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Just the Facts about Millennials Brenda Kowske | Page 2
education levels, and skills sets. HR’s job is even more complex when
it comes to generational differences; there are so many stereotypes to
sort through, that it is almost impossible to create programs and make
decisions based on fact.
This research bulletin reviews the facts – the published empirical
research – to answer the question, “Just how different is the Millennial
generation?” Once we understand the Millennials, we can turn
our attention to how they are supported by HR and managed by
their bosses. This research bulletin reveals the gaps between what
Millennials need at work and current practices, giving clear direction
for improvement.
The Changing of the Guard
A generation’s identity is at the crosshairs of age and history. When
a major historical event occurs, like a world war, a breakthrough in
technology or a natural disaster, older and younger people experience
them differently. As we grow older, people’s ideas and perspectives
change with age – but this is not always based on their generation. For
example, younger people tend to have more angst and older people
are more conservative – but these differences are the same regardless of
generation. When we read reports of generational differences and the
stereotypes they imply, we are attempting to describe and understand
the identity of that generation3, not their perspectives due to their ages.
Societies are motivated to understand each new generation’s
identity because it will literally change the world. The ebb and
flow of generations change society through what has been called,
“demographic metabolism4.” As a new generation is socialized by older
people into their culture, the younger generation simultaneously brings
their own unique experience of the events occurring around them.
3 Often, research labeled “generational” actually might be reporting age-related differences in opinions or perspectives. Only time-series or longitudinal designs can adequately statistically control for age by comparing the generations when they were the same age. For this report, we have attempted to review the research with an emphasis on true generational, not age-related, differences.
4 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.
Just the Facts about Millennials Brenda Kowske | Page 3
The new generation’s identity works as a change agent, counteracting
conservative societal forces, and reshapes culture, societal values,
politics and industry5,6.
As members of the young generation grow up, their perspectives and
values will undoubtedly bring about change – but what kind of change
is uncertain. For example, the GI and Silent Generations (the parents of
the Boomers) had no idea that their children would make giant leaps
toward racial equality in the 1960s. In their youth, the Boomers took
to the streets and raised their voices; they touted that “separated but
equal” was not equal at all. After 60 years of brutal discrimination, they
brought a country together like never before.
Millennials, too, will have a chance to make their mark on history as
they rise to prominence in industry. By 20297, the U.S. workforce will
have waved “bye-bye” to the Baby Boomers (Boomers – ages 51 to 68
at press), leaving Generation-X (Gen-X – ages 30 to 50), the Millennials
(ages 8 to 29) and their successors at the helm of organizations.8 But
how will they lead?
Twenty-eight percent of managerial positions are already held by
Millennials, which is enough talent to succeed Boomers’ share of
leadership positions at 23 percent9; Gen-X comprises the remainder.10 In
other words, we have a pipeline full of Millennials on their way up the
ladder. Undoubtedly, Millennials have not ascended to the same level
5 Source: “The problem of generations,” Essays on the sociology of knowledge / K. Mannheim, Routledge & Kegan Paul Ltd., 1952.
6 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.
7 Source: U.S. Bureau of Labor Statistics, retrieved July 15, 2011, http://www.bls.gov/cps/home.htm.
8 Source: Generational age definitions from, Generations: The history of America’s future, 1584 to 2069, W. Strauss & N. Howe, William Morrow & Company, Inc., 1991.
9 Data reported from the Bureau of Labor Statistics’ Current Population Survey is aggregated into age ranges that do not directly reflect the generational limits used in this paper, but which are a close approximation. They are, in 2011, Millennials aged 16-34, Gen-X aged 35-54, and Boomers aged 55 and older.
10 Source: U.S. Bureau of Labor Statistics, Current Populations Survey Q2’2011, retrieved on September 15, 2011, http://www.bls.gov/cps/demographics.htm.
that these are educated generalities derived from statistics –
statistics can only describe a group and are not meant to be cast
onto individuals.
Caveats aside, rigorous empirical research has found some unique Millennial
traits, which are recapped in Figure 1 and discussed in the following section.
11 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.
Just the Facts about Millennials Brenda Kowske | Page 5
According to this review, Millennials, as a generation, are as follows.
Individualistic and Confident
Millennials had lower scores in altruism, coupled with higher narcissism,
assertiveness12, self-esteem13 and individualistic traits in general14. These
results contradict a commonly held stereotype that more Millennials are
socially focused and motivated by giving back to society. In actuality,
Millennials think they volunteer less than Boomers.15 The data concurs.
As a testament to the decline in altruism, the Corporation for National
12 Source: “Age and birth cohort differences in self-esteem: A cross-temporal meta-analysis,” Personality and Social Psychology Review / J.M. Twenge, and S.M. Campbell, 2001.
13 Source: “Egos inflating over time: A cross-temporal meta-analysis of the Narcissistic Personality Inventory,” Journal of Personality / J.M. Twenge, S. Konrath, J.D. Foster, W.K. Campbell, and B.J. Bushman, 2008.
14 Source: “A review of the empirical evidence on generational differences in work attitudes,” Journal of Management and Psychology / J.M. Twenge, 2010.
15 Source: “How young people view their lives, futures, and politics: A portrait of “generation next,” The Pew Research Center, January 2007, http://pewsocialtrends.org/files/2010/10/300.pdf.
Millennials Are:
Individualistic and confident
Starting adult life with less knowledge
Motivated, but more likely by offering “rewards”
Looking for balance
More satisfied with work
More likely to leave their company, similar to young workers in every generation
Source: Bersin & Associates, 2011.
Figure 1: Unique Traits of Millennials – Based on Research
Just the Facts about Millennials Brenda Kowske | Page 6
and Community Service16 reports a Millennial volunteer rate lower than
that of their older counterparts since data collection began in 2003 (see
Figure 217). This data suggests a trend toward a confident, albeit self-
serving, talent pool.
16 Source: “Current Population Survey,” Corporation for National & Community Service, 2010, retrieved September 16, 2011, www.volunteeringinamerica.gov.
17 Source: U.S. Bureau of Labor Statistics.
25.9% 25.5% 25.2%
21.7% 20.5%
21.5% 21.6% 21.2%
26.9% 27.4% 27.7%
26.5% 26.6% 27.6%
28.9%
29.2%
33.5% 33.1% 33.2%
30.4% 29.9% 29.4% 29.8%
28.8%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2003 2004 2005 2006 2007 2008 2009 2010
Perc
ent o
f Gen
erat
ion
Volu
ntee
ring
Millennials (aged youngest to 29) Gen-X (aged 30 to 46) Boomers (aged 47 to 65)
Source: Bersin & Associates, 2011.
Figure 2: Volunteerism Rates in the U.S. – By Year
Just the Facts about Millennials Brenda Kowske | Page 7
Starting Adult Life with Less Knowledge
Standardized test scores of high-school students in the U.S. continue
to be at an all-time low18. This indicates that, at best, their knowledge
gap is closed in college (for those students who attend) or they lack the
knowledge crucial for responsibilities faced by adults, including their
contributions to the workforce.
Motivated, but More Likely by “Rewards”
Millennials’ motivation for achievement is seemingly alive and well.
Data shows that they are motivated to reach higher levels of education.
Despite a lack of preparation in secondary school, a higher percentage
of people than ever before are gaining bachelor’s degrees in American
universities (31 percent)19, twice the number of college graduates of the
youngest of the Baby Boomers.
When we review actual productivity at work, motivation continues to
shine. Even in high school, Millennials in the U.S. worked to the same
extent as Gen-Xers and Boomers.20 Once graduated, they work equally
long hours as older employees – longer hours than employees have ever
worked in the past.21 Even though research investigating the work ethic
18 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.
19 Source: “Millennials and the world of work: An economist’s perspective,” Journal of Business and Psychology / A.R. Levenson, 2010.
20 Source: “Millennials and the world of work: Experiences in paid work during adolescence,” Journal of Business and Psychology / J. Staff, and J.E. Schulenberg, 2010.
21 Source: “Generation and gender in the workplace,” American Business Collaboration / Families and Work Institute, 2006, http://familiesandwork.org/site/research/reports/main.html.
Just the Facts about Millennials Brenda Kowske | Page 8
of Millennials has had mixed results (i.e., contradicting findings22,23,24,25),
it seems as though motivation is an important part of their identity.
However, there are some signs that, although Millennials are putting the
hours in, the elements of work that motivate them may have changed.
Some employees are motivated by an internal mechanism; they work by
the mantra “a job worth doing is worth doing well.” However, recent
research suggests that intrinsic, or self-motivated, work values have
slightly declined for this group26. Yet there is no difference in the value
placed on external “rewards” like pay, recognition or status27,28.
Looking for a Balance
Speaking of work motivation, Millennials are motivated to achieve goals
in both their work and personal lives. Work is less central to their life
and their identity29; more younger workers today expect a meaningful
life outside of work.30
22 Source: “Generational differences in work ethic: an examination of measurement equivalence across three cohorts,” Journal of Business and Psychology / J.P. Meriac, D.J. Woehr, and C. Banister, 2010.
23 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.
24 Source: “Generational differences in soft knowledge situations: Status, need for recognition, workplace commitment and idealism,” Knowledge and Process Management / P. Busch, K. Venkitachalam, and D. Richards, 2008.
25 Source: “More similar than different: Millennials in the U.S. building trades,” Journal of Business and Psychology / K. Real, A.D. Mitnick, and W.F. Maloney, 2010.
26 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.
27 Source: “Generation X and the public employee,” Public Personnel Management / C.L. Jurkiewicz, 2000.
28 Source: “Generational differences in work values, outcomes and person-organisation fit,” Journal of Managerial Psychology / L. Cennamo, and D. Gardner, 2008.
29 Source: “Generational differences: Revisiting generational work values for the new millennium,” Journal of Organizational Behavior / K.W. Smola, and C.D. Sutton, 2002.
30 Source: “New generation, great expectations: A field study of the millennial generation,” Journal of Business and Psychology / E.S.W. Ng, L. Schweitzer, and S.T. Lyons, 2010.
Just the Facts about Millennials Brenda Kowske | Page 9
As a Generation, More Satisfied with Work
There is good news, too. American Millennials are more satisfied
with their work than are Gen-Xers and Boomers. Where statistically
significant (albeit small) differences exist, more are satisfied with
their jobs and companies, the recognition they receive, their career
development, and job security.31
As Younger Employees, More Likely to Leave Their Companies
Fewer Millennials are considering a job switch than did Gen-Xers –
when they were the same age.32 That being said, age matters. Today,
one-third of Millennials are seriously considering leaving their jobs, as
compared with 25 percent of Gen-Xers and 19 percent of Boomers.33
What Millennials Need from Organizations
Unique workforce characteristics mean tailored programs and processes
from HR and management. Given Millennials’ traits, Figure 3 reviews
the programs that HR may want to consider strengthening in service
of Millennials.
The rugged individualism and confidence exuded by the Millennial
generation, coupled with their high levels of motivation, translate into
programs that take advantage of their “I can do it” attitude. HR should
look closely at its performance management system and processes.
Does it enable Millennials to forge new paths, relying on their own
competence in their drive toward success?
Strong performance management processes (such as setting SMART34
goals, providing regular, systemic feedback, and measuring performance
accurately) enable employees to know how they are performing
31 Source: “Millennials’ (lack of) attitude problem: An empirical examination of generational effects on work attitudes,” Journal of Business and Psychology / B.J. Kowske, R. Rasch, and J. Wiley, 2010.
32 Ibid.
33 Source: Attitude? What attitude? The evidence behind the work attitudes of millennials, Kenexa High Performance Institute / B.J. Kowske and R. Rasch, 2011.
34 “S.M.A.R.T.” stands for specific, measurable, achievable, relevant and time-bound.
Just the Facts about Millennials Brenda Kowske | Page 10
as individuals and take action accordingly – by their own volition.
Organizations can take advantage of individualism in another way;
harness the good ideas that come from not following the herd.
Innovation derived from independent thinking can be a significant
competitive advantage. Millennials are confident enough to speak up
when questioning the status quo. But often, collaboration is needed
to make ideas reality; an increased focus motivating this independent
group toward a balance between independent thought and
collaboration may be warranted.
35 A “high-potential employee” is an employee who has been identified as having the potential, ability and aspiration for successive leadership positions within the company. Often, these employees are provided with focused development as part of a succession plan and are referred to as “HiPos.”
Bersin & Associates
research found
that the size
of a company’s
employee
population
has significant
relationship
to the overall
effectiveness of the
HR function.
KEY POINT
Millennials Are: Millennials Need:
Individualistic and confident
• Strongperformancemanagementpractices and culture
• Programsthatfosterinnovation
Starting adult life with less knowledge • Effectivedevelopmentprograms
Motivated, but more likely by offering “rewards”• Recognition,suchaspay-for-performanceprograms
that demonstrate “fairness”
Looking for balance • Targetedhealthandwellnessprograms
As a generation, more satisfied with work• Programsthatcapitalizeonworksatisfaction,
like the development of high potentials35 and careers in general
As younger employees, more likely to leave their companies
• Effectiveemployeeengagementprogramsandprocesses for recruiting, selecting and onboarding new workers
Just the Facts about Millennials Brenda Kowske | Page 12
development programs by developing satisfied employees into the
next generation of leaders and experts. This future-focus may help to
counteract Millennial flight.
As with generations before them, younger employees leave
organizations at higher rates. Even with their more positive attitudes
toward work, the motivation to leave pulls harder as they jockey for
their ideal career path. If organizations provide a clear view of their
career paths and the rewards, leaders and HR can capitalize on their
interest in external rewards like status and pay. Additionally, HR should
foster engagement, including through providing career opportunities.
Employee engagement anchors employees firmly within the company,
providing a force equal to tempting job offers.
High turnover also means higher volumes of applicants for open
positions – especially those for which Millennials are qualified. If a high
percentage of an organization’s workforce is comprised of Millennials,
efficient and effective recruiting, hiring and selection, and onboarding
practices are compulsory.
The Report Card: How HR and Line Managers Are Supporting Millennials
When we turn to the Bersin & Associates data collected in 2010, we
see that U.S. organizations have adopted some new approaches for
managing a largely young workforce, but other practices remain the
same regardless of workforce age. To find out the state of practice
in relation to the generations, we compared 550 HR practitioners’
and leaders’ ratings by those in organizations employing primarily
Millennial, Gen-X and Boomer workforces. We formed these groups
by their responses to the question, “How would you categorize your
workforce demographically?”36 Respondents placed their organizations
in the following workforce categories:
36 Respondents could also choose “fairly evenly distributed among ages” and “heavy concentration on mature and young workers, with a gap at the mid-career level.” But, since this report seeks to isolate the practices tailored to workforces of certain age groups, these categories were omitted from the analyses.
Just the Facts about Millennials Brenda Kowske | Page 18
Millennials Are: HR Can Support Millennials with:
HR Report Card
Line Managers Should Manage by:
Manager Report Card
Individualistic and confident
Motivationforhigh-performance culture C
Developingahigh-performance culture C
Setting goals and objectives =
Managing performance problems C
Encouragementofinnovation and collaboration D Encouraginginnovationand
collaboration D
Starting adult life with less knowledge
Astrongself-learningculture D Giving honest feedback =
Identification of critical job knowledge, skills, abilities = Coaching and developing C
Motivated, but more likely by offering “rewards”
Fair rewards for high performance C
Implementing fair and effective compensation plans
=
Looking for balance
Health and wellness promotion = Supporting health and
wellness =
As a generation, more satisfied with work
Programsthatidentifyanddevelop future leaders D Identifying and developing
future leaders CIdentification of key talent segments DCareer development processes C
As younger employees, more likely to leave their companies
Support for engagement D Promotingengagement CEffectivehiringandselectionprograms C Assessing and selecting
applicants effectively =
Effectiveonboardingprograms C Onboarding effectively D
Attracting top talent C= means no difference between generational workforces found.CmeansmoreorganizationsareproficientinthisaspectofworkwhenMillennialworkforcesarecomparedwithBoomers.DmeansfewerorganizationsareproficientinthisaspectofworkwhenMillennialsworkforcesarecomparedwithGen-X.
Source: Bersin & Associates, 2011.
Figure 6: HR’s Effectiveness and Managerial Competence in Delivering What Millennials Need
Just the Facts about Millennials Brenda Kowske | Page 21
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