Talent Management The Gen Y Challenge

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1 Talent Management The Gen Y Challenge Abstract Managing talent in organizations today has become both an art and a science. 50% of the current Global workforce is Gen Y ers or Millennials as per Harvard Business Review. By 2025, Generation Y will make up roughly 75% of the world s workforce as stated in Business and Professional Women s Foundation s Gen Y study. With these many millennials making up the majority of the workforce by 2025 only 13 years away employers can t afford not to take notice. There no longer exist rules that can be followed to navigate through the choppy waters that most companies resemble these days as far as their talent landscapes are concerned. Needless to say, this trend is even more pronounced in emerging economies such as India. Their motivations keep evolving and HR leaders need to keep a close watch on what ticks them. This represents a challenge that needs to be tackled with a new paradigm. Key Words Generation Y, Influencers, Talent Management, Global Workforce Changing Times Almost 50% of the global workforce today is less than 30 years of age. This is a generation that has grown up with never seen before exposure to all kinds of information and knowledge. They are a completely informed workforce, who is driven by very different kind of motivators as compared to the generations preceding them. Most organizations are struggling to manage a diverse talent landscape spanning across multiple generations in a professional set up. There are some key differentiators which demarcate one generation from another starting with the economic, social and political conditions. There is a significant impact of the experiences during formative and teenage years that a generation experiences which shape up their vision of the world. In the present times you see Baby Boomers the generation born post WWII - in the last phase of their careers working together with Generation X who are also known as the Latch Key Generation. Generation X saw their parents focusing on work, experienced nuclear families and had to become independent early on. Generation Y on the other hand, have experienced internet and cable television since their early days. Page 1

2 Generation Y is a generation that has grown up with technology since their childhood. They have increased awareness about politics and religion and this has resulted in increased tolerance towards differing cultures and points of view. The world for them became increasingly smaller due to digitization and the internet. They boons and banes of technology have certainly impacted this generation the most. Networking on internet has resulted in an innate need to socialize and seek attention and feedback on every action they perform in the course of their normal day. There have been a lot of researches over time to understand the upcoming generation in the workforce and their preferences. The key influencers for Gen Y are the 3 P s mentioned below (McCrindle)- Peers - Relational connections With the advent of social networking sites like Facebook and Twitter, Generation Y has active relational connections which are dynamic and the same behavior is translated in their physical life. Generation Y embraces community values and tries to reach a consensus. They are extremely comfortable with a group of 3 to 8 people. There is an inherent necessity in this generation to be understood, accepted, respected and included. The extraordinarily close bonds that Gen Y has formed with their friends are striking to some observers (Reilly, 2000). Belonging to a group is very important for Gen Y and once they are accepted they imbibe group norms as their own. One of the reasons millennials may cling to each other is that parents and role models are in short supply for many of them. (Gene Cole, 2002). Since Generation Y has strong views and inclinations there is a need for real life role modeling. This generation needs guidance in the form of a mentor. In the world of personalization and abundance in the choices available, the mentor should be able to personalize advice for every individual based on the circumstances. Pragmatism Generation Y is very practical in its outlook. They are sensitive to increasing unemployment rates and corporation collapses like Anderson & Enron. They have also witnessed economic downturns and its perils like lay-offs impacting their parents very closely. With an accumulative increase in inflation and prices there is a definite impact on the quality of life. There is also a spurt in housing costs which has resulted in Generation Y spending more time with their families as against the earlier generation. They have seen the preceding generations working hard and losing out on precious family time. Generation Y feels that raising a family is more important (Gene Cole, 2002). This Generation looks for a meaning to life outside of work. Materialism has disillusioned them as the hardworking Generation X is succumbing to stress induced diseases and broken homes in front of their eyes. Preference Generation Y is one of the most liberal generations and are conscious of the fact that there is no absolute truth. Everything is relative and any ideology or faith is valid as long as it is not intolerant to others and does not infringe on anyone s rights. One of the main reasons for the greater tolerance is enhanced awareness about different cultures and beliefs. Since the world has become smaller due to technology, it has resulted in heightened cognizance among Gen Y. Page 2

3 The Impact Each of these influencers manifests itself in certain behaviors. Organizations need to be alert to each of these behaviors and manage them early on to ensure business profitability and success. Talent management strategies should be altered keeping the behaviors in mind. (Spiro, 2006). Every organization will need to understand this generation better and educate supervisors and managers about the preferences of Generation Y. With a better understanding of preferences and behaviors of Echo Boomers, they can be better engaged and their transition into the workforce can be seamless. Great expectations Generation Y has been showered with so much attention and applause from the Helicopter parents who are constantly working on their kids hovering overhead. This has resulted in very high expectations of self and others in the minds of Gen Y. This generation has experienced lightning fast pace of change in their environment and technology. They have the same outlook on their potential to do work faster and better. They also have high expectations of employers and their peer group. They are ready to take immediate responsibility and want to make important impacts from Day 1. They want to be in complete control of their outcomes and like small goals with tight deadlines to build ownership of tasks. Always on the go They seek ongoing learning opportunities and stretch targets. They look at their peer group as vast learning resources and are open to collaborative ways of working. Echo Boomers are financially savvy and embrace change open heartedly. This generation is a generation of multi-taskers who can move between multiple tasks and systems effortlessly. Independent and Ambitious Gen Y is self-reliant and is used to the Do It Yourself culture since childhood. The only paradox is while they are adept at doing things on their own; they still want clear directions on what is expected of them. Once the goal is clear then it is easy for them to work on it. The other key oxymoron is that while they like working independently at their own pace, there is an inherent need to collaborate with the peer group. Majority of Gen Y does admit that they are very ambitious. This generation is a go-getter from the word start. They have been exposed to a world of opportunities and possibilities from a very young age. Even parents help infuse confidence in the abilities of this new generation bubbling with energy and enthusiasm. Page 3

4 The Solution Strategies The good news is that certain observations can be intelligently made about Gen Y, which would help in developing core talent management strategies required to keep a young workforce engaged and motivated. Keeping the key influencers and the high expectations of Echo Boomers in mind, there are some strategies that organizations in today s world can adapt to manage this talent effectively. It is no longer about Money alone Performance reviews which equate performance targets with only monetary compensation should become passé. Beyond the first couple of upward revisions, money reduces in importance as being the primary professional motivator for this generation. What they do and how they are treated during their work day are just as important as the number on their monthly paychecks. Professional development, recognition, flexible work schedules, attentive employers and freedom to express are some key nonmonetary awards that should clearly become a part of the organization culture which wants to attract this generation and retain them. Display confidence in their abilities While Generation Y hopes to remain faithful to their current employer, they also want a host of new experiences and challenges from their work. (Sylvia Ann Hewlett, 2009). Since they have experienced changes at a very fast pace, there is a risk that they may get bored easily. The organizations should create opportunities for developing new skills and create impact. One way of doing this is to provide the better performers in the team an opportunity to constitute and lead special purpose task forces, entrusted to develop solutions to specific problems or provide suggestions for improving operations. Simple and cost effective measures like these go a long way in making them feel valued and recognized and can do wonders for employee motivation. However, it is equally important to provide some sort of continuity to such programs, for example, following up and executing the recommendations provided by such task forces. Have regular conversations with them This one is a no brainer really. But, it is surprising how often it is neglected, especially in the increasingly deadline driven work culture which permeates most layers of a corporate organization today. Focused weekly conversations on topics such as career coaching (even if this means a discussion on where the employee should be headed at the end of his/her tenure with the organization), real time feedback on his/her performance (without waiting till the end of review period), skill development of the employee over and beyond what is required for the current job role will help in developing a sustainable rapport and connection between the management and employees and this will have a direct impact on employee productivity. Page 4

5 An important point here is that such conversations should not be limited between employees and their immediate supervisors, but need to include senior management as well as that would send a clear message to the employees in question about executive intent. A periodical session for top performers with senior management should not be very tough for organizations to exhibit leadership interest in such activities. Recognize effort, not just achievement Oftentimes, in today s complex business environment, achievement is a function of many factors, some of which are clearly beyond the impact scope of young employees in the early stages of their careers. Factors such as internal client challenges and poor client relationship management (especially relevant for service companies) could have a severe impact on feedback scores which ultimately end up affecting the younger employees more severely as compared to their supervisors who have the insulation of managing multiple reportees with odds of a majority of them messing up being very low. In such situations, on a case by case basis, publicly recognizing and rewarding effort put in would be extremely helpful in communicating to young employees that senior management is well aware of the real challenges being faced by front line personnel and effort being put in is being observed and acknowledged. A generation brought up on a daily dose of online social networks would find such public recognition worth striving for, especially among their peers, whose respect and approval very much remains an aspiration for youngsters. Listen to what they have to say This generation is self-reliant, collaborative and has the belief that they have what it takes to succeed. Managers should understand this thought process and for every task they should plan for trial and error as well as extra time to allow greater collaboration for Gen Y. Once they show they care, Gen Y will go the extra mile for the manager and the company. Very few companies do this well or frequently enough. Gen Y has opinions and views on everything and some of them are constructive and well-reasoned that could benefit the organization significantly. The other benefit is making them feel like a part of the decision, which would help in obtaining their buy-in on important initiatives. It will also make employees feel engaged with a clear communication channel with senior management and will have the added benefit of reducing message dilution that is a typical characteristic of a multi-layered organization. This will keep the corporate atmosphere positive and will prevent disgruntled experienced employees from influencing their younger counterparts. Here and Now This generation is very tech savvy and are used to the latest gadgets and applications since childhood organizations need to make investments in this arena to ensure they have up to date technology or else they are bound to face challenges in holding interest of the Gen Y employees. Page 5

6 Gen Y is clearly at ease with diversity and is extremely comfortable working with people from different backgrounds. This conscientiousness and acceptance extends to making a positive impact on the world. They would want their employers to be socially aware and green. Communicate and Connect Networking and interacting is their second nature hence team work is a good motivation. The office space should follow the Open Door policy with access to anyone in the organization. Institutions have to take steps and be conducive to socializing. Communication with this generation should be real and spontaneous. There needs to be honesty and relevance in the message to resonate with this generation. Conclusion One thing is certain Generation Y will certainly form a major portion of the workforce in the future. This is by far the most informed and evolved generation and there is a need to understand them better and make their transition into the corporate world seamless. Dan Schawbel, Founder of Millennial Branding, states: Only 7% of Gen-Y works for a Fortune 500 company because startups are dominating the workforce for this demographic in today s economy. If large corporations want to remain competitive, they need to aggressively recruit Gen-Y workers. Clearly, the future of businesses across the Globe rests on its ability to engage this generation. Yet a Corporate Executive Board Asia Labor Market Survey shows they can be an HR director s nightmare, mature enough to play crucial roles in an organization but more inclined to leave than any other generation. This article is an attempt to know the drivers and the rationale for their behaviors. Certain strategies have been outlined to align the talent management strategies in organizations. As a concluding thought it is important to understand that the above measures by no means represent sufficient solutions to personnel issues facing organizations today. But, it is a start to managing and engaging talent for future business success. Page 6