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MANAGING MILLENNIALS

Towards a Peaceful & Profitable Co-Existence between the Generations

Managing Millennials Whitepaper

PART 1: OUR SURVEYS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The employers’ side of the story. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Millennials versus generation x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Managing millennials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Retaining millennials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regional variations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What have you done to engage millennials?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The millennials’ side of the story. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How long have you been in your current position?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Learning in your current role. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Challenges & frustrations in the interview process. . . . . . . . . . . . . . . . . . . . . . . . . . .

How did a negative experience affect your view of the firm?. . . . . . . . . . . . . . . . . .

Millennials are less tolerant of mis-selling or over-selling a role. . . . . . . . . . . . . .

What action would you take if dissatisfied with your current role?. . . . . . . . . . . . . . .

What is important to you?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Do you spend too much time in the office?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

00CONTENTS

PART 2: DISPENSING WITH THE MYTHS

What can social research tell us?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The economic background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misconception #1: Millennials are demanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recommendation: showcase CSR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misconception #2: Millennials are “Job-Hoppers”. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recommendation: communicate purpose & value. . . . . . . . . . . . . . . . . . . . . . . .

Misconception #3: Millennials are never satisfied and crave novelty. . . . . . . . . .

Recommendation: lateral thinking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misconception #4: Millennials need constant feedback and Hand holding.They lack autonomy and initiative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recommendation: lateral thinking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Managing Millennials Whitepaper 01

Morgan McKinley Hong Kong carried out two surveys of perceptions and opinions

of the so-called Millennial Generation (20-35 age range) from the perspectives

of current or prospective employers and, in parallel, a job satisfaction survey that

enabled us to compare the actual attitudes and opinions of Millennials with those of

previous generations. The two surveys garnered a total of 287 responses.

It is important to stress that this was a survey of perceptions so it should not in any

way be construed as a scientific study of objective reality. That said, perception and

subjectivity play a huge and acknowledged role in staff acquisition and retention

practices on the side of hiring organisations, and they likewise play a huge and

acknowledged role in determining employee satisfaction and motivation.

Our surveys revealed a fairly wide chasm between the way employers, and

particularly hiring managers, regard Millennials and the attitudes and behaviours

expressed by Millennials themselves. With a few important exceptions, Millennials

have remarkably similar attitudes, ambitions, frustrations and challenges as their

older peers

Employers tend to characterise Millennials as being, compared with their older

peers (Generation X):

• Less motivated by the work ethic

• Less patient in terms of career progression

• Less competitive

• More interested in work-life balance

• Less likely to “stick it out” in their current role

• Lacking autonomy

• Less respectful of experience

• Less tolerant of organisational authority

• More likely to expect instant gratification

INTRODUCTION

01PART 1: OUR SURVEYS


We should take into account the fact that a lot of these attitudes are always held

by older generations towards the young. Moreover, socio-economic factors and

technological change do make the Millennial Generation different to Generation X,

notably:

• Millennials have entered the world of work post-2008. They have not experienced

an economic boom, which has the effect of expanding horizons and driving

ambition. In a period of boom annual pay increases are not only expected, they

can and often must be delivered in order to attract and retain talent. During an

economic slump the expectations are still there, but firms have less ability or

reason to meet those expectations

• Millennials have grown up in a world where access to information is

instantaneous whenever and wherever via mobile devices. It is therefore natural

that they place rather less significance on the ability to retain knowledge or

experience

• By contrast, Generation X experienced the boom years of the “noughties”. They

are more likely to have longer time horizons, understand the economic cycle, and

are therefore more patient in waiting for the good times to return

• Generation X grew up and entered the workforce at a time when employees were

more dependent on their superiors to provide information and guidance

INTRODUCTION

01


More than three-quarters of those who responded to the survey of employers have

direct responsibility for recruitment as hiring managers of directors. In half of the

organisations 30% or more employees fall within the 20-30 year age bracket, i.e. can

be categorised as “Millennials” or Generations Y and Z, the demographic cohorts that

follow Generation X.

Millennials versus Generation X

We tasked survey respondents to compare attitudes among Millennials with those of

“Generation X” (defined, for the purpose of this survey, as employees born in 1980 or

later). Typical replies included:

• Gen Y less stable, more emotional, commitment not as high as Gen X.

• Lack of patience in career progression seen amongst Millennials

• Gen X focuses on process/workflow/risks while Millennials emphasise quick

action

• Millennials don’t want to be pushed or to be competitive

• Millennials don’t have sustained work motivation and tend to change jobs more

frequently

• Gen X – workaholic; Gen Y – work life balance, need autonomy, need future

development, need learning, need coaching

• Millennials lack long-term career goals

03

• Gen X are more hard-working, better attitude at work

• Gen X team are more loyal and prepared to work hard to get results. Millennials

seem to have a “know it all” attitude and use email / messaging as their primary

method of communication

• Millennials need constant feedback and hand holding. Gen X still keep a distance

between boss and employee

• Gen Y has a different concept of authority and hierarchy and expect there to be

much more transparency, communication and involvement in business decisions.

Gen Y is used to having access to information about everything immediately,

whereas Gen X seems happier to wait to be told information when management

is ready. Both seem equally motivated by pay and flexible working hours, but

Gen X feels that all work needs to be done in the office, whereas Gen Y can’t

understand why they can’t work remotely or mobile

• Millennials are less motivated by money, need to feel included, more mobile,

more ambitious but less patient, well-connected. They want more feedback,

more often. They demand constant promotions. They do not understand the

importance of “experience” in the workplace – they think if they have done

something once they are the expert. Often traits of being self-centred and self

important. On the other hand this gives more confidence to try new things and

strive to be better. Hard to keep their attention focused for more than an hour

• Millennials aren’t as willing to do hard work, are less disciplined and expect

rewards more quickly

THE EMPLOYERS’ SIDE OF THE STORY

01


• Millennials expect faster progress, promotions and rewards but are less willing to

invest the time and commitment to achieve this

• Generation X works harder and complains less

• Millennials: unrealistic expectations about salary increases and promotions,

smart but slightly inflexible in dealing with change if it is seen to outside their job

description, less respect for authority, less loyal. Gen X: harder working and more

stable and realistic about their expectations

• The challenge is more finding Millennials with the right skill sets for the workforce

• Unrealistic salary expectations, expect every company to have a “Google” work

culture, less flexible overall

• We don’t appear to have trouble hiring but many graduates seem ill prepared for

work forceThus there is a clear pattern in the attitudes expressed here: they are almost universally negative towards the Millennial Generation. And, where the comparison is drawn with Generation X, the latter is sometimes put on a pedestal, as though it is a “golden” generation of hard-working, non-complaining, loyal and dedicated workers. One wonders, if we had carried out the same survey a dozen or more years ago, would hiring managers have expressed the same degree of positivity towards the recent crop of graduate recruits? It may be that there is inter-generational bias and stereotyping at work here. Nevertheless, the new generation is what it is, and employers will need to find new ways to accommodate this generation’s new world-view, which is precisely what we set out to do in Part 2 of this paper.

Managing Millennials

We then asked, “What challenges do you face at work when managing millennial

employees?” The word that cropped up most was “attitude”: which could only be

interpreted as “negative attitude”. On the plus side, many who responded recognised

that Millennials simply had different motivations and expectations. Responses that we

received included:

• They will focus more on balance life and not willing to commit to work

• Hard to get them to work as a team with older people

• Job hoppers with no consideration for team and company

• They seem to be ambitious but want to be successful very quickly without

working hard enough

• Millennials seem to have a “know it all” attitude and don’t like to be told “no”.

They tend to use email / messaging as their primary method of communication.

They seem to less confident in face-to-face interactions

• For me, it’s a lot of work. I have to micro-manage them. They find it hard to

apologise – they expect their boss (parent) to clean up their mess

• The challenge is again the disconnect between what the managers expect and

what the Millennials expect. Bridging this gap is a huge challenge with limited

budgets and lack of understanding from both Gen X and Gen Y about the other’s

motivations, working styles and attitudes


01


• They have a need for variation in their work that is different from the Gen X

employees. Need to think more about roles and responsibilities, how to keep

them motivated, engaged and work as part of a team. Millennials will sometimes

leave for a poorer-paying job because it provides different experience

• We need to be more focused on team activities and company culture, fostering

an environment where it is fun to come to work. They expect to be fast tracked

without having done the work. Teaching them the importance of respect for

clients and business partners early on is important. Along with the importance

of “perception” that other people with different backgrounds will have of them

based on their attitude, dress etc.

• The learning curve seems to be worse than Gen X. Surprisingly these younger

people take longer to change or are simply reluctant to change

• Overall, they can be highly engaging and enthusiastic and bright. The challenge is

keeping them interested long enough!

• Thinking about the next job before they even understand their current one;

always on the move

• Tend to think they know it all; less respect for authority, harder to keep engaged

as they get bored easily and expect immediate gratification/instant rewards

• Generally won’t put in the extra time required

05

The responses to this question were rather more nuanced than those given to the

previous one, possibly because in this case we were asking respondents to consider

concrete situations. Although generally the perceptions were negative, in particular

with regard to the alleged limited attention span and commitment of Millennials,

there was greater recognition of the positives. The overall impression was that yes,

they can be a pain in the neck, but we need to accept that Millennials view the world

differently and we need to find practical ways to manage and remedy this.


01


• Expect constant promotions. Think that 2 years is a good amount of time to

spend at one job. Need to always find new tasks and skills for them to learn

• They are emotional and just quit simply because there are no good restaurants

nearby

• Millennials want promotions annually and compensation to increase. However

they are not able to tie this to development

• Expect frequent salary increases for just doing their job even when not going

above and beyond, expect frequent promotions regardless of actual effort,

compare themselves to peers as a negotiation tactic

• Expect frequent salary increases for just doing their job even when not going

above and beyond, expect frequent promotions regardless of actual effort,

compare themselves to peers as a negotiation tactic

There is clearly some justified frustration here: Millennials have expectations that

simply cannot be fulfilled in the current environment. On the other hand, the desire

for greater company transparency and the eagerness to learn and broaden experience

are positives which, if handled correctly, could be leveraged for competitive

advantage.

Retaining Millennials

So how do you keep these flighty individuals loyal to your organisation? We asked

managers what specific challenges they faced in retaining millennial generation talent.

Personal development and career progression ranked high in the answers, together

with impatience with regard to salary growth. Specific responses included:

• They tend to move on quickly as they don’t want to stay long in one role

• They have a sense of entitlement. Once they learn a new role or task, they expect

this to be reflected in compensation immediately. Whereas most firms have a 12

month compensation review process

• They require much more personal development and training, and need a lot more

transparency about the way the company works, its finances, strategy, business

plans and their own prospects, something which we don’t yet provide because the

senior staff are mostly Gen X who mostly don’t understand the need

to do this yet

• Their initial expectations are high because they are well connected with their

successful peers from university or previous employers and seem to know how

much these people are paid. Following that, they want to progress much faster

than previous generations and offering a promotion too early to keep them may

just encourage them to leave as they feel they have reached the next rung on the

ladder and will therefore be able to negotiate more responsibility at their next

employer


01


THE EMPLOYERS’ SIDE OF THE STORYRegional variations

We asked managers who are responsible for hiring or managing employees across

multiple regions, if they find it easier to retain Millennials in certain regions or

countries compared with others. Some expressed the opinion that Asian employees

are easier to manage than foreign-educated employees. However the general

consensus was that millennial traits and attitudes apply across the board, regardless

of geography.

What have you done to engage Millennials?Finally, we were interested to find out if hiring organisations had implemented any

specific initiatives to recruit and engage Millennials such as training, changing working

practices or team building. Replies from those answering in the affirmative included:

• We have incorporated all of these initiatives. But it’s hard to overcome the

sense of entitlement. They believe we owe them a job. Which is not true in the

corporate world

• We work more closely with the universities and provide internships, which help

future candidates understand us as well as allowing us to learn from them. We

introduced more flexible working hours

• Starting to develop specific programs for Millennials, including mobility programs

for high-achieving Millennials, specific innovation challenges for them and setting

up more peer-to-peer opportunities across borders

• Internal training, monthly fun team activities, fun office environment, transparent

management style, open friendly work practices

• We’re trying to create employee networking groups etc to cater to the diversity of

our people including Millennials

• Implementation of continuous learning programs and retention programs

Other responses covered training, team building, after-work functions, recreational

facilities and social media engagement. However, many stated that their organisations

had not implemented any such initiatives. This may be due to inertia; on the other

hand it may be a conscious decision: as one respondent stated, “We treat everyone

equally, regardless of their age”. This is clearly something of a dilemma: organisations

want to engage with and retain millennial talent, but this brings the risk that older

employees might feel resentment if Millennials are perceived as getting preferential

treatment.

01


We conducted a job satisfaction survey among professionals across a range of

disciplines. 43.12% of respondents were born in 1980 or later and 56.88% were

“Non-Millennials” born before 1980.

08

THE MILLENNIALS’ SIDE OF THE STORY

43.12%

56.88% Born before 1980

Born from 1980

When Are You Born

Age distribution

Overview

Our job satisfaction survey revealed the following attitudes as common among those born after 1980:

• Financial reward is at least as important to Millennials as Non-Millennials

• Millennials are moving between jobs rather faster than Non-Millennials

• Millennials set a higher priority on rapid promotion

• Some stated that they don’t learn anything new in their current role – but fewer

than the number of Non-Millennials

• Many complained that they receive no feedback from hiring managers or no

prompt feedback

• Many felt that the role did not meet their skill set and/or their ambitions

• Many expressed the opinion that the role did not match what was sold to them at

interview

• A significantly high number of Millennials would talk to their manager first rather

than seeking a new job immediately if dissatisfied with their current role

• Millennials are rather more likely than Non-Millennials not to recommend a firm

to others, or not to join the firm later, if they suffer a bad experience at interview

• Millennials are not significantly more likely than Non-Millennials to think that

they spend more time than is necessary in the office

01


Our survey showed that Millennials are less likely to have been in their current

position for a substantial period of time than Non-Millennials. Roughly 37% of

Millennials have been in their current role for less than a year, compared to 26% of

Non-Millennials, while only 23% of Millennials have been in their current role for

more than three years, compared to 39% of Non-Millennials.

Given that the millennial cohort includes relatively few who are under 26 (Generation

Z) and who have therefore only just entered full-time employment, this does suggest

that Millennials are moving between jobs rather more frequently than their elders.

09

HOW LONG HAVE YOU BEEN IN YOUR CURRENT POSITION?

Millenials: Time in Current Role

23.16%

16.84%

23.16%36.84%

Less than a Year

1-2 years

2-3 years

More than 3 years

Non-Millenials: Time in Current

39.20%

14.40%

20.00%

26.40%

Less than a Year

1-2 years

2-3 years

More than 3 years

Tenure of current role (Millennials)

Tenure of current role (Non-Millennials)

01


We then asked respondents to choose one of five statements that best describes how much they continue to learn in their current role.

10

Millennials, it seems, are also more modest than is often assumed when assessing their capabilities. Nearly 30% stated that they mostly deliver what’s expected (compared to 16% of Non-Millennials) as opposed to 26% who stated that they deliver nearly all the time (roughly the same as Non-Millennials).

LEARNING IN YOUR CURRENT ROLE

Learning in Current Role Millennials

11.58%23.16%

9.47%

26.32% 29.47%

I started my role Recently and It’s a sleep Learning Curve

I Know what i need to do and mostly delever what’s expected

I Know what i need to do and delever almost all of the time

I am not really learning anything new

I feel I have learned all I can and I am open to a new role

Contrary to the common myth, our survey suggests that Millennials do not see themselves as “know-it-alls” who will move on if they feel they are not learning. Only 23.16% of Millennials stated that they feel they have learned all they can and are open to a new role and more learning opportunities, compared with 32% of Non-Millennials. And only 9.5% of Millennials stated that they were not really learning anything new in their role, compared with 15.2% of Non-Millennials. The percentage stating that they were in a new role and find that it’s a steep learning curve is roughly equal.

Learning in Current Role Non-Millenials:

11.20%32.00%

16.00%15.20%

25.60%

I started my role Recently and It’s a sleep Learning Curve

I Know what i need to do and mostly delever what’s expected

I Know what i need to do and delever almost all of the time

I am not really learning anything new

I feel I have learned all I can and I am open to a new role

01


We asked those respondents who have moved jobs over the past three years to comment on the challenges they experienced in the interview process. There was a significant degree of commonality in the responses. Complaints about the lack of feedback from hiring managers were especially common across the two cohorts, as were complaints that the role, job or position did not match ambitions. Millennials were more likely to give specific mention of the interview itself, while Non-Millennials focused more on the competition, sometimes suggesting that the process was weighted in favour of a particular type of candidate (e.g. suggesting that an internal candidate was already the preferred choice, or employers were too specific on candidate experience, or inexperienced recruitment consultants screening out good candidates).

Q4 If You have moved roles within the last three years,have you faced any challenges when interviewing for a new job? i,e no feedback from hiring managers, pay not attractive, role did not meet skillset, roles did not match your ambitions. Explain briefly

Answered: 59 Skipped: 36

11

Q4 If You have moved roles within the last three years,have you faced any challenges when interviewing for a new job? i,e no feedback from hiring managers, pay not attractive, role did not meet skillset, roles did not match your ambitions. Explain briefly


CHALLENGES & FRUSTRATIONS IN THE INTERVIEW

Interview AgencyFeedback from Hiring Managers

Industry Job Level Role Position Pay Salary

Not MatchWord cloud interviews, Millennials

Kind Career Given Disappointing CandidatesRecruitment

Feedback from Hiring ManagersPrevious Experience Job Package Role

Employers Pay Team Company JoinedResponse Poor Issues

Word cloud interviews, Non-Millennials

01


We then asked, if you had a negative experience at interview, how did this affect your view of the firm, i.e. would you be less likely to recommend the firm or join it in future? A word cloud analysis reveals an interesting contrast between Millennials and Non-Millennials. Whereas both cohorts gave roughly equal weight to the statement that they would not join the firm in future, Millennials were significantly more likely to say that they would not recommend the company to their peers. By the same token, however, they were more slightly likely to report positive experiences. Non-Millennials were rather less likely to judge the company based on their interview experience.

Q5 If you have moved roles within the last three years, and you had a negativeexperience when interviewing with a firm, How did this effect your view of that firm?i.e would make no difference, would not recommend, would not join in future.Explain briefly


12

Q5 If you have moved roles within the last three years, and you had a negativeexperience when interviewing with a firm, How did this effect your view of that firm?i.e would make no difference, would not recommend, would not join in future.Explain briefly


Manager Feedback Interview Negative Experience

Not Recommend Join or Recommend

Not Join Future Positive Experience Firm Matter Job

Word cloud negative experience, Millennials

Role Place Management Unless ExperiencePosition Interview Consider Firm Job

Not Join in Future Market Company Fit

Not RecommendWord cloud negative experience, Non-Millennials

HOW DID A NEGATIVE EXPERIENCE AFFECT YOUR VIEW OF THE FIRM? PROCESS

01


We asked respondents to compare their impression of the role when interviewed, and what turned out to be the reality. Here we found a significant contrast. Non-Millennials were more likely to say that there was “no gap” between impression and reality, or to say there was no significant gap, or to say that there was a gap but that was only to be expected. If they did complain about a gap between impression and reality, it was most likely in relation to their responsibilities. Career development was less of an issue, though still important, and a few mentioned pay, salary, compensation or package.

By contrast, several Millennials mentioned the lack of opportunities for development, learning and growth. Moreover, Millennials were more than twice as likely (26% of the 95 respondents) to use the words “expect” or “expectations” (whether in a positive or negative sense) in their answer than Non-Millennials (a mere 12% of the 125 respondents to this question). This appears to confirm what is often asserted, that Millennials are rather more discriminating when considering prospective employers. Their expectations are high – they do have a somewhat greater sense of “entitlement”. A more charitable interpretation could be that they are simply less cynical and world-weary than their older peers! Either way, employers should be especially careful to manage expectations when interviewing Millennials, and not oversell the company.

Not a single Millennial mentioned pay, salary, compensation or package. This provides some evidential support for the notion that Millennials are rather less motivated by money than their older peers. But we should not exaggerate; as we will see, Millennials do attach at least as much importance to pay as Non-Millennials once they are in the job.

13

Q6 In your current/ most recent job, how Does the role compare to the impressionYou had at the interview? Is there any gap Between how the role was sold to you andthe reality? i.e the role is pretty much as i thought, the responsibilities are different, orless career development/learning/training then I thought? Explain briefly


MILLENNIALS ARE LESS TOLERANT OF MIS-SELLING OR OVER-SELLING A ROLE

Position Place Reality Senior Company Nil

Interview Huge Gap Expected Say

Role Meet Career Development Staff

Job Limited Far GrowthWord cloud, gap between impression and reality, Millennials

01


MILLENNIALS ARE LESS TOLERANT OF MIS-SELLING OR OVER-SELLING A ROLEPROCESS

Q6 In your current/ most recent job, how Does the role compare to the impressionYou had at the interview? Is there any gap Between how the role was sold to you andthe reality? i.e the role is pretty much as i thought, the responsibilities are different, orless career development/learning/training then I thought? Explain briefly


Impression Prospects Job Constraints Gap Explained

Responsibilities Hiring Manager RoleAbsolutely Interview Pay

Career Development Start ExpectedTotally

Word cloud, gap between impression and reality, Non-Millennials

01


WHAT ACTION WOULD YOU TAKE IF DISSATISFIED WITH YOUR CURRENT ROLE?We asked what action employees would take if their current role did not meet their expectations. Millennials were more likely to consider moving jobs, but only marginally so (20% versus 18%) though most said they would speak to their manager first. In fact, Millennials were significantly more likely to talk/speak to managers about the situation (34% versus 21% for Non-Millennials). This appears to support the assertion that Millennials are more appreciative of dialogue, while undermining the idea that they are impatient quitters.

Q7 If your current role dosen’t meet your Expectations, what action will you take? i.e Continue doing the best you can & hope things improve, talk to your manager and explain situation, request more feedback/better defined targets, move job.Explain briefly

Answered: 70 Skipped : 25

Q7 If your current role dosen’t meet your Expectations, what action will you take? i.e Continue doing the best you can & hope things improve, talk to your manager and explain situation, request more feedback/better defined targets, move job.Explain briefly


Consider Moving Training New Job Exit LookRequest more Feedback Move Job

Change Jobs Manager Nil Improve Firm

Continue Learn Months CareerWord cloud, action if role does not meet expectations, Millennials

Better Job Factors New Job Department

Opportunities Better Defined Targets

Manager Eyes Open DoingJob Satisfaction Move Job Depends Role Prepare

Explore Culture

Word cloud, action if role does not meet expectations, Non-Millennials

01


Contrary to the popular assumption, money is at least as important in creating job satisfaction for Millennials as it is for Non-Millennials. In fact, nearly 40% of Millennials ranked this as the most important factor compared with 35% of Non-Millennials. On the other hand, there was confirmation of the assumption that Millennials expect faster promotion: 25.5% ranked this as the most important factor in job satisfaction compared to 16.5% of Non-Millennials. As for “narcissism”: Non-Millennials were more likely to rank recognition from management as their top priority than Millennials (30.8% versus 18.5%). Moreover, there was little difference on corporate culture, with Non-Millennials marginally more likely to rank this as a high priority.

When we look specifically at Generation Z (those born after 1990) it is a rather different story. Respondents in this sub-set ranked company culture as the most important factor in job satisfaction, followed by rapid promotion. Though none ranked recognition from management as the top priority, half ranked it second.

Q8 What is important to you? Please rank the following aspect by order of importance


job satisfaction factors ranked by importance – Millennials

WHAT IS IMPORTANT TO YOU?

Money

Recognition from your...

Culture

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Q8 What is important to you? Please rank the following aspect by order of importance


job satisfaction factors ranked by importance – Non-Millennials

Money

Recognition from your...

Culture

Quick prospects fo...

0% 10% 30% 40% 60% 80%20% 50% 90% 100%70%

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01WHAT IS IMPORTANT TO YOU?


The number of Millennials who agreed with the statement, ““I don’t need to spend the amount of time in the office that I currently do, to do my job effectively” outnumbered those who disagreed by roughly 42 to 13. With Non-Millennials the ratio was not dissimilar: roughly 52 to 16 (we say “roughly” because statements such as “partially agree” are not counted here). Among those born after 1990, the same number agreed as disagreed, though this was a small sample (nine responses). However, whichever way you look at it, there is no evidence here to support the view that Millennials are desperate to get out of the office and think they can perform better at home or on the move.

DO YOU SPEND TOO MUCH TIME IN THE OFFICE?

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It appears that for a variety of reasons, Millennials really are different from previous generations, but the differences have been exaggerated. Our short survey bears out this more nuanced view. It may be that some of the views expressed by hiring organisations reflect common inter-generational attitudes towards the young.

Before we offer some advice on how to handle Millennials, let’s briefly consider the context in which Millennials have grown up and entered the workforce. Academic research into this generation has changed over time. Based on their generational theory, William Strauss and Neil Howe predicted back in 1991 that Millennials would be civic-minded with a strong sense of community. 1 This has been largely borne out by their liberal attitudes, but with time, the view has shifted in a negative direction: Millennials are often described as being socially engaged but, at the same time, rather self-centred; some commentators go further and describe them as narcissistic and arrogant. But perhaps the word that crops up most is “entitled”.

The strong sense of “entitlement” in the workplace was identified back in 2008 by Ron Alsop. He attributed the new attitudes to the fact that Millennials had grown up in a relatively secure environment, many knowing that they would be able to fall back on their parents if the going got tough at work.2

1“Millennials Rising: The Next Great Generation”, William Strauss and Neil Howe, 2000. 2 “The Trophy Kids Grow Up: How the Millennial Generation Is Shaking Up the Workplace”, Ron Alsop, 2008 3American Dream Fades for Generation Y Professionals, Elliot Blair Smith, December 20124“Millennials: Confident. Connected. Open to Change”, Pew Research Center, February 2010

PART 2: DISPENSING WITH THE MYTHS

WHAT CAN SOCIAL RESEARCH TELL US?The economic background

Since then, of course, the great recession has hit. According to a Bloomberg paper written in 2012, average incomes for this generation have fallen at twice the general adult population’s total drop and are likely to be on a path toward lower incomes for at least another decade. “Three and a half years after the worst recession since the Great Depression, the earnings and employment gap between those in the under-35 population and their parents and grandparents threatens to unravel the American dream of each generation doing better than the last. The nation’s younger workers have benefited least from an economic recovery that has been the most uneven in recent history.”3

Three and a half years after the worst recession since the Great Depression, the earnings and employment gap between those in the under-35 population and their parents and grandparents threatens to unravel the American dream of each generation doing better than the last. The nation’s younger workers have benefited least from an economic recovery that has been the most uneven in recent history. 3


WHAT CAN SOCIAL RESEARCH TELL US?The economic background Contd.One commonly observed consequence is that, given the weaker economic outlook, many Millennials are prepared to put off “rites of passage” such as settling down in a marriage or in a career – they are happy enough so long as they have enough money to be comfortable, as shown when about nine out of ten Millennials surveyed by the Pew Research Center said that they currently have enough money or that they will eventually reach their long-term financial goals.” 4 The slower transition into adulthood has seen Millennials often depicted as the “Peter Pan Generation”.

Technology

It is of course also worth noting that this is the first generation for whom social media not only is, but has always been, an indispensible part of their identity, and that inevitably includes while they are at work. Millennials are in constant communication with each other, and always have been. Hardly surprising then, that they find it hard to cope with a lack of communication and dialogue in the world of work. If they want constant feedback and affirmation, it’s because from their viewpoint, that’s how the world works. Information and opinions should be instantly available.

So, given this context, how can employers turn some of the perceived negatives into positives?

1“Millennials Rising: The Next Great Generation”, William Strauss and Neil Howe, 2000. 2 “The Trophy Kids Grow Up: How the Millennial Generation Is Shaking Up the Workplace”, Ron Alsop, 2008 3American Dream Fades for Generation Y Professionals, Elliot Blair Smith, December 20124“Millennials: Confident. Connected. Open to Change”, Pew Research Center, February 2010

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Actually, Millennials are demanding. They want the work they do and the company they work for to be interesting and aligned with their values. However, this is frequently interpreted in a negative light: for example, that they will get on their high horse at the slightest hint of what they see as corporate misbehaviour, which is unrealistic, or so the argument goes.

The positive way of looking at this is that Millennials will help you to safeguard your reputation.

Consumers and the public in general are demanding more and more transparency from companies. Enron was created in 1985 and went bankrupt in 2001 – if it had survived, it would be a “Millennial”, too: this is just one of the companies that were exposed for wrongdoing on a massive scale. According to research by PricewaterhouseCoopers, “52% of Millennials would deliberately seek out employers whose corporate social responsibility values matched their own.” 5

As a result of numerous scandals like this one, Millennials have a very strong sense of needing to be faithful to values beyond profit. In this respect, they may have more in common with their grandparents’ generation than with Generation X. In the USA, the most popular Presidential candidate among Millennials was the socialist Bernie Sanders, despite being in his seventies. The Washington Post commented, “He’s not moving a party to the left. He’s moving a generation to the left”. These liberal attitudes should not, however, be seen as necessarily anti-business. In the United Kingdom,Millennials were those most supportive of the EU in the recent referendum

MISCONCEPTION #1: MILLENNIALS ARE DEMANDING(if they could be sufficiently motivated to turn out and vote!) for both economic and social reasons, whereas their parents, the Baby Boomer generation, supported Brexit, while acknowledging that it would be potentially damaging to business and the economy.

He’s not moving a party to the left. He’s moving a generation to the left

As consumers, Millennials know the impact a company’s reputation can have on purchasing decisions: 89% said they were very likely “to buy from those companies that supported solutions to specific social issues”. In the Asia Pacific region, Millennials are driving the demand for fair trade, ethical consumer products: a study by Nielsen Research revealed that 64% of consumers said they are willing to pay extra for products from ethically responsible companies. Millennials can therefore help you see your company through the eyes of your customers, and possibly avoid tone-deaf communication in a crisis.

Such attitudes necessarily carry over into the workplace. Millennials expect the workplace to be open, tolerant, diverse and fun places to be. They will take a dim view of bad practices and stinginess. They do not judge the quality of a company based on its balance sheet or future earnings potential.

5“Millennials at work: Reshaping the workplace”, PriceWaterhouseCooper

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MISCONCEPTION #1: MILLENNIALS ARE DEMANDINGRecommendation: showcase CSR

To build loyalty, employers therefore need to showcase the CSR initiatives that their organisations are engaged in. The civic-mindedness of Millennials is also a wonderful opportunity for team-building: let them lead a project that will benefit a good cause, a mini-marathon, a coffee morning or an innovative sponsored activity. Let Millennials tell you what causes they are interested in and personalise their CSR journey. You will learn a lot about their character and their own respective leadership style.

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Our survey revealed that many employers regard Millennials as lacking loyalty. If they don’t get what they want, they will simply move on. This is not borne out by what the Millennials themselves told us.

Even if true, however, the fact of the matter is that loyalty is not a one-way street. We are relentlessly informed that in the new economy, there is no such thing as a job for life. Millennials, even more than Generation X, have grown up in a world where job security is a thing of the past. They may have seen their parents lose their jobs after many years of loyal service. Therefore, the attitude is, “If you want my loyalty, you will have to earn it”. Employers need to listen – and engage with their millennial employees. Millennials are willing to say what they think, and they expect the same in return.

Millennials grew up during a time of heightened economic uncertainty, where one recession followed on the footsteps of another in their lifetime: 1980-82, 1990–1993, 1998, 2001–2002, and 2008–2009. They were hit hard by the last recession just as many of them were leaving college and entering the workforce: according to the PWC study cited above, 72% of Millennials had to make compromises when looking for work, mostly around their preferred location and benefits.

They have taken this uncertainty and instability on board. They know that it’s not enough to work hard and be loyal to your company: in a time of economic hardship, that will not protect you from layoffs. In fact, “many European Millennials say hard work and education do not pay off”.6

MISCONCEPTION #2: MILLENNIALS ARE “JOB-HOPPERS” In Singapore, too, Millennials are getting pessimistic about finding a new job and they are worried about job security. The percentage who thought they might lose their job doubled in 2015.7 Still, their deep awareness of uncertainty is incredibly useful for organisations that might be set in their ways. In a business and economic environment where agility is much prized, Millennials might be far better equipped to cope with disruptive external forces that might threaten your business, and to drive the necessary changes that will enable you to survive.

Millennials may be more inclined to hop between jobs than earlier generations. The plus side of this is that they want to make the most of their time at any company. They are not content simply to watch the clock and serve out their time. Surely this is a positive? At a time when sluggish economic growth can mean frozen raises and limited career advancement options, they’re looking for gratification elsewhere. This gratification can be pride in meaningful work well done, and good relationships with co-workers and bosses

6 “U.S. and European Millennials differ on their views of fate, future”, Pew Research Center, February 20157 “More Singapore Millennials pessimistic over job prospects in 2016”, Singapore Business Review, March 2016

many European Millennials say hard work and education do not pay off

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MISCONCEPTION #2: MILLENNIALS ARE “JOB-HOPPERS”Recommendation: communicate purpose & value

Isn’t it great that millennial employees not only want but expect to find self-fulfilment in their workplace? Of course, this requires some additional commitment from the employer’s side. Therefore: you should take the time to explain why the tasks they are asked to do are meaningful and the wider context in which they fit, take a few minutes to give encouragement and highlight what you like about their work. There is no task too small to be insignificant. For example, you should explain that answering the phone to a new lead creates the first impression on important customers and contacts.

For Millennials, simply asking them to do something – even nicely – is often insufficient. They want dialogue.

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The positive way of looking at this is that Millennials are open to moving laterally in an organisation. Their thirst for new experiences reflects their desire to see the bigger picture of what their company does. Fuel that desire, and you can develop versatile, agile, highly adaptable co-workers.

Millennials are not so much job-hopping as craving new experiences. According to the PWC survey, for 52% of Millennials, it’s good opportunities for career progression that make an employer attractive, while 66% of them think international experience is needed to further their careers. They are open to lateral, horizontal moves in an organisation: they want excitement and novelty.

If they are frustrated at the lack of opportunities for rapid promotion, being able to run with new, innovative ideas might be the best way to retain their loyalty. They are curious about what is happening in other departments at the company, too. If your millennial recruits can see that they are not stuck in the same old grind every day, but that there are many things left for them to explore within your organisation, they won’t want to leave.

MISCONCEPTION #3: MILLENNIALS ARE NEVER SATISFIED AND CRAVE NOVELTY

Recommendation: lateral thinking

Companies need to focus more on offering different internal opportunities. If somebody seems likely to leave because they want to work on a new project, develop a new skill and interact with new people, perhaps this is possible within your company? Rather than be taken by surprise by this, open up this conversation from the very outset with your new recruit.

Therefore, hiring organisations should avoid getting stuck in the “up, always up” mindset: straight promotions are not always what Millennials are after. They want to develop more skills, they are open to lateral, horizontal moves, to the point that some HR professionals speak of the career “lattice” rather than the career “ladder”.8

The more options you open to Millennials, the more excited they will be. Highlight how they help their own career opportunities with training, networking, contributing ideas, adding value etc.

8 See “The Career Lattice: Combat Brain Drain, Improve Company Culture, and Attract Top Talent” by

Joanne Cleaver, McGraw-Hill Education, 2012

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The first half of this statement is true. The second half is the misconception. Young, and therefore relatively inexperienced, people always need a bit of hand-holding – but if you give them the right support and build their confidence, stand back and be amazed. If Millennials want to make sure that they do good work and that their bosses are happy with their output, how can that be a bad thing?

Recommendation: eliminate fear of failure

Re-frame this as conscientiousness. Millennials have become accustomed, through social media, to having everybody chime in and give an opinion on their every move. They are afraid of failure and want to avoid it at all costs. Communication is key, so managers should take time to explain:

• The rules of the assignment• The intended output• The metrics against which their work will be measured• Who it’s for• What it should achieve

If possible, give past examples of successful similar projects, and point out what worked, and what can be improved.

MISCONCEPTION #4: MILLENNIALS NEED CONSTANT FEEDBACK AND HAND-HOLDING. THEY LACK AUTONOMY AND INITIATIVE

Yes, it takes more up-front investment of your time, but you will then be saved the trouble of micro-managing. Tell younger employees: “Now that you have all this information, I am expecting you to figure out the rest on your own. Get back to me if you run into a difficulty, but just be aware that I will first ask you what you tried to overcome it.”

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Our surveys indicate that while there is some evidence of tendencies towards different attitudes to work among Millennials, they are remarkably diverse. Employers are falling into the trap of tarring Millennials with the one (rather heavy) brush or attaching a label with negative connotations, without considering them as individuals. You would not apply such stereotyping to people by gender, race or nationality, and it is almost as inappropriate when it comes to an entire generation. They are the future, but they are unlucky in that they have entered the workplace at a time when hopes and expectations are high, but opportunities rather limited. They are worth the extra time investment when recruiting, and even more importantly, managing them. We all know that human resources are the richest type of asset in a company so invest in patience and draw out their rounded value.

We believe that some of the challenges encountered on both sides can be attributed to hiring managers themselves. This is not to attribute blame, but rather to suggest a solution. It could be that hiring managers are insufficiently involved at the very first stage of the hiring process, which results in a gap between the job as it is sold and the job as it turns out to be in reality (or at least, when the Millennial is employed for the crucial first six months). Setting the right expectations up front is more important than ever, and this must be followed up by regular open discussion on progress and future ambitions.

Susan HayesCulleton, co-founder #SavvyTeenAcademy, quotes “The next generation, namely Gen Z, joining our workplace has so much to offer. They believe that richness is not your bank account balance, but your bank of experiences. They are intensely value-conscious and want employers to be ethical across the board from profit to people to planet. They have a global outlook and infectious enthusiasm. I’m looking forward to employing them in years to come! ”

CONCLUSION

The next generation, namely Gen Z, joining our workplace has so much to offer. They believe that richness is not your bank account balance, but your bank of experiences. They are intensely value-conscious and want employers to be ethical across the board from profit to people to planet. They have a global outlook and infectious enthusiasm. I’m looking forward to employing them in years to come!

morganmckinley.com.hk

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