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Perspectives on the multigenerational environment

Generation Y

Hello, how are you?

For some time now we from LAB SSJ have been conducting extensive research on the multigenerational environment, especially on Generation Y - a group that has exerted great influence on the work and strategies of organizations.

Research, allied with our experience with this audience in development programs of young professionals, motivated us, in a concise way, to gather information that seemed relevant and that we decided to share with our friends.

We hope you seize the content of this fourth edition pocketbook to get to know a few perspectives of the Generation Y and think about challenges and opportunities for development and retention of this new workforce.

Enjoy yourself!

Reinforced the importance of human capital as a competitive advantage.

The connection 24/7 helped by the intense exposure to technology has eliminated many restrictions such as time and work place. Moreover, it has transformed the way people relate and communicate to one another, making the hierarchical systems less demarcated. All these factors have been challenging the traditional forms of work management.

Globalization

Technology

overview

On the one hand there is an increasing number of workers approaching retirement; on the other, there’s a shortage of trained professionals to replace them.

Demographics

overview Today, several factors have

impacted the social relations

and the labor market, here

are some of them:

To face this scenario’s complexity and

unpredictability, today companies seek to find ways

to motivate and retain the best talents of the

so-called Generation Y.

The entry of Generation Y in the corporate environment has introduced new challenges for organizations, which must compete globally for talented young professionals with differentiated values and expectations.

Multigenerationalmarket

Generational differences constitute one of the optics through which we can analyze changes in the business world. Although there are many variations as how the generations are classified and named, there is a consensus that synthesizes the generational groups.

Today, there are three generations coexisting in the workplace:

Generations

Generation YThe younger generation in the organizational scenario

Baby boomersHave experienced the post-war great prosperity and now are approa-ching retirement

Generation XGrew up in 1960’s and 1970’s, they saw the fall of the Berlin Wall, the implosion of the dot.com companies and the emergence of several new technologies

what they appreciate Respect Confidence Opportunity

LearningMeaningful reward

All generations have similar values, they just express themselves differently.

Basically, everybody appreciates and wants the same things. The point is that the priorities, expectations and behaviors vary noticeably. People may want the same things, but they want it all in different “packages”, depending on when and how they were raised.

The experiences that shaped these generations have important implications for the role that work has on their lives, in what they expect to receive as reward in the professional sphere and how they judge others’ actions and performance.

Boomers1946 1964

At the end of the Second World War, the world experienced a period of great prosperity; the countries found the strength to rebuild their economies and people stabilized and began to have more children. In 1946, birth rates increased significantly, beginning a steady increase that lasted for almost 20 years.

This population explosion has created the so-called baby boomer generation. A generation that remained as the largest group of people with a cultural, political and economical legacy unprecedented, dominating the scene at all stages of their lives.

There’s something that culturally connected the boomers in a unique way: television. Baby boomers were the first generation to grow up in

front of TV. They were able to share cultural events and historical marks with all people their age, regardless of where they were. These shared moments helped to establish a link never before experienced by any previous generation.

When the baby boomers were young, they saw man stepping on the moon and the Vietnam War; they were responsible for movements such as the civil rights march, sexual freedom and other protests of the 1960s. At age 20, in the 1970s, they created the culture of excess. In the 1980s, they were “yuppies”, finding their way into the corporate world for the first time. Again, there is an expectation of change in the paradigm of how boomers will face retirement: working.

1965 1979Generation

Generation X grew up with a new social reality. They saw old social patterns start to decay. Many were children of divorced parents, lived in homes where men and women worked outside. Indeed, it was the first generation to testify women adopting a more independent role in society.

Most of them were born after man’s arrival the Moon (1969), they saw the emergence of new technologies such as Video Cassette Recorders (VCRs) and personal computers. As teenagers they testified many crises and saw adults being fired from large corporations. These situations created a feeling of disbelief in the companies and a strong desire to

fill life with “B” plans, just in case. So, they are not afraid of renewals and feel comfortable in face of unpredictability.

In personal life, this generation is not particularly a fan of rules; however, they think that, at the workplace, they must be fulfilled. Usually Generation X people are portrayed as independent, resilient and adaptable.

They are responsible for inventing the dominant communication tools in today’s world. Companies that have revolutionized the Internet, like Google, Amazon and YouTube, the Web 2.0 icons were created by people of this generation.

1980 2000

Generation

GenerationGeneration Y, one of the most well protected generation by their parents; they grew up accustomed to being valued and to feel special. According to general definitions, they are ambitious, self-centered, demanding, securing and believe they can change the world.

At work, Generation Y tends to be defined as a group of people concerned with their own careers more than with the organization, as people impatient to wait for opportunities and promotions; they tend to mix their personal and professional life (for example, working at home or socializing with co-workers) different from the other generations, and also they

are defined as individualistic people who change jobs constantly looking for new challenges.

Although some of these characteristics are generalizations, it is important to look at the significant characteristics of Generation Y with a different perspective, expanding the possibilities of promoting a better use of their skills in the corporate environment.

Because they are a group that presents new challenges to those responsible for managing and motivating their work, it is important to better understand how this group of people behaves.

CommunicationThey are accustomed to instantaneous communication, connecting with people in many different technological ways: SMS, email, Twitter, blogs, etc.

They are at ease with globalization and the increased information flow.

Constantly, they use to update with new technologies and get bored quickly with the old ones.

internet member communities

facebook

18%

63%

566%

The total amount of time spent on Facebook increased by 566%

Change in total minutes between dec 2007 and dec 2008.

Source: “Global Faces and Networked Places” – Nielsen Report, march 2009.

They value the practice and experience to learn

They prefer learning in networks and in groups, collaboratively

They like to use technology to learn

They are constantly questioning

Learning

92,2%

dist

ant

88,2%

theo

reti

cal

83,9%ex

posi

tory

66,4%

indi

vidu

al

How do they learn better?

pers

onal

ly

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s on

pr

acti

ce

expe

rien

tial

grou

p

Source: “High Potentials Survey” – LAB SSJ 2008.

Professional attitude

Do not rely on traditional institutions of power

They are focussed on personal success

Short- term career prospect

Do not perceive clear boundaries between life and work

Expect to work anytime, anywhere, with more flexibility and virtually

They value autonomy and optimism

They enjoy teamwork

They expect fast results

attitude86%Recognition for the good work

Salary / bonus

Learning / development

Flexible work

85%80%

68%

Most Important

10%7%

25% 58%

up to 1 year

1 to 3 years 4 to 6 years

more than 7 years

How long from now would you like to take a managing job?

Career Expectancy

work aspects

Source: “High Potentials Survey” – LAB SSJ 2008.

Source: “Generation Y Research” – IPSOS, august de 2008.

in one day becoming a CEO or CFO?

Source:“Reputation & The War for Talent – Corporate Reputation Watch” – Hill & Knowlton, 2008.

Very interested

Fairly interested

Not very interested

Not at all interested

51%

33%

14%

2%

How interest are you

with your current employer?

Source: “Generation Y: powerhouse of the global economy” – Deloitte, 2008.

How long have youGen Y workers aren’t content with putting in their time and slowly working their way up the corporate ladder. They’re much more interested in opportunities for growth and advancement. And when offered, Gen Yers seize them.

Less than 3 months

3 to 6 months

7 to 11 months

1 to 3 years

4 to 7 years

Longer than 7 years

86,9%14.9%

12,7%

11,1%

2%

0 10 20 30 40 50 60

51,9%

7,4%

Remuneration

In addition to flexibility (in time and communication), to the search for personal values, to the familiarity with technology 2.0, the major focus of Generation Y is on Remuneration. According to several researches, the financial issue seems to be one of the most important factors when they need to choose a job. But while salary is important, it is encouraging to see that “learning and development also remains among the most important factors for Generation Y.

Millennials value

training more than flexibility

1º

º

º

53% Training and development

2 41% Cash bonuses

3 41% Flexible working hours

Source: “12th Annual Global CEO Survey” – PricewaterhouseCoopers, 2009.

What could attract you

Which of the following action items should

to work for a firm?

your employer do to retain you?

Greater career growth opportunities More money or financial benefits Greater opportunities for learning and development The firm’s commitment to improving its own reputation The firm’s commitment to high standards and ethics International market exposure or expertise in a sector Better non-financial benefits, e.g. healthcare, vacations The firm’s commitment to improving the sector’s reputation The size of the firm and its importance to the global economy Others recognizing the firm as having the best reputation in the sector

Increase your salary and/or bônus Provide opportunities for advancement Provide appopriate recognition for contributions Promote coaching and mentoring Offer flexible work hours Offer a variety of career paths Promote a better work/life balance Allow you to work closely with senior managers and executives Increase your benefits/perks Allow you to work from home Provide better job security

0

0

10

10

20

20

30

30

40

40

50

50

60

60

67%

53%

38%

36%

33%

32%

32%

23%

23%

Source: “Reputation & The War for Talent – Corporate Reputation Watch” – Hill & Knowlton, 2008.

Source: “Generation Y: powerhouse of the global economy” – Deloitte, 2008.

68%

61,5%

53,7%

29,8%

24,4%

23,3%

22,9%

20,8%

20,7%

15%

14,3%

7,9%

Life Work

They do not live for working, but work for living.

85% of young professionals want to spend from 30% to 70% of their time working from home. And more than half want flexible working arrangements. Source: “Generation Y: What they want from work” – Talentsmoothie Report.

+

Work

In face of these results, how professionals from Human Resources should elaborate their strategies for recruiting and retention in order to consider the open and collaborative professional style adopted by the people of Generation Y?

What is necessary to understand in order to attract, develop and retain the talents of this generation?

People of Generation Y do not recognize very well hierarchy, nor have the same kind of respect for authority as previous generations. They express themselves easily and think they can say what they think, even when are in lower positions within the company. Generation Y wants responsibility and to quickly have a “voice”, so they often give their opinion without waiting or obeying the hierarchy.

They are suited to the complex world in which we live, where information is fragmented, where we need several specialists and where everything is

constantly changing; these people need to understand the limits of what they know and what they do not know yet.

Because of their instinct to work collaboratively, we must keep them focused on the work that needs to be done and not let them to do what they want to do. They need to recognize the limits of their knowledge.

Allan Cohen

LAB SSJ partner on the theme “Influence without authority” and author of “Power Up”, which deals with the concept of shared leadership.

Working with people of all ages has become essential in today’s multigenerational environment. Understanding why employees of other generations behave in a different way offers advantages to a better work with them - be they bosses, partners, subordinates or clients.

There is concern about the expectations Generation Y has about work. Many managers think that instead of adapting themselves to the workplace, people of this generation expect work to fit their desires. Indeed, they demonstrate willingness to be effective, to learn

new skills and make things happen quickly. To better understand this attitude, many organizations have been putting on an effort to ensure that older employees can understand and deal better with this generation that seeks more feedback, responsibility and greater involvement in important decisions.

DesenvolvimentoManagers need to create challenging work environments that leverage the specific talents of Generation Y, with greater diversity and flexibility and which awake the commitment and loyalty of this generation through their values.

Multigenerationalwork environment“Organizations that do not take advantage of the collaboration among generations are risking to become irrelevant or obsolete”

Source: “Generation Y: Powerhouse of the Global Economy” – Deloitte, janeiro 2009.

We must think about the necessary competences for people of Generation Y to develop skills that will enable them to manage projects and take appropriate decisions to deliver successful results. To keep the motivation high, companies can collaborate creating differentiated growth paths and establishing a culture that encourages autonomy

and creativity. After all, Generation Y needs to have the feeling that they are participating on the important issues, that they are part of the game.

Thus, the development plan must be well defined in relation to career and succession plan, the proposed assignments should be challenging, mentoring programs should be adopted so they work with more experienced people, and the feedback (informal and formal) on their performance should be constant, with inputs from multiple sources, such as colleagues and clients - not only the direct manager.

NetworkingGeneration Y actively participates in web 2.0. It is essential to exploit their natural ease with technology to build positive and inclusive relationships. To use social medias such as blogs, Twitter and chat rooms to establish new channels of communication is one way to encourage collaboration and transform relations among generations in the workplace, creating a more open culture among all.

Multigenerational

Boomers1946 1964

Relationship with authority

Relationship with organization

Relationship with colleagues

Work style

Management style

Challenge authorityDesire flat, democratic system

Loyal to the teamLive to workCareer= self-worthWants job security Personal relationship with supervisors

Personal relationshipsAvoid conflict

Bend the rulesWork in teamsFocus on people not numbersStructured workstyleCautious of change

ParticipativeDecision by consensusOpen mindedFlavour of the monthDesire alternative management styles but face difficulty in implementingPolitical

Y1980 2000Geração

Respect for authority who demonstrate competence and advanced skills Flip traditional roles on their head by teaching superiors how to use technology

Loyal to colleaguesWork to contributeCareer=opportunity to add valueVery casual relationship with superiors“Show me what you can do for me right now”

Casual and social relationshipsDebate and challenge each other to achieve compromise

Focus on quickest solution using technologyChallenge the rulesWork independently with supervision and directionFluid work styleDesire change

InclusivePersonalOpinionatedStill to be determined

X1965 1979Geração

Unimpressed by authorityCompetence and skills are respected over seniority

Loyal to the managerWork to liveCareer=one part of meExpects to be downsizedInformal relationships with superiors“Tell me what you can do for me”

Colleagues are friendsOpen dialogue to resolve conflict

Focus on resultsChange the rulesWork independently with little supervision and informal team structureMulti taskFlexible work styleAt ease with change

FairStraightforwardFlexibleBrutally honestNot political

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Although there are still many boomers occupying positions of leadership, there’s an increasing number of leaders belonging to Generation X, especially in Brazil.

With a new style of leadership, leaders of Generation X have characteristics and prospects that fit the demands and challenges facing by the modern world. Their critical sense and ability to analyze practical issues make important contributions to redefine reality. For Generation X, leadership does not depend on the appointment, it must be earned. These leaders are pragmatic and expect efficiency,

have a great sense of responsibility and commitment, varied repertoire and ability to face the unexpected - factors essential to confront the increasingly complex issues of today, where there are no easy answers. The fact that they have seen the world turn from analog to digital gave them an ability to combine the old and the new class, the ability of associating mass X class , connecting the best of two worlds.

Now, many leaders of Generation X should act as managers of Generation Y, two generations that in some aspects have similar patterns.

And if you’re a leader

of the generation X?

of the generation X? As Generation Y, Generation X prefer clear and direct communication, they like relaxed and informal environment and enjoy the freedom to do the work in their own way.

In addition, Generation X feels comfortable in the face of technological innovations and adopts a culture of collaborative Web 2.0, with complete openness to diversity. All this points make the conflicts less marked than between boomers and generation Y.

Considering their inclination to innovate, leaders X will be key pieces to lead the transition between the today organizations and tomorrow’s world, gradually eliminating the outdated values and norms in order to consolidate a whole new way of working.

* Expression used in English that opposes the concept of mass culture (mass) versus what is luxury, exclusive (class).

diversityGeneration =

The differences between generations should be seen as one of several aspects of diversity. Indeed, the multiplicity should be used to actually encourage diversity.

Adopting an inclusive attitude in relation to new employees is essential. To retain and develop Generation Y potential, managers must be open minded and implement strategies that have repercussions for these people.

Working together offers the opportunity to leverage the best qualities of each generation, besides helping to build a work

environment that fully leverages the available talents. After all, effective communication, constant feedback and flexibility in the work are interesting for any generation, regardless of age or repertoire.

So it is important to recognize the generational factors present in the current working environment and establish management plans responsible to optimize this aspect of diversity.

The most successful organizations are those in which leaders welcome the change, trust their employees and consider their ideas, searching for ways to share.

Every professional should look ar the difference as an opportunity.

All of us can work together constructively in spite of our differences ... but only if we keep an open mind and agree to learn from each other as colleagues.

W. Stanton Smith, director of Next Generation Initiatives Talent, from Deloitte LLP.

“

”

Global Faces and Networked Places. Nielsen Report, March 2009.

PricewaterhouseCoopers 12th Annual Global CEO Survey, 2009. (1124 participantes)

Generation Y: Powerhouse of the Global Economy. Deloitte, January 2009. (860 participantes)

Managing Human Resources in a Global Downturn. RSM International, January 2009.

Generation Y Research. Personnel Today. Ipsos MORI, August 2008. (310 participantes)

Jovens Talentos 2008. Laboratório de Negócios SSJ, Julho 2008. (1043 participantes)

Bibliography

SMITH, W.S. Decoding Generational Differences: Fact, fiction…or should we just get back to work? Deloitte LLC, 2008.

DEAL, J. J. Retiring the Generation Gap – How employees young & old can find common ground. Jossey-Bass, 2007.

Capturing Talent: Generation Y and European Labor Markets. IE Business School, 2007.

EISNER, S. P. Managing Generation Y (meta-análise). SAM Advanced Management Journal, 2005. (350 participantes)

Reputation & The War for Talent: Corporate Reputation Watch. Hill & Knowlton, 2008. (527 participantes)

ERICKSON, T. Plugged In: the generation Y guide to thriving at work. Harvard Business School Press, 2008.

GORDINIER, J. X Saves the World. Viking Adult, 2008.

MACLEOD, Dr. A. Generation Y: Unlocking the talent of young managers. Chartered Management Institute, June 2008. (862 participantes)

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