Generation Y is taking over the workplace and its sooner than you think. By 2025, they will comprise 75% of the workforce. Due to demographic shifts, including more experienced Baby Boomer workers retiring, it is essential to engage Generation Y now so they are able to fulfill expected talent shortages in the near future. Developing a strong leadership pipeline and expertise are key to business continuity. Unfortunately, many organizations are not prepared to attract, engage, and retain Generation Y employees because they continue to use management practices that are off target. Neglecting to engage Generation Y will result in talent shortages, turnover expenses, and a damaged reputation. Generation Y had a different upbringing than the Baby Boomers and Generation X; however, much of what they demand in the workplace will engage the entire workforce, not just their demographic. Engaging Generation Y is as much about modernizing your workplace as it is about creating an environment to capture the best new talent; the ROI is far-reaching. Learn more about the trends that are shaping the future of work and how embracing technology and the social web can help organizations to capture the millennial workforce and enhance organizational performance.
The Changing Nature of Work Capturing the Millennial Workforce and Enhancing Organizational Performance through Social Collaboration
2012 SAP AG. All rights reserved. 2 Ready or Not, The Workforce is Changing! Globalization Global access to markets and talent will reshape business Talent Markets are Global Demographics 5 generations will be working side by side in organizations Social Web Social media will connect employees, customers & partners for immediate connection Equal and Simultaneous Forces are Shaping the Future of Work
2012 SAP AG. All rights reserved. 3 Traditionalists Born before 1946 ~46M Baby Boomers Born 1946-1964 ~78M Gen X Born 1965-1976 ~50M Gen Y (Millennials) Born 1977-1997 ~88M Gen 2020 Born 1998+ ~41M Get to Know Your Workplace Generations Do you know the demographic breakdown of your workforce? How is this likely to change in 5 years? What about 10?
2012 SAP AG. All rights reserved. 4 Demographics in Action: The Latest Numbers (U.S.) 2014: Millennials will comprise 36% of U.S. workforce By 2020 Millennials will comprise nearly half (46%) Gen X = 16% of workforce Median age of workforce expected to increase to 42 in 2020 How this affects your business: Workforce growing at a slower rate Pension and health costs rise just as growth in the tax base slows Fewer workers particularly fewer experienced workers -- threat to productivity.and economic growth o Departing Baby Boomers create leadership and skills gap Immigration a strong contributor to workforce growth Increased diversity
2012 SAP AG. All rights reserved. 5 Talent Follows Opportunity
2012 SAP AG. All rights reserved. 6 Relative Size of the Generations in Most Westernized countries* < 1946 < 1964 < 1976 < 1997 1997 ? 0 10 20 30 40 50 60 70 80 90 Traditionalists Baby Boomers Generation X Millennials Gen 2020 ??? * Example is US
2012 SAP AG. All rights reserved. 7 Not SurprisinglyMillennials Like Smaller Companies 47% 30% 23% Concentration of Millennials/Size of Employer Small (1500 employees) Why? More opportunities to do more/different things to determine preferences and hone abilities Fewer layers more direct access to leadership, greater opportunity for mentorship More exposure, influence on strategic decisions - more likely to be heard Gen Y on the Job, www.payscale.com, 2012.
2012 SAP AG. All rights reserved. 8 They lack organizational loyalty. Millennials employees have about the same degree of organizational commitment as other age groups. The workforce has changed, not just the people in it. Source: Harvey Schachter, Five myths about Millennial Workers Furthermore, organizations cannot guarantee job security any more than employees can guarantee theyll stay. Young people of every generation including when Boomers were the youngest people in the workforce change jobs more frequently than older people because theyre learning what they like and what theyre good at. Source: Jennifer J. Deal, Retiring the Generation Gap Who Are These Millennials? Dispelling the Myths MYTH TRUTHS
2012 SAP AG. All rights reserved. 9 They dont respect authority. Traditionalists define respect as: give my opinions the weight I believe they deserve and do what I tell you. Millennials define respect differently, as: listen to me and take my perspective into consideration. Millennials crave coaching and mentorship. If they didnt respect their seniors leaders, they wouldnt be asking for so much of it. However, they also want to be listened to not just told to do something. Differences in respect with regard to the generations is often appears to be something bigger than it is; everyone wants to be listened to and they want to know their opinions matter. Another Myth MYTH TRUTHS
2012 SAP AG. All rights reserved. 10 They are only motivated by perks/money. What motivates people has more to do with their personality than their age. Speaking to pay specifically, 27% of young people think high pay is important compared to 48% of older workers. Source: 27 Shift If any conclusion were to be drawn about motivation and Millennials, it would be that they prefer development over cash. In fact, research shows that Millennials prefer development three times more than a cash bonus as a form of benefit. Source: 15th Annual Global CEO Survey 2012. One More Myth MYTH TRUTHS
2012 SAP AG. All rights reserved. 11 More Millennial Facts You Need to Know Will comprise 75% of the Western workforce by 2025, the largest proportion in history. Most educated workforce in history.Tech-natives grew up with access and dependence on technology. Ethnically and culturally diverse due to more open immigration policies than in previous generations. Most educated female demographic in history. The children of Baby Boomers, or older Gen X.
2012 SAP AG. All rights reserved. 12 Embracing Technology to Optimize Your Workforce Each retiring Baby Boomer subtracts ~40 years of workplace experience How do you not only fill the gap but surpass your competitors? Collaboration Deliver employee experiences that strengthen knowledge of and appreciation for the customer value chain Authenticity Values in action and transparency facilitated through social media/collaboration, open financial books, full disclosure on pay Personalization Nurture employee relationships that align with needs of every generation at each life stage Innovation Offer innovative practices aligned to organizational strategy Social connection Provide fun, engaging work environments (virtual or physical) Encourage use of social media tools/techniques that allow employees to enable workplace performance and support life interests
2012 SAP AG. All rights reserved. 13 Why does Technology Matter? Your Workforce has Changed
2012 SAP AG. All rights reserved. 14 and is Using Apps Like These
2012 SAP AG. All rights reserved. 15 So Why Keep Technology that Looks Like This
2012 SAP AG. All rights reserved. 16 When You Can Have HR Technology that Doesnt Look or Act like HR Technology
2012 SAP AG. All rights reserved. 17 And is Available Wherever Your Employees Are, 24/7
2012 SAP AG. All rights reserved. 18 Business Execution Technology: GPS for Strategic HR Putting knowledge in the hands of decision makers to support real time decisions Lets take a look
2012 SAP AG. All rights reserved. 19 Of CourseYou Have to Know How to Use It Correctly
2012 SAP AG. All rights reserved. 20 Predictions for the 2020 Workplace Your mobile device will become office, classroom, and concierge Work-life flexibility will replace work-life balance The global talent shortage will be acute Recruiting will start on social networking sites You will be hired and promoted based upon your reputation capital Building a portfolio of contract jobs will be the path to full-time employment Corporate social networks will flourish and grow inside companies Social media literacy will be required for all employees Leaders will learn to blog (to promote authenticity, transparency) Lifelong learning will be a business requirement Development opportunities will be personalized and address generational needs The 2020Workplace: How Innovative Companies Attract, Develop and Keep Tomorrows Employees Today by Jeanne C.Meister and Karie Willyerd. Copyright 2010 by Jeanne C. Meister and Karie Willyerd.
2012 SAP AG. All rights reserved. 21 Seven Actions You Can Take Today To Prepare Ensure you and your leadership - are fluent in the new language of business Conduct a workforce analysis risk assessment. Determine what your workforce plan should be Build a recruiting machine to reach candidates where they live online! Develop clear learning and development strategy to attract new employees and prepare existing for the future Prepare your leaders for the new leadership competencies required to lead in the future workplace Use social technologies inside your secure environment to facilitate communication, learning, and collaboration on leading edge platforms Make your HCM systems app and mobile friendly