The Millennial Value SystemSeptember 2017

The Millennial Value SystemUnderstanding what drives the next generation of leaders – and what we can learn from them

Bradd CraverManaging Director – Carolinas ConsultingManufacturing - Human Capital Deloitte LLPbcraver@deloitte.com704-887-1533

“You have that power, too…”

A B

In 1977, a group of young actors ushered in a saga that would change movies forever with Star Wars! Now, the millennial generation has awakened!

Luke, Leia, and Han were thrust into the task of

defeating the tyranny of the Empire.

Young heroes Poe, Rey, and Finn must now step

up to challenge, facing threats new and old.

For today’s millennials…

In order to support our findings, Deloitte has conducted the 2017 MillennialSurvey to evaluate what a Millennial prioritizes

7900 interviews achieved globally13Have children

Organization size

1-99

Job seniority/level

Organization type

Gender

Education level

100-249

250-999

1000+

2nd Degree, Masters or PhD

University/College Degree

26%

15%

27%

32%

Trainee/apprentice /graduate

Junior level executive

Mid-level executive

Senior executive

Head of department/division

Senior management team/board

Listed / publicly owned business

Privately owned businessState owned or public sector organization

Not for profit organization / charity

Other

Chart1

Sheet1

Sales

1-9939%

100-24961%

250-999

1000+

Chart1

Children

No Children

Column1

44%

56%

0.44

0.56

Sheet1

Column1

Children44%

No Children56%

Chart1

1-99

100-249

250-999

1000+

Sales

0.26

0.15

0.27

0.32

Sheet1

Sales

1-9926%

100-24915%

250-99927%

1000+32%

Chart1

Trainee / Apprentice /Graduate

Junior level executive

Mid-level executive

Senior executive

Head of Department / Division

Senior Management Team / Board

12%

26%

28%

10%

14%

10%

0.12

0.26

0.28

0.1

0.14

0.1

Sheet1

Column1

Trainee / Apprentice /Graduate12%

Junior level executive26%

Mid-level executive28%

Senior executive10%

Head of Department / Division14%

Senior Management Team / Board10%

Chart1

Listed / publicly owned business

Privately owned business

State owned or public sector organization

Not for profit organization / charity

Other

Column1

19%

60%

16%

3%

1%

0.19

0.6

0.16

0.03

0.01

Sheet1

Column1

Listed / publicly owned business19%

Privately owned business60%

State owned or public sector organization16%

Not for profit organization / charity3%

Other1%

Chart1

Degree

2nd Degree

81%

19%

Column1

0.81

0.19

Sheet1

Column1

Degree81%

2nd Degree19%

Chart1

Male

Female

Sales

50%

50%

0.5

0.5

Sheet1

Sales

Male50%

Female50%

As millennials continue to grow in the workforce, prevailing views of work will shift

Gen Z: 7%

Traditional: 1%

Present day6

Prevailing work environment

• Hierarchical structure• Work direction from

experienced leadership

• Guided supervision

• Primary focus on business objectives

Traditional: 5%

Future state—20207

Future work environment

• Increased access to leadership

• Collaboration across career levels

• Greater autonomy

• Development of meaningful relationships

The population of millennial workers will increase and it is important to understand how to attract, develop, and interact with this generation to develop a sustainable work force

Millennials are getting us to think differently about how we engage with our people

Talent acquisition Talent development

Performance management

Well-being

Social responsibility

Innovation

Flexibility

Communications

Inclusion

How we attract and develop our

people…

How we interact

at work…How we prioritize

what’s important to

them…

How we attract and develop our people…

Talent acquisition

Talent development

Performance management

Attracting and developing millennial talent…

65%of millennials wouldprefer a permanentfull-time job ratherthan working freelanceor as a consultant13

70%of millennial gamers feel gaming helps them learn how to solve problems9

80%of millennials prefer feedback in real time rather than via traditional performance reviews8

Talent acquisition

Talent development

Performance management

How we attract and develop our

people…

“Semi-annual reviews are frustrating to this group. They want to know how they are doing now – not six months from now.”

– Dan Schwabel, TIME10

How we interact at work…

Communications Innovation Flexibility

67%feel flexibility has a positiveimpact on productivity13

50%think technology will enhance anorganization’s ability touse people flexibly andincrease time to spendon value added projects13

66%of millennials appreciate plain talking and passion, but reject controversial positions or radical transformation13

Influencing how we interact at work…

9/10millennials want senior people in their company to listen to their ideas and opinions9

92%of millennials state having a flexible job as a top priority11

78%were strongly influenced by how innovative a company was when choosing to work there1

Flexibility

Communications

Innovation

How we interact

at work…

Communications

Flexibility

Automation could be regarded as a route via which, if they adapt accordingly, millennials (andother employees) can increase their influence within organizations rather than see it diminished13

How we prioritize what is important to them…

Social Responsibility Inclusion

Well-being

92%of millennials believe that business should be measured by more than profit and should focus on a societal purpose12

Well-being

Social responsibility

Inclusion

How we focus on what’s most

important to them

Focusing on what’s most important to them…

86%of millennials are actively engaged when they believe the organization fosters an inclusive culture3

2XHigher voluntary turnover rate for those returning from an LOA

“I don’t have children but have aging parents and am very happy to see that included as an option for the future for

me if needed. It means a lot.”

76% regard business as a force for positive social impact13

Driving a Positive Employee Experience – Deloitte POV

MeaningfulWork

SupportiveManagement

Positive WorkEnvironment

GrowthOpportunity

Trust in Leadership

AutonomyClear &

Transparent Goals

Flexible Work Environment

Training & Support on the

Job

Mission & Purpose

Select to Fit Coaching & FeedbackHumanistic Workplace

Facilitated Talent Mobility

Continuous Investment in

People

Small, Empowered

Teams

Investment in Development of

Leaders

Culture of Recognition

Self DirectedDynamic Learning

Transparency & Honesty

Time for SlackModern

Performance Management

Fair, Inclusive, Diverse

Environment

High Impact Learning Culture Inspiration

Cross-Organizational Collaboration & Communications

THE SIMPLY IRRESISTIBLE ORGANIZATION®: A NEW MODEL FOR TODAY’S WORKPLACE

Source: http://dupress.com/articles/employee-engagement-strategies

http://dupress.com/articles/employee-engagement-strategies

Evolution of the Employee Experience

OLD RULES NEW RULES

Employee experience is defined and measured by annual engagement surveys

Employee experience is defined as a holistic view of life at work, requiring constant feedback,

pulse checks, action, and monitoring

Culture is shared on the website and posters on the wall, but is not measured or defined through behaviors

Company uses tools and behaviors to measure, align, and improve ongoing curation of culture during

change, M&A, and other major initiatives

Companies have separate HR leaders across recruiting, learning, rewards, engagement, and other HR services

Companies have someone responsible for the complete employee experience, focused on employee

journeys, experiences, engagement, and culture

Compensation, benefits, and rewards are managed with a focus on benchmarking and fairness,

via a bell-curve approach

Compensation, benefits, rewards, and recognition are designed to make people’s work life better and to help

balance financial and nonfinancial benefits

Wellness and health programs are focused on safety and managing insurance costs

Companies have an integrated program for employee wellbeing focused on the employee, their family, and

their entire experience in life and at work

Rewards are designed to cover salary, overtime, bonus, benefits, and stock options

Rewards also include nonfinancial components: meals, leaves, vacation policy, fitness, wellness programs, etc.

Employee HR self-service is viewed as a technology platform that makes it easy to complete

HR transactions and reports

The employee experience platform is intuitively designed, mobile, and includes digital apps, prescriptive

solutions based on employee journeys, and ongoing communications that support and inspire employees

Rewards

Rethinking Rewards to Enhance the Employee Experience

Case Example: Wellbeing

Program Design

• Align with overall strategy• Define rewards broadly• Reflect employee input• Make it simple

Unified Wellbeing (Physical, Mental, Financial, and Social) programs driven by employee input and focused on defined

outcomes

Service Delivery

• Bring it all together—portals• Align with broader talent/HR• Leverage mobile• Support global mobility

Integrated wellbeing portal that links all relevant programs and

vendors with easy to use interfaces and supported by new

and emerging apps

Communications

• Develop a brand• Market it • Promote education and

awareness• Keep it relevant and timely

Holistic, branded communications using multiple marketing channels

with purposeful focus on the employee journey

(recruitment to retirement)

Key Lessons to Guide Implementation

Be clear about where you want to go (and why)

Understand where you are coming from

Don’t try to boil the ocean

Take people with you

It’s not always about transformation

1

2

3

4

5

Create a business case and roadmap to guide efforts

Assess current state and update via pulse checks

Set up sprints to address elements of SI framework

Manage change by increasing involvement

Small, simple changes can have big impacts

Table Discussions / Q&A…

Talent acquisition Talent development

Performance management

Well-being

Social responsibility

Innovation

Flexibility

Communications

Inclusion

How we attract and develop our

people…

How we interact

at work…How we prioritize

what’s important to

them…

Spend the next 5-10 min at your tables discussing the Millennials’ impacts on the Talent lifecycle

• What do you feel are the greatest challenges – and opportunities – in addressing the needs of the millennial generation?

• What can we learn from this generation to make our organizations stronger?

Thank you! Bradd CraverManaging Director – Carolinas ConsultingManufacturing - Human Capital Deloitte LLP

Endnotes

1 Deloitte Touche Tohmatsu Limited. “Big demands and high expectations: The Deloitte Millennial Survey,” January 2014. 2 Danschawbel.com. “74 of the Most Interesting Facts about the Millennial Generation,” June 25, 2013.3 Smith, Christie and Turner, Stephanie. “The Radical Transformation of Diversity & Inclusion: The Millennial Influence,” 20154 Pew Research Center. “Millennials in Adulthood,” March 7, 2014.5 Coca-Cola Company. “Work/Life Balance: What it Means to Millennials,” October 1, 2014. 6 Bureau of Labor Statistics, Employment Status of Civilian Population, 2012.7 The Generational Workforce of the Future, Hogan Assessments, June 2012.8 UNC Kenan-Flagler Business School. “Maximizing millennials,” 2013. 9 Media Daily News. “Turning on the “no-collar” Workforce,” May 15, 2012.10 TIME. “Millennials vs. Baby Boomers: Who Would You Rather Hire?” March 29, 2012.11Benko, Anderson. The Corporate Lattice, p 2, 2010.12 Deloitte Touche Tohmatsu Limited. “What is business for? The Millennial Survey,” 2011.13 Deloitte Touche Tohmatsu Limited. “The 2017 Deloitte Millennial Survey Apprehensive millennials: Seeking stability and opportunities in an uncertain world,” January 2017.

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014-millennial-survey-report.pdfhttp://danschawbel.com/blog/74-of-the-most-interesting-facts-about-the-millennial-generation/http://www.pewsocialtrends.org/2014/03/07/millennials-in-adulthood/http://www.coca-colacompany.com/stories/work-life-balance-what-it-means-to-millennialshttp://onlinemba.unc.edu/blog/geny-in-the-workplace/http://www.mediapost.com/publications/article/170109/turning-on-the-no-collar-workforce.htmlhttp://business.time.com/2012/03/29/millennials-vs-baby-boomers-who-would-you-rather-hire/#ixzz1uyNaE9bw

Slide Number 1Slide Number 2“You have that power, too…”For today’s millennials…Slide Number 5As millennials continue to grow in the workforce, prevailing views of work will shiftMillennials are getting us to think differently about how we engage with our peopleHow we attract and develop our people…�Attracting and developing millennial talent…How we interact at work…�Influencing how we interact at work…How we prioritize what is important to them…�Focusing on what’s most important to them…Driving a Positive Employee Experience – Deloitte POVEvolution of the Employee ExperienceRethinking Rewards to Enhance the Employee ExperienceKey Lessons to Guide ImplementationTable Discussions / Q&A…Slide Number 19Endnotes