INTERGENERATIONAL SURVEY

Transcription

1 INTERGENERATIONAL SURVEY Research and Market Intelligence February BDC VIEWPOINTS SURVEY

2 table of contents 01 executive summary 03 respondent profile 02 detailed results context, objectives and 04 methodology 2 BDC VIEWPOINTS SURVEY

3 section 01 Executive summary 3 BDC VIEWPOINTS SURVEY

4 section 01 executive summary Current client base BDC ViewPoints panel members indicated that Generation X (35%) and baby boomers (34%) accounted for the majority of the clientele they serve. Millennials represent 18% of their clients and veterans complete the demographic picture with 5% of the clientele. Retailers had some of the highest proportions of Millennials in their client base (27%+). This is also the case for B2C companies (24%) and those with more than half of their revenue generated through online sales (23%+). Overall, more than three quarters of respondents (78%) said that they have noticed some significant differences between members of their clientele in different age groups. In fact, three out five respondents (59%) indicated that these differences have forced them to either adapt a lot (18%) or moderately (41%). Professionals (i.e. accountants, bankers and lawyers) (67%) are much more likely than business leaders (i.e. entrepreneurs and main decision makers) (56%) to say that they have had to adapt a lot or moderately to Millennials in their client base. Respondents provided a few worthy examples of how they have adapted to Millennials in their client base. For example, many spoke of leveraging technology to better serve this clientele (e.g. be present online and in social media, create a mobile-friendly website, and enable online shopping). Several participants mentioned assigning younger employees to serve younger clients. Current employee base Compared to their client base, respondents have a younger employee population. Overall, more than two-thirds of their employee base is comprised of millennial (34%) and Generation X (34%) employees. Furthermore, Millennials tend to be much more present in companies with 5 to 19 employees (42%) and in those with 20 to 49 employees (40%) than in companies with fewer than 5 employees (28%). We also noticed that baby boomers are much more present in firms with fewer than 5 employees than Millennials. It is interesting to note that a greater percentage of business leaders said that they haven t had to adapt at all to Millennials as employees (17% vs. 9% for professionals). This is also the case for a larger proportion of product-oriented companies (30% said that they haven t had to adapt to millennial employees at all). Respondents highlighted a few things they have done to adapt to Millennials as employees: provide a good work-life balance, further integrate technology in the work environment, and be clear and explicit about expectations and responsibilities. 4 BDC VIEWPOINTS SURVEY

5 section 02 Detailed results 5 BDC VIEWPOINTS SURVEY

6 detailed results section 02 Generational differences among clients According to Statistics Canada, in 2011, almost two-thirds of the population was composed of two generations, baby boomers and Millennials. Baby boomers accounted for 34% of the total population, followed by Millennials (27%), and Generation X (20%). People born before 1945 accounted for 16% of the total Canadian population in As such, it is assumed that companies based in Canada serve customers coming mainly from three generations, baby boomers, Generation X and Millennials. 2 Literature on the topic shows that each generation presents differences with respect to consumption habits and preferences. As such, companies are faced with the challenge of rethinking their selling strategies so these can be adapted to each group s needs, preferences and expectations. 3 Baby boomers are one of the wealthiest generations in history. 4 As consumers, they tend to be demanding, inquisitive and straightforward, and they like to be treated with courtesy. 5 Generation X can be described as very self-reliant, independent, but extremely skeptical, hence, it is important to be transparent with respect to the goods offered to them. 6 They tend to inform themselves in advance to purchasing a product or a service. 7 Millennials have grown up in a technologically advanced world in which elements such as the Internet, smartphones and social media are part of their everyday lives. The great availability of information with respect to products and services has resulted in Millennials being a group of consumers that interact more actively with the brands they love. 8 1 Statistics Canada, Census of Population, Julia Lewis, How to deliver Exceptional Service to Four Generations of Customers, 2015, 3 Robin Amster, Clients: Different Generations, Different Needs, 2015, 4 Emily Zulz, How to Connect with 4 Generations of Clients, 2015, 5 Chuck Underwood, How Different Generations Prefer Different Customer Service, 2012, 6 Emily Zulz, How to Connect with 4 Generations of Clients, 2015, 7 Chuck Underwood, How Different Generations Prefer Different Customer Service, 2012, 8 Jeff Fromm and Christie Garton, Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever (AMACOM Div American Mgmt Assn, 2013) 6 BDC VIEWPOINTS SURVEY

7 section 02 detailed results Proportion of clients in each age group 18% 35% 34% 5% MILLENNIALS (BORN BETWEEN 1980 AND 2000) GENERATION X (BORN BETWEEN 1965 AND 1979) BABY BOOMERS (BORN BETWEEN 1945 AND 1964) VETERANS (BORN BEFORE 1945) 8% DON T KNOW A few statistical differences worth mentioning: Retailers with both more than or fewer than 20 employees have some of the highest proportions of millennial clients (27%+) of any industry sector. Business-to-consumer (B2C) companies (24%) and those with online sales which account for more than half of their revenue also have a larger proportion of Millennials (23%+) as a clientele compared to business-to-business (B2B) respondents (15%) and those with no online sales (18%). Base: All respondents. (n=721) Question: To your knowledge, what proportion of your clients belong to the following age groups? 7 BDC VIEWPOINTS SURVEY

8 section 02 detailed results Significant differences between clients 78% have noticed significant differences between clients age groups 22% didn t notice any significant differences between clients age groups Base: Respondents who have clients in more than one age group. Those who answered I don t know were excluded from the calculation base (n=627). Question: Have you noticed any significant differences between clients in these age groups (for example: behaviour, shopping habits, preferences)? 8 BDC VIEWPOINTS SURVEY

9 section 02 detailed results Adapting to millennial clients 18% 41% 33% 8% A LOT MODERATELY VERY LITTLE NOT AT ALL A few statistical differences worth mentioning: Professionals such as accountants, bankers and lawyers are significantly more likely than business leaders (i.e. entrepreneurs and main decision makers) to say that they have had to adapt either a lot or moderately to Millennials in their client base (67% vs. 56%). Base: Respondents who have clients in more than one age group including Millennials. Those who answered I don t know were excluded from the calculation base. (n=561) Question: How much has your company had to adapt to millennial clients (born between 1980 and 2000)? 9 BDC VIEWPOINTS SURVEY

10 detailed results Adapting to millennial clients Here are some examples of how companies adapt to their millennial clients. They: > Are present online (website, social media, etc.) > Have a mobile-friendly web presence > Do more electronic and online interactions ( , text message, live chat, etc.) > Allow online shopping > Do electronic marketing (personalized offers, social media advertisement, etc.) > Are available, give quick responses, and offer a faster speed of service > Adapt products and services to this clientele > Reduce prices section 02 > Assign younger employees to serve younger clients 10 BDC VIEWPOINTS SURVEY

11 detailed results Differences between Millennials and other generations in the workplace Millennials have different values to those traditionally established within organizations. As such, their presence in the workplace has resulted in a values clash between them and members of other generations. According to sociologist Dr. Karl Mannheim, a generation s practical importance becomes clear as soon as one tries to obtain a more exact understanding of the accelerated pace of social change [in a given period] 9 The profound transformation and evolution of technology (the emergence of social media, the importance and omnipresence of smartphones for Millennials, online collaboration, etc.) seems to exacerbate the values clash with Millennials. The clash in values can vary according to Millennials cultural origin. Millennials seek greater work-life balance (which may not necessarily mean work-family life balance) and independence. They do not want to be overly monitored, dislike 9-to-5 workdays, and like to do things their own way. Similarly, they do not want to overwork (e.g. they avoid overtime, or prefer to work fewer hours and have more vacation time, even if that means a lower salary). The fact that Millennials tend to be more self-centered might be discouraging from a societal point of view, as working for the betterment of society was not a priority for a majority of Millennials anywhere. 10 Millennials can be perceived by managers and coworkers from other generations as lazy, self-centered or disloyal. Organizations must address the values clash between Millennials and other generations for a simple reason: The former are the successors of the latter, and they are also the future leaders. In terms of HR management, organizations must train current leaders to be more aware of Millennials expectations. Organizations must accept the fact that Millennials seek challenges and as such, they might not remain in the same position for long. Regarding talent acquisition, employers must adjust their message to meet Millennials expectations. section 02 Organizations must also adapt the language, tone and communication mechanisms employed to connect with Millennials. Social media and other technological tools can be maximised to this effect. 9 Darrin J. DeChane, How to Explain the Millennial Generation? Understand the Context, Student Pulse, 2014, 10 Henrik Bresman, What Millennials Want from Work, Charted Across the World, Harvard Business Review, 2015, 11 BDC VIEWPOINTS SURVEY

12 section 02 detailed results Proportion of employees in each age group 34% 34% 25% 2% MILLENNIALS (BORN BETWEEN 1980 AND 2000) GENERATION X (BORN BETWEEN 1965 AND 1979) BABY BOOMERS (BORN BETWEEN 1945 AND 1964) VETERANS (BORN BEFORE 1945) 5% DON T KNOW A few statistical differences worth mentioning: Business leaders have, on average, a larger proportion of Millennials in their ranks than professionals (36% vs. 29%). Millennials tend to be much more present in firms with 5 to 19 employees (42%) and in those with 20 to 49 employees (40%) than in firms with fewer than 5 employees (28%). Furthermore, there is a significantly greater proportion of baby boomers in firms with fewer than 5 employees (30%) than in firms with 5 to 19 employees (22%) and in companies with 20 to 49 employees (18%). Base: All respondents. (n=721). Question: To your knowledge, what proportion of your employees belong to the following age groups? 12 BDC VIEWPOINTS SURVEY

13 section 02 detailed results Adapting to millennial employees 17% 43% 26% 15% A LOT MODERATELY VERY LITTLE NOT AT ALL A few statistical differences worth mentioning: Business leaders (17%) are significantly more likely than professionals (9%) to say that they haven t had to adapt at all to millennial employees in their ranks. Product-oriented companies are also much more likely to say that they haven t had to adapt at all to millennial employees (30%). Base: Respondents who have employees in more than one age group including Millennials. Those who answered I don t know were excluded from the calculation base. (n=504). Question: How much has your company had to adapt to its millennial employees (born between 1980 and 2000)? 13 BDC VIEWPOINTS SURVEY

14 section 02 detailed results Adapting to millennial employees Here are some examples of how companies adapt to their millennial employees. They: > Offer a flexible schedule and hours > Provide a good work-life balance > Include more technology in the company (involving changes in old habits and processes) > Increase vacations and time off and reduce extra hours > Are clear and explicit about expectations and responsibilities 14 BDC VIEWPOINTS SURVEY

15 section 03 Respondent profile 15 BDC VIEWPOINTS SURVEY

16 section 03 respondent profile Region B.C. and North Prairies Ontario Quebec Atlantic 16% 21% 36% 21% 7% Base: All respondents (n=721). 16 BDC VIEWPOINTS SURVEY

17 NUMBER OF EMPLOYEES* SEGMENT section 03 respondent profile Segment and number of employees Entrepreneur 73% Professional 27% Less than 5 employees 37% 5 to 19 employees 38% 20 to 49 employees 15% 50 or more employees 11% Base: All respondents (n=721) *Business leaders only (n=527) 17 BDC VIEWPOINTS SURVEY

18 SECTOR section 03 respondent profile Sector of activity Professional, Scientific and Technical Services Manufacturing Retail less than 20 employees Construction Wholesale Trade Transportation and Warehousing Other services (except Public Administration) Accommodation and Food Services Information and Cultural Industries Retail 20 or more employees Finance and Insurance Arts, Entertainment and Recreation Management of Companies and Enterprises Health Care and Social Assistance Other 4% 3% 3% 3% 3% 2% 2% 2% 2% 6% 7% 11% 18% 18% 18% Base: Business leaders only (n=527) 18 BDC VIEWPOINTS SURVEY

19 PROFESSION section 03 respondent profile Profession Accountant 36% Business adviser/consultant Banker 15% 18% Lawyer 10% Other type of adviser/consultant (HR, IT, engineer, etc.) Financial planner Real estate broker Mortgage broker 4% 2% 1% 1% Marketing professional Real estate professional (appraiser, building/property manager, etc.) Other 1% 1% 12% Base: Professionals only (n=194) 19 BDC VIEWPOINTS SURVEY

20 section 04 Context, objectives and methodology 20 BDC VIEWPOINTS SURVEY

21 context, objectives and methodology Context and objectives > The objective of this survey was to provide some insights to both business leaders and professionals into how their peers are impacted by and are dealing with generational differences. Methodology section 04 > An online invitation was sent to panel members. A total of 721 members completed the survey (527 business leaders and 194 professionals). The survey was available online from February 16 to 26, BDC VIEWPOINTS SURVEY

22 thank you For more info, please contact the Research and Market Intelligence team at 22 BDC VIEWPOINTS SURVEY