By 2020, millennials will account for 50% of the global workforce. But who exactly are they? Born between 1980 and 2000, this is a generation entering the workforce in vast numbers and, undoubtedly, they will shape the world of work for years to come. That is why they are a hot topic at the moment and should be on every CEO’s priority list.
Why millennials matter
Attracting the best of these workers is vital for the future of any business. However, even though they will soon outnumber their Generation X predecessors, they remain in short supply, particularly in countries with lower birth rates. CEOs all over the world say their biggest challenge is attracting and keeping these younger employees. Why?
It is true to say that some of the behaviours and attitudes of millennials can be explained by their age and relative lack of responsibilities. Our behaviours and priorities change and adapt as we age, but to dismiss the issue entirely would be a mistake. To attract and inspire this generation, who have skills we will definitely need as we delve deeper and deeper into all things digital, we need to be better at understanding their needs and motivations. Let’s have a closer look at the millennial.
The challenge
We all know that how millennials employ their knowledge of technology is one of their defining characteristics. They have grown up surrounded by technology and are used to having instant access to information, around the clock. They are the first generation to enter the workforce with a better understanding of business tools than senior staff.
But it is not only their use of technology that makes them different; they behave differently too. Influenced by their experience of the global economic crisis, millennials place more emphasis on their own personal needs than that of the organisation. This is a characteristic employers must be wary of but not fight against. It links to their rejection of overly rigid corporate structures and information silos.
Millennials want a management style that meets their needs. They have the ambition and desire to keep learning and move up quickly through an organisation, therefore for them it makes sense to want a flexible approach to work, with regular feedback and encouragement. They want to feel their work is worthwhile and that their efforts are being recognised. Their concern with what is on offer for them translates into the value they place in employer brands, as well as consumer brands.
The answer: becoming millennial-friendly
What is important to take away from this profiling of the millennial is that these are all characteristics that employers can address. The companies that have been most successful in attracting talented millennials – Google and Apple, for instance – are naturally innovative employers who are never restrained by ‘how things used to be done’.
These companies don’t target millennials, however their management style, culture and approach to recruitment naturally appeal to millennials, which is why they are able to take their pick of the best young talent around. We have come up with some tips to help your company become millennial-friendly too.
8 ways to be millennial-friendly
1. Understand this generation
It is particularly important to understand and address the differences between each generation. It is vital to segment your workforce in order to understand what millennials want and how these desires might be different from older workers. Ensure that employee engagement results can be cut by age group, and consider how you might use predictive analytics to highlight potential retention issues. Look ahead for talent pipeline issues and make sure your people planning strategy is up to the job.
2. Get the ‘deal’ right
It is important for employers to explain what they are offering a potential employee, but also what they expect in return. Think creatively about reward strategies and what motivates millennials. For example, is it time to shift focus from cash bonuses to other things? A particularly millennial-friendly approach to this would be providing them with the prospect of customising their benefits.
However, make sure to not let yourself or your employees fall down the gap between perception and reality when it comes to the promises made regarding diversity and work/life balance in the recruitment process stage. If employers want to continue to attract millennials, this gap has to be addressed – companies should review the messages they are sending out and test them against the reality of the employee experience.
3. Help millennial grow
Managers need to really understand the personal and professional goals of millennials. Put them on special rotational assignments more frequently to give them a sense that they are moving toward something and gaining a variety of experiences. Challenge them to come up with new ways to streamline processes and to exercise creativity.
Millennials have a strong desire to work overseas, and this is a rich potential resource for organisations focused on global growth. Again, be creative – less desirable locations could be positioned as an important career path milestone.
4. Feedback, feedback and more feedback
Millennials want and value frequent feedback. Unlike in the past, when people received annual reviews, millennials want to know how they’re doing much more regularly. Give honest feedback in real time and highlight positive contributions or improvements on key competencies.
5. Set them free
Millennials want flexibility, but with clear instructions and concrete targets. If you know what you want done by when, why does it matter where and how they complete the task? Give them the freedom to have a flexible work schedule. Does it matter if they work from home or a coffee shop, if that’s where they are most productive?
Set deadlines and if they meet them, don’t worry so much about their tactics and the time they clock in and out.
6. Encourage learning
Millennials want to experience as much training as possible. If your organisation is more focused on developing high potentials, or more senior people, then you could risk losing future talent if you fail to engage millennials with development opportunities.
Build and measure the effectiveness of mentoring programmes alongside other learning and education. Consider allocating projects that fall outside of their day job to talented millennials. Let them connect, collaborate, build their networks and, most of all, innovate. Every opportunity should also be taken to mix teams generationally.
7. Allow faster advancement
Historically, career advancement was built upon seniority and time of service. Millennials don’t think that way. They value results over tenure and are sometimes frustrated with the amount of time it takes to work up the career ladder. They want career advancement much quicker than older generations are accustomed to. So for the high achievers, who do show the potential to rise up the ranks quickly, why not let them?
8. Expect millennials to leave
It’s inevitable that the rate of churn among millennials will be higher than among other generations, especially since many have made compromises in finding their first job, and this should be built into your plans.
Managing millennial talent
This demographic challenge is very manageable when business leaders and HR work together. Review your talent management processes – is your succession plan ready to start moving millennials into these vital roles? Are you tracking the cost of replacing lost millennial talent? Have you considered the part millennials will play in your future talent needs (perhaps you will employ ahybrid marketer)?
These are all important questions that need serious consideration. Irrespective of the long-term goals of an individual organisation, the ability to attract and retain millennial talent is vital in moving forward and achieving those goals.
