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BERSIN & ASSOCIATES © 2011
BERSIN & ASSOCIATES
Research Bulletin | 2011
According to popular media and sensationalist authors, the
generations are “colliding” and “crashing,” a scenario more akin to
a NASCAR race than a day at the office. The drama is perpetuated by
a real difference in perspectives, attitudes and behaviors of older and
younger workers. To wit – in 1965, a 20-year old Pete Townshend of
The Who lamented in his song, “My Generation,”
“People try to put us d-down, just because we get
around. Things they do look awful c-c-cold, I hope
I die before I get old.”
Harsh words, but the lyrics have been sung by every generation since.
Another music group, Green Day, released an album cover in 2001
and Hillary Duff covered it in a 2004 song. Boomers, Gen-Xers1 and
Millennials2 alike – generations just cannot seem to understand each
other’s choices.
Introduction
As the diplomats of industry, HR is challenged to create a workplace
that is structured enough to get work done, but flexible enough
to accommodate employees of various cultures and backgrounds,
genders, and ages – not to mention work and leadership styles,
1 “Generation-X” are those individuals who were born between 1961 and 1981.
2 “Millennials” (also known as “Generation-Y”) are those individuals who were born between 1982 and 2003.
November 17, 2011 Volume 6, Issue 58
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Just the Facts about Millennials (And How Organizations Are Supporting Them)
About the Author
Brenda Kowske, Ph.D.,Senior Analyst
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Just the Facts about Millennials Brenda Kowske | Page 2
education levels, and skills sets. HR’s job is even more complex when
it comes to generational differences; there are so many stereotypes to
sort through, that it is almost impossible to create programs and make
decisions based on fact.
This research bulletin reviews the facts – the published empirical
research – to answer the question, “Just how different is the Millennial
generation?” Once we understand the Millennials, we can turn
our attention to how they are supported by HR and managed by
their bosses. This research bulletin reveals the gaps between what
Millennials need at work and current practices, giving clear direction
for improvement.
The Changing of the Guard
A generation’s identity is at the crosshairs of age and history. When
a major historical event occurs, like a world war, a breakthrough in
technology or a natural disaster, older and younger people experience
them differently. As we grow older, people’s ideas and perspectives
change with age – but this is not always based on their generation. For
example, younger people tend to have more angst and older people
are more conservative – but these differences are the same regardless of
generation. When we read reports of generational differences and the
stereotypes they imply, we are attempting to describe and understand
the identity of that generation3, not their perspectives due to their ages.
Societies are motivated to understand each new generation’s
identity because it will literally change the world. The ebb and
flow of generations change society through what has been called,
“demographic metabolism4.” As a new generation is socialized by older
people into their culture, the younger generation simultaneously brings
their own unique experience of the events occurring around them.
3 Often, research labeled “generational” actually might be reporting age-related differences in opinions or perspectives. Only time-series or longitudinal designs can adequately statistically control for age by comparing the generations when they were the same age. For this report, we have attempted to review the research with an emphasis on true generational, not age-related, differences.
4 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.
This research
bulletin cuts
through Millennial
stereotypes and
reports facts found
in research.
KEY POINT
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Just the Facts about Millennials Brenda Kowske | Page 3
The new generation’s identity works as a change agent, counteracting
conservative societal forces, and reshapes culture, societal values,
politics and industry5,6.
As members of the young generation grow up, their perspectives and
values will undoubtedly bring about change – but what kind of change
is uncertain. For example, the GI and Silent Generations (the parents of
the Boomers) had no idea that their children would make giant leaps
toward racial equality in the 1960s. In their youth, the Boomers took
to the streets and raised their voices; they touted that “separated but
equal” was not equal at all. After 60 years of brutal discrimination, they
brought a country together like never before.
Millennials, too, will have a chance to make their mark on history as
they rise to prominence in industry. By 20297, the U.S. workforce will
have waved “bye-bye” to the Baby Boomers (Boomers – ages 51 to 68
at press), leaving Generation-X (Gen-X – ages 30 to 50), the Millennials
(ages 8 to 29) and their successors at the helm of organizations.8 But
how will they lead?
Twenty-eight percent of managerial positions are already held by
Millennials, which is enough talent to succeed Boomers’ share of
leadership positions at 23 percent9; Gen-X comprises the remainder.10 In
other words, we have a pipeline full of Millennials on their way up the
ladder. Undoubtedly, Millennials have not ascended to the same level
5 Source: “The problem of generations,” Essays on the sociology of knowledge / K. Mannheim, Routledge & Kegan Paul Ltd., 1952.
6 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.
7 Source: U.S. Bureau of Labor Statistics, retrieved July 15, 2011, http://www.bls.gov/cps/home.htm.
8 Source: Generational age definitions from, Generations: The history of America’s future, 1584 to 2069, W. Strauss & N. Howe, William Morrow & Company, Inc., 1991.
9 Data reported from the Bureau of Labor Statistics’ Current Population Survey is aggregated into age ranges that do not directly reflect the generational limits used in this paper, but which are a close approximation. They are, in 2011, Millennials aged 16-34, Gen-X aged 35-54, and Boomers aged 55 and older.
10 Source: U.S. Bureau of Labor Statistics, Current Populations Survey Q2’2011, retrieved on September 15, 2011, http://www.bls.gov/cps/demographics.htm.
In the U.S.,
28 percent of
managerial
positions are
already held by
Millennials.
KEY POINT
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of management as Gen-Xers or Boomers – yet. When they come of age,
Millennials’ unique characteristics will drive change and reshape the
workplace. Already ahead of the game, this research bulletin reveals
that HR and management have started to adapt.
What We Know Today about the Millennials
In our attempt to peer into the future of the workplace, we shine
a light on young employees today. By looking to empirical research
(which has been conducted primarily in North America), we can describe
the youngest employees as a generation and answer the question,
who are the Millennials, and how do they compare to Gen-Xers
and Boomers?
There are important caveats to consider when reading this research.
• ThisresearchbulletindoesnotdirectlyaddresshowMillennials
are similar to older generations’ identities. However, we have
attempted to review all research on generational differences on
work-related traits and attitudes. If it is not here, we can assume
that they are similar to other generations or the perspective in
question has yet to be tested.
• Thatbeingsaid,manyage-relateddifferencesmayoccurbetween
workforces; differences due to age are far more likely to be the
culprit of differences at work. The remaining conclusions should
be tempered – in general, academics studying generational
differences agree that differences between generations are rare and
often small.11
• WithregardtothedescriptionofMillennials,itgoeswithoutsaying
that these are educated generalities derived from statistics –
statistics can only describe a group and are not meant to be cast
onto individuals.
Caveats aside, rigorous empirical research has found some unique Millennial
traits, which are recapped in Figure 1 and discussed in the following section.
11 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.
With regard to
the description of
Millennials, these
are educated
generalities
derived from
statistics, which
can only describe a
group and are not
meant to be cast
onto individuals.
KEY POINT
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According to this review, Millennials, as a generation, are as follows.
Individualistic and Confident
Millennials had lower scores in altruism, coupled with higher narcissism,
assertiveness12, self-esteem13 and individualistic traits in general14. These
results contradict a commonly held stereotype that more Millennials are
socially focused and motivated by giving back to society. In actuality,
Millennials think they volunteer less than Boomers.15 The data concurs.
As a testament to the decline in altruism, the Corporation for National
12 Source: “Age and birth cohort differences in self-esteem: A cross-temporal meta-analysis,” Personality and Social Psychology Review / J.M. Twenge, and S.M. Campbell, 2001.
13 Source: “Egos inflating over time: A cross-temporal meta-analysis of the Narcissistic Personality Inventory,” Journal of Personality / J.M. Twenge, S. Konrath, J.D. Foster, W.K. Campbell, and B.J. Bushman, 2008.
14 Source: “A review of the empirical evidence on generational differences in work attitudes,” Journal of Management and Psychology / J.M. Twenge, 2010.
15 Source: “How young people view their lives, futures, and politics: A portrait of “generation next,” The Pew Research Center, January 2007, http://pewsocialtrends.org/files/2010/10/300.pdf.
Millennials Are:
Individualistic and confident
Starting adult life with less knowledge
Motivated, but more likely by offering “rewards”
Looking for balance
More satisfied with work
More likely to leave their company, similar to young workers in every generation
Source: Bersin & Associates, 2011.
Figure 1: Unique Traits of Millennials – Based on Research
Statistics only
describe groups;
individual
Millennial
employees might
not share these
traits.
KEY POINT
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and Community Service16 reports a Millennial volunteer rate lower than
that of their older counterparts since data collection began in 2003 (see
Figure 217). This data suggests a trend toward a confident, albeit self-
serving, talent pool.
16 Source: “Current Population Survey,” Corporation for National & Community Service, 2010, retrieved September 16, 2011, www.volunteeringinamerica.gov.
17 Source: U.S. Bureau of Labor Statistics.
25.9% 25.5% 25.2%
21.7% 20.5%
21.5% 21.6% 21.2%
26.9% 27.4% 27.7%
26.5% 26.6% 27.6%
28.9%
29.2%
33.5% 33.1% 33.2%
30.4% 29.9% 29.4% 29.8%
28.8%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2003 2004 2005 2006 2007 2008 2009 2010
Perc
ent o
f Gen
erat
ion
Volu
ntee
ring
Millennials (aged youngest to 29) Gen-X (aged 30 to 46) Boomers (aged 47 to 65)
Source: Bersin & Associates, 2011.
Figure 2: Volunteerism Rates in the U.S. – By Year
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Starting Adult Life with Less Knowledge
Standardized test scores of high-school students in the U.S. continue
to be at an all-time low18. This indicates that, at best, their knowledge
gap is closed in college (for those students who attend) or they lack the
knowledge crucial for responsibilities faced by adults, including their
contributions to the workforce.
Motivated, but More Likely by “Rewards”
Millennials’ motivation for achievement is seemingly alive and well.
Data shows that they are motivated to reach higher levels of education.
Despite a lack of preparation in secondary school, a higher percentage
of people than ever before are gaining bachelor’s degrees in American
universities (31 percent)19, twice the number of college graduates of the
youngest of the Baby Boomers.
When we review actual productivity at work, motivation continues to
shine. Even in high school, Millennials in the U.S. worked to the same
extent as Gen-Xers and Boomers.20 Once graduated, they work equally
long hours as older employees – longer hours than employees have ever
worked in the past.21 Even though research investigating the work ethic
18 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.
19 Source: “Millennials and the world of work: An economist’s perspective,” Journal of Business and Psychology / A.R. Levenson, 2010.
20 Source: “Millennials and the world of work: Experiences in paid work during adolescence,” Journal of Business and Psychology / J. Staff, and J.E. Schulenberg, 2010.
21 Source: “Generation and gender in the workplace,” American Business Collaboration / Families and Work Institute, 2006, http://familiesandwork.org/site/research/reports/main.html.
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of Millennials has had mixed results (i.e., contradicting findings22,23,24,25),
it seems as though motivation is an important part of their identity.
However, there are some signs that, although Millennials are putting the
hours in, the elements of work that motivate them may have changed.
Some employees are motivated by an internal mechanism; they work by
the mantra “a job worth doing is worth doing well.” However, recent
research suggests that intrinsic, or self-motivated, work values have
slightly declined for this group26. Yet there is no difference in the value
placed on external “rewards” like pay, recognition or status27,28.
Looking for a Balance
Speaking of work motivation, Millennials are motivated to achieve goals
in both their work and personal lives. Work is less central to their life
and their identity29; more younger workers today expect a meaningful
life outside of work.30
22 Source: “Generational differences in work ethic: an examination of measurement equivalence across three cohorts,” Journal of Business and Psychology / J.P. Meriac, D.J. Woehr, and C. Banister, 2010.
23 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.
24 Source: “Generational differences in soft knowledge situations: Status, need for recognition, workplace commitment and idealism,” Knowledge and Process Management / P. Busch, K. Venkitachalam, and D. Richards, 2008.
25 Source: “More similar than different: Millennials in the U.S. building trades,” Journal of Business and Psychology / K. Real, A.D. Mitnick, and W.F. Maloney, 2010.
26 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.
27 Source: “Generation X and the public employee,” Public Personnel Management / C.L. Jurkiewicz, 2000.
28 Source: “Generational differences in work values, outcomes and person-organisation fit,” Journal of Managerial Psychology / L. Cennamo, and D. Gardner, 2008.
29 Source: “Generational differences: Revisiting generational work values for the new millennium,” Journal of Organizational Behavior / K.W. Smola, and C.D. Sutton, 2002.
30 Source: “New generation, great expectations: A field study of the millennial generation,” Journal of Business and Psychology / E.S.W. Ng, L. Schweitzer, and S.T. Lyons, 2010.
Millennials are
more satisfied
at work as a
generational trait,
but as young
employees before
them, are more
likely to leave their
organizations.
KEY POINT
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As a Generation, More Satisfied with Work
There is good news, too. American Millennials are more satisfied
with their work than are Gen-Xers and Boomers. Where statistically
significant (albeit small) differences exist, more are satisfied with
their jobs and companies, the recognition they receive, their career
development, and job security.31
As Younger Employees, More Likely to Leave Their Companies
Fewer Millennials are considering a job switch than did Gen-Xers –
when they were the same age.32 That being said, age matters. Today,
one-third of Millennials are seriously considering leaving their jobs, as
compared with 25 percent of Gen-Xers and 19 percent of Boomers.33
What Millennials Need from Organizations
Unique workforce characteristics mean tailored programs and processes
from HR and management. Given Millennials’ traits, Figure 3 reviews
the programs that HR may want to consider strengthening in service
of Millennials.
The rugged individualism and confidence exuded by the Millennial
generation, coupled with their high levels of motivation, translate into
programs that take advantage of their “I can do it” attitude. HR should
look closely at its performance management system and processes.
Does it enable Millennials to forge new paths, relying on their own
competence in their drive toward success?
Strong performance management processes (such as setting SMART34
goals, providing regular, systemic feedback, and measuring performance
accurately) enable employees to know how they are performing
31 Source: “Millennials’ (lack of) attitude problem: An empirical examination of generational effects on work attitudes,” Journal of Business and Psychology / B.J. Kowske, R. Rasch, and J. Wiley, 2010.
32 Ibid.
33 Source: Attitude? What attitude? The evidence behind the work attitudes of millennials, Kenexa High Performance Institute / B.J. Kowske and R. Rasch, 2011.
34 “S.M.A.R.T.” stands for specific, measurable, achievable, relevant and time-bound.
Confident,
individualistic
Millennials can
fuel innovation by
questioning the
status quo.
KEY POINT
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as individuals and take action accordingly – by their own volition.
Organizations can take advantage of individualism in another way;
harness the good ideas that come from not following the herd.
Innovation derived from independent thinking can be a significant
competitive advantage. Millennials are confident enough to speak up
when questioning the status quo. But often, collaboration is needed
to make ideas reality; an increased focus motivating this independent
group toward a balance between independent thought and
collaboration may be warranted.
35 A “high-potential employee” is an employee who has been identified as having the potential, ability and aspiration for successive leadership positions within the company. Often, these employees are provided with focused development as part of a succession plan and are referred to as “HiPos.”
Bersin & Associates
research found
that the size
of a company’s
employee
population
has significant
relationship
to the overall
effectiveness of the
HR function.
KEY POINT
Millennials Are: Millennials Need:
Individualistic and confident
• Strongperformancemanagementpractices and culture
• Programsthatfosterinnovation
Starting adult life with less knowledge • Effectivedevelopmentprograms
Motivated, but more likely by offering “rewards”• Recognition,suchaspay-for-performanceprograms
that demonstrate “fairness”
Looking for balance • Targetedhealthandwellnessprograms
As a generation, more satisfied with work• Programsthatcapitalizeonworksatisfaction,
like the development of high potentials35 and careers in general
As younger employees, more likely to leave their companies
• Effectiveemployeeengagementprogramsandprocesses for recruiting, selecting and onboarding new workers
Source: Bersin & Associates, 2011.
Figure 3: What Millennials Need at Work
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Less knowledge gained in high school for Millennials translates into
remedial development efforts on the part of their employers. Strong
development needs assessment practices, including an accurate
understanding of the knowledge, skills and abilities required by the
job, are essential. If confidence becomes overconfidence, Millennials
might be blind to their own development needs. Honest feedback
provides opportunities for accurate self-assessment – the first step in
any development journey. Catering to Millennials’ independent spirit,
HR should provide expanded venues for self-motivated learning. Finally,
coaching and development systems in general should be fortified
for organizations expecting a jump in hiring, perhaps due to a large
wave of retirements. Beyond Millennials’ need for knowledge as a
generation, these more inexperienced employees need additional
educational opportunities.
This is a motivated group, but less so through intrinsic motivations, such
as fulfilling a personal value or being altruistic. This tendency would
force external motivators, like rewards for goal achievement, to play a
larger role – and introduces an opportunity to implement or strengthen
recognition and pay-for-performance programs. The same SMART
goals, along with more regular recognition and feedback previously
mentioned, offer a natural parlay into fair, transparent and earned
compensation. This group will be more open to setting pay expectations
based on the attainment of goals. But HR beware. Millennials’
individualism may mean that they are motivated to commit to goals of
which the accomplishment is in their full control. Setting goals that rely
on others’ successes may act as a demotivator for this group.
This motivated workforce not only has its sights set on work, but also
on home, as well. Work-life balance will be an important aspect of
the employment agreement; many will not sacrifice dreams in their
personal life for the achievement of career goals. The organization will
need to demonstrate flexibility and provide arrangements so that both
are possible.
Overall, the call to action should be tempered by the fact that
Millennials, as a generation, are more satisfied at work than are Gen-
Xers and Boomers. HR should be careful not to change what works!
This satisfaction can be harnessed through high-potential and career
Work-life balance
will be an
important aspect
of the employment
agreement; many
Millennials will not
sacrifice dreams in
their personal life
for the achievement
of career goals.
KEY POINT
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development programs by developing satisfied employees into the
next generation of leaders and experts. This future-focus may help to
counteract Millennial flight.
As with generations before them, younger employees leave
organizations at higher rates. Even with their more positive attitudes
toward work, the motivation to leave pulls harder as they jockey for
their ideal career path. If organizations provide a clear view of their
career paths and the rewards, leaders and HR can capitalize on their
interest in external rewards like status and pay. Additionally, HR should
foster engagement, including through providing career opportunities.
Employee engagement anchors employees firmly within the company,
providing a force equal to tempting job offers.
High turnover also means higher volumes of applicants for open
positions – especially those for which Millennials are qualified. If a high
percentage of an organization’s workforce is comprised of Millennials,
efficient and effective recruiting, hiring and selection, and onboarding
practices are compulsory.
The Report Card: How HR and Line Managers Are Supporting Millennials
When we turn to the Bersin & Associates data collected in 2010, we
see that U.S. organizations have adopted some new approaches for
managing a largely young workforce, but other practices remain the
same regardless of workforce age. To find out the state of practice
in relation to the generations, we compared 550 HR practitioners’
and leaders’ ratings by those in organizations employing primarily
Millennial, Gen-X and Boomer workforces. We formed these groups
by their responses to the question, “How would you categorize your
workforce demographically?”36 Respondents placed their organizations
in the following workforce categories:
36 Respondents could also choose “fairly evenly distributed among ages” and “heavy concentration on mature and young workers, with a gap at the mid-career level.” But, since this report seeks to isolate the practices tailored to workforces of certain age groups, these categories were omitted from the analyses.
Do you have a
high percentage of
Millennials in your
workforce? Efficient
and effective
recruiting, hiring
and selection,
and onboarding
practices are
compulsory.
KEY POINT
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• Mature – Heavily weighted toward Baby Boomers and older (born
1964 or earlier);
• Middle – Heavily weighted toward Generation-X (born 1965 to
1980); and,
• Young – Heavily weighted toward Generation-Y (born 1981
or later).
The size and demographic characteristics of each of these groups
were reflective of each generation’s age and background. While the
Boomer and Gen-X categories were roughly equal in respondent size
(n=232 and n=259, respectively), the Millennials’ category was smaller
(n=59). However, this comes as no surprise as only approximately one-
half of Millennials are currently old enough to be in the workforce.
Generations also work in different industries, a likely reflection of
educational opportunities and selection of careers in their youth.
According to our data, these Millennial and Gen-X workforces are
more likely to be in the banking and financial services, technology, and
business services industries. Boomer workforces are more likely in the
manufacturing, healthcare services and government sectors. Millennials
are also more likely to work in larger companies, defined as those with
50,000 employees or more. The results of this research are summarized
as follows.
HR Has Adjusted to Gen-X’s Needs, but Less So to That of the
Millennials
Our first set of analyses targeted HR performance to answer the
question, how have HR professionals adjusted their performance (as
measured through self-ratings of effectiveness) given the age of the
workforce they serve? Although similarities do exist, HR seems to have
responded to Gen-X’s workstyle, but is still forming practices to respond
to the emergence of the Millennials. In some cases, HR has adjusted to
Millennials much in the same way it serves Gen-X workforces. We see
evidence of these shifts in Figure 4 through the discrepancy between
Gen-X’s and Millennials’ workforce data when compared to that of
the Boomers.
Is HR supporting
Millennials’
unique needs?
Maybe not if their
effectiveness is the
same, regardless
of the generation
they serve.
KEY POINT
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Just the Facts about Millennials Brenda Kowske | Page 14
Similarities in Supporting the Generations – There are only two areas in
which HR effectiveness is similar across Millennial, Gen-X and Boomer
workforces – identifying critical knowledge, skills and abilities by role
and level, and promoting health and wellness. Ignoring the fact that
an average of only 32 percent of HR professionals rated themselves as
“world class” or “very effective” across our list of HR responsibilities,
we see that HR may want to improve its performance in specific ways to
adjust to the emerging Millennial workforce. The lack of differentiation
in HR effectiveness in defining critical knowledge, skills and abilities is
particularly concerning. Working with mature workforces, HR should be
particularly skilled in this area, given that one-quarter of the workforce
is retirement-bound within the next 15 years. Only 33 percent of
respondents said that HR was “very effective” or “world class” in
this area.
Differences in Generational Support – We see evidence of HR
adaptation in response to the arrival of Millennials (see Figure 4). When
serving a Millennial workforce, HR has raised its level of effectiveness
in areas related to hiring, development and performance management.
These adjustments in HR’s performance match Millennials’ need for
learning, their individualistic nature and their intentions to leave
their companies.
HR falls short
in providing
individualistic
opportunities for
self-learning for
Millennials.
KEY POINT
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Just the Facts about Millennials Brenda Kowske | Page 15
There are some areas in which HR is falling short. HR may be
attempting to mitigate Millennials’ higher turnover rates by improving
engagement strategies when compared to organizations employing
mature workforces. Thirty-four percent of HR serving Millennials rated
themselves as highly effective. However, engagement efforts are most
effective when managing Gen-X workforces (40 percent) – a surprising
gap, given the propensity of Millennials to leave. When it comes to
Millennials’ education, fewer HR respondents reported that they were
effective in identifying participants for development, specifically, their
key talent pool (33 percent). A missed opportunity lies in the lack
of effectiveness in providing self-learning (25 percent), an attractive
development tool for this independent workforce.
Source: Bersin & Associates, 2011.
Figure 4: Differences in HR
24%
24%
30%
29%
19%
28%
34%
29%
42%
36%
33%
42%
39%
35%
40%
41%
45%
54%
25%
29%
33%
33%
33%
34%
39%
42%
57%
0% 10% 20% 30% 40% 50% 60%
Enabling a strong self-learning culture
Identifying and developing future leaders
Encouraging innovation and collaboration
Distinguishing key talent segments
Motivating a high-performance culture
Promoting a highly engaged workforce
Allocating high performers' compensation fairly
Rapidly and effectively onboarding
Attracting, sourcing, selecting and hiring
Young (Millennial) Workforce Middle (Gen-X) Workforce Mature (Boomer) Workforce
Percent Rating "Very Effective" or "World Class"
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Just the Facts about Millennials Brenda Kowske | Page 16
Managers of Millennial Workforces Attract Top Talent and Support
Engagement – Like HR, managers have catered to Gen-X, but seem to
not have adapted as adeptly to Millennial workforces. According to HR
respondents’ ratings of line managers’ competence on a four-point scale
of “poor,” “fair,” “above average” and “world class,” there is quite a
bit of room for improvement.
Similarities in Managing the Generations – When HR rated line
managers’ competence, they reported that five skills demonstrated no
differentiation between workforce ages, indicating a lack of focus on
each generation’s unique needs.
According to HR, line managers showed similar skill levels in assessing
and selecting the right candidate – a problem when Millennials are
more mobile than Gen-X and Boomers and, therefore, interview at
higher rates. They also set goals and objectives with equal competence;
regardless of generation, younger workers will need more direction
as they learn how to be effective at work. Managers’ scores in “giving
people honest feedback” were equal across workforces, which might
fall short of Millennials’ learning needs. When it comes to motivation
on the job, not only will goals give them clear direction, but linking
fair compensation to goal achievement has the potential to have
more impact with this group. With their increased focus on personal
and work-life balance, the fact that managers managing Millennials
do not surpass Gen-X workforces in promoting health and wellness is
troublesome, and may play a role in Millennial retention.
Differences in Managerial Competencies – As in HR effectiveness, we
see that more line managers are competent if managing Gen-X versus
Boomer workforces (see Figure 5). More managers are attracting
top talent proficiently (42 percent of organizations’ managers) than
managers supporting mature workforces (29 percent). In the area
of performance management, they are developing both a high-
performance culture (29 percent) and engagement (37 percent) at the
same level of competence as managers of Gen-X workforces. Managers
of Millennials have further honed their skills in managing performance
problems (36 percent), as well as coaching and developing their people
(32 percent) – a trend perhaps indicative of managing younger, less
experienced workers.
More HR groups
and managers
should encourage
innovation – a
critical misstep
in Millennial
management.
KEY POINT
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However, those managing Millennials seem to still be adjusting in
the areas on onboarding (31 percent), and encouraging innovation
and collaboration (33 percent). As more Millennials are hired, more
onboarding is needed – a critical activity when tasked with making
this more mobile workforce productive as quickly as possible. Given
their concentration in technology industries, taking advantage of the
free-thinking Millennials and fostering innovation may be a critical
competitive advantage.
Figure 6 references results from Figures 1 and 2 to provide a “report
card” for HR and managers in their attempts to adapt to the unique
characteristics of Millennials. This report card shows that HR and
managers are responding to the Millennials’ unique needs, but there is
also room for improvement.
16%
16%
25%
9%
27%
19%
25%
29%
22%
32%
35%
19%
41%
30%
35%
39%
22%
29%
31%
32%
33%
36%
37%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Identifying and developing leaders
Developing a high-performance culture
Onboarding new staff
Coaching and developing people
Encouraging innovation and collaboration
Managing performance problems
Developing high levels of engagement
Attracting top talent
Young (Millennial) Workforce Middle (Gen-X) Workforce Mature (Boomer) Workforce Percent Rating Favorably
Source: Bersin & Associates, 2011.
Figure 5: Differences in Managerial Competencies
Given their
concentration
in technology
industries, taking
advantage of
the free-thinking
Millennials
and fostering
innovation may
be a critical
competitive
KEY POINT
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Just the Facts about Millennials Brenda Kowske | Page 18
Millennials Are: HR Can Support Millennials with:
HR Report Card
Line Managers Should Manage by:
Manager Report Card
Individualistic and confident
Motivationforhigh-performance culture C
Developingahigh-performance culture C
Setting goals and objectives =
Managing performance problems C
Encouragementofinnovation and collaboration D Encouraginginnovationand
collaboration D
Starting adult life with less knowledge
Astrongself-learningculture D Giving honest feedback =
Identification of critical job knowledge, skills, abilities = Coaching and developing C
Motivated, but more likely by offering “rewards”
Fair rewards for high performance C
Implementing fair and effective compensation plans
=
Looking for balance
Health and wellness promotion = Supporting health and
wellness =
As a generation, more satisfied with work
Programsthatidentifyanddevelop future leaders D Identifying and developing
future leaders CIdentification of key talent segments DCareer development processes C
As younger employees, more likely to leave their companies
Support for engagement D Promotingengagement CEffectivehiringandselectionprograms C Assessing and selecting
applicants effectively =
Effectiveonboardingprograms C Onboarding effectively D
Attracting top talent C= means no difference between generational workforces found.CmeansmoreorganizationsareproficientinthisaspectofworkwhenMillennialworkforcesarecomparedwithBoomers.DmeansfewerorganizationsareproficientinthisaspectofworkwhenMillennialsworkforcesarecomparedwithGen-X.
Source: Bersin & Associates, 2011.
Figure 6: HR’s Effectiveness and Managerial Competence in Delivering What Millennials Need
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Just the Facts about Millennials Brenda Kowske | Page 19
Conclusion
This research bulletin has summarized the Millennial generation (at
least what we know to-date, based on real research and empirical
data), and has matched their unique characteristics to reports of HR
and line-manager proficiency. We see some differences in the youngest
of generations’ characteristics and, therefore, it would behoove
HR to improve their skills and those of line managers, accordingly.
As previously stated, the general scientific consensus is that true
generational (as opposed to age-related) differences are rare and small;
consequently, organizations should weigh investment in justifying
practices, processes and skills with generational characteristics. However,
and especially for those organizations facing a major demographic
change as their mature workforces retire, this research suggests
developing the organization in the following areas:
• Becomingadeptatrecruiting,hiringandonboardingtocompensate
for younger employees’ higher turnover rates, particularly in the
area of managerial onboarding skills;
• DevelopingtheMillennials’skillstoclosethegapleftby
secondary education, especially through self-learning resources
and opportunities;
• Supportinginnovationandcollaboration,andfindingthebalance
between fresh (sometimes irreverent) ideas and working with a
team to make ideas reality;
• Providingacknowledgmentforachievementsthroughpay-for-
performance practices and other types of recognition to ensure that
Millennials are motivated to perform; and,
• StrengtheningHR’seffectivenessinpromotingemployee
engagement to counteract Millennial flight.
Companies will
need to develop
the skills of
Millennials to
close the gap
left by secondary
education,
especially through
self-learning
resources and
opportunities.
A N A LY S I S
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Just the Facts about Millennials Brenda Kowske | Page 20
As generations continue their march through time, the societal
shifts they drive are mimicked in industry, forcing leaders and HR to
adapt. However, as with any change, organizations that adapt more
quickly can take advantage of the competitive edge which a new
generation brings. The information explained in this report enables
organizations to take empirical insights, and adjust their policies and
actions accordingly. Implemented correctly, organizations should be
able to adapt quickly to effectively support and manage Millennials – a
leverage point for business success in the future.
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