Workforce 2020 fact sheet
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Copyright © 2014 Nakisa Inc. All rights reserved. Millennials want to learn and grow within your company Just because they’re out of school doesn’t mean they’re done learning. This new breed of human capital highly regards training and development opportunities; a clear career and development path is essential to attracting and engaging Millennials. In fact, PwC reports that 52% of the young professionals surveyed said good opportunities for career progression made an employer more attractive. 2 Showing a commitment to their career progression is sure to engage, motivate, and ultimately, retain them. Millennials want the whole package, not just great compensation Sure, high pay still makes a job offer attractive. After all, education is not cheap these days, and they have to pay back the debt somehow. However, it isn’t all about the money for Millennials. Research shows that Millennials are looking for experience, not just a job. Meaningful work and a sense of accomplishment are top of mind factors in job satisfaction for Gen-Y. 1 Beyond understanding how to do a task, they want to understand why. Ensuring these young employees understand how their work impacts the company’s strategic goals will keep them motivated and working hard. Millennials value employers who embrace the social life (on the web and in the office) It’s no surprise that a generation that’s known to constantly be on their phones, Twitter, or Facebook in their personal life wants the same sort of social flexibility in the workplace. A report by Cisco reveals that as many as 56% of these new professionals will steer away from jobs in companies that ban social media. 3 It’s time for employers to welcome the social network into the everyday. Don’t think of it as a waste of time; social media and networking can actually increase employee productivity and facilitate collaboration. Further, a social office atmosphere creates a place where these young employees will look forward to coming every day. Millennials aren’t just looking for a relationship with their colleagues that ends with the workday, they’re seeking meaningful connections. 71% of Gen-Yers have indicated that they want their colleagues to be like “second family.” 4 Millennials are ending the 9-to-5 workday The 9-to-5 workday may soon be an idea of the past. It’s not only the Millennials who want flexible schedules, but they are certainly the ones driving the cultural change. A whopping 89% of these twenty-something workers would prefer to choose where and when they work, rather than be placed in a 9-to-5 position, 5 and nearly half of them are willing to take a pay cut for a more flexible workplace. 6 Businesses are forced to rethink the traditional workday and evolve their processes to support this new demand. Millennials will be required to leapfrog into leadership roles within the next 5 years As many as 63.3% of baby boomers in executive roles will be eligible for retirement in the next five years. 7 The logical replacements would be Gen-Xers, however, they just don’t comprise enough of the workforce to sufficiently fill the large leadership gap. This puts Millennials on the fast-track to becoming some of the youngest executives in history. In order to make this transition seamless, companies need to start preparing these young professionals for a huge leap in their careers early. Millennials are mobile and seek out international experience Millennials have grown up in the digital age where the world is essentially “flat.” The internet has made cultures increasingly similar, borders somewhat ambiguous and, as a result, it has lifted the fear of leaving the nest. Our globalized world has created a very globalized generation; 66% of Gen-Yers believe international experience is essential to further their careers 2 and seek out jobs where travel, or even relocation is possible. Employers have a great opportunity to maximize on this unique situation, as they have more skilled talent ready to be deployed than ever before that can help a business flourish globally. Millennials are a higher flight risk than other generations, and are costly to replace Millennials don’t give as much thought to job security as past generations. The average tenure of a millennial is 2 years, compared to 5 years for Ge-X and 7 years for baby boomers. 8 Neglecting to find ways to infuse flexibility, fun, technology and development opportunities into the workplace can drive the Gen-Y workforce away. Just helping them identify lateral career opportunities within the organization can improve their intent to stay by up to 23%. 9 Small, yet significant steps like these can end up saving organizations an average of $24,000 (per Millennial) in replacements costs. 10 Sources: 1 Kenan-Flagler Business School, UNC: Maximizing Millennials in the Workplace (2012) 2 PwC: Millennials at Work; Reshaping the workplace (2011) 3 Cisco: 2011 Cisco Connected World Technology Report (2011) 4 Forbes: Why Millennials are Ending the 9 to 5 (2013) 5 LinkedIn: 10 Millennial Personality Traits That HR Managers Can’t Ignore (2014) 6 Millennial Branding: The Cost of Millennial Retention Study (2013) 7 PwC Saratoga: 2013/2014 US Human Capital Effectiveness Report (2013) 8 Pay Scale/Millennial Branding: Gen Y on the Job, Infographic (2012) 9 CEB Human Resources: HR: The Millennial Myth (2014) 10 Experience Inc./Microsoft: The Cost of Gen Y Turnover & the Importance of Finding “the Right” Candidate (2008) The distinctive trait of business today is the rapidly changing nature of human capital: baby boomers are exiting the workforce, leaving room for a new generation. Whether you call them Millennials, Gen-Y, or those born in the ‘80s and ‘90s, they’re the up-and-coming colleagues. By the year 2020, employers can expect that approximately 50% of the workforce will be comprised of this new generation of human capital. 1 They think differently, and more importantly, they have different expectations from employers than any other generation in the past. Here’s what you need to know to gain your “M-factor” and ready your organization for this major cultural shift. Workforce 2020 Fact Sheet Maximizing Millennials
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Refer to them as you please: Millennials, Gen-Y, young prefessionals...but these are the people that will be comprising nearly 50% of the workforce by 2020. How is your organization preparing? Here are some facts about this new generation of human capital that businesses will need to keep in mind as they ready themselves for the biggest cultural shift in the workplace since the 60's and 70's. Read on to find out how Nakisa's Millennial-ready software can help you prepare.
Transcript of Workforce 2020 fact sheet
Copyright © 2014 Nakisa Inc. All rights reserved.
Millennials want to learn and grow within your companyJust because they’re out of school doesn’t mean they’re done learning. This new breed of human capital highly regards training and development opportunities; a clear career and development path is essential to attracting and engaging Millennials. In fact, PwC reports that 52% of the young professionals surveyed said good opportunities for career progression made an employer more attractive.2 Showing a commitment to their career progression is sure to engage, motivate, and ultimately, retain them.
Millennials want the whole package, not just great compensationSure, high pay still makes a job offer attractive. After all, education is not cheap these days, and they have to pay back the debt somehow. However, it isn’t all about the money for Millennials. Research shows that Millennials are looking for experience, not just a job. Meaningful work and a sense of accomplishment are top of mind factors in job satisfaction for Gen-Y.1 Beyond understanding how to do a task, they want to understand why. Ensuring these young employees understand how their work impacts the company’s strategic goals will keep them motivated and working hard.
Millennials value employers who embrace the social life (on the web and in the office)It’s no surprise that a generation that’s known to constantly be on their phones, Twitter, or Facebook in their personal life wants the same sort of social flexibility in the workplace. A report by Cisco reveals that as many as 56% of these new professionals will steer away from jobs in companies that ban social media.3 It’s time for employers to welcome the social network into the everyday. Don’t think of it as a waste of time; social media and networking can actually increase employee productivity and facilitate collaboration. Further, a social office atmosphere creates a place where these young employees will look forward to coming
every day. Millennials aren’t just looking for a relationship with their colleagues that ends with the workday, they’re seeking meaningful connections. 71% of Gen-Yers have indicated that they want their colleagues to be like “second family.”4
Millennials are ending the 9-to-5 workdayThe 9-to-5 workday may soon be an idea of the past. It’s not only the Millennials who want flexible schedules, but they are certainly the ones driving the cultural change. A whopping 89% of these twenty-something workers would prefer to choose where and when they work, rather than be placed in a 9-to-5 position,5 and nearly half of them are willing to take a pay cut for a more flexible workplace.6 Businesses are forced to rethink the traditional workday and evolve their processes to support this new demand.
Millennials will be required to leapfrog into leadership roles within the next 5 yearsAs many as 63.3% of baby boomers in executive roles will be eligible for retirement in the next five years.7 The logical replacements would be Gen-Xers, however, they just don’t comprise enough of the workforce to sufficiently fill the large leadership gap. This puts Millennials on the fast-track to becoming some of the youngest executives in history. In order to make this transition seamless, companies need to start preparing these young professionals for a huge leap in their careers early. Millennials are mobile and seek out international experienceMillennials have grown up in the digital age where the world is essentially “flat.” The internet has made cultures increasingly similar, borders somewhat ambiguous and, as a result, it has lifted the fear of leaving the nest. Our globalized world has created a very globalized generation; 66% of Gen-Yers believe international experience is essential to further their careers2 and seek out jobs where travel, or even relocation is possible.
Employers have a great opportunity to maximize on this unique situation, as they have more skilled talent ready to be deployed than ever before that can help a business flourish globally.
Millennials are a higher flight risk than other generations, and are costly to replaceMillennials don’t give as much thought to job security as past generations. The average tenure of a millennial is 2 years, compared to 5 years for Ge-X and 7 years for baby boomers.8 Neglecting to find ways to infuse flexibility, fun, technology and development opportunities into the workplace can drive the Gen-Y workforce away. Just helping them identify lateral career opportunities within the organization can improve their intent to stay by up to 23%.9 Small, yet significant steps like these can end up saving organizations an average of $24,000 (per Millennial) in replacements costs. 10
Sources:1 Kenan-Flagler Business School, UNC: Maximizing Millennials in the Workplace (2012)2 PwC: Millennials at Work; Reshaping the workplace (2011)3 Cisco: 2011 Cisco Connected World Technology Report (2011)4 Forbes: Why Millennials are Ending the 9 to 5 (2013)5 LinkedIn: 10 Millennial Personality Traits That HR Managers Can’t Ignore (2014)6 Millennial Branding: The Cost of Millennial Retention Study (2013)7 PwC Saratoga: 2013/2014 US Human Capital Effectiveness Report (2013)8 Pay Scale/Millennial Branding: Gen Y on the Job, Infographic (2012)9 CEB Human Resources: HR: The Millennial Myth (2014)10 Experience Inc./Microsoft: The Cost of Gen Y Turnover & the Importance of Finding “the Right” Candidate (2008)
The distinctive trait of business today is the rapidly changing nature of human capital: baby boomers are exiting the workforce, leaving room for a new generation. Whether you call them Millennials, Gen-Y, or those born in the ‘80s and ‘90s, they’re the up-and-coming colleagues. By the year 2020, employers can expect that approximately 50% of the workforce will be comprised of this new generation of human capital.1 They think differently, and more importantly, they have different expectations from employers than any other generation in the past. Here’s what you need to know to gain your “M-factor” and ready your organization for this major cultural shift.
Workforce 2020 Fact SheetMaximizing Millennials
Copyright © 2014 Nakisa Inc. All rights reserved.
Contact usPlease visit www.nakisa.com for more information, or email [email protected] to arrange an assessment of your Millennial-readiness and book a live demonstration of the Org and Talent Management solutions by Nakisa.
About us
Nakisa® Inc. is a leading Organization and Talent Management software company, providing organizations with the ability to visualize and maintain accurate HCM data, confidently execute organization design, devise harmonized succession and career plans, and create an aligned, high-performing workforce. Nakisa’s client base includes 700+ enterprise customers, with more than 4 million subscribers from 24 industries, in 125 countries. Nakisa has been an SAP® partner since 2007. SAP® Organizational Visualization by Nakisa® (SOVN) and SAP® Talent Visualization by Nakisa® (STVN) are co-developed, supported and sold by SAP. Available in 18 languages, they form a key part of the SAP product roadmap.
Nakisa® OrgChart™Nakisa’s OrgChart with SocialLink is an easy to use, mobile-ready tool that enables Millennials to communicate, collaborate and share.
• Gain a global view of the entire organization in an easy-to-navigate, intuitive tool
• Rapidly search and connect with colleagues to share expertise, find mentors and collaborate on projects
• Demonstrate skill sets and extend the SAP HCM profile by downloading information already maintained in external social networking sites, like LinkedIn®
• Build social circles with coworkers by creating common interest groups, fostering meaningful relationships outside of the professional context
Nakisa® Goals & Performance™Nakisa’s Goals & Performance gives HR, managers and Millennials a new, collaborative way to track goals and evaluate performance.
• Make goal assignment transparent, facilitating the understanding of one’s contributions to the achievement of strategic objectives
• Align personal performance assessments with larger organizational objectives by setting measurable individual goals
• Facilitate a continuous feedback loop between managers and Millennials, making it easy to track goal progression and improve performance no matter where from and when the employee chooses to work
• Engage the right talent with the right challenges, keeping the workforce engaged and excited
Nakisa® CareerPlanning™Nakisa’s CareerPlanning with DevelopmentPlanning is a robust solution that allows Millennials to take charge of their careers.
• Review review current proficiencies, explore career opportunities and compare current competencies to identify areas for development
• Determine an actionable development plan to reach career aspirations and maintain a personal log of tangible targets and activities to bridge skill gaps
• Indicate personal mobility preferences within the employee profile by listing top choices of places for business travel or relocation
• Build a link between personal career aspirations and the key competencies needed to fulfill organizational objectives
Nakisa® SuccessionPlanning™Nakisa’s SuccessionPlanning allows managers, HR and executives to visualize the talent they have today, and prepare for the talent and skills the organization will need tomorrow.
• Make succession planning more efficient by proactively seeking out candidates and creating pools by talent or by their ability to be a successor for a job family
• Easily access real-time information about the existing workforce for a comprehensive snapshot of talent inventory and bench-strength
• Visualize and analyze potential candidates for succession planning against the defined competencies of any given position
Millennials have particular expectations and skills which must be harnessed to serve an organization’s strategic goals, while their talent must be thoroughly managed to ensure that individual attributes don’t translate into organizational flaws. To learn more about the Millennial-ready Nakisa solutions that can help your organization successfully balance human capital needs and business objectives, get in touch with us to view the solutions live in action.
Get your “M-factor” with Nakisa’s Millennial-ready org and talent management solutions
