Working with Millennials What will the workplace look like in 2020?

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1 Working with Millennials What will the workplace look like in 2020? Julie van Waveren, Mexico City Javier Goldsman, Buenos Aires

2 Did you know? 1

3 Today s speakers Javier Goldsman Buenos Aires, Argentina Julie van Waveren Mexico DF, Mexico

4 Working with Millennials Today s agenda 20/20: Why now? Tomorrow s leaders: Millennials Workforce 2020: What will it look like? HR s agenda for 2020: What should we be working on? Connecting the dots 3

5 Why 2020? The workplace of tomorrow is being shaped today We believe the workplace of tomorrow is being shaped today, driven primarily by: Increased globalization Introduction of new ways of working Usage of emerging technologies Shifting demographics of the workforce A number of forward thinking companies are preparing for the future workplace, defining their vision for 2015 or This 2020 workplace will: be led by Millennials and will be intensely personal provide for the latest tools and technologies to attract, develop and engage employees across all generations and geographies 4

6 Tomorrow's leaders: Millennials What will it be in 2020? In 2020 Millennials will: Be around 35 years old Will this make any difference to their values, concerns, interests? Represent 40% of the workforce This makes them the dominant generation within the workplace. Be well into leadership roles They will be managing younger employees but also Gen X-ers and even Boomers! 5

7 The organizational mix What defines a generation? Same age range and series of consecutive years of birth makes them share same timeframe in history, meaning that they have lived common experiences, and exhibit shared values, beliefs and behavioral patterns 6

8 The organizational mix Different generations different ways of looking at the world I y am what I y am! If you don t have anything nice to say, don t say anything at all. Don t have a cow, man! I just can t wait to be King! Source: US Bureau of Labor Statistics and US Census Data. 7

9 The organizational mix Generations: Shared experiences Traditionalists Baby Boomers Generation X Millennials Age today 62 to to to 42 Up to 26 Famous person Martin Luther King, Mao Tse Tung Fidel Castro, Kennedy, Marilyn Monroe Barack Obama, Princess Diana, Shakira Mark Zuckerberg Famous football players Di Stéfano, Didi, Charla Reyes Pelé, Borja, Menotti Maradona, Balderrama, Hugo Sánchez, Zico, Enzo Francescolli Chicharito, Messi, Ronaldo, Forlán Social and political events Cold War, Eisenhower doctrine, Peronismo, Trujillo, Arbenz. Cuban revolution, JFK s assassination, Vietnam War Pinochet in Chile, Malvinas War, fall of the Berlin Wall 9/11, Afghanistan and Iraq Wars. Bowling for columbine. End of military regimes. Brazil in the BRIC. Music and films Frank Sinatra, Paul Anka Elvis Presley, The Beatles, Simon and Garfunkel, Cantinflas, La isla de la fantasía Michael Jackson, U2, Madonna, El chavo del 8, Star Wars, Back to the Future Coldplay, Robbie Williams, Smashing Pumpkins, dance and chill out music. Communication and technology events IBM introduces its first computer Texas Instruments invents the microchip Introduction of the mobile telephone Internet appears ( and Web) The era of Amazon, Google, ebay, Yahoo; appearance of social networks on the internet. 8

10 Millennials What do they value? 20,000 + employees in Latin America that participate in Mercer s Employee Engagement responded to Work Values preferences (choose 7 out of 21). Challenging job Direct supervisor Stability Work-life balance Minimal stress Working premises Freedom to decide Learning opportunities Opportunity to grow Valuable job Clear expectations Short commute Relevant for the company Relevant for the community Cooperative people Income Participate in decisions Employability Leaving a footprint Creative work Prestigious company The highlighted values were picked by more than 40% of the respondents. 9

11 Millennials What do they value? AGE < > 45 OPPORTUNITY TO GROW INCOME STABILITY COOPERATIVE PEOPLE VALUABLE JOB DIRECT SUPERVISOR CHALLENGING JOB LEARNING OPPORTUNITIES RELEVANT FOR THE COMPANY WORKING PREMISES LEAVING A FOOTPRINT

12 Millennials What do they look like? Young very young (26 or less)! They're optimistic. They think globally. They're always busy. They're friends with their parents. They have difficulty focusing on non-stimulating things. Group oriented, they love to collaborate and work in teams. They're ambitious, although they might seem without a cause. They have an entrepreneurial mind; they re more loyal to their skills and careers than to an organization. As employees they value: flexibility, personalization, integrity, technology, speed and innovation. 11

13 Workplace 2020 What will it look like? 15 Share in teams: What will the workplace look like in 2020?

14 The world in 2020?

15 The world in 2020 Demographics World population Dependency thresholds and life expectancy Source: United Nations Organization 14

16 The world in 2020 Economic trends Economic shift toward emerging economies. Foreign investment will continue flowing into emerging countries. Investors will still face heavy regulations and corruption. Opportunities in emerging markets will include luxury goods as more people will be able to afford them. Younger consumers to become more relevant. Despite population ageing in advanced economies, the population in emerging markets is generally younger. Source: Euromonitor International from IMF. 15

17 The world in 2020 Sustainability Water will become a more valuable commodity. More of the population will be concentrated in cities. Cities will encourage a high level of environmental investment, with waste and water recycling becoming a way of life for both industry and consumers. Electric vehicles will dominate the fleet in megacities, reflecting governments will to support the technology by building charging infrastructure. 16

18 The world in 2020 Technology A future of ubiquitous computing is one where computers are unnoticed. Rather than allowing technology to control the urban environment, the environment will shape the technology. Technologies will sense our emotional state. The notion of "work" will change because of digital technology. In 2020 it will no longer be technology it will just be how we get things done. 17

19 The world in 2020 Communication More and more, communication within the family is likely to be mediated by technology the internet, and the mobile phone. The written press will nearly disappear. Mainstream and grassroots will cohabit as information channels. 24 hour, non-stop communication and information. Information will move incredibly fast. Millennials will continue to be ambient broadcasters who disclose a great deal of personal information to stay connected. 18

20 The world in 2020 Architecture: Offices Offices will be plug and play and for "face time" only. Everything that can be done from home, will be. Technology may not mean we work fewer hours. We will stay more connected 24/7. With eco-awareness and 2/3 of the population living in cities, commuting will turn costly (time and resources). Companies will have to adopt a more relaxed attitude to time. The future office will comprise core teams, working around the globe. Older people will be more prevalent in the workplace, with the retirement age by 2020 likely to be

21 Workplace Share in groups: If you are now in 2020, what would your HR agenda look like? Team 1: The Working Experience Training & Development Performance Management Team 2: The Working Experience Culture & Working Environment Leadership Team 3: Rewards & Recognition Compensation Benefits Recognition Teams 4 & 5: The HR Function A Mercer consultant will be facilitating the discussion in each team. Conclusions from each team will be presented in flipchart.

22 Key takeaways

23 Key takeaways Open, distributed leadership will blur organizational boundaries. Smart networking, data transparency and bottom-up management will create more open and decentralized decision-making processes. Interpersonal skills, adapting to quick changes and an entrepreneurial mind will be key capabilities. Generations will mix more as the population continues to work. Talent will be global. Employee mobility will increase. Cultural differences awareness and integration will be crucial. 22

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