Features
Gen Y: How Millennials Are Changing the Workplace
Joyce Grillo, 05-10-2009
At 76 million strong, more than double the size of Generation X (1965-1979), Generation Y is the largest generation to enter the American market place since the 80 million baby boomers born in 1946. Referred to as Gen Y, Millennials or Next Gen (roughly 1980-1989), this group already has established a name for itself — and not a particularly favorable one. Known as the “what’s in it for me?” generation, Gen Y is presenting challenges for managers and impacting diversity and inclusion initiatives.
Danielle Robinson, director of diversity, talent and organizational design for global premium drinks company Diageo, said she believes Gen Y’s entrance into the workplace “has added a layer of complexity to an already complex work environment.”
Historically, diversity has been about race, gender, sexual orientation and physical disabilities. These groups are still important, but generational differences are emerging as a key area of focus in diversity.
Gen Y has a reputation for poor work ethics, but this generation can be hard-working as long as it’s on its members’ terms. Gen Yers expect to work in ways that allow them to live their lives the way they want to, which is forcing companies to rethink the way people should work.
Gen Y also has broadened the scope of diversity.
“We have a very broad-based definition of diversity that focuses on building a diverse and inclusive environment that respects and leverages all the differences that make a person unique,” said Ray Flautt, corporate diversity manager and vice president of affinity groups for JPMorgan Chase.
This definition includes everything from how one thinks, to work, communication and management styles — even how long someone will remain on the job. It highlights the importance of identifying and addressing employees’ motivational needs so that all can work together in ways that are mindful of the individual.
In general, diversity and talent leaders have four challenges with Gen Y in the workplace: unrealistic career aspirations, work-life effectiveness, transferring knowledge from boomers to Gen Y and communication misunderstandings.
Unrealistic Career Aspirations
Gen Yers grew up with boomer parents telling them how wonderful they are. They are used to getting what they want, when they want it, and they were given prizes for everything even when coming in last. It is not surprising they want to run the company from day one. Being told for the first time they have to wait for rewards can be difficult to accept.
“With organizations continuing to get flatter, it may not be upward mobility as much as a lateral move[ment] to gain the experience they need to move up the ranks,” Robinson said.
Diageo’s performance development process has a section called Big Hopes that encourages open career dialogue. Big Hopes can be personal or professional. An employee may aspire to be a vice president in five years, while the manager sees it happening in seven years or less. This forces the manager to explain the gap in thinking and what the employee must do differently to reach that goal.
Gen Yers also require transparency in their talent review processes. Employees often ask their managers how senior management views them and what their next two or three career options are. Then they give their input.
“These programs have been successful at Diageo because everyone walks away knowing where they stand,” Robinson said.
JPMorgan Chase has a separate career services function to help all employees with career choices and goals. Working with a professional counselor, as well as their managers, employees can map out career paths starting with current positions, available options and development required to reach goals.
“The impatience issue is still a challenge, but connecting a Gen Yer one-on-one with a career counselor who works in collaboration with a manager is very powerful,” said Jacqui Gibbs, a vice president and manager of diversity training at JPMorgan Chase.
Credit Suisse has addressed the issue by installing a rating system that goes beyond a linear C to AAA scale, with AAA being outstanding. The company added dimensions based on employees’ experience, questions about current job fit and interest in advancement. This helps frame ratings better and ties in to career planning discussions.
“This process helps quantify for Gen Y why they may not be ready for a promotion as soon as they think they are,” said Todd Sears, director of diversity at Credit Suisse.
Companies still struggle with Gen Y’s need for instant gratification. Frequent, ongoing conversations about development with definite milestones can go a long way to help Gen Yers understand the realities of their career aspirations.
Work-Life Effectiveness
Gen Y wants flexibility, and it wants employers to understand that its personal goals are important. Once offered informally or infrequently, flexible work policies are now a requirement for organizations competing to attract and retain talent.
Efficient use of time is what Gen Y strives for. This generation grew up with the Internet. They don’t understand why they can’t work any time they wish, from anywhere, as long as the work gets done.
And it’s not only Gen Y. Almost every age work group desires work schedule flexibility. Companies such as Ernst & Young, Diageo and JPMorgan Chase have cultures of flexibility for all employees based on the work they do and if it lends itself to telecommuting.
But everyone’s plan for flexibility looks different, which can make it tough to work out logistics.
“We are realistic about our people’s needs and our clients’ requirements,” said Maryella Gockel, flexibility strategy leader at Ernst & Young. “It’s about making a two-way commitment. We make it clear: As long as our people deliver great service to our clients, Ernst & Young will support them with flexibility through the various phases of their career.”
Capturing Knowledge
During the next decade, boomers will begin their long-anticipated departure from the labor force. One of the most important questions for the diversity leader to ask is, is the next generation of leaders ready to fill the boomers’ shoes? Rather than focus solely on recruiting top diverse talent, diversity and inclusion leaders are struggling to capture knowledge before older workers transition out.
Reverse mentoring programs can help. Pairing a boomer with a Gen Yer offers the best of both worlds. Senior people get an opportunity to understand how younger people think, and in return, Gen Y helps boomers with technology. For example, consider the techno-savvy Gen Yer who gives his entire department a tutorial on social networking and helps people get up and running on Facebook.
Sears has implemented a formal reverse mentoring program at Credit Suisse. Each member of the Diversity Operating Committee, which is composed of business heads, is paired with a mentor at least four levels down in the organization. Senior leaders focus on how these high-potential young people think and process information. Working with current business challenges, they ask them how they would go about solving them.
