managing generation x & ycontent.timesjobs.com/docs/tj newsletter may issue 2012.pdf · in case...

n Survey Highlights

Each generation of employees has adifferent set of values, working style andexpectations from the work environment.The employers need to understand thisdifference and develop strategies tomanage the multi-generational workforce.Explores more with TJinsite on pg 3 & 4.

n Guest Column

Our Guest Columnist this month, ShubhaKasi, Director-HR, SunGard, tells us whyappraisals aren’t and should not be justabout money. She asserts that appraisalsmust be as continuous as performance andthe two must not be separated. To readmore on the subject turn to pg 6.

n Expert Speak

In an exclusive conversation with TJinsite,Mukund Menon, Director – HR for India &,Singapore, Steria, shares the approach,strategies and challenges in hiring andretaining and engaging Generation X & Y.Read the excerpts from the interview on pg 8.

According to a recentTJinsite study, Generation Y (Gen Y)

represent majority of theworkforce in most of thecompanies (67%), followed byGeneration X (Gen X) whichrepresents 28% of the workforcein the surveyed organisations.More than 81% of theorganisations are actively hiringGen Y.

Both these generations arewilling to change jobs anywherefrom five to ten times over thecourse of their career, reveals thestudy.

Where there are certainsimilarities, there are varieddifferences as well in theapproach and attitude of thesetwo generations.

The study observed that thevarious deciding factors for GenY to take up a job in order ofpreference were salary (42%), jobprofile (23%), flexibility (18%)and brand value (14%) .

Almost 35% of Gen X workforceconsidered job position as themost important deciding factorfollowed by job profile (22%),salary (18%), brand value andflexibility (11%). This generationof employees demand creativefreedom and authority toperform their job.

Gen Y want attractive salarypackage and flexible workinghours and schedules, so that they

can maintain a healthy work-lifebalance.

As the two groups are different,the selection practices adoptedfor the two also varies.Employers revealed that while

selecting a candidate, in case ofGen X, experience evaluationaccounts to around 50%, and thesame criteria weighs much less(17%) for Gen Y. Skill setsmatters the most (48%) whenhiring Gen Y.

Nearly 64% of the employersprefer using interview as the

selection method for recruitingboth Gen X & Y candidates.

In case od Gen X recruitmentportals took an edge over otherchannels of recruitment as morethan 50% of the employers voted

for it. For Gen X, reference/wordof mouth are said to be morepreferred and effectiverecruitment methods.

Like the hiring approach for GenX & Y differs, the retentionstrategies are also varied. TheTJinsite study clearly revealedthat job satisfaction, opportunity

to learn something new andgrowth is more important thesedays. Though, Gen X stillconsidered money as the bestretention option but for theyounger population (65%)training and growthopportunities are more essential.

Training and development leadsnot only to higher productivitybut also to higher retention asstagnation in work results ingreater dissatisfaction.

In today’s employment market, itis comparatively easier to hireresources than trying to retainthem. Earlier the employees werehappy to continue in the sameorganisation for years.

This generation was known asthe ‘baby boomers’ and wereconsidered as assets by thecompanies as they nevercontemplated career moves.

However, this scenario haschanged with large number ofpeople belonging to “babyboomer” category retiring andcreating a huge void.

This void is being filled by thenewer generations who arereferred to as the “Gen X” (bornbetween 1965-1979) and “Gen Y”(born between 1980-1994).

Job hopping is very prominentamong people belonging to thesegroups. Thus, both recruitmentand retention of employees areequally important.

H I R I N G & B E Y O N D

VOLUME-II | ISSUE 6MAY 2012

www.research.timesjobs.com

Inside Insite

X

Y

Managing Generation X & YThe multi-generational approach to hiring and retention

2



HIRING & BEYOND

3

Survey Highlights



HIRING & BEYOND

Although Generation X andGeneration Y have certaincharacteristics in

common, their differencespresent the challenges in hiringthe best. A recent study byTJinsite revealed that 35% of theGeneration X employees aremore concerned about the jobposition and profile, whereas 45%of the Generation Y is lured bysalary. Since, Generation Xemployees are hired largely formid-management positions, workexperience in terms of number ofyears and also hands-on domainexperience matters most, said75% of the surveyed employers.Nearly 48% of the employers feelthat relevant skills are of utmostsignificance while hiringGeneration Y employees. Nearly

33% of the employers feel thatreference/word-of-mouth worksbest in sourcing Generation Xcandidates. Recruitment portalsdelivers best results in hiringGeneration Y candidates, feel28% of the employers. Besides

other recruitment and talentmanagement issues close to one-third of the HR managers findthe increasing gap between babyboomers and Generation X and Yemployees as another big HRchallenge.

Process and challenges in hiringGeneration X and Y

• For 67% of theorganisationsGen Y makes upfor the majorityof workforcepopulation

• 82% of theorganisationslikely to recruitGen Y employeesin future

• 35% of Gen Xemployeesconsider jobprofile mostwhile choosing ajob

What is the deciding factor for Gen X & Y to choose a job?

Generation X Generation Y

Job Profile Salary Job Position Flexibility

34%28%

18%

45%

36%

7%12%

20%

Currently, Generation Xemployees are most in-demand for Back office/

Administration profiles (33%)followed by sales/marketing andHR functions (28%), stated thesurveyed employers. On the other36% of employers claimed thatfor Generation Y employees ITand Sales and Marketing profilesare most sought after. Being tech-savvy Generation Y is the idealchoice for IT jobs. AnotherTJinsite study revealed thatGeneration Y employees are alsoseeking jobs in IT andSales/Marketing domain. Theemployers believe that given theaggressive nature of GenerationY, the sales and marketingprofiles are suitable for them.Generation Y employees aremore accustomed to using socialnetworking and new technologieswhich allows them to work from

anywhere, anytime, making themmore suitable for such jobs. Onthe other hand, Generation X isgood at people management skillsand thus the administrative andpersonnel management roles suitthem the best, feel the employers.Nearly 35% of the employersstated that an ideal mix of both

generations across functionsbasis expertise helps in attainingorganisational goals. HRmanagers pointed out thatorganisations which are able torecognise and becomeaccustomed to Gen X and Y’sneeds are more likely to retainthem longer.

Jobs in demand for Generation X and Y

Which of the job functions/roles are most in-demand ?


Information Sales & Back-office/ Human

Technology Marketing Administration Resource

12%

36%

28%

36% 33%

7%

28%20%

4

Survey Highlights



HIRING & BEYOND

The study cited that the twogroups vary in theirleadership skills and

styles as well. Nearly 57% of theemployers feel that GenerationX employees makes for betterleaders. Where, both GenerationX & Y value team work andcommunication, there aredifferences in their approach.Generation X leaders havestrong leadership style coupledwith individual control andmicro-management. On theother hand, Generation Yemployees prefer a mix ofleadership and individualcontrol sans micro-management, stated nearly 50%of the surveyed employers. Thenew generation leaders valueaction, traditional ways ofworking doesn’t appeal to them.

According to 35% of thesurveyed employers, GenerationX & Y leaders feel that flexiblework culture brings in moreefficiency and improvesproductivity. Generation Y beingmore tech savvy endorses theuse of technology to gainefficiency at workplace, statedone-third of the employers.Approximately 40% of therespondents claim thatGeneration Y staff should behandled with less leading &control, but with a morecreative, collaborative andsituational methods. The employers need to find waysto bridge the generation gap inthe multi-generationalworkforce. This is a challengingtask and takes great skill. Allthis starts with understanding

how the new generation ofleaders thinks.

Leadership style of new generationworkforce

• 33% employersstatedReference/Word ofmouth delivers bestresults whilerecruiting Gen X

• 30% employersprefer recruitmentportals & agenciesfor hiring Gen Y

• For 57% of theemployers Gen Xmakes for betterleaders

Which generation ofemployees posses better

leadership skills?

Gen

erat

ion

X

65%

Gen

erat

ion

Y

43%

Earlier TJinsite studieshave shown that thesecret of a successful

recruitment strategy lies morein retaining employees thanfinding the best fit. The TJinsitestudy revealed that jobsatisfaction and growthopportunities are becomingmore and more important forthe current generations. Nearly65% of the surveyed employersbelieve that the best policy toretain Generation Y employeesis providing them with trainingand growth options. On theother hand about 37% of theemployers feel that monetarybenefits are the best way toretain Generation X employees,followed by flexible workschedules. Providing trainingand development opportunities

help in attaining higherretention as it avoids monotonyand work dissatisfaction. It wasfound that Generation Xemployee training was focusedmore on developing leadership(32%) and technical skills (30%)

whereas Gen Y employeespreferred area of training wassoft skills (48%). The preferredtraining method employed forGeneration Y is on-the-jobtraining and for Generation Xworkshops and seminars.

Retaining and engaging GenerationX and Y

Which strategy works best to retain Gen X & Gen Y?


Training & Monetary Non-Monetary Flexible Work

Opportunities Benefits Rewards Schedules

25%

65%

37%23%

10%1%

27%

11%

Delhi ManagementAssociation (DMA)organised a two day

Summit on the theme of‘Enhancing the Health, Wealth &Quality of the Workforce:Rewards & Benefits Strategies ina Talent Scarce Market’ on 5-6April, 2012, at Hotel CrownePlaza, Gurgaon. Mercer was theKnowledge Partner.

Mr C S Puri, Life Patron-DMA,welcomed the eminent gatheringof learned speakers andinquisitive participants.MrSukantaDey, President-DMA,gave the opening remarks.

The keynote address wasdelivered by Mr Samik Basu,Programme Director & ChiefPeople Officer PepsiCo IndiaRegion who shared that theSummit provided a platform toengage thought leaders incomprehending the evolution oftotal rewards and what thatevolution entails for each of usin this changing talentlandscape enhancing workforcewealth through investmentportfolio approach to employeesegmentation, workforce healththrough ROI driven employeewellness programs andflexibility in benefitsmanagement and workforcequality through compellingfocus on rewarding highperformance and drivingengagement.

The first session highlighted the“Talent Challenges in aglobalized environment: CEO’sexpectation on deploying total

rewards to optimize talentstrategies”. Mr Nishchae Suri,MD-Mercer, Mr ManishChoudhary, VP & MD-PitneyBowes Business Insight (India)and Mr Vijay Rai, President &CEO, Powercon KnowledgeServices were the eminentspeakers.

The next session on “Evolutionof Total Rewards” was chairedby Mr Muninder Anand,Director (IPS)-Mercer.

Ms Leena Sahejwani, RewardsHead-GE India, moderated thesession on “Changing face ofEmployee Compensation &Benefits”. Ms Ira Gupta, HeadTalent, Leadership & ODGSKand Ms Deepti Mittal, Head (C &B-HR Shared Services)-FirstSource shared their views on thetrends around long termincentive plans, impact ofcurrent economic & businessenvironment on executive

remuneration and the trends onretrials.

The last session for the day waslead by Mr Mukund Menon,Director (HR)-Steria India on“Elements of Employee ValueProposition & RetentionStrategies”.

The second day of the Summitbegan with the panel discussionon “Pay for Performance”chaired by Mr Anurag Aman,Mercer-Principal. Mr SandeepGirotra, Head (HR)-Convergysand Mr Rajeev Sharma, Director(HR-South Asia Markets) –Tetrapak shared their thoughtson why there is a need for robustbenchmarking anddifferentiating reward elementsfor high performers.

Dr Nimitha Menon, HealthManagement Sr Consultant-Mercer, moderated thesubsequent session on“Engaging Employees:Healthcare to welfare”.

Mr Manmohan Bhutani, VicePresident-Fiserv GlobalServices, Mr Anurag Mohit,Director (Total Compensation)-IBM India andMr Dhyan PSChauhan, Head (HRD),Accretive Healthcare discussedabout the increasing focus onhealth & wellness, concerns foremployer-employee health nowand in future and health &wellness strategies.

Ms Sonu Iyer, Partner andNational Leader for HumanCapital Global MobilityPractice-Ernst & Youngacquainted the audience about

the“Impact of changing taxregulations on compensationstructure & Implications ofDirect Tax Code”.

Delegates from the corporatesector like HR leaders, C&Bspecialists, managementconsultants and academiciansattended the two day Summit.

The vote of thanks wasdelivered by Mr Dey.

5

Events



HIRING & BEYOND

EVENTS

CALENDA

R

RAI’s 8th RetailTechnology Conclave2012 17th-18th May, 2012,MumbaiOrganised by RAI

The Bharatico BP0Conference23rd May, 2012,New DelhiOrganised by BPOAssociation of India

InternationalConvention of HumanResourcesProfessionals 25th-26th May, 2012Organised by IHRD

Upcoming Events

Summit on Enhancing the Health, Wealth& Quality of the Workforce Rewards & Benefits Strategies in a Talent Scarce MarketOrganised by DMA

Industry leadersdeliberated on theelements such asknowing whatemployees value,optimizing benefitsinvestments,rewards as retentionframework andcreating a greatemployer brand

6

Guest Column



HIRING & BEYOND

What makes IPL matches soexciting? Apart from the gameitself, it’s the high energy

during those couple of hours thatdefine the event. Without exception, theaudience is seen shouting, clapping orpunching the air for every boundary ora wicket taken; swearing in dejection atevery dropped catch or missed stump.What’s going on? Feedback is what isgoing on – performance of every ballbowled, hit and fielded is deliveredinstantaneously. In addition to thefeedback that is given, there are thestats that keep flashing on screen –CRR, RRR, highest score so far, who hasthe orange cap…When I was watching the match lastnight, it occurred to me that from anHR perspective, it was perfect: feedbackwas immediate. Could you imaginemeeting Sachin Tendulkar at the end ofthe year and giving him consolidatedfeedback? Management science somewhere lostsight of the fact that ‘PerformanceManagement Systems’ should focus onthe first word and not the last in thatname. The HR community at largeover-engineered the systems and losttouch with the employee whoseperformance, the process was supposedto enable. We separated the appraisal orthe feedback from the performance andI believe that was the single largestmistake we made. In an ideal world,appraisals must be as continuous asperformance. Practically though, it is laughable topropose a system that entails daily orweekly feedback. But that’s where the

disconnect is. No system givesfeedback, only managers do. The key toan effective performance managementsystem is to equip managers to givefeedback on an ongoing basis. So,success is not in the forms andtemplates, but in training managers togive feedback as quickly as possible, asclosely dovetailed with theperformance as possible. So far, we have been talking aboutmanagers – where do HR and theappraisal system come in? Whilemanagers should be deliveringinstantaneous, task based, operationallevel feedback and advice, HR shouldcomplement this at a more long termand importantly strategic level. Withthe managers providing year alongfeedback, during a formal sit downperformance review discussion, thereshould be no nasty surprises. Instead,such a meeting can revolve around theemployee’s ability to learn and change;areas where he / she needs help; theaims and aspirations that the employeehas, and so on. This is where HR shouldpull in the metrics that trackperformance delivery, giving anopportunity to the employee to stepback from the daily routine and seewhere his efforts are taking him. All well, but what about the outcome ofan appraisal process? The standard –and often, unfortunately, only –outcome is the annual increment andpromotion lists. And mind you, theseare not small outcomes and areprobably the single most significantchanges that occur in an employmenthistory. Let us not delude ourselves on

the importance of money in our worklives. However, as important as moneyis, it is neither sufficient nor complete,in determining employee satisfactionwith work. So, then, what else must theappraisal process do to meet theseneeds?In addition to salary hike andpromotions, there are opportunities foroutcomes that are not always optimizedby organizations and managers. When Iget appraised, merely being told what Ido well and what I need to do toimprove isn’t enough. I would want theopportunity to actually improve. Thismay call for a role change – exposure toareas that will improve me, and areasthat will allow me to shine and so on.Also if there are areas where I havetried, but find that I am unable to enjoyor perform – I would expect that I bemoved out of those areas. In addition to role related impact thereare issues around company culture,manager effectiveness, team health etc.which will come up during an appraisalwhich can be addressed in a formalsetting. The frequency of appraisals needs to besuch that you give the appraiseesufficient time to perform and yet, notenough time for appraisers to forget.Having two appraisals a year is a goodsolution, with one focusing on theincrements and promotion and theother focusing on the development androle areas. This frequency of formalappraisals, in conjunction with smaller,immediate review meetings will helpaddress employee and organizationalneeds.

Shubha K, Director-HR, SunGard

Are appraisals just about money?

Shubha Kasi is a post graduate from XLRI (1992). She leads thecenters of excellence for performance management andcompensation & benefits at SunGard. Previously, she wasleading the Asia Pacific research center for Mercer, where shepioneered techniques in modeling, forecasting and analyzingcompensation structures. She combines strategic thinking andanalytical ability with excellent people skills to provideleadership. She has worked across industries in both HR andnon-HR roles, bringing this experience to her both free-lanceconsulting and corporate roles.



HIRING & BEYOND

Recent News

T J R E S E A R C H I N N E W S

7

Lack of recognition hinders employee productivity In a poll concerning employee productivity, TJinsite, research andknowledge arm of TimeJobs.com, revealed that more than 35% ofthe employees consider lack of recognition of work as the biggesthindrance to their productivity. According to them, rewards andrecognition for achievements at workplace act as morale booster,which in turn increase their productivity. "In today's tougheconomic environment, it has become incredibly important forcompanies to recognize, reward and value their most valuable anddifficult to source assets, their Generation C employees (who arebetter informed and have more choices) by embracing the'recognition culture' ", emphasized Sakaar Anand, Vice President-HR, CA Technologies. He also underlined that the recognitionculture is not built by rewarding a few top performers once aquarter.n The Economic Times, May 2012

Women forming a significant part of the IT talent pool "Women question the status quo and bring refreshing new thoughts.They are more assertive than men and make quicker decisions."believes Prince Jayakumar, Head-Talent Acquisition, Logica India.According to the National data collection agencies, 30% of theworkforce in software industry is female and they are at par withtheir male counter parts in terms of wages, position at the workplace. "Women form a significant part of the IT talent pool, andgiven the skill deficits and employability issues in this sector, ITorganizations need to make the most of the opportunity they offer.There need to be stronger mentoring programs in organisations toencourage women in technical streams", acknowledged PrinceJayakumar during an interaction with TJinsite, research andknowledge arm of TimesJobs.com. In his view, women who are ableto survive this primary barrier advance much faster in their careerthan men.n The Economic Times, May 2012

Open dialogues crucial for post appraisal feedback Nearly 68% of the organisations deemed post appraisal feedbackprocess as an essential part of performance management system ina survey conducted by TJinsite, the knowledge and research arm ofTimesJobs.com. Supporting the need of post-appraisal feedbackmechanism, Anagha Wankar, Head - Human Capital Management ofFujitsu Consulting India mentioned, "Post appraisal feedback is justas important as the actual appraisal process. It gives us a look intohow the efforts are being viewed and helps keep us grounded." InTJinsite's survey, nearly 62% organisations voted one-on-onediscussions as one of the most preferred post appraisal feedbackmethod. "There will always be a chance of expectation mismatchand surge of emotions after appraisals. Therefore, a direct dialoguewith the supervisor and HR is the key", claimed Subrat Chakravarty,VP & Head HR - Business Services Division, HCL Technologies Ltd.n The Economic Times, May 2012

Education sector unlocking job opportunities in smallercities Smaller cities such as Kozhikode, Lucknow, and Visakhapatnamhave emerged as the top employment providers in education sector.According to a TimesJobs.com study these cities have registered agrowth of close to 50% in the vacancies in education sector in thepast quarter ending March 2012. Other cities in the list includeRanchi, Nasik, Allahabad, Nagpur and Kochi which reported 15-25%jump in job opening in the education sector. Today, with governmentinitiatives, foreign funding and industry endeavors the educationsector is expanding fast. Its expansion in the smaller cities hasunlocked a host of new job opportunities in the sector. Opening up ofbig and renowned educational institutions and surge of coachinginstitutes combined with the growth of supporting infrastructure isa major factor contributing to the rise of employment opportunitiesin these cities, suggest industry experts. n The Economic Times, May 2012

Expert Speak



HIRING & BEYOND

What are the key worksattributes of generationsX & Y?

Talking, particularly aboutthe Indian IT industry, Gen Xemployees are the ones whohave put India on the globalIT map as a potential leaderin IT domain, with theirhard work, knowledge,intelligence and creativity.Whereas, Gen Y are theyoung leaders, game-changers, global by defaultand will lead the competitionand take it to the next level.They are driven by workingwith mobility concept andfollow a method in madnessworking style.

What motivates thesegenerations to continue inthe existing job?

For Gen X, it is mostly thesense of pride and feelingthat he/she is running thebusiness/vertical/department, obviously withconsiderable wealthgeneration, motivates themto stick in the current job.Going by the general trend,Gen Xs are usually stableand aim for higher/seniorposition(s) within the sameorganisation. In case of GenYs, money is the leadingfactor in affecting theiremployment decisions.

Who makes for a betterleader – Gen X or Gen Yemployees?

Both types can develop intogood leaders. A considerablepie of Gen X employees arealready leading businessesacross industries with theirindustry intelligence andwork experience. And, Gen Yworkforce is still learningand evolving to leave a mark.

In fact, to nurture andpromote young employees atSteria, we do periodicassessments to identifypotential leaders from thebottom and escalate theirgrowth via our fast-trackerprogram.

What sort of recognitionand rewards works bestfor Gen X & Y employees?

There are two basic hardfactors for both Gen X andGen Y in rewards, which arework and money. In case ofGen X, wealth-creationoptions such as ESOPsworks well in keeping themmotivated. However, Gen Y ismore aligned towardsmonetary rewards followedby instant recognitions suchas ‘Star of the month’ or‘Bravo Award’.

What are some of the keywork traits that Gen Xshould learn from Gen Y?

In my viewpoint, Gen X hasthe power of innovation andcreative excellence throughwhich they have positionedIndia as a progressive ITdestination, globally. But,they are not able to markettheir full potential

efficiently. Whereas, Gen Y issales savvy and has the rightaggression to pull numbers,which is essential for ITindustry.

Which generational groupmakes up for the majorityof your workforce?

We don’t have ‘so-called’generational groups in ourworkforce, but the averageemployee age in ourorganisation is 28 years.

How do you engageemployees in today’smulti-generationalworkplace?

Our strategy is to create acorporate culture, where wegive equal growthopportunities to allemployees. While hiring acandidate, the attitude is the

biggest differentiator atSteria. We pick and hire onlycandidates who we think canfit into our company’s DNAand able to identify with thecompany’s vision. Thispractice in-turn helps us tomanage a healthy multi-generational workplaceenvironment.

Mukund Menon isDirector – HR for India &Singapore at Steria, a 40year old IT Integrator withrevenue of 1.6 bn Eurosand more than 20,000employees worldwide. Inthis role he Heads HR andAdministration and inaddition he hasresponsibility to helpbuild ProfessionalServices business in India.He has a bachelor'sdegree in commerce andmasters in HR from theUniversity of Madras. Inhis last 23 yrs ofexperience in the industryaround 11 yrs had been inthe US with responsibilityaround global locations.In conversation withTJinsite, he talks abouthow to engage and retainGen X and Gen Yemployees in thecompany.

GEN X and GEN Y Employees

Mukund MenonDirector – HR India & Singapore

Steria

Disclaimer: Information provided in this newsletter shall not be reproduced, published, re-sold or otherwise distributed inany medium without the prior written permission of TimesJobs.com and a clear acknowledgement to TimesJobs.com.Contact: TJinsite, TimesJobs.com, Plot No 6, Sector 16A, Film City, Noida. Write in to [email protected]

Copyright ©2012 Times Business Solutions Limited. All rights reserved.

Gen X looks for:

l Stability

l Esteem

l Peer Group

l Business Knowledge

l Wealth Creation

l Career Goal

Gen Y looks for:

l Brand Name

l Growth prospects

l On-the-job learning and development

l Salary

l Overseas Opportunity

What are the deciding factors for Gen Xand Y to choose a new job?

managing generation x & ycontent.timesjobs.com/docs/tj newsletter may issue 2012.pdf · in case...

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