and grow their skill-set, so they can further their career and take
on more responsibility. “Millennials fundamentally think about their role as a
stepping stone and growth opportunity.” 61 According to a Gallup review of 1,700
workers in the U.S. Millennials place more emphasis on the opportunity to learn
and grow, and the opportunity for advancement. While Boomers put more
emphasis on their overall compensation, this idea has become a major focus of
companies who are trying to cater to the wants and needs of Millennials. For
instance, Companies such as PwC have begun to establish mentorship and
reverse mentorship programs. The idea behind this mentorship program is to
allow Millennials to learn about different aspects of the business, develop skills
that will help them grow professionally and personally, and have a senior mentor
who will help guide and shape their career path. “Mentoring evokes a deeply
personal relationship that requires a natural connection between mentor and
protégé that often takes log time to develop.” 62
The idea of reverse mentorship programs is relatively new in the
corporate world. Because of a technological divide between Boomers and
Millennials, many companies have developed programs where Millennials, a.k.a.
The mentee, teach their mentors about different aspects of new and current
61 Rigoni, Brandon and Amy Adkins. "What Millennials Want from A New Job". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/05/what-millennials-want-from-a-new-job,
62 Tulgan, Bruce. Not Everyone Gets a Trophy. 1st ed. Hoboken: John Wiley and Sons, Inc., 2016.
technology so that they too can be on an even playing field with Millennials.
These programs allow the entire workforce to participate and mutually benefit
from one another; ideally, killing two birds with one stone, because Millennials
want to learn and excel from the tenured experience of their mentors. And, at
the same time pass along their expertise to senior members of the organization.
These reverse mentorship programs are mutually beneficial because “the
younger worker is a faced with a potentially accelerated career track, as the
mentoring arrangement raise their profile among senior executives of the firm.
And the executive mentees have the opportunity to gain understanding of a
segment of their workforce they might not otherwise get to know.” 63
CollaborationThese opportunities also open the doors for collaboration and allow
employees of all generations to share their ideas with one another. BNY Mellon
implemented a reverse mentor program which gave a junior member of the bank
a chance to mentor the CEO, Gerald Hassell, who “often uses the millennial as
a sounding board for ideas. He wanted to downsize the bank's real-estate
footprint and asked her opinion on desk sharing. He wanted to know where
people her age were investing, how they were investing, and how the next
generation consumes information.” 64 It can also help managers to understand
better how to work with their employees.
PwC compiled data from a NexGen study they performed and decided
they needed to engage their employees better. They decided to be more
63 Meister, Jeanne and Karie Willyerd. "Mentoring Millennials". Harvard Business Review. Last modified 2010. Accessed November 23, 2016. https://hbr.org/2010/05/mentoring-millennials.
64 Wadhwa, Tina. "Meet The 31-Year-Old Who Mentors the CEO Of A $44 Billion Company". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/31-year-old-employee-mentors-the-ceo-of-bny-mellon-in-reverse-mentoring-program-2016-7.
transparent about how the company was doing, the direction they were heading,
the key initiatives they are working on and allowed younger employees to
engage into the decision-making process. They “asked them for ideas on how to
invest in human capital and what the firm’s next $100 Million idea should be.” 65
An astonishing 70% of the firm’s employees gave the organization input on ways
they should invest their funds. By allowing their employees to be part of the
decision-making process, the company also made them feel personally invested
in the success and growth of the business.
Decision-Making and PerksTo continue with their findings, PwC also decided they should allow
employees to decide how they should receive their bonuses. These employees
were given the opportunity to “receive their rewards as cash, gift cards, product
packages, or even match charitable contributions.” 66 This gives the employee
the power to choose the best way to receive their reward and be involved in that
process, instead of only getting a sum of money dropped into their bank
accounts.
PwC isn’t the only company that has decided to use this method to engage
their employees by allowing them to make their decisions on bonuses. Boston’s
Fidelity has a program where it helps their employees with student debt. “All full-
time employees at the manager level and below can get up to $2,000 a year
paid towards their student loans, and up to a total of $10,000.” 67 By giving their 65 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review.
Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
66 Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
67 McGregor, Jena. "The Popular New Perk Companies Are Using to Attract Millennials". The Washington Post- Leadership. Last modified 2015. Accessed November 23, 2016. https://www.washingtonpost.com/news/on-leadership/wp/2016/03/15/the-popular-new-perk-companies-are-
employees the ability to pay down their student debt, which on average is
$35,000 or more, employees can worry less about their student debt and focus
more on their everyday life. This program also makes employees feel that their
hard work and hours put in were not overlooked. These organizational changes
allowed employees to be more involved and invested in their futures which can
have a lasting impact on their lives.
Businesses have also partnered with organizations like Student Loan
Genius which allows companies to help employees by contributing to their
401(k)-retirement plan when they make a student loan payment. “When workers
make a student loan payment, it triggers the company to make a 401(k)
contribution on their behalf, even if the employee can’t afford to put money into
their 401(k) themselves after paying their loans.” 68 This program helps sway
employees from leaving companies for organizations that will sometimes pay
them only a couple percent more than their current employer. It also allows them
not to have to worry about saving as much in the future, a primary concern of
many Millennials.
Companies such as Google, Netflix, Airbnb, Adobe, and Facebook also
offer enticing perks for their employees that focus on the needs and wants of the
Millennial, Generation employee. For instance, Google offers many enticing
perks for their employees including maternity leave but many awe at googles
providing death benefits perk as a top perk. “Google provides the surviving
spouse or partner of a deceased employee 50% of their salary for the next ten
using-to-attract-millennials/.68 McGregor, Jena. "The Popular New Perk Companies Are Using to Attract Millennials". The Washington
Post- Leadership. Last modified 2015. Accessed November 23, 2016. https://www.washingtonpost.com/news/on-leadership/wp/2016/03/15/the-popular-new-perk-companies-are-using-to-attract-millennials/.
years.” 69 But Google isn’t alone in poaching on the needs of the Millennial
generation through perks to bring them into their companies. “Netflix offers one
paid year of maternity and paternity to leave to new parents. The company also
allows parents to return part time or full time and take time off as needed
throughout the year.” 70 Facebook also play into the family starting perk, by
giving “$4,500 in baby cash to employees with a newborn.” 71 These perks allow
Millennial families to take the time they need to start a family and, in some
cases, to afford to start a family, which has been pushed back by many
Millennials because of the state of the economy, the job market, and high
student loans.
Technology in the workplaceTechnology is always changing and is another hurdle that businesses
must face when adapting to Millennials’ needs. This plays into the idea of
creating new, engaging, and exciting work environments that make Millennials
want to come to work. The Millennial generation's relationship with technology
goes hand and hand. Because of this, they “expect the technologies that
empower their personal lives to also drive communication and innovation in the
workplace.” 72 We live in the age of technology there is no excuse for not having
systems that promote constant and simultaneous conversation throughout
69 Smith, Jacquelyn. "20 Incredible Perks Companies Like Airbnb, Facebook, And Google Offer Their Employees". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/incredible-perks-companies-like-airbnb-facebook-and-google-offer-their-employees-2016-2.
70 Smith, Jacquelyn. "20 Incredible Perks Companies Like Airbnb, Facebook, And Google Offer Their Employees". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/incredible-perks-companies-like-airbnb-facebook-and-google-offer-their-employees-2016-2.
71 Smith, Jacquelyn. "20 Incredible Perks Companies Like Airbnb, Facebook, And Google Offer Their Employees". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/incredible-perks-companies-like-airbnb-facebook-and-google-offer-their-employees-2016-2.
72 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
organizations. Companies like ADP, Ingersoll Rand, Novartis, and IBM have
answered the needs of their employees by adding tools such as “Yammer, Jive,
Chatter, and Slack- along with the big social networks, Facebook, LinkedIn, and
Twitter to help employees and executives exchange ideas in open forums and
collaborate across functional, geographic boundaries.” 73 Many firms are also
creating social media platforms within their organization to allow their employees
to connect on a personal level. Companies are also using programs such as
Dare2Share, which is a peer to peer learning program. This program allows for
mentorship opportunities throughout a company but also allows employees to
upload short 10 minute videos in which others can view and learn about a
subject or topic. It has helped to get “New hires up to speed more quickly,
allowing training cost to fall; It has also become a communication tool of choice
for some CEO’s to report quarterly results via short videos, which gives his
message broader exposure.” 74
Millennials though are a little ahead of the game when it comes to how to
use technology. The modern-day employee uses technology to their advantage
and will often multi-task to balance their personal lives and work. Dan Schawbel,
a contributing writer for Forbes magazine, wrote an article highlighting how
important work-life integration has become. “30 million Americans work from
home at least once each week, which will increase by 63% in the next five
years. About 3 million Americans never go to an office, and 54% are happier
working from home than in an office. Furthermore, 70% of employees work from
73 Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
74 Meister, Jeanne and Karie Willyerd. "Mentoring Millennials". Harvard Business Review. Last modified 2010. Accessed November 23, 2016. https://hbr.org/2010/05/mentoring-millennials.
alternative locations (not just home) on a regular basis.” 75 Businesses need to
be able to offer their employees the option to work from home to keep up with
the new standard. And they also need to have the technology and IT
infrastructure to support this effort. “However once people are hired to research
has shown culture and values, career opportunities and senior leadership, not
perks are the leading factors that impact employee’s satisfaction, which directly
affects a company’s talent retention rate.” 76
Managing Multiple GenerationsManagers of current day organizations face an interesting dilemma: How
do you bridge the gap between multiple generations in the workplace, and meet
their needs, so they continue to perform with the company? “Traditionally,
personal issues were off limits; managers had it drilled into them that they were
not to inquire about an employee’s personal life, such questions could upset
employees and even land managers in legal hot water.” 77 In today’s Millennial
work environment this isn’t the case at all. The Millennial generation grew up in
an age of being coached, so this is what they are looking for in a manager and
management team. Millennials want to be cared for and feel as though they are
a part of the company. When they are treated like a nobody and get the feeling
they aren’t appreciated or wanted, they ultimately end up looking for another
employer. “Millennials expect managers to treat them not as working stiffs, not
just another faceless worker, rather as people with well- rounded lives; by asking
75 Schawbel, Dan. "Work Life Integration: The New Norm". Forbes.Com. Last modified 2014. Accessed November 23, 2016. http://www.forbes.com/sites/danschawbel/2014/01/21/work-life-integration-the-new-norm/#69117f702184.
76 Smith, Jacquelyn. "20 Incredible Perks Companies Like Airbnb, Facebook, And Google Offer Their Employees". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/incredible-perks-companies-like-airbnb-facebook-and-google-offer-their-employees-2016-2.
77 Kaneshige, Tom. "How to Manage Millennials: Let Them Do Whatever They Want". CIO. Last modified 2014. Accessed November 23, 2016. http://www.cio.com/article/2376318/staff-management/how-to-manage-millennials--let-them-do-whatever-they-want.html.
personal questions, such as what might they be up to this weekend, managers
let Millennials know they are cared about.” 78 Because Millennials were brought
up into an environment of constant feedback and praise for their work, it is
important for managers to understand their differences and needs from other
generation like the Baby Boomers. In a study published in the Harvard Business
Review (HBR) in 2015, Millennials and Baby Boomers were asked: “how often
do you want feedback from your managers?” 50% of those Millennials asked
said that they would prefer that managers give them feedback monthly,
compared to the non- Millennial generations that preferred quarterly and annual
reviews and feedback from managers. Some 20% of Millennials said they would
also like weekly feedback and reviews, only around 10% of Boomers seemed to
like this idea. One Millennial in the study featured in HBR said that they “would
like to move ahead in my career. To do that it’s crucial to be in touch with my
manager, constantly getting coaching and feedback from them so that I can be
more efficient and proficient.” 79
Managers are the common point of reference for employees, they delegate
duties, and are the direct line to upper management when an issue occurs.
Managers are supposed to be there to help bridge the gap between associates
and executives. Therefore, it is important that managers know how to close the
gap.
“Every behavior of a leader matters and the little efforts add up. Just by
noticing an employee’s efforts, commenting on it privately or at a team
78 Kaneshige, Tom. "How to Manage Millennials: Let Them Do Whatever They Want". CIO. Last modified 2014. Accessed November 23, 2016. http://www.cio.com/article/2376318/staff-management/how-to-manage-millennials--let-them-do-whatever-they-want.html.
79 Willyerd, Karie. "Millennials Want to Be Coached at Work". Harvard Business Review. Last modified 2015. Accessed November 23, 2016. https://hbr.org/2015/02/millennials-want-to-be-coached-at-work.
meeting, and telling them how they are progressing towards their goals
inspires employees; your job as a manager is to coach that new person
while they are most fragile, rather than fostering a sink-or-swim
environment.” 80
Millennials just want managers who they can look up to as a role model,
and model their careers after. Managers can do this by “telling stories of their
failures and struggles, as well as their victories.” 80 These stories help
employees to grasp ideas, and simplify the reasons why they should and
shouldn’t do certain things in their careers. Stories also help to make things less
formal and more personal, inferring that manager is approachable and available
for discussions. Managers also have tools they can use to bridge this gap
between generations and management. A tool such as “The Birkman Method
can assist managers in building highly functional teams, workgroups or
departments, by helping employees understand how others receive and process
information.” 81 If a manager is approachable, can listen and give feedback
regularly, and can inspire the drive inside their employees, they are going to do
well in this new corporate Millennial world.
Companies like GE have heard Millennials’ needs loud and clear. In doing
so, they have “uprooted their long-time headquarters from suburban
Connecticut; to the city of Boston because Stamford was simply too hard of a
80 Willyerd, Karie. "Millennials Want to Be Coached at Work". Harvard Business Review. Last modified 2015. Accessed November 23, 2016. https://hbr.org/2015/02/millennials-want-to-be-coached-at-work.
81 Businesswire.com "The Birkman Method (R) Helps Baby Boomers, Gen-Xers And Gen- Yers Communicate in The Workplace Based on Individual Behaviors, Style, And Needs". Businesswire.Com. Last modified 2008. Accessed November 23, 2016. http://www.businesswire.com/news/home/20080617005209/en/Birkman-Method-Helps-Baby-Boomers-Gen-Xers-Gen-Yers.
sell to make to the increasingly urban Millennials.” 82 The Millennial generation
isn’t as compelled by the suburbs as Boomers were, or with “full-time work in a
traditional office environment, with gradual advancement, and a retirement plan.”
83
CONCLUSIONIn the business community, Millennials have joined the workforce and are
trying to navigate their first jobs to find a career direction and purpose.
Corporate leaders need to pay attention to the main features that make this
generation stand out from other generations. A need for flexibility, rewards and
recognition, and being involved are just a few of the needs Millennials require.
Millennials have these characteristics because of their upbringing. Parents of
Millennials taught their children they can do or be anything they wanted to do,
and to shoot for the stars. They were given constant feedback and were taught
to work in groups and teams. Thus, the Millennial generation functions differently
from many prior generations. Because Millennials have overtaken Baby
Boomers as the largest group in the U.S. work-force, corporations and
businesses need to recognize that these younger employees think and do things
differently in comparison to previous workers. Businesses will be left behind if
they are unable to recognize and react to the differences between the outgoing
Baby Boomers and the newcomer Millennials.
82 Fuller, Joseph. "How to Hire a Millennial". HBS Working Knowledge. Last modified 2016. Accessed November 23, 2016. http://hbswk.hbs.edu/item/how-to-hire-a-millennial.
83 Fuller, Joseph. "How to Hire a Millennial". HBS Working Knowledge. Last modified 2016. Accessed November 23, 2016. http://hbswk.hbs.edu/item/how-to-hire-a-millennial.
ReferencesBannon, Shele, Kelly Ford, and Linda Meltzer. "Understanding Millennials in The
Workplace". Connection.Ebscohost.Com. Last modified 2011. Accessed November 23, 2016. http://connection.ebscohost.com/c/articles/67764632/understanding-millennials-workplace.
Becton, John Bret, Harvell Jack Walker, and Allison Jones-Farmer. "Generational Differences in Workplace Behavior". Journal of Applied Social Psychology 44, no. 3 (2014): 175-189.
Benson, Tracy. "Motivating Millennials Takes More Than Flexible Work Policies". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/02/motivating-millennials-takes-more-than-flexible-work-policies.
Brack, Jessica and Kip Kelly. "Maximizing Millennials in The Workplace". Kenan-Flagler.Unc.Edu. Last modified 2012. Accessed November 23, 2016. https://www.kenan-flagler.unc.edu/executive-development/custom-programs/~/media/DF1C11C056874DDA8097271A1ED48662.ashx.
Businesswire.com "The Birkman Method (R) Helps Baby Boomers, Gen-Xers And Gen- Yers Communicate in The Workplace Based on Individual Behaviors, Style, And Needs". Businesswire.Com. Last modified 2008. Accessed November 23, 2016. http://www.businesswire.com/news/home/20080617005209/en/Birkman-Method-Helps-Baby-Boomers-Gen-Xers-Gen-Yers.
Colby, Laura. "How Satisfying Millennials Could Save Pwc $850 Million". Bloomberg.Com. Last modified 2016. Accessed November 23, 2016. http://www.bloomberg.com/news/articles/2016-03-23/millennial-habits-may-save-pwc-850-million-in-real-estate-costs.
Deloitte "MS2016: One Foot Out the Door | Deloitte | Social Impact, Innovation". Deloitte. Last modified 2016. Accessed November 23, 2016. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/gx-millennials-one-foot-out-the-door.html.
Espinoza, Chip and Mick Ukleja. Managing the Millennials. 2nd ed. Hoboken: John Wiley and Sons, Inc., 2016.
Fuller, Joseph. "How to Hire a Millennial". HBS Working Knowledge. Last modified 2016. Accessed November 23, 2016. http://hbswk.hbs.edu/item/how-to-hire-a-millennial.
Gallant, Melany. "Does Your Organization Have Healthy Employee Turnover Rate?". Halogen Software Talent Management Blog. Last modified 2013. Accessed November 23, 2016. http://www.halogensoftware.com/blog/does-your-organization-have-healthy-employee-turnover.
Gellman, Lindsay. "Millennials: Love Them or Let Them Go". WSJ. Last modified 2015. Accessed November 23, 2016. http://www.wsj.com/articles/how-employers-wrangle-restless-millennials-1430818203.
Gilbert, Jay. "The Millennials: A New Generation of Employees, A New Set of Engagement Policies •". Iveybusinessjournal.Com. Last modified 2011. Accessed November 23, 2016. http://iveybusinessjournal.com/publication/the-millennials-a-new-generation-of-employees-a-new-set-of-engagement-policies/.
"How to Manage Different Generations - Management - WSJ.Com". Guides.Wsj.Com. Last modified 2009. Accessed November 23, 2016. http://guides.wsj.com/management/managing-your-people/how-to-manage-different-generations/.
Kaneshige, Tom. "How to Manage Millennials: Let Them Do Whatever They Want". CIO. Last modified 2014. Accessed November 23, 2016. http://www.cio.com/article/2376318/staff-management/how-to-manage-millennials--let-them-do-whatever-they-want.html.
Kantor, Julie. "High Turnover Costs Way More Than You Think". The Huffington Post. Last modified 2016. Accessed November 23, 2016. http://www.huffingtonpost.com/julie-kantor/high-turnover-costs-way-more-than-you-think_b_9197238.html.
Kelly, Patrick. "Who Bought the Blue Ribbons?". Medium. Last modified 2016. Accessed November 23, 2016. https://medium.com/@pk.patrick.kelly/who-bought-the-blue-ribbons-b71c029d273a#.7xi5ajyap.
McCracken, Harry. "How Facebook Keeps Scaling Its Culture". Fast Company. Last modified 2015. Accessed November 23, 2016. https://www.fastcompany.com/3053776/behind-the-brand/how-facebook-keeps-scaling-its-culture.
McGregor, Jena. "The Popular New Perk Companies Are Using to Attract Millennials". The Washington Post- Leadership. Last modified 2015. Accessed November 23, 2016. https://www.washingtonpost.com/news/on-leadership/wp/2016/03/15/the-popular-new-perk-companies-are-using-to-attract-millennials/.
Meister, Jeanne and Karie Willyerd. "Mentoring Millennials". Harvard Business Review. Last modified 2010. Accessed November 23, 2016. https://hbr.org/2010/05/mentoring-millennials.
Moritz, Bob. "The U.S. Chairman of Pwc On Keeping Millennials Engaged". Harvard Business Review. Last modified 2014. Accessed November 23, 2016. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged.
Patten, Eileen and Richard Fry. "How Millennials Today Compare with Their Grandparents 50 Years Ago". Pew Research Center. Last modified 2015. Accessed November 23, 2016. http://www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents/#!17.
Pew Research "Millennials: Confident. Connected. Open to Change". Pew Research Center’s Social & Demographic Trends Project. Last modified 2016. Accessed November 23, 2016. http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to-change/.
"Pwc’s Nextgen: A Global Generational Study". Pwc. Last modified 2014. Accessed November 23, 2016. http://www.pwc.com/us/en/people-management/publications/nextgen-global-generational-study.html.
Rigoni, Brandon and Amy Adkins. "What Millennials Want from A New Job". Harvard Business Review. Last modified 2016. Accessed November 23, 2016. https://hbr.org/2016/05/what-millennials-want-from-a-new-job.
Schawbel, Dan. "Work Life Integration: The New Norm". Forbes.Com. Last modified 2014. Accessed November 23, 2016. http://www.forbes.com/sites/danschawbel/2014/01/21/work-life-integration-the-new-norm/#69117f702184.
Smith, Jacquelyn. "20 Incredible Perks Companies Like Airbnb, Facebook, And Google Offer Their Employees". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/incredible-perks-companies-like-airbnb-facebook-and-google-offer-their-employees-2016-2.
"The Rising Cost of Not Going to College". Pew Research Center’s Social & Demographic Trends Project. Last modified 2014. Accessed November 23, 2016. http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/.
The White House "15 Economic Facts About Millennials – The White House". Medium. Last modified 2014. Accessed November 23, 2016. https://medium.com/the-white-house/15-economic-facts-about-millennials-61ed355feeb3#.40273jots.
Tulgan, Bruce. Not Everyone Gets a Trophy. 1st ed. Hoboken: John Wiley and Sons, Inc., 2016.
U.S. Census Bureau. "Millennials Outnumber Baby Boomers and Are Far More Diverse". The United States Census Bureau. Last modified 2015. Accessed November 23, 2016. http://www.census.gov/newsroom/press-releases/2015/cb15-113.html.
"U.S. Student Loan Debt Statistics For 2016 | Student Loan Hero". Student Loan Hero. Last modified 2016. Accessed November 23, 2016. https://studentloanhero.com/student-loan-debt-statistics/.
Wadhwa, Tina. "Meet The 31-Year-Old Who Mentors the CEO Of A $44 Billion Company". Business Insider. Last modified 2016. Accessed November 23, 2016. http://www.businessinsider.com/31-year-old-employee-mentors-the-ceo-of-bny-mellon-in-reverse-mentoring-program-2016-7.
Willyerd, Karie. "Millennials Want to Be Coached at Work". Harvard Business Review. Last modified 2015. Accessed November 23, 2016. https://hbr.org/2015/02/millennials-want-to-be-coached-at-work.