ALL ABOUT MILLENNIALS: CROSSING A MULTI-GENERATIONAL TALENT POOL Issue 3
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1 ALL ABOUT MILLENNIALS: CROSSING A MULTI-GENERATIONAL TALENT POOL 2016 Issue 3
2 ALL ABOUT MILLENNIALS: CROSSING A MULTI-GENERATIONAL TALENT POOL The ability to recruit and retain members of a younger generation can challenge any organization. Members of both older and younger generations often have different sets of ideas surrounding what constitutes normal. Today, companies are finding recruiting and retention challenges as they relate to individuals under age 35. This younger generation is well-versed social media and the subsequent social changes it has created. Add in the normal age gap that comes from differing life experiences and priorities, and a generation gap is formed. Members of this new generation, popularly referred to as Millennials, are accustomed to communicating frequently, at rates that can be quite alarming to an older generation. While they are seen as tech-savvy, collaborative, and socially aware, they comprise a large demographic, making up nearly one-third of the U.S. population 1 and representing a growing percentage of the workforce. Organizations whose executives are mindful of this generation gap will be optimally positioned to attract Millennial talent and thus gain the enormous creative energy of this youthful generation. Through harnessing this synergy, these companies can build pipelines of talent and leadership that can carry long into the future. All About Millennials: Crossing a Multi-Generational Talent Pool 2
3 WHO ARE MILLENNIALS AND WHY SHOULD EMPLOYERS CARE ABOUT THEM? The White House defines the Millennial Generation as those born between 1980 and 2004 and total 100 million people. Defining the Generation and the Size The White House defines members of the Millennial generation as those individuals born between 1980 and A conservative estimate of 4 and 4.5 million Americans were born each year during that time, resulting in a generation of about 100 million people. 2 Millennials compose about one-third of the United States population. About 15% of Millennials were born in a foreign country, which is the highest since Millennials have grown up in a time of accelerating change, most notably in the area of technology. Internet use became increasingly popular in the mid-1990s, but Millennials have had exposure to the Internet since they were early teenagers, and those born after the early 1990s have always had it. The introduction of smartphones, a second generation Internet revolution, is also seen as commonplace and familiar. Economically, Millennials came of age in difficult times. Compared to Baby Boomers and members of Generation X, Millennials have consistently experienced higher debt levels and lower income levels. 3 Overall, Millennials compose about one-third of the U.S. population. Close to 15% were born in a foreign country, which is the highest percentage seen since These statistics claim that Millennials, as part of one of the most diverse generations in history, 4 have brought more cultural and ethnic diversity to the U.S. than any other generation. All About Millennials: Crossing a Multi-Generational Talent Pool 3
4 Attitudes In general, Millennials commonly possess the following outlooks and attitudes: 5 Many consider themselves to be politically independent and around 50% declare themselves no party affiliation, compared to the 39% (and fewer) of previous generations. They also tend to be socially liberal. As a general best practice, managers and HR professionals should avoid political topics on the job, but once hired and working, managers should keep in mind that Millennials may tilt toward the socially liberal end of the political spectrum. In areas where those tendencies may coincide with company policy, such as climate change, that can be leveraged strategically to recruit Millennials. Millennials are also less likely to be married between ages 18 and 32. In 2013, 26% of Millennials in that age ranger were married, compared with 36%, 48%, and 65% of Gen Xers, Baby Boomers and Silent Generation individuals, respectively. Often higher in optimism, 49% of Millennials say the best days are yet to come for the United States, with 42% of Generation X, and 44% of Baby Boomers agreeing. About 50% of Millennials declare themselves as having no party affiliation. They are higher in optimism: 49% of Millennials say the best days are yet to come in the United States Characteristics Considering that they more likely to be connected, Millennials have a median of 250 Facebook friends, compared with 200 for Gen X and 98 for Baby Boomers. They are much more likely to have shared a selfie, and 9 in 10 of them feel they have shared too much information online. Millennials not only embrace diversity, they are the most diverse generation; 43% of Millennial adults in the U.S. are people of color. All About Millennials: Crossing a Multi-Generational Talent Pool 4
5 They can lack social trust: Only 19% of Millennials said most people can be trusted, compared with numbers ranging from 31% to 40% from the previous two generations. ECONOMIC DIFFICULTIES COMBINED WITH OPTIMISM MEANS THEY ARE RESILIENT AND DETERMINED. They are low on social trust: Only 19% of Millennials said most people can be trusted. From a financial standpoint, Millennials have experienced difficult times. Student loan debt, poverty, unemployment, income levels and personal wealth all have trended against Millennials, compared with Generation X and Baby Boomers at the same age. Despite that grim reality, this factor has led to perhaps the most important virtue of Millennials: resilience. They are determined to succeed and have the drive and optimisim to do so. For companies looking to recruit and retain top talent, this is a crucial character trait. 82% 18% Values The corporate social responsibility (CSR) movement has gained a great deal of traction with Millennials in two ways, according to an Aflac insurance company survey: 6 Employment: 82% of Millennials want to be employed by a company that has high ethical standards. For pre-millennials, this figure is 68%. Investment: 66% of Millennials say they would make investment choices based on a company s CSR programs and initatives. 82% of Millennials want to be employed by a company that is known for being ethical. As a rule, Millennials want to work for ethical, socially aware companies. Understanding this can assist recruiters in attracting the best Millennial talent. For example, companies should build recruiting and retention campaigns with an eye for how social awareness policies will look to Millennials, e.g., something your company does may give Millennials bragging rights on social media. This, in turn, is likely to publicize your company on your Millennial employees social networks. All About Millennials: Crossing a Multi-Generational Talent Pool 5
6 Traits to Watch Out For No examination would be complete without addressing some less advantageous traits. Millennials can seem entitled, seeking instant gratification, and can have short attention spans. Some of these observations are common among young people as a whole, and many of these traits often disappear with age. Millennials may exhibit higher degrees of entitlement which can manifest itself in higher degrees of impatience and demands for immediate reward. They often use social media to project positive self-images. Companies that hire Millennials with these traits, however, can easily address these issues by engaging in frequent, informal feedback about performance while also offering opportunities to make a difference. This may even contribute to elevated brand messaging as Millennials take to social media to tout their accomplishments at work. As an added bonus, this communication technique is also valuable to employees outside of the Millennial generation, and companies may see spikes in overall employee productivity upon implementation. What Millennials Bring to the Table There is evidence to support the idea that Millennials are optimistic, resilient, tech-savvy, natural collaborators and enjoy a strong social media presence. Some Millennials may have hundreds, even thousands, of followers on social media what in previous times would amount to a small business marketing list of contacts. Millennials have the unique ability to share information with their networks, automatically getting messages in front of countless people while also having the capability to create a viral storm within minutes. Millennials tend to prefer working collaboratively and are thus well-positioned to take advantage of tasks that require teamwork to succeed. 8 This can encompass the buddy system used to assure safety practices are being followed in industrial environments, to gathering and sharing ideas about how best to design JavaScript code blocks for a website. They value opinions from their peers and seek input, in person or through social media, at a rate much greater than that of previous generations. 9 Perhaps most notable is Millennials ability to multitask, caused by the frequent use of social media. SOME MILLENNIALS MAY HAVE HUNDREDS OR EVEN THOUSANDS OF FOLLOWERS ON SOCIAL MEDIA WHAT IN PREVIOUS TIMES WOULD AMOUNT TO A SMALL BUSINESS MARKETING LIST OF CONTACTS. They multi-task more often having numerous communication devices open at a given time, such as smartphone with and social media apps, a laptop, perhaps a PC desktop, television in the background and earphones for music. 10 With social media and mobile platforms being a technological baseline for Millennials, they are wellpositioned for the next generation of innovations, such as the Internet of Things i. This innovation is expected to revolutionize the marketplace in the way that PC and mobile connectivity did, as it involves vast amounts of data being collected about devices to improve quality of life across a wide spectrum of personal and business activities. i. The Internet of Things refers to embedding web-enabled software in objects, such as a household refrigerator or thermostat, in a way that allows the collection and exchange of data via the Internet. All About Millennials: Crossing a Multi-Generational Talent Pool 6
7 HOW TO ATTRACT MILLENNIAL TALENT Exploring the distinct characteristics of Millennials can offer companies clues for attracting the best young talent available. 1. Have a strong social media presence. The amount of time that Millennials spend on social media cannot be overstated. They would not be surprised to hear about job opportunities through social media, and as previously noted, companies can prepare statements for existing employees to push out to their networks in order to attract eager Millennials. Companies should note, however, that a strong social media presence goes well beyond advertising on the latest and most popular social media platforms. There are many cutting-edge tools that can take advantage of Big Data ii and companies would be wise to utilize these strategically. For example, there are upcoming tools that analyze when prospective candidates are updating their LinkedIn profiles, as well as reviewing job ads on LinkedIn two precursors to a job search. Savvy companies can be there, in real time, ready to engage with them. We re Hiring Web Developers! 2. Have the ability to apply using mobile devices. Smartphones outnumber personal computers in many countries. 11 In the United States, an increasing number of young people use their own devices to find out about job advertisements and expect to apply via a mobile interface. Mobile applications are not necessarily a given, and many companies have only recently adopted this functionality into their mobile platforms. A secondary issue is the mobile website itself. Millennials tend to double-check job descriptions and learn about the company from the mobile app or website immediately prior ii. The term Big Data refers to data so large that traditional data management cannot handle it, such as the data collected from millions of social media users. All About Millennials: Crossing a Multi-Generational Talent Pool 7
8 to a job interview. The website should be oriented visually for tablets and phones, to simplify the candidate experience. 3. Make advancement opportunities visible. Almost everyone wants to advance and increase their compensation whenever possible. However, as many Millennials are less economically stable than previous generations, they may be even more interested in making up for lost financial ground and often wish to see a clearer path to prosperity. Organizations should consider presenting potential career paths during the initial advertisements and proactive job contacts. Proactive companies can show where a typical successful candidate in the advertised position has gone in his or her next BECAUSE MANY MILLENNIALS ARE LESS ECONOMICALLY STABLE THAN PREVIOUS GENERATIONS, THEY MAY BE EVEN MORE INTERESTED IN MAKING UP FOR LOST FINANCIAL GROUND. THEY MAY WISH TO SEE A CLEARER PATH TO PROSPERITY. position, while simultaneously describing what constitutes success in this early stage of the recruiting process in order to encourage Millennials to accept the opportunity. 4. Emphasize Corporate Social Responsibility (CSR) programs. As previously noted, CSR programs are quite important to Millennials. 12 Most companies now include CSR tabs on corporate web sites, so viewers can easily seek out more information on various programs. Companies can take an extra step by including CSR opportunities in descriptions during initial recruiting stages, offering more information during the recruiting process and including CSR programs during the on-boarding process. Organizations can also publicize their CSR efforts on social media and in the press to demonstrate they are a responsible, socially involved member of the community. Local emphasis can also help. When local volunteers, for example, clean up an abandoned lot, they can post pictures to their social networks and include links to the company s website. Including philanthropy efforts on corporate social media is an ideal way to attract young talent. 5. Stress training programs. A recent PwC international study showed that excellent training and development programs were the third most attractive employer characteristic to Millennial candidates, just behind opportunities for career progression and competitive wages. 13 Companies that focus on how they will develop talent will find themselves resonating with Millennials, as this demonstrates commitment on the part of the employer. All About Millennials: Crossing a Multi-Generational Talent Pool 8
9 HOW TO RETAIN MILLENNIALS Companies that have successfully recruited top talent will continue to invest in it and then encourage retention. Some suggestions for retaining the best of the Millennial generation: 1. Set clear expectations during the onboarding process. Millennials need to know what is necessary for success, what the company will provide and what they as new employees will be expected to deliver. This is an important time to establish trust, as data shows that Millennials are less trusting than previous generations, 14 but a clear plan of action will go a long way in establishing a foundation of trust and good faith. THEY MAY BE WILLING TO ANSWER S IN THE MIDDLE OF THE NIGHT FROM OVERSEAS, BUT NOT WANT TO SIT IN A CUBICLE ALL DAY. 2. Deliver on training and development promises. Organizations that establish trust are more likely to inspire loyalty among Millennials. One way to improve trust and retention is to deliver on training promises. 3. Give plenty of feedback. Millennials frequently receive a lot of feedback in social media. As with many young people, they may need and expect frequent feedback as to how they are perfomring and how they can improve. Traditionally scheduled quarterly or annual performance reviews may be too slow to be effective; instead, companies should consider a weekly or bi-weekly feedback cadence. 4. Consider increased flexibility. Millennials may prefer flexible hours and the ability to work in a variety of locations. They may be willing to answer s in the middle of the night from overseas but not want to sit in a cubicle from the hours of 8AM to 5PM. This may stem from their tech-savvy nature they often see no compelling reason to solely work in a single location with a businesssupplied device. They may wish to utilize their own devices, and employers can implement BYOD (Bring Your Own Device) programs to increase profitability from Millennials mobile work habits. 5. Make them part of a community. Millennials are less likely to be involved in traditional institutions and therefore are more connected to their personal networks than previous generations. 15 Some may be looking for an increased sense of a community, which companies can provide and foster. Mentorship programs can speed up integration into a company and also increase the likelihood the recruit will develop friendships at work. Millennials are more likely to stay if they have a friend or several friends in the workplace. Another opportunity to integrate workers into the workplace involves engagement programs, such as group voluntarism. These activities can allow employees an opportunity to practice team-building with others in the workplace. 16 All About Millennials: Crossing a Multi-Generational Talent Pool 9
10 HOW TO MAKE SURE MILLENNIALS LIVE UP TO THEIR POTENTIAL Between attraction and retention lies productivity. To ensure Millennials maximize their productivity, leading companies are taking steps such as these: COMPANIES MAY NOT WANT TO SEEM LIKE THEY ARE SPECIFICALLY CATERING TO MILLENNIALS, HOWEVER, AN OPEN OFFICE IS A CROSS- GENERATIONAL IDEA. 1. Offer open workplaces that encourage collaboration. Millennials are accustomed to working in teams and across social networks. Open offices increase opportunities for collaboration as workers seek out others opinions and suggestions. Companies may not want to seem like they are specifically catering to Millennials, however, an open office is a cross-generational idea. 2. Motivate them with meaning. Millennials are often attracted to a clear and relevant goal, and wise companies can motivate their employees even further through promotion of the business mission itself. Organizations are frequently rooted in a passion to solve a compelling human problem or to fulfill a vital human need. Communicating that clearly and regularly reminds people Millennials especially why they are coming to work each day. All About Millennials: Crossing a Multi-Generational Talent Pool 10
11 3. Ask Millennials to teach others something new. No one wants to be a student all the time. Millennials possess much more than technical knowledge and should be called upon, when possible, to draw from other life and professional experiences. Asking them for their opinions will not only retain more young talent but may also result in surprising new ideas or more refined methodologies. 4. Allowing for multi-tasking. As mentioned, Millennials are multi-taskers, to a point that may astonish other generations. Millennials may be messaging colleagues on a mobile device while working on their laptops or have several conversations going at once while working on a project. Managers may want to give more leeway in these cases, though draw lines when appropriate, such as no phone rules for face-to-face meetings. CONCLUSION COMPANIES THAT ADAPT TO THIS GENERATION S COMMON TRAITS WILL FIND THEMSELVES WITH A PRODUCTIVE WORKFORCE AND THE OPPORTUNITIES TO DEVELOP THE NEXT GENERATION OF LEADERS. By virtue of the generation s size and the vast reservoirs of talent and energy they possess, Millennials will reshape the workforce and have a lasting impact on the future. Companies that adapt to this generation s common traits will find themselves with a productive workforce and the opportunities to develop the next generation of leaders. All About Millennials: Crossing a Multi-Generational Talent Pool 11
12 SOURCES Economic Facts about Millennials, The Council of Economic Advisers, The Office of the President of the United States, October 2014, p Economic Facts, p Economic Facts, p Economic Facts, p Millennials in Adulthood: Detached from Institutions, Networked with Friends, PewResearchCenter, March 2014, p Aflac Corporate Social Responsibility Survey, October 2015, p Twenge, Jean M., et al., Mapping the scale of the narcissism epidemic: Increases in narcissism within ethnic groups, Journal of Research in Personality 42 (2008) Campione, Wendy, The Influence of Supervisor Race, Gender, Age, and Cohort on Millennials Job Satisfaction, Journal of Business Diversity, Vol. 14(1) 2014, p DiLullo, Camille, et al., Demystifying the Millennial Student: A Reassessment in Measures of Character and Engagement in Professional Education, Anatomical Sciences Education, Anat Sci Educ 4: (2011). 10. Phitayakorn, Roy, et al., WISE-MD usage among millennial medical students, The American Journal of Surgery (2015) 209, Google Developers, Mobile Friendly Websites, December Aflac Corporate Social Responsibility Survey, October 2015, p Millennials at work: Reshaping the Workplace, PwC study, 2011, p Millennials in Adulthood: Detached from Institutions, Networked with Friends, p Millennials in Adulthood: Detached from Institutions, Networked with Friends, p Classic Gallup study, The twelve key dimensions that describe great workgroups, Item 10: I have a best friend at work correlated with increased retention. All About Millennials: Crossing a Multi-Generational Talent Pool 12
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