A strong housing program can help your company stand out and attract the best candidates

Trend Report

THE MILLENNIAL INTERN: Work-Life Balance Shapes Expectations for a Successful Experience

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IntroductionEXECUTIVE SUMMARY

This trend report explores how millennials, also known as Generation Y (those born approximately between 1980 and 2000), and their unique work preferences are significantly changing—and challenging—how businesses recruit, support and manage this rapidly growing workforce segment. Remarkably, projections show that millennials will comprise as much as 75 percent of the global workforce by 2025¹. With so many first entering the workforce as interns, companies are taking note of millennials’ distinct qualities, including their focus on work-life balance, their strong sense of community and their need to be “plugged in” 24/7, all of which dramatically impact what they expect from their internship experience—including housing accommodations. As corporations plan and budget for their internship programs, they need to consider many variables for the housing portion of their program—from offering lump sum vs. direct billing, to deciding roommate arrangements and onsite amenities, to providing a secure location within close proximity to the office. To provide the right housing program within budget and that meets the growing demands of millennial interns, more companies are turning to corporate and serviced housing providers to design customized solutions that will, ultimately, help convert those interns into full-time employees.

Millennials will comprise as much as 75 percent of the global workforce by 2025¹

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Start With a Lasting Investment

Just 15 or 20 years ago, internship programs looked very different than they do today. Many companies ran their programs out of one location, often engaged in decentralized hiring, and offered few benefits and no housing or low-cost housing accommodations.

A new level of sophistication, driven by competition for the best candidates, now shapes internship and talent acquisition programs. Basic administration and informal programs have been replaced with centralized talent management and retention on a global scale; ample perks used as a status symbol and “bragging rights”; and specialized housing accommodations leveraged as a program differentiator.

This new landscape means companies are investing major time, money and resources in their potential new talent.

How can companies reap the greatest benefits from such a significant investment? Most would agree the ultimate goal is to convert as many interns as possible to full-time employees.

Converting interns to full-time employees can save companies considerable cost and time, improve employee

loyalty and reduce turnover rates. Companies spend anywhere from $10,000–$50,000 to replace and retrain one employee² when taking into account everything from recruiting efforts, to third-party agency fees and signing bonuses. In addition, employees who complete an internship or co-op program with their employer are more likely to remain with the company after one year and five years (two key benchmark periods), according to the National Association of Colleges and Employers 2014 “Internship and Co-op Survey Report.”

Of course, laying the proper foundation to maximize intern conversion rates starts with an excellent internship experience.

A meaningful experience learning specific skills they can apply in their career of choice tops an intern’s wish list. Millennial interns, in particular, value being included and feeling part of the team or “community” so allowing them to work in groups and on challenging projects will help boost success. Other essential elements include strong communication, including structured feedback and evaluations, detailed directions from supervisors and a comfortable workspace.

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“ Offering housing made a big difference and helped us appeal to a much broader group of candidates across the country.”

— JULIE HOCH, COLLEGE RECRUITER AND INTERN PROGRAM MANAGER, BURNS & MCDONNELL, KANSAS CITY, MISSOURI

Start With a Lasting Investment CONTINUED

That same sense of community and need for comfort applies to temporary living accommodations, so housing becomes another important component that influences a millennial intern’s experience. An unpleasant living situation can profoundly affect an intern’s quality of life, work experience and, ultimately, diminish an intern’s views about a company. An excellent opportunity exists to capitalize on the housing experience to help them achieve work-life balance, settle in quickly, get to know other interns and make their overall intern experience an outstanding one.

Julie Hoch, a College Recruiter and Intern Program Manager with Burns & McDonnell in Kansas City, Missouri, a client of Oakwood Worldwide, believes the

housing component of her company’s internship program has been especially successful in attracting excellent interns from outside the Kansas City area. “Before we offered direct-bill housing, it was quite a challenge to find people willing to move here for three months, find a roommate and deal with the logistics of it all,” she said. “Offering housing made a big difference and helped us appeal to a much broader group of candidates across the country.” Hoch also said that interns offered full-time positions often want to remain in the same housing because it presented such a great bonding experience with their fellow interns. She added that the company’s conversion rate for interns to full-time employees typically stands between 85 and 90 percent.

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The advancement of technology. Technology plays a pivotal role in the lives of millennials. This generation grew up constantly “plugged in” and with the ability to get information almost instantly. More than any other demographic segment, millennials have the most positive view of technology and use it for both socializing and work. In fact, 74 percent think technology makes life easier³ and almost 90 percent regularly check email after work hours¹. Another interesting finding revealed that millennials who have attended college are more likely than those who have no college experience to be online, use social networking sites, watch and post videos online, connect to the internet wirelessly, and send and receive text messages.³

The need for work-life balance. Like everyone else, millennials face working the longer hours required in today’s workplace. However, they have a stronger need for balancing work and leisure time than their Baby Boom and Generation X counterparts. Millennials’ priority for work-life balance was reinforced in PricewaterhouseCoopers (PwC) 2011 survey “Millennials at Work: Reshaping the Workplace,” which showed 95 percent of respondents saying work-life balance is important. In addition, the survey showed that development and work-life balance are more important to millenni als than financial reward. In a 2015 Ernst & Young “Global Generations” survey, 74 percent of millennials said they want colleagues and supervisors who support their ability to work flexibly without stigma and 80 percent said their top reason to stay in a job was competitive pay and benefits, including flexibility.

Thirst for career flexibility and independence. This self-motivated generation views career flexibility and independence as essentials on the job. Many believe they can accomplish more in less time as well. As a result, they often blur the lines between work and leisure time and see technology as a way to make that happen—whether it means taking a work call at the dinner table or working on a project on their laptop while sitting poolside. They also believe productivity should be measured by output of the work performed, not the number of hours logged at the office. To make their current job more flexible, 64 percent of millennials said they would like to occasionally work from home and 66 percent said would like to shift their work hours.4

A preference to work in a team-oriented, ‘community’ culture. While they need career flexibility and independence, millennials are highly sociable and favor participating in group projects. Surprisingly, they actually prefer to communicate with their co-workers via in-person conversations. In a 2013 Millennial Workplace Trends Survey by IdeaPaint™, about 90 percent of respondents said they prefer in-person meetings over conference calls and 74 percent said they prefer to collaborate in small groups to generate big ideas. Employers can support this preference with an office encouraging “face time”—open seating spaces vs. cubicles, plenty of staff lunches and opportunities to socialize with co-workers.

74%want support

for work flexibility

without stigma 95%say that work-life balance

is important

74%prefer to

collaborate in small groups for big ideas 90%

prefer in-person meetings to conference

calls

64%would like to occasionally work from

home 66%would like to

shift their work hours

74%believe

technology makes life

easier 90%regularly

check email after work

hours

Key Trends Driving Millennials’ Career and Lifestyle Preferences

A significant amount of research over the past several years has examined what motivates millennials, with several dominant preferences and tendencies emerging. The leading influence on this generation is the advancement of technology and the need to be informed and “always on.” Other drivers include a strong need to find work-life balance; a preference to work in a team-oriented culture with a deep sense of community; and an appreciation for career flexibility.

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Creating Smoother Transitions

“We changed the housing portion of our intern program from lump sum to direct bill, which makes a much smoother transition for interns and they really appreciate it,” said Amy MacLeod, Program Manager in University Relations at EMC in Boston, Massachusetts, an Oakwood Worldwide client. “We also wanted to build camaraderie among our interns by pairing them as roommates and they enjoyed the networking experience, bonding and friendships they built.”

MacLeod, who helps manage hundreds of interns annually, also said that housing interns in groups at fewer properties with plenty of shared spaces allowed the company to offer successful career events, including a lunch to help interns maximize their LinkedIn profiles and sessions with a professional photographer for their first official career headshots.

Many Oakwood Worldwide clients have found that the strong relationships built during an internship program—supported by a robust roommate pairing process and planned social activities at the apartment properties—often motivate interns to remain at the company.

When a company decides to offer a lump sum program and allows interns to find housing on their own, it leaves a lot of room for issues to develop. Many of Oakwood Worldwide’s clients who previously offered the lump sum option reported a long list of complications, including interns whom:

• ran out of money and couldn’t pay their rent, causing a complete disruption in their internship program

• rented cheap, rundown apartments in unsafe neighborhoods

• shared one overcrowded apartment with five or six roommates, so they could spend their housing money on entertainment

• didn’t show up on the first day because they couldn’t find accommodations; and

• didn’t have a truck or van—and weren’t old enough to rent one—to move personal belongings and necessary furnishings, such as a bed.

Direct billing and management of housing with a temporary and serviced housing provider takes the pressure off both the company and interns for many reasons. A temporary housing provider can offer:

• administration of all paperwork, including leases, roommate pairing, utilities set-up and payment, reservation confirmations, and intern credit card information for incidentals and any damages

• consistent, fully furnished housing with similar amenities across various geographic regions

• better rates because of strong supplier networks and partnerships and volume

• valuable time back to human resources (HR) and recruiting teams so they can concentrate on engagement and development; and

• a comprehensive duty of care program, ensuring companies know where interns are living and how to reach them in case of an emergency or natural disaster.

LUMP SUM VS. DIRECT BILL

“ We changed the housing portion of our intern program from lump sum to direct bill, which makes a much smoother transition for interns and they really appreciate it.”

— AMY MACLEOD, PROGRAM MANAGER IN UNIVERSITY RELATIONS, EMC, BOSTON, MASSACHUSETTS

How Preferences Color the Housing Experience

To house or not to house? That is a question many companies face when creating and building their internship programs. Because so many companies are global and need interns to work in various functions and divisions, housing often becomes a critical component of the program.

Companies must weigh many factors when offering housing as part of their internship package, from offering lump sum vs. direct billing, to deciding roommate arrangements and onsite amenities, to determining frequency of communications and who will manage them. Consider some of the main challenges and opportunities. . . .

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Most Requested Features

AMENITIES VS. INTERNS’ EXPECTATIONS

How Preferences Color the Housing Experience CONTINUED

Deciding which housing amenities to provide can pose another big challenge. Various companies budget for only the basics, often times driven by strict guidelines from procurement, while others offer extras as a way to entice the best interns away from competitors. Interns’ expectations can further test program limitations and budgets.

When focusing on providing housing for millennial interns, a great place to start is with the basics of any good housing program, providing safety, security and comfort. Once those basics are covered, however, millennials tend to seek additional housing features that reflect their trends and preferences, centering on technology, work-life balance, a strong sense of community and a flexible work environment.

Other higher-end offerings to consider include providing each intern with large-screen television, cleaning service and welcome baskets

with gourmet food items and high-end toiletries.

A well-matched roommate who is close in age with similar

schedules, likes and study preferences. Mismatched pairings can make for a dismal experience and, in the end, sour an interns’

view of the company.

Easy access to public transportation

to and from the office or job site, shuttle service to the office, or an arranged carpool program with a roommate/other intern.

A quiet property or property with mostly career professionals.

An onsite fitness center or local health club.

Free Wi-Fi and high-speed Internet.

An onsite business center.

Close proximity to entertainment,

nightlife, restaurants, grocery stores and dry cleaners.

Common, shared areas where they can spend time networking and getting to

know fellow interns.

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Key Communications Elements Appreciated by Millennials

• A Comprehensive Communications Packet with a welcome letter, details about the apartment and a list of amenities, any contract and informational forms, check-in and check-out procedures and dates, roommate details, and customer service contact information.

• A Landing Page/Special Web Page with details about the apartment location; photos of the building, apartment interiors and amenities; a roommate-matching questionnaire (if appropriate); frequently asked questions; transportation information; a list of planned activities; a list of area restaurants, grocery stores and entertainment venues—or links to resources with that information; and dates and times of orientation sessions or other important meetings.

• Orientation at the Property or at the Company’s Office to answer interns’ questions, provide an 800 number/customer service contact information to address any issues at the property, and provide overall peace of mind for interns.

Communicating program details is another factor to consider. Millennial interns especially enjoy frequent communications providing plenty of details, which can become unwieldy depending on the number of interns in your program. A key question: Will HR and/or the recruiting manager handle communications, or does the temporary serviced housing provider manage them? Often, it is a combination of both, with HR/recruiting handling general details about the internship program and then the housing provider communicating most of the housing details.

“With our millennial interns, we’ve had to change the frequency—and way—we communicate,” said Julie Hoch, a college recruiter and intern program manager with Burns & McDonnell in Kansas City, Missouri, a client of Oakwood Worldwide. “They want information, and they want it immediately and frequently.

That’s why they really like the website we provide with all the details about their apartments, amenities and other important information.”

A good temporary housing provider can deliver comprehensive communications setting clear expectations while also providing guidance and counsel to program management to keep all involved on the same page—and the program running smoothly.

“If you have touch points in the beginning and again at the midpoint of the program, you have a chance to build relationships with interns, correct any issues and increase your satisfaction ratings,” said Richard Franco, senior district manager operations, Oakwood Worldwide.

MANAGING COMMUNICATIONS

How Preferences Color the Housing Experience CONTINUED

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A “Menu” of OptionsProvide a “menu” of options for customization that can include:

• Transportation services

• Specialized roommate matching, using more in-depth questionnaires

• Free Wi-Fi

• Close to night life/gyms/restaurants if possible. This option can become a challenge in more rural markets vs. larger cities, i.e. Des Moines, Iowa, vs. New York City or downtown Chicago

• Cleaning service/turn-key service

• Welcome package

• Specialized furniture packages

• Technology packages

• Individual apartments for each intern

How to Choose the Right Temporary and Serviced Housing ProviderAn experienced and trusted temporary housing provider should offer a strong base housing program with the following essential elements:

• Program management

• Single vendor for billing/invoicing with financial summaries at the program’s end

• Direct billing

• Safe and clean apartments

• 24-hour service number

• Options close to the work locations

• Options close to public transportation or coordination of shuttle service

• Roommate matching, based on a specific set of criteria mutually established and focused on a client’s priorities

• Inventory optimization and vacancy mitigation by strategically pairing roommates, which can reduce costs

• Communication tools and technology

• Guidance and counsel to HR and the recruiting manager about their program housing needs early in the process, including . . .

− Availability based on time of year, length of leases

− Advanced planning—as far out as possible to get best apartment choices

− Budgeting/pricing range based on options chosen, time of year, proximity to office, amenities, etc.

• Program reporting and metrics, allowing for a client’s senior leaders to understand program value and make informed business decisions

Recommendations and Solutions

Companies invest a significant amount of time, money and staff resources in building their future talent pipelines with internship programs. Hiring a quality, experienced temporary/serviced housing provider to manage program housing allows employees to focus their efforts on the quality of the interns work experience instead of the myriad of details related to housing. Starting with a strong base housing program and then adding custom features focused on the unique needs of millennial interns, and the organizational culture, can set your program apart from the competition, helping to attract the best candidates, bolster your company’s reputation and, ultimately, convert the highest percentage of interns to full-time employees.

APPENDIX

¹ May 2014 white paper, “How Millennials Could Upend Wall Street and Corporate America,” Governance Studies at Brookings Institute, Morley Winograd and Dr. Michael Hais

² 2002 Cost Per Hire Survey conducted jointly by the Employment Management Association and the Society for Human Resources

³ February 2010 Pew Research Center report, “Millennials: A Portrait of Generation Next. Confi dent. Connected. Open to Change.”

4 2013 study conducted by PwC, the University of Southern California and the London Business School, “PwC’s NextGen: A Global Generational Study. Evolving Talent Strategy to Match the New Workforce Reality.”

FOR MORE INFORMATION:

Oakwood Worldwide 2222 Corinth Avenue, Los Angeles, CA 90064

Phone: +1.800.888.0808 International: +1.602.427.2781

OakwoodWorldwide.com

Oakwood Worldwide has helped companies place more than 10,000 interns in temporary/serviced housing. If you would like to see

how Oakwood Worldwide can help strengthen your intern program, please contact your sales associate or contact us at 800.888.0808.