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Generation Why? How to bond with your newest generation of workforce.

Recent research has shown that if you want to retain top talent, you will need to create a work environment that reflects life stage needs and values. But with the baby boomers reaching retirement and a dramatic drop in the number of new prospects entering the workforce, businesses will lose valuable knowledge as boomers depart, creating a "brain drain".

Generation Y (born between 1978 and 1998) are entering the work force. They are going to be the next leaders, and today's managers need to understand what makes this group tick. Yes, they ask "why" a lot, but this isn't because they are distrusting. Generation Y are an enormously curious, optimistic, educated and compassionate generation.

Their behaviours and preferences will shape corporate life, so learning to look after them (or understand their psychology) is something organisations need to learn to do better. In a snapshot, Gen-Y can be profiled by their family structures, lifestyle and values, and their use of technology:

Family: often from broken or blended family structures, many have been raised in single parent families and therefore developed a strong sense of self and personal values. They place more value on developing friendships and staying connected with the people and opportunities that influence their lives, mainly via the Web.

Lifestyles: Gen-Y are brand savvy, and know when they're being marketed to. This level of affluence and influence has followed them into adulthood, making them a very powerful consumer group. They spend their income first on supporting their future goals and dreams, after which their income is spent on goods and services that entertain and help them connect with friends (eg. mobile phones). High energy, team-oriented activities are high on Gen-Y's social calendar.

Values: Learned and continually shaped through life experiences, values provide the cornerstone from which actions and decisions are made. Gen-Y are influenced by four primary values: family (especially parents because of varied family structures and dynamics); religion/faith has new emphasis and they are not afraid to show their commitment publicly; a renewed interest in the community due to local and global events such as violence in schools, environmental abuse and terrorism has led Gen-Y to concentrate on being good global citizens. They recognise the need, power and strength in working together as a team to make a widespread difference. Self: Gen-Yers know that they need to take care of themselves first in order to serve others well.

Being able to understand where each generation is coming from allows you to be able to bridge gaps. Gen Y employees:

  • Are goal-oriented and have high expectations of themselves. They're high performers, competitive and seek tasks with tight deadlines that reward and acknowledge their efforts. They take ownership of their work, value individualised goal setting, and seek new skills.
  • Have high expectations of their employer. They want direct contact and specific direction from management. They believe in self-worth and are not afraid to suggest new ideas. • Reap their employer's benefits. They view their entire job package, not just the starting salary. Providing education reimbursement, health care or equity in the company appeals to this generation.
  • Are technologically savvy. They embrace and demand current technology, unlike their parents (baby boomers), who often had to be sold on the idea.
  • Want job flexibility. They separate career and home lives, and want flexibility. * Embrace change. They prefer varied assignments and don't expect to stay at an employer for an extended period.
  • Clash with their employers. They question authority and the opinions of longstanding co-workers, having been raised to think 'outside the box'.
  • Are financially empowered. They are motivated to invest but are more conservative than previous generations.

One thing is for sure, and that is that most employees want the same thing: work arrangements that mesh with their personal priorities and benefits that protect them and their families. It's just the needs that change depending on where you are in the "life cycle".

Tips for employers

Some key strategies to help reach out and keep your Gen-Y workforce interested may include:

  • Adopting generational marketing techniques. This shows that you acknowledge attitudes, not just skill sets!
  • Allowing Gen-Y employees to participate in the decision-making process, not just the implementation or execution of an idea. This is because social concern is high on the agenda for Gen-Y and so they are much more involved in society and subsequently, their jobs.
  • Provide work/life balance. To maintain their strong relationships with family, Gen-Y will seek positions that support and enhance their need for balance. Employers should therefore actively promote its flexible, innovative working arrangements, particularly when Gen-Yers begin to have children of their own.
  • Emphasise training and support programs. This a good indication that the organisation and its managers value their employees.
  • Create incentives. Salary expectations will be quite high as Gen-Yers continue to spend their disposable incomes on entertainment and leisure goods and services. But Gen-Y will also judge their worth by the dollar and time investments organisations make in training, coaching and mentoring. Gen-Y clearly recognises that older generations have extensive knowledge and experiences they can share.

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