Robert Half Generation Y White Paper Def

SURVEY GENERATION YA new generation in the workforce

I N T R O D U C T I O NThey’re the children of the baby boomers,

but their life experiences have been

markedly different from those of their par-

ents. They’re Generation Y – also known as

the Millennial Generation – and they’re a

force to be reckoned with. Members of this

group are broadly defined as those born

between 1979 and 1999. The youngest

members of this generation are still in ele-

mentary school, while the vanguard is

already in the workforce.

As more baby boomers retire, this sizable

generation will become an increasingly vital

segment of the workforce. This paper focus-

es on the most senior slice of Generation Y –

those who are 21 to 29 years of age and

beginning their careers. They are the man-

agers, supervisors and executives of tomor-

row. And in terms of their work styles, profes-

sional expectations and career concerns,

they show some distinct preferences.

Along with providing and interpreting the

survey results, this guide offers specific

strategies your company can implement to

position itself as an employer of choice to

this generation, based on the combined

experience of Robert Half International and

Yahoo! Hotjobs. It also provides tips to try to

help you keep your Generation Y workers

motivated, inspired and loyal to your firm.

We hope it’s a useful tool and invite you to

visit www.roberthalf.nl for additional surveys

on other topics.

Methodology

To find out the “why” behind Generation Y, we

went straight to the source. Our goal was to

understand this group’s professional priorities

and mindset: what motivates them at work,

what types of career concerns keep them

awake at night, how they view their roles and

responsibilities in the workplace and what

they want from their employers. To find the

answers to these questions, Robert Half

International and Yahoo! Hotjobs commis-

sioned a survey in the United States in the

second quarter of 2007 by an independent

research firm, of more than 1,000 adults ages

21 to 28, sampling an equal percentage of

men and women. The majority of respondents

(79 percent) were college graduates employed

full-time; the rest were employed part-time

and/or still attending college. In addition, we

included results of a Robert Half Workplace

Survey, which included European respondents.

socially involved

teamplayers

selfconscious

sets the bar high

not afraid to

make mistakes

Like generations before them, Generation Y has often been discussed and studied.

At best, this group has been depicted as eager and tech-savvy, requiring that work

be both fun and challenging. At worst, they’ve been characterized as an overstim-

ulated, high-maintenance generation hooked on instant gratification. They’ve also

been accused of having a sense of entitlement and unreasonable expectations

about work.

In reality, our survey results point to an ambitious, highly motivated generation that

shares many of the same concerns as their predecessors. In fact, the survey

respondents appeared more attuned to issues such as saving for retirement, hav-

ing good healthcare benefits and balancing work and personal obligations than

might be expected of those who are relatively new to the workforce. Much of this

may be due to the fact that they’ve witnessed significant uncertainty in their life-

times, making security and stability increasingly attractive, both in their personal

lives and on the job.

This slice of Generation Y takes for granted the pervasiveness of technology in daily

life. In fact, professionals in this age group may not recall a time without personal

computers, cable television, the Internet, cell phones and instant messaging. They

spend a significant portion of their time online – socializing, shopping, banking,

studying, downloading music, watching movies, playing games, communicating,

looking for jobs, researching potential employers and seeking information that will

help them build their careers.

Generation Y adults also are likely accustomed to close and constant parental

involvement in their lives, which has earned them the label, “The Tethered

Generation.” They may call, text-message, instant message or e-mail their parents

multiple times a day. Many have grown up with “helicopter parents,” (those who

paid very close attention to their children and “hovered” overhead) who now are

available at the speed of e-mail to offer advice and guidance, or intervene on their

children’s behalf when it comes to difficulties at school or on the job.

THE ‘WHY’ BEHIND GENERATION Y

Approximately one in four

Gen Y workers polled consults his

or her parents first when making

employment decisions

Compared to previous generations,

Gen Y expects to have

• More frequent job/career changes (15%)

• Greater focus on personal/family life (12%)

• More knowledge of advanced

technology (10%)

• More education (9%)

Hein-Pieter Okker, Senior Manager, Robert Half

“Babyboomers are starting to retire now.This enables Generation Y to fil l in and

climb the ranks, bringing with them positivism, enthusiasm and much needed new ideas.”

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SURVEY GENERATION Y

WHAT PEOPLE SAY ABOUT GENERATION Y VERSUS THE REALITY

4

SURVEY GENERATION Y

One-third of respondents were concerned about finding/keeping a job,supporting themselves and their families, and “saving enough” money.

They’ve watched their parents, they know that long-term job security can be elusive, and

they have no illusions about how hard they’ll have to work to achieve financial security

and stability. Twenty-six percent worry about finding work, whether jobs will be available

in their chosen fields and if they will have career longevity. And 23 percent are most

concerned with finding fulfilment on the job, working in a positive environment and

advancing in their careers.

They’re focused on the future and worried about funding their retirement.

This group questions whether State retirement funds will be available for them. Our

survey revealed that, when Generation Y evaluates employment opportunities, “benefits”

are one of the top three deciding factors.

Generation Y lives in the moment and would rather play than work.

Stereotype

Generation Y expects instant gratification.

Reality

73 percent worry about balancing professional and personal obligations.

Generation Y watched their parents struggle to achieve a balance between work and

personal obligations. Like their parents before them, Generation Y wants to have it all –

fulfilling work, families and rich personal lives. That they should be able to do it is

assumed; how to do it is far less certain – and they expect the companies they work for

to help them find a way.

They want frequent communication with the boss.

Generation Y is accustomed to hearing timely critiques about their performance. They

seek managers who are willing to let them figure out their own strategies for getting the

job done while at the same time being approachable and available to provide advice,

assistance and support. According to our survey, a mere 10 percent of Generation Y are

comfortable with communicating only once a week with their bosses – most want daily

feedback.

They expect to pay their dues in different ways.

It’s true; members of this generation expect to rise up the ranks quickly. In fact, about half

of those we surveyed believe that professionals should have to spend only one or two

years proving themselves in entry-level positions. However, this is a group that expects to

pay dues in other ways – namely, through education. Nearly three-quarters think it’s like-

ly they will go back to school to obtain another degree during the course of their careers.

This generation slacks off at work to take care of personal matters.

Generation Y workers can’t take direction.

Generation Y employees have a sense of entitlement and

don’t want to “pay their dues.”

Nearly three out of four of those

surveyed say it’s likely they’ll go

back to school to obtain another

academic degree/certification

73%

Source: Generation Y report (US) by Robert Half

Salary 9.05

Benefits (health insurance, etc.) 8.86

Opportunities for career growth/advancement 8.74

The company’s location 8.44

Company leadership 7.95

The company’s reputation/brand recognition 7.56

Job title 7.19

In-house training programs 6.95

Tuition reimbursement programs 6.44

The diversity of the company’s staff 6.07

The company’s charitable/philanthropic efforts 6.06

GEN Y RESPONDENTS RANKED THE FOLLOWING JOB

CONSIDERATIONS ON A 1-TO-10 SCALE, WITH 10 BEING

MOST IMPORTANT, AND 1 LEAST IMPORTANT

HELP WANTED: WHAT GENERATION Y LOOKS FOR IN EMPLOYERS

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SURVEY GENERATION Y

“If I have to work on a Saturday,

can I have a day off during the week?”

“What about about working at home?

Because Rotterdam - Apeldoorn

by train is quite far.”

“How often will I receive

feedback or coaching?”

“How many education days per month do I have during my trainee period?”

“Do I really have

to wear a tie in

the office?”

“Can I also buy extra holiday-days?”

Students from Trainee Development Program, Achmea

Generation Y’s image of the ideal employer reflects a down-to-earth blend of

idealism and pragmatism, of concern for self and for others. As a group, they share

the belief that organizations should benefit both the individual and broader society.

At the same time, they are reluctant to sacrifice professional security and growth for

broader values.

There are definitely differences between Generations and what they look for in

employers, according to Jenny Coolen, Branding & Recruitment Specialist, Sara Lee.

“Generation Y’ers almost always ask in their first interview what their next step

could be in the company and what the company’s education and coaching program

is. They want to have a clear view and are not afraid to ask for it, in comparison with

other generations.”

To attract Generation Y, Sara Lee offers flexible hours, an extended holiday package

and several education and coaching opportunities. To further attract Generation Y

talent, Sara Lee offers the Young Leadership program and the Sara Lee Interns

United networking organisation.

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SURVEY GENERATION Y

HOW IS GENERATION Y SEARCHING FOR JOBS?

Members of Generation Y are adept users of both new and traditional media. Thanks to online social networking, they arequick to share their knowledge and opinions with one another.

Online:

Remember that this group is attracted to corporate images and brand names. Even

if your company isn’t well known, you can provide information that speaks to your

firm’s reputation and what you stand for, including industry awards or accolades. If

you’re a leader in your industry, but not a household name, point out your reputation

within your niche.

Offline:

Your website, recruitment advertising and corporate literature should communicate

in vivid detail your firm’s commitment to providing competitive salary, top benefits

and career growth. Assuming these actually are your company’s values, and

describe your programs.

Looking for work Online:

• Nearly three-quarters of Generation

professionals visit company websites to

learn more about prospective employers

• More than two-thirds use job boards

• Nearly one-quarter use social networking

sites (Hyves, LinkedIn, FaceBook, etc.)

Y

Looking for work Offline:

• More than half of Generation Y job seekers

check newspaper or magazine want ads

• Nearly one-third use staffing and

recruiting firms

• One-quarter ask their parents for leads

Barbara Kollee, Senior Manager, Robert Half

Now that we know what Generation Y looks for in a job offer, let’s consider what they

want in their careers over the long term – keeping in mind that “long” for these profes-

sionals means years, not decades. More than half of those surveyed believe they should

spend just one to two years “paying their dues” in entry-level positions. Moreover, near-

ly half (43 percent) of Generation Y workers surveyed said they plan to stay between

one and five years at their current jobs, while only 22 percent expect to spend six or

more years in the same position.

To retain your Generation Y workers, focus on the work environment. Workplace factors

that are most important to Generation Y are working with a manager they respect and

people they enjoy, and striking a balance between personal and work obligations.


Less than one year 16%

One to two years 51%

Two to three years 19%

More than three years 5%

Not sure 9%

“HOW MUCH TIME DO YOU THINK

PROFESSIONALS ENTERING THE WORKFORCE

SHOULD HAVE TO SPEND ‘PAYING THEIR DUES’

IN ENTRY-LEVEL POSITIONS?”


Working with a manager I can respect and learn from 8.74

Working with people I enjoy 8.69

Having work/life balance 8.63

Having a short commute 7.55

Working for a socially responsible company 7.42

Having a nice office space 7.14

Working with state-of-the-art technology 6.89

GEN Y RESPONDENTS RANKED THE FOLLOWING JOB

CONSIDERATIONS ON A 1-TO-10 SCALE, WITH 10 BEING

MOST IMPORTANT, AND 1 LEAST IMPORTANT.


Less than one year 16%

One to two years 24%

Three to five years 19%

Six years or more 22%

Not sure 19%

“HOW LONG DO YOU EXPECT TO STAY AT YOUR

CURRENT POSITION?”

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SUCCESS DEFINED: WHAT GENERATION Y WANTS IN A CAREER

SURVEY GENERATION Y

“Y professionals favor a manager who notonly gives them attention and respect,

but also is able to help them with their professional growth.”

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SURVEY GENERATION Y

WHAT DOES GENERATION Y EXPECT FROM A MANAGER?

As with professionals of all ages, the quality of a Generation Y employee’s relation-

ship with his or her manager is directly linked to job satisfaction. Remember that

Generation Y are accustomed to direct, ongoing supervision and guidance from par-

ents, teachers and other authority figures. They seek a similar relationship with their

bosses, looking to them for almost constant feedback. In fact, 35 percent of those

surveyed want to communicate with the boss several times a day. Once per day is

sufficient for one-quarter of respondents, while only 10 percent would be content

with weekly communication. Clearly, this generation, like most workers starting

their careers, has high ideals when describing the types of supervisors they seek.

In essence, being a good manager to Generation Y means being a good manager –

period. After all, who wouldn’t want to work for a supportive coach and mentor? But

for Generation Y, having a good boss is particularly important. This is a group that

has high expectations for authority figures and craves continual feedback and rein-

forcement. Pairing these staff members with your best managers will go a long way

toward keeping these employees satisfied and productive.

Gen Y respondents were asked,

“How would you describe your

dream boss?”

The top responses were:

• Good management skills

• Pleasant and easy to get along with

• Understanding and caring

• Flexible and open-minded

• Respects/values/appreciates employees

• Good communication skills

By contrast, Generation Y’s “nightmare” boss is,according to one of our candidates,

“a micromanager who is not concerned with myprofessional development, and who tends to place

blame on everyone other than themselves.”Ronald de Zoete, Associate Director, Robert Half

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SURVEY GENERATION Y

CONCLUSION

Companies that make an effort to understand and act upon these professionals’ viewpoints

will find themselves with a dedicated and ambitious group of workers.

Without question, the workplace is changing. Much like the generations before

them, Generation Y employees bring specific values and ideals to the business world

that ultimately will alter workplace policies and management strategies. Companies

that make an effort to understand and act upon these professionals’ viewpoints will

find themselves with a dedicated and ambitious group of workers. Creating an

attractive environment for these staff members will be particularly important in the

coming years, as more baby boomers retire and firms look to new generations of

workers to replace them. The good news is that many of the perks Generation Y seek

– such as education, training and advancement opportunities – not only will help

firms attract and retain these professionals right now, but also will position these

workers to tackle new business challenges and help their firms grow and prosper in

the future.

WHAT SHOULD YOUR COMPANY OFFER?

ADVICE

ADVICE - SURVEY GENERATION Y

Given the preferences and values expressed by survey respon-dents, the following strategies may help your firm recruit andretain this group:

Make them an offer they can’t refuse.

• Ensure that the compensation your company offers is slightly above the average

for your industry and region.

• Generation Y are accustomed to instant results, make them an upfront offer they

can’t refuse.

Put yourself in their shoes when thinking about benefits. • Make your programs easy to understand and clearly highlight all of your perks and

benefits.

• Generation Y expects everything to be arranged upfront, so make sure you take

care of it.

Offer them career options.

More than 50% of Dutch generation Y’ers say the biggest reason to leave a company

is because of a lack of career opportunities.

Top career concerns:

• financial security (33%)

• job stability (26%)

• career satisfaction (23%)

If you provide it, they will stay…

Gen Y’s most-valued benefits:

• healthcare coverage

• paid vacation

• dental care coverage

• bonuses

• flexible work hours/telecommuting

Source: Workplace Survey (EU) 2005 by Robert Half

No opportunities for career development 51%

Not satisfied with salary 39%

Work/life not in balance 12%

TOP 3 REASONS WHY GENERATION Y EMPLOYEES

WOULD LEAVE A COMPANY

10

“Generation Y will take the great offer nowover an even better one tomorrow.”

Hein-Pieter Okker, Senior Manager, Robert Half


Source: Workplace Survey (EU) 2005 by Robert Half

Career development 32% 37% 28% 42% 36% 28% 32% 25% 9% 22% 43% 38%

Flexible hours 36% 31% 35% 56% 44% 28% 45% 2% 16% 38% 37% 40%

Evaluations/bonuses 33% 27% 35% 48% 24% 33% 43% 31% 16% 44% 31% 25%

Not motivated by additional benefits 17% 23% 13% 14% 13% 16% 9% 17% 53% 20% 10% 16%

Frequent team meetings 8% 10% 12% 9% 14% 3% 9% 0% 12% 6% 7% 10%

More holidays 13% 10% 18% 36% 9% 8% 21% 1% 4% 14% 4% 12%

No answer 1% 0% 1% 0% 2% 1% 0% 8% 0% 0% 0% 0%

Total respondents 1765 150 100 200 200 303 206 100 101 102 201 102

Total NED IRL FRA GER GBR BEL CZE ITA LUX AUS NZL

WHICH ADDITIONAL BENEFITS MOTIVATE

GENERATION Y STAFF?

Showcase perks such as in-house training programs, tuition reimbursement, paidtime off to attend professional development events, and reimbursement of mem-bership fees for professional associations. During recruiting events and job inter-

views, provide concrete examples of employees who have taken advantage of these

opportunities so prospective hires know that capitalizing on these offerings is

encouraged.

Develop a mentoring program in your department or company. If your organization

has multiple locations and a corporate intranet, don’t overlook the benefits of e-

mentoring as a supplement to more traditional arrangements.

Give professional assignments that stretch their abilities and allow them to develop multiple competencies, such as team leadership, business management

and client/customer service, in addition to specific job-related abilities.

Try to make their jobs more diverse. Generation Y workers grew up with a high level

of stimulation (TV, video games, the Internet and myriad extracurricular activities)

and will become disengaged quickly if they are not challenged.

Remember that, like most professionals, Generation Y workers value a reciprocal,

mutually beneficial relationship. They want to make a contribution to their employers and, in return, they want their employers to help them achieve theirprofessional goals. During the interview, describe how the applicant’s work will

make a difference and outline the career paths available to them.

•

•

•

•

•

WHAT SHOULD YOUR COMPANY OFFER?

ADVICE

11

WHAT DOES GENERATION Y EXPECT FROM A MANAGER?

Following are some additional management tactics that mayhelp you bring out the best performance in your staff:

Give them their ‘scores.’The keyword for generation Y is feedback. Recent graduates are accustomed to

receiving regular feedback, it motivates them and they appreciate knowing where

they stand. So, don’t wait for the annual performance review to provide feedback.

Keep the door open, but don’t be a doormat.This group appreciates a friendly, fair-minded manager who dispenses advice, pro-

vides support and then gives them space to do their jobs in their own way. But they

aren’t looking for pushovers: They want their supervisors to exercise clear

authority.

Walk the talk. Similarly, this group wants companies to act true to their values. They are sceptical

of corporate pronouncements unless they are backed up with clear action.

See them as people, not just employees. Like all professionals, these workers want supportive managers. When talking with

Generation Y staff members, acknowledge that they have lives and concerns outside

of work, and help them balance work and personal obligations.

Lend them your ears.They seek the validation that comes from being heard. This does not mean that you

have to act upon their every suggestion, but you can acknowledge their ideas and

encourage them to approach you with their thoughts.

Nearly three out of four

of Gen Y workers polled

are worried about balancing

work and personal obligations

73%


ADVICE

12


WHAT DOES GENERATION Y EXPECT FROM A COWORKER?

The Power of Balance Nearly three-quarters (73 percent) of Generation Y professionals are concerned

about being able to balance a career with personal obligations. You’ll encourage

longer tenures and greater loyalties among employees if you offer perks and

programs that help them achieve work/life balance. This may require you to rethink

traditional career paths or timetables for advancement, or offer options such as job-

sharing, telecommuting, compressed workweeks or alternative scheduling, when

appropriate.

No Useless Titles In keeping with their preference for an informal and friendly workplace, members of

Generation Y are not particularly impressed by prestigious titles and fancy offices.

Consider these survey results:

Job title ranked seventh among 11 factors that Generation Y uses to evaluate a job

opportunity. And they ranked a “more prestigious job title” last among seven factors

that would prompt them to leave their current jobs. Generation Y employees are far

more interested in challenging duties. In other words, it’s what they do, not whatthey’re called, that counts.

Generation Y is a highly sociable generation, accustomed to doing things as part of

a group since their years in daycare and preschool. Perhaps that’s why two-thirds of

survey respondents selected in-person conversations with their coworkers as their

preferred communication method. Only one in five would rather communicate by e-

mail.

The takeaway for businesses: Make sure your workplace is structured to encourage

plenty of the kind of “face time” that Generation Y professionals enjoy. This could

mean arranging work groups in open, connected seating areas that facilitate face-to-

face communication or creating more opportunities for employees to socialize dur-

ing and after work. If Generation Y professionals feel connected to their coworkers,

they’re more likely to be satisfied with their jobs and stay with your company.

When evaluating employers,

gen Y professionals look for:

• A manager they can respect and

learn from

• People they can enjoy working with

• Work/life balance

Dressed to work… How gen Y

wants to dress on the job:

• Business casual (41%)

• Sneakers and jeans (27%)

• A mix, depending on situation (26%)

• Business attire (4%)


Higher pay 4.63

Better perks and benefits 4.44

More opportunities for advancement 4.22

More interesting work 4.14

Better work environment 3.99

Shorter commute 3.51

More prestigious job title 3.39

GEN Y RESPONDENTS RANKED HOW MUCH THE FOLLOWING FACTORS

WOULD INFLUENCE THEM TO LEAVE ONE JOB FOR ANOTHER ON A

1-TO-5 SCALE, WITH 5 HAVING THE MOST INFLUENCE, AND 1 THE LEAST.

ADVICE

13

HOW CAN YOU RETAIN GENERATION Y?

They are most likely to be lured

to another firm by:

• Greater opportunities for career

development

• Higher pay

• Better work/life balance

• Benefits

“Generation Y sets itself apart by being proactive, commercial and in control of the future.

This means an updated CV, active use of social networking websites like

LinkedIn.com and being ready to seize the next opportunity when it arises.

This poses a real challenge to organizations. To keep up the pace, our role will be

one of constant reinvestment of the fundamental needs of our employees.”

You’ve attracted them to your company, hired the best of them and given them train-

ing and generous perks and benefits – or at least you think you have. But, unexpect-

edly, a few of your Generation Y employees are giving their two weeks’ notice. What’s

the reason?

Generation Y doesn’t stand still, and when it comes to keeping them motivated,

inspired and loyal, your firm can’t either. For example, don’t offer gift certificates for

outstanding performance and expect the initiative to still motivate Generation Y’ers

a year later. In fact, don’t bother offering gift cards or any other small-scale rewards

and incentives at all if you haven’t adequately addressed their fundamental needs.

And for Generation Y, these baseline requirements are simple and practical: money,

benefits, growth. These were the top three factors cited by survey respondents that

would lure them to another firm. Thus, if you’re experiencing a drain of Generation Y

employees who have been with your company for a year or more, it could be time to

re-evaluate your compensation structure, benefits package and the types of career

paths you are offering.

On the other hand, if turnover is occurring only in one or two entry-level positions,

perhaps you need to analyze those particular job functions (see Analyze your job

functions checklist). If you’ve addressed factors such as compensation,

benefits, career growth and challenge, and your turnover among Generation Y

employees remains high, you may need to create a more collaborative, collegial

work environment. This is a generation of workers who are well informed of their

worth and will always be on the lookout for new opportunities.

Ronald de Zoete, Associate Director, Robert Half


ADVICE

14

Could the jobs be made more interesting or complex?

Do the employees in those positions have sufficient

interpersonal contact with coworkers?

Is the manager or supervisor available on a consistent

basis to provide them with guidance and direction?

Do the jobs involve varied and challenging assignments,

or do employees in those positions perform repetitive tasks?

Analyze your job functions

Generation Y sets itself

a part by being:

• Proactive

• Commercial

• In control of the future

Although no single program or policy can be a panacea, integrated programs that

address workers’ most pressing career concerns may help you mitigate high

turnover. And keep in mind that a certain amount of attrition is to be expected.

Those who are just starting their careers want to know that their contributions mat-

ter and their skills are improving. So, to close the revolving door, you may need to

restructure the entry-level positions in question, perhaps combining several func-

tions to create a single, more challenging job or developing a more defined path of

advancement out of a routine role.

HOW CAN YOU RETAIN GENERATION Y?


ADVICE

15

“The first step to make sure that generation differences work out

in the companies’ best interest, is to acknowledge that there are differences.”

Het Financieele Dagblad

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SURVEY GENERATION Y

ABOUT US

About Robert Half International Founded in 1948, Robert Half International is the world’s first and largest specialised

staffing firm with more than 360 offices worldwide. In the Netherlands Robert Half

has five professional staffing divisions; Accountemps (specialising in temporary

financial recruitment), Robert Half Finance & Accounting (specialising in permanent

recruitment of finance and accounting personnel), Robert Half Financial Services

Group (specialising in high-calibre finance and banking profiles), Robert Half

Management Resources (interim and project financial recruitment) and OfficeTeam

(highly skilled temporary office support).

For more information about the specialised staffing and recruitment divisions of

Robert Half, visit www.roberthalf.nl.

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Robert Half Generation Y White Paper Def

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