The traditional employment model is dead. Employment propositions and total rewards systems which were built on years of service to fund retirement are over. Organisations which were used to long standing tenure of 15, 20 or even 25 years need to rethink very quickly.
Generation X
For Generation X, born 1965-1980, it means moving in and out of the workforce to accommodate kids and outside interests. For Generation Y, born 1980- 2000 the line between work and home doesn’t really exist. They just want to spend their time in meaningful and useful ways, no matter where they are. The challenge for the companies that want to hire the best young workers will be getting them in the door. Generation X are in high demand but are opting out of long hours and they have high expectations for personal growth, even in entry-level jobs. More than half of Generation Y’s new graduates move back to their parents’ homes after collecting their degrees and that cushion of support gives them the time to pick the job they really want.
Taking time off to travel used to be a résumé red flag; today it’s a learning experience. Entrepreneurship now functions as a safety net for this generation. They grew up on the internet and they know how to launch a viable online business.
These Generation Xers want benefits such as stock option plans, health care insurance, paid vacation, sick days and personal leave days. They tend to be less motivated by promises of overtime pay and more motivated by personal satisfaction with their jobs. They want to grow in their jobs and learn new skills and are looking for development and training. They do not anticipate staying with one job or company throughout their entire career. They have seen their parents laid off. Many have grown up in divorced family situations. Generation X expect to change jobs as they seek employment that offers them both better benefits and more opportunity for professional growth and personal fulfillment.
Generation Y
Generation Y has grown up with more freedom and choice, economic prosperity— until recently!—and higher education with ever-changing technology. They have different priorities and expectations. More importantly, they are likely to be the most productive generation of all time because they work differently and harness technology and change as part of daily routine. The drive and energy of Generation Y is global, green and puts work in a social context, whereby they no longer live to work but work to live. They have only been in the workplace for a few years, yet they have gained a reputation for being over-confident, disloyal and fickle. Arguably, this may be because they have been misunderstood and mismanaged by employers who are still managing them within Baby Boomers or Generation X frameworks.
Generation Y and Generation X view and use technology differently. Gen X use technology as much as Gen Y but they use it when it supports a “lifestyle need” whereas tech is embedded into everything Generation Y do.
Not only have Generation Y grown up with changing times, but the pace of change is seen as an opportunity to grasp. They have the ability to customise everything to their world. They do not need to buy albums or CDs because they can download the tracks they like to create their own playlists on their iPods; they can create their own personal web pages on Facebook; use the internet to create personal travel plans or roam in a virtual, fantasy world. They want to add their own personality and interests to the world of their work – they do not want a job for life and do not pretend to do so. Generation Y is the most travelled generation in history, through gap years and cheap flights. It is this desire for diversity and adventure which stimulates this generation rather than the wealth, size and glamour of the West. With this international focus and multi-cultural influences, their aspirations drive them to gain as many career-enhancing experiences as possible. They want to present prospective employers with a multitude of real-life experiences rather than a stack of qualifications. Generation Y has grown up with climate change, global warming and images of third-world poverty. They feel socially responsible to make the change for their global colleagues. They are connected via music, video and passion. They have experienced more family breakdowns than any generation before. Their global networking means that they relate to peers, not elders. They are searching for true integrity and are willing to challenge. Corporate values need to be more than words.
The implications for employment
Generation X, are very self-centred while Generation Y are more team-focused and anti-hierarchical. Formal grading and status attributes will be resisted – they want to have a voice. Creative working parties and innovation groups are the way to get their juices flowing. Early delegation and involvement is paramount. Theirs is a thirst for knowledge. Generation X expect, their employers to hear what they have to say. They have an interest in understanding the ‘big picture’ for the company and how this influences their employment and growth.
They are less likely to accept a ‘because I said so’ attitude.
Generation Y enters the world of work with student debt. Long-term benefits or pensions do not even register. Choice is key, as is flexibility both in terms of working hours and location. Career enhancement, rather than development, is paramount – international assignments and experience is critical. But this promise needs to be real, not a frustrating, dangling carrot.
Generation Y wants to be judged on outcomes and results, not the hours seen at the office. Generation X knew promotions were given out to those who got in first and left late, irrespective of their real contribution. Generation Y’s upbringing of constant coaching from their parents means that they expect constant feedback and stroking. Line managers need to give a lot of face time to this group – this is the biggest management challenge for the Baby Boomers who were taught to be micro-managers. They are naturally self-assured and goal-driven. They are supremely confident, expecting everything to fall into their laps and hence, massively over estimate their own abilities – they think they will make their mark immediately and will rapidly progress in organisations. Generation Y are probably prepared to give your organisation 3 to 5 years at most, before they will move on.
Have you re-engineered your people strategy to cope with this change?
By Mr. Mark Geary
Chief Executive
Asianet Consultants
(Sources: Time; Greg Hammill/FDU; Mercer)
Paul Arkwright
Publisher
