Table of Contents
3. Variance In Norms between Generations X and Y……………… 5
3.1 Recruitment of Young Talent in Government Agencies Compared to Private Sector Companies….. 5
3.2 Counter Argument – Perspective of National Output, International ….
Market Competitiveness of Japan………. 8
3.3 International perspectives on corporate change………… 9
3.4 Counter Argument – Young Talents in Small-Medium Enterprises.. 10
4.1 Importance of Work-Life Balance and Corporate Social ……………
5. Future Orientations, Increasing the Tenure of Young Talent…………… 16
5.1 Why Culture Change Is Worth The Cost………………….. 16
5.2 Recommendation – Innovation of the Decision Making Process in Corporate Contexts……. 18
5.3 Refutation – Retention Of Employees With Greater Tenure………. 20
5.4 Counter Argument – Should Companies Cater to Young Workers or Proven Loyal Ones………….. 21
1. Introduction
As Generation Y integrates into the professional work environment, significant changes in business culture can be observed as a result of the digital age these individuals are born into. This report will explore a deeper understanding of the norms, and expectations of young individuals who today make up a larger share of the workforce than Generation X (Fry, 2019). With academic and statistical research to support points, a thorough analysis will be carried out on the change in professional culture as well that observed in people’s personal lives. Throughout this report, those referred to as Millennials are born between the years
1981 and 1996 as according to the President of Pew Research Center, Michael Dimock (Dimock, 2019). The publication also notes anyone born after 1997 as part of Generation Z. Aspects studied include the expectations of individuals joining the workforce, motivational factors, length of tenure, and comparison of public and private sector organizations. Everyday interaction between individuals of any relationship can be observed as digital and large in terms of the quantity and time spent on communication. This interaction context will be further analyzed in terms of the professional environment pertaining to organizational hierarchy and how direct communication is carried out therein. Corporate cultures which adapt to meet the expectations of a young, skilled workforce will be compared to those conservative in nature by a method of studying individual companies. The importance of innovating decision-making strategies in terms of corporate recruitment and retention will be analyzed in the contexts of government agencies versus private sector companies seeking to attract young talent. The arguments of whether companies should cater to loyal and proactive older workers, or promising young ones will be supported with statistical sources and relevant research sources. Finally, recommendations will be made for companies seeking to maintain a competitive advantage in an age of rapid innovation not only from a technological perspective, but also by gaining further insight into the motivating factors of the ‘digital-native’ workforce.
2. Literature Review
2.1 The Characteristics and Expectations of Generation Y Require a Different Working Environment – Origins of ‘Digital Nativity’ in a Social Context
Professional tools such as LinkedIn, Google cloud and social media sources provide ‘Digital Natives’ with platforms to access the most current information.
‘Digital Natives’ is a term used to describe Gen Y who were born in the digital age, coined by author Marc Prensky in 2001 (Joy, 2012). The often cost-free nature of these services further provide the user easy availability to all necessary documents and other work materials that are conveniently stored in a digital way.
Having this data on a ‘cloud’ makes it simple and fast to get notifications of job advertisements and easily apply for them. Constant accessibility and near absolute coverage of mobile data can serve to further instill the mentality that one’s office is no longer exclusively a brick and mortar establishment, but rather a borderless cloud.
The social context of accessible information from anywhere has contributed greatly to our intergroup collection and sharing of constructive data laterally and hierarchically. The organizational tools for attaining a satisfactory position are available at a price which most individuals can afford. It is seemingly exclusive that the entry costs to constructive networking platforms are a device which can support the interface. This aspect of accessibility proves no obstacle in a developed nation with a strong, highly skilled labor market. The political and digital environment of a Generation Y prospective employee proves to be a great determiner of their technological access to job markets. For example in India searching, selecting and starting a new job has become much easier. The implications of this contemporary labor market and its entrants will be analyzed further.
3. Variance In Norms between Generations X and Y
3.1 Recruitment of Young Talent in Government Agencies Compared to Private Sector Companies
One sector in which we can see stark differences in the recruitment of young talent today are the Government agencies and institutions in the United States. The ideal corporate environment is envisioned in the minds of Gen Y as having nonmonetary benefits such as a company car, in-house gym. One company which is very well known for such benefits is Google, their seemingly out-of-this-world office environments containing everything from hammocks and multi-floor slides to the use of electric scooters inside the office building to transport workers (Dunne, 2014). When one envisions working in this environment, a stark contrast are the offices in Government agencies. This preconceived thought of a boring working space when companies such as Google exist hurts the Government in its capability to recruit young talents, especially in the field of IT and others requiring computer skills young workers possess (Corrigan, 2018). Government agencies should, at the very least try to alter the preconceived image about what it is like to work for them. Government recruiters found that recruitment of millennials fails in part due to a lack of effective communication channels in reaching fresh graduates as passive job seekers are not browsing USAjobs for vacancies (Maurer, 2018). The methods through which HR departments reach job-seekers must be adapted to attract a young workforce. Some solutions to this include the emphasis of purpose-driven career within a diverse organization serving the public. The young workforce is more public service oriented than previous generations (McNeill, 2018).
One serious concern Government agencies face with a rapidly aging workforce is an unbalanced talent pipeline and ‘brain-drain’. This means that while some agencies, such as the U.S. Air Force are finding adequate young talent to work for them. However, it takes time for these workers to gain experience and general know-how in job-specific tasks. “While the age-gap ratio itself isn’t the problem— agencies probably wouldn’t tap an entry-level worker to directly take over for a retiring senior official” (Corrigan, 2018). Government positions are technically complex and fragmented, often having grave national security implications which demand a long vetting process, resulting in months long hiring times. Due to security reasons such as extensive background checks, the hiring process at the Department of Homeland Security takes an average of 60 days (Corrigan, 2018). The current United States Army initiative aims to reduce it to 80 day recruitment time for advertising to onboard. Another important factor regarding the current disadvantage of Government agencies are the hiring processes and compensation schemes offered to prospective employees. During the lengthy time of consideration, the applicant can have the perception of uncertainty and submit their application to other job opportunities. One interesting pitch which agencies are utilizing is to offer job fair attendees an intimate look at the tools used in the line of work. It is essential for agencies to provide evidence of an interesting and involving role within the organization. While discovering and implementing genuine interest and purpose is not easy, it is essential for the motivation in the workplace (Lynn, 2004). For example, to attract young talents at a job fair, the Customs and Border Protection representatives ran a firing range and the Secret Service provided an old model of the everything-proof presidential limousine (Corrigan, 2018).
One positive of working for Government agencies lies in the root of their secure resources and connections to influential individuals. Departments such as the Veterans Affairs have received the resources necessary to establish a steady and balanced talent pipeline (Corrigan, 2018) in their organization, the only outlying factor is the proper alignment of strategies for recruiting and retaining talent in steady quantities and at a healthy variety of entry to senior level job seekers (Corbridge and Pilbeam 2010, p. 101). Government positions also provide a sense of accomplishment and importance making it unique and rewarding for Generation Y to work for them. While advancement may be slow, job security compensates for some of the negative aspects of working for the Government.
Additionally, a current disadvantage of public-sector employers is their emphasis on career-oriented benefits to the employee. While the culture of private-sector companies has realized the ideal “career employee” is a rare find and adapted, the Government agencies are slow to recognize the short-tenure inclined workforce. For an effective solution to this misalignment of incentives, HR departments of agencies should reexamine compensation which could be offered in an effort to attract young talent. Furthermore, the utilization of communication channels such as LinkedIn, Glassdoor, amongst other digital and online platforms already widespread in the private-sector job market provides a critical opportunity to reach talented candidates and the Government should also learn to utilize these. The question lies in the utilization of these platforms and in managers delegating more autonomy to company recruiters (Kanara and Tarki, 2019). As stated in the article, companies continue to use the ‘post and pray’ method as the primary means to recruit individuals. Unfortunately this is not effective in attracting talent to a company when unemployment is at a 50 year low.
The advertising of vacant positions within Government agencies is already being adapted to better suit the prospects of Generation Y workers. For example, Homeland Security has abandoned the strategy of pitching the benefits of a lifelong career to young candidates. They rather market the opportunity as a potential building block for diversification within their organization or, perhaps even more appealing, an opportunity to gain extremely favorable experience for opportunities in the private-sector (Corrigan, 2018). Additionally, Government agencies offer a safety net, a long-term career, retirement benefits, matching dollar for dollar for retirement savings account and health care. People especially as they get older realize that working for the Government is more attractive because of job security, almost impossible to fire them and when one has a family and responsibilities it is maybe more attractive of a field than private sector.
3.2 Counter Argument – Perspective of National Output,
International Market Competitiveness of Japan
To provide reflective comparison to U.S. and European corporate environments, the example of Japan’s economic situation and stagnant innovative measures proves especially helpful. As Japan grew to become the world’s second largest economy in the late 1980’s, the subsequent years would come to be known as the ‘lost decades’ due to an economic bubble burst (O’ Gorman, 2012). Additionally, Japan was heavily impacted by an economic repression in the United
States in the mid 2000’s as well as a devastating tsunami in 2011. While the economy of Japan is currently recovering at a moderate rate, executives find the greatest challenge in wide-spread reform regarding the development of new products and services (O’ Gorman, 2012). Restoration of the country’s competitive advantage is recommended through intense corporate culture restructuring which speeds up the natural innovation process. In the afore referenced Ivey Business Journal article, author David O’ Gorman (2012) emphasizes the need for free self-organization of groups of workers in promise to create new knowledge. Upper level management should encourage and support these spontaneous groups and the environment they provide for open communication and rapid development and evaluation of new ideas.
It is in this way that Japan could draw upon the example of a small or medium enterprise operating in the U.S. or Europe and the fast paced do-it-yourself environment in which empowered individual workers communicate in an effective manner (Caines, 2019), making ideas a reality in a short period of time. Taking advantage of such ideas can provide Japanese companies with the edge to maintain the competitive advantage not only at the single organizational level, but also in the national economy.
The analysis of this current innovation lacking environment experienced in Japan serves to further strengthen the notion that companies should actively encourage and support self-organized groups based on individual employees interests. While direct communication with management is essential, the openness of inter departmental idea sharing through workshops or internal clubs stimulates an environment for innovation within the organization.
3.3 International perspectives on corporate change
The “digital nativity” of generations today should not serve to draw distinct lines between age groups based on their knowledge of digital technologies (Joy, 2012). There are many individuals from older generations which are advanced in the world of computer science, programming, and other digitally-based fields. In parallel, there are also a large number of young people who cannot find a file on a personal computer. The international perspective on this digital revolution must be considered in accordance with its impact on global development. In the CNN article by Oliver Joy, the author states that more than half of the Indian population lives on less than $2 a day. This is in stark contrast to the fact that more than half of the population is also in possession of a smartphone with access to the internet. This is where two differing opinions collide in the categorization of developing nations and their access to tools of the digital age. One theory, by Mr. Shah from the Centre for Internet and Society in India (Joy, 2012) is concerned with the digitally-outcast nature of these poverty-stricken individuals connected to the internet. He voices concern for Western societies deeming impoverished peoples access to the internet as validation for access to the same opportunities as those digital natives in Europe or America. In response, author Marc Prensky, who first coined the term “digital native” in 2001, states his belief in an interconnected world serving to gradually aid the development of impoverished nations in correlation with the information age where anything can be learned on the internet.
Another important aspect of the international perspective on digital nativity in the greater context of developing nations is true digital nativity and the benefits thereof versus the sheer access to technology and its conveniences. Shah, tells us that the access to the internet does not inherently mean that it can be utilized for the development of one’s skills in the context of professional life. For this to happen, political and economic institutions are necessary to support the communities suffering from such dilapidated conditions. Those working in government institutions in developing nations will, however, be directly affected by the age of the internet and the globalization of contemporary culture that comes along with it. In India’s class system we can see that individuals from privileged backgrounds do possess the tools and support in their external environment to enhance professional skills for the future. We can only hope that these privileged individuals in Indian society, as well as other developing nations, will occupy influential positions in the future and utilize their ‘digital nativity’ for the betterment of their societies.
3.4 Counter Argument – Young Talents in Small-Medium Enterprises
While small enterprises consist of a fairly simple hierarchical structure when compared to multinational corporations, their operation is also much more experience-based than theoretical ideas learned directly in formal studies. This is precisely why efficient combination of experienced talent with young purposedriven employees is instrumental to the successful operation of a design or trend based industry such as specialty food and beverage. In these businesses, there is an arguably wider scope of talent necessary for sustained relevance in a rapidly changing trend-based environment. A good example is a specialty coffee-shop; while the supply chain and general management of the establishment can be done by any individual with basic business management experience, this is an endeavor which career entrants are often not ready to pursue. While the owner/investor of the establishment overcomes the barriers to entry in terms of costs of cafe equipment, the everyday operation and atmosphere of the place should be taken up by young talents. Consideration should be made for a young talent with interior design experience, and additionally a digital-native marketing manager. In an interview, McKinsey Quarterly’s global digital marketing lead David Edelman explains that the reason this young marketing lead is necessary is due to the extreme change in operating mindset which could be a long, drawn out process for senior leaders. It is about realizing the empowered consumer, understanding data and more interactivity that comes with digital marketing (McKinsey & Company, 2014). While these talents are not directly associated with the everyday tasks of running a trendy café for example, the experience is crucial for the establishment of a successful small enterprise. While word of mouth advertising is still extremely relevant for a cafe, initial promotions via Facebook and Instagram are necessary for tapping into the target demographic. This interaction with the potential consumer base must also be viewed as “word of mouth” because, as a Nielsen study found, ninety-two percent of consumers worldwide trust the recommendations of their fellow consumers, friends and family over any traditional form of advertisement (Nielsen.com, 2012). The expertise and industry know-how is something which should be taken up by a millennial marketing manager due to relevant insight into influencer media platforms and the effective usage thereof. It is important to view these communications as word of mouth due to the more intimate relationship perceived between the influencer and their viewers. In large companies and start-ups alike, transparent communication is essential to maintain the validity of the “psychological contract” between the company and potential employee (Corbridge and Pilbeam 2010, p. 105).
‘Psychological contract’ refers to a perceived brand identity of a reputable company in the context of Corporate Social Responsibility. Additionally, in small companies the direct exchange of information in a fast-paced environment is not for everyone, it does however provide an opportunity for those who want to make an impact to realize their ambitions in a shorter time frame without the constraint of existing rules for every step of the process as seen typically in the public sector (Caines, 2019). The opportunity of making a difference, or to have an immediate impact is a concept increasingly desired by a generation seeking instant gratification. It has proven to be an effective tool in shaping the brand identity of a startup venture to attract young talent away from large companies.
4. Expectations and Motivating Factors of Generation as Observed in Employer-Employee Relations
4.1 Importance of Work-Life Balance and Corporate Social
Responsibility
For practical analysis of employee retention, the corporate culture of German software firm SAP will be analyzed. The company, which employs over 96,000 people around the world (SAP, n.d.), prides itself on the pursuit of individual success and the company’s dedication to providing employees with the environment necessary to pursue their own goals. In combination with a stimulating work environment, heavy emphasis is placed on contemporary issues in an increasingly sedentary professional work environment. As an enterprise software company, SAP seeks to provide ample opportunity for sports, time off for volunteering, and flexible work schedules including working from the comfort of home at pre-scheduled times. It is not only the opportunity to pursue personal and career goals but also effective communication between management and subordinates which positions SAP as a desirable employer. Effective communication is perceived to be transparent throughout the organizational hierarchy, feeling included in open and direct communications, and having opportunities for advancement.
In addition, it is not solely the office environment and time off for individual reasons which are emphasized by the company. SAP communicates a culture of work which has a positive impact on communities and various environments around the world. The workload specifics incite a sense of purpose driven motivation in its employees and, as described by (Jacobs, 2016), this is of great importance to Generation Y and Z seen directly in company turnover statistics within the annual integrated report (See Appendix B). A genuine shared belief in corporate values and the positive impact of the end product on society attracts young adults to the company. Across industries, companies such as Unilever and O2 have a shared optimism for the younger workforce in seeing that they really care about making a difference and improving economic situations. This change, as observed in practice by senior HR representatives and directors, is reflected in comparison to when Generation X was beginning their professional career. As stated by O2’s HR Director Ann Pickering, “My generation was insular; this generation has a real urge to do right by society and a larger social conscience. That makes me optimistic.” (Jacobs, 2016).
As published on SAP’s website, the company strives to make a better environment for employees through participation in programs such as Month of Service, Social Sabbaticals, in addition to year-round volunteer opportunities and events (SAP, n.d.). Showing clearly why work matters is imperative to instilling purpose upon the young workforce (Mercurio, 2017). In this article, Generation Z is defined as those born between 1994 and 2001. We must not, however, view purpose as a solely work oriented concept but rather as a lifestyle which welleducated digital natives seek. From this perspective, companies such as SAP can offer comprehensive benefits packages to its employees to further drive the sense of security and consideration of staying with the company longer. Employees who feel happy and fulfilled in their personal lives, will have positive attitudes toward workplace tasks and the productivity will greatly improve (Lynn, 2004). It is a result of technology that we are constantly informed of new trends, improvements, and future goals which we can attain. This same technology is utilized as an internal social media to provide the worker with further expansion of their field-based knowledge through company organized workshops, conferences, and autonomous conversations in inter-departmentally organized team building exercises. The extensive research and time invested by companies such as SAP to develop their brand identity prove how critical it is to have a strong company brand in attracting talent.
Unlike the variance in industry, the adaptation of company culture is a concept which will be universally realized in the near future. Showing the employees why their contribution matters fosters motivation and high-quality work. Ultimately, finding satisfaction at work in turn leads to a decreased rate of employee turnover. While salary, the explicit monetary compensation for performing a role at a company remains the number one consideration of job-seekers (Fuller, 2019), combined with the opportunity to perform meaningful work ensures at the very least a positive brand identity in the minds of young workers. Although increased tenure is not guaranteed, the environment in which continuous personal and professional growth is realized separates a progressive company from a boring, dead-end workplace.
5. Future Orientations, Increasing the Tenure of Young Talent
5.1 Why Culture Change Is Worth The Cost
While the widespread change in corporate culture may seem daunting and costly at first, one must understand why the costs are justified in long term performance of the company. Investing time and money in re-training managers and change HR methods while shifting focus from day-to-day business operations are costly. However, on the long run aligning everyday operations with long term corporate goals is instrumental to maintaining a competitive advantage. Especially as technology becomes increasingly more commonplace, emphasis will be placed on the talents of human capital and retention of talent. The generalization that technology and its convenience factors make users lazy is simply a false claim. As daily routine tasks become automated, individuals can focus more on the challenging demands of workplace output. For Millennials a good work-life balance is a basic need. On the other hand, the constant connectedness bridging personal and professional lives effectively eliminates the physical aspect of “being done for the day.” In a Harvard Business Review Article (Carmichael, 2016), author Sarah Green Carmichael shares the meaning behind statistics indicating ‘work martyrism’ and the decreasing trend in vacation days used by Millennial workers. The article summarizes a growing disparity in vacation trends among various generations. It appears to be a result of narcissism, feeling that no one else can do their job, or due to fear and lack of job security if they utilize all of their allotted time off. In May of 1996, average annual vacation days used peaked at 21.1. Comparatively, in 2016 workers took out a mere 16.1 of their annual time off (See Appendix A). According to the senior project director at Project: Time Off, the organization responsible for compiling this vacation data, “the economy may be a factor for Millennials’’ declining vacation usage.”
The reason that vacation usage should be considered in the context of company vision is due to its effect on productivity and increased energy levels. From the managerial perspective, if there is no shame in an employee’s full utilization of their vacation days it is the lack of communication promoting the use of all allotted vacation time. The lack of communication stems from a culture of not only corporate origins but rather those of a sustained weak economy. Periods of weak economy results in large numbers of unemployed, therefore the work force is afraid to be let go if taking too much vacation time. Company directors should focus on clearly communicating the norm regarding job security and paid time off at the company. The effective in house communication of vacation promoting culture will aid in the retention of Generation Y employees. A particularly interesting statistic is that the performance of ‘work martyrs’ is, on average, compensated less than those workers who take all their all available vacation days (See Appendix A). One company who takes the progressive vacation package even further is Moz, a Seattle based software company where employees receive $7,500 annually as a paid, paid vacation. The only requirement on behalf of the company is that the employees do not connect with work while away. While this is a significant cost per employee, the managers realize the importance of disconnecting for a longer period of time. Even within this extensive vacation plan, the aspect of flexibility is what strengthens this initiative in the minds of workers (Braff, 2018). Vacations can be taken as a solo trip for weeks at a time, or as family getaway weekends.
To summarize, while the majority of companies are not able to pay for such a luxurious vacation program, the flexibility and mandatory time off is an aspect of desirable company culture in the minds of young workers. Employees of all ages enjoy the thought of an extensive vacation, but with progressive corporate cultures which order the worker to take their allotted time off, the opportunity to unplug is enhanced by the company assured job-security.
5.2 Recommendation – Innovation of the Decision Making Process in Corporate Contexts
As seen in the majority of European and American corporations, there is a strong top-down approach where upper level management delegates change to the structure or operation of the working units under them. These units are then expected to execute the order from the manager post haste. This is in stark comparison to the structure seen in Japanese corporations where the process of
“nemawashi-ringi”, a method of seeking company-wide consensus through informal meetings, continues to dominate the decision-making process for any new company proposal (O’Gorman, 2012). This largely informal consensus based process is slow as those affected by the proposal are asked for their feedback starting from subordinates, to their managers and ultimately the top level management. Due to this the final proposal is modified to better suit the needs of the many. According to Dr. Srilalitha Sagi, an Assistant Professor at the Gitam School of International Business, the process is effective for three key reasons. Firstly, the lower level managers are closer to the topic in question and therefore have more information on it. Second, the idea stemming upper level managers is taken seriously due to the typically managerial nature of these proposals. Finally, the process provides an excellent opportunity for lower level management to prove their competence to their superiors (Sagi, 2015). One may assume that this is a democratic and inclusive process for young workers to feel a sense of inclusivity in their work roles. However, the reason that such a decision-making process is ingrained in Japanese business culture stems from their societal values rooted in Confucian Philosophy and Buddhism (Sagi, 2015). This focus on loyalty to one company for the duration of a Japanese worker’s career is virtually unseen in modern American and European companies.
One may argue against the innovations in work-life balance and their effect on a nation’s labor market. As stated by (Lund et al., 2016), online platforms provide convenient means for a company to find talented job-seekers. However, this comes as a double-edged sword from the employers perspective as the constant availability of information on the vast online job market makes it harder to retain the talent in-house over the long term. From the perspective of an employer, the barriers in retaining talent in today’s job market are increasingly difficult. In a competitive business environment employers are responsible for maintaining the competitiveness of their venture are seeing challenges such as changes of workforce demographics, culture, values, and motivation. As companies across industries seek to retain talent, they must ask themselves which strengths they wish to exemplify.
The practical aspect of tenure at a company from various demographics is presented by the Bureau of Labor Statistics (Bls.gov, 2018). In a September 2018 publication, the Bureau of Labor Statistics shared data showing that the median employee tenure for men was 4.3 years and 4.0 for women. Additionally, 30% of men and 28% of women had a tenure of more than 10 years with their current employer. One particularly interesting statistic from the same article regards the tenure variance among employees of different age groups. Tenure data for workers ages 55-64 shows an average of 10.1 years in one workplace. Naturally an employee who is 25 years of age will not likely have 10 years under their belt, much less so with a single employer. However, it is important to note that the trend is present through the 30-34 demographic as well, coming in at just 12% staying with the current company for more than 10 years. This data suggests that employees who are capable of having a longer tenure at a company do not pursue this opportunity often. The sole source of this is unknown, however, by drawing back to the earlier point of the influence of current platforms on the job market and retention of talent we can conclude at least some correlation between the access to vast opportunities with the decreased tenure experienced at companies in the United States and likewise in European nations.
For further development of the argument against innovation in corporate culture, this tenure-based aspect of data and market analysis suggests that progressive online based opportunities are damaging the average tenure of an employee to a single employer. In an effort to combat turnover at higher rates, many companies choose to adapt their culture to better suit these employees who are eager to leave. The cost of this being an adaptation of a culture which suits those who, statistically speaking, will not be there in 4 and a half years anyway. While comprehensive benefit packages have been seen to aid in employee retention, the effect on turnover is seen as positive. In an official key facts report, published by SAP (Sap.com, 2018), employee retention is stagnant in the mid-90th percentile since 2017. While the company has recently restructured to let go of 4,000 workers due to decreased growth in various departments (Busvine, 2018), retention rates remain high in comparison to industry averages. According to DailyPay (Wells, 2017), average employee retention rates in 2018 clocked in at exactly 90%. The article also states that this is a healthy average as, optimally, the 10% leaving the company are the low performers who are to be replaced by high performers.
5.3 Refutation – Retention Of Employees With Greater Tenure
Today, companies are spending millions of dollars in corporate restructuring to better suit the needs of Generation Y employees while middle aged workers have statistically consistent average tenures lasting more than 10 years. One must ask the question, why do we not hear more of companies catering to the desires of its workers who are there for the long run. The average career, in terms of years for a U.S. worker is 40 years (Brandon, 2012).
This does not go to say that experienced, older workers do not share some of the same incentives for staying with a single employer. Whether the average tenure for their age group is 4.2 years or 10.0, comprehensive benefits packages, profit sharing and access to events and bonuses is something appreciated by a majority of worker age groups (Heathfield, 2019). Finding small incentives, in terms of a global corporations size, can serve to communicate the message of appreciation in the employer-employee relations.
5.4 Counter Argument – Should Companies Cater to Young Workers or Proven Loyal Ones
As innovation and employee engagement is increasingly important in the corporate environment, companies must actively pursue a strategy that does not exclude any demographic of its workers. Young workers should be integrated into the culture via extensive participative onboarding processes in collaboration with mid to upper level supervisors and managers. The ‘buddy program’ which can be seen at companies such as SAP is one which integrates workers into the environment from their first day. It is imperative that new hires, as well as internal rotating colleagues receive routine opportunities to experience different departments which make up the larger business process at their company. Creative arenas, team building, all hands, and workshops provide ample opportunities for proven high performers and promising new hires alike to show their interest in activities within the scope of company operations. Observing such participation can convey the message to decision makers to tailor benefits and inhouse growth opportunities to the needs of the individuals (McNeill, 2018). The incentives which motivate workers should not be exclusively age-based, but rather a system which categorizes workers based on factors of tenure and performance.
Many of the materials and articles analyzed for this report cover the integration of Generation Y and its effect on corporate cultures solely in terms of a negative or positive outcome. However, the gradual change realized over time as age groups integrate and build up an operating unit must be taken into consideration. As yearly changes in pay and benefits are observed (Heathfield, 2019), why should the same not be assumed for corporate culture and the scope of benefits offered to workers.
It is arguable that while millennials do not share the same drive for a lengthy tenure at a single employer, they do perform well in the average of 4 years that they stay with one employer. In an article published in the Harvard Business Review (Carmichael, 2016), while Millennials have grown up in a weak economy of questionable job security, they do perform to their best for an employer which caters to their motivating factors. These factors are identified as purpose, interlevel communication, growth opportunities and other in house benefits (Gallup.com, n.d.). Employers should focus on promoting a company culture that helps to retain these young talents for longer than the average 4 year tenure. As tasks become increasingly online and cloud based, automatization of computerized processes will serve to replace entry level tasks. Millennials are perhaps wary of being replaced by machines and are afraid of job security in a continuously weak economy. This is precisely where employers can take advantage of the communication factor through all-hands meetings and e-mails from the managing director or country leader. Even if the purpose of tasks in the greater picture is not easily realized, employers need to seek ways to motivate the individuals with the possibility of career growth while increasing industry competitiveness. This communication, in combination with a program of internal profit sharing, distribution profit and owning stock in the company can also convey the message of belonging to a community within the workplace. In short, even large multinationals must seek out ways to be perceived as a small-medium business in terms of its communication with all workers.
This increased focus on self-worth in the workplace is taking a strong root in the mentality of Generation Y as enter the workplaces for the first time. The CEO of Unilever once told an audience of university students “You need to have something where you want to have an impact and that aligns with your values. It will drive your passion. People’s self-worth should not be measured by their net worth.”, (London Business School, 2018). Additionally, in this article an Associate
Professor stated the connection between a company’s genuine commitment to purpose and sustainability it is directly reflected in the organizational structure and the context of a credible promise to internal stakeholders. It is important to find a path which links the purpose-driven culture to consistently increased employee retention, specifically that of young talents. While employers should not expect the average millennial to spend 20+ years at their company, they should actively support the motivations of workers of all ages in hopes of increasing productivity in the short term, and hope to retain the team members for more than the average tenure of 4 years. While companies may not see the same individual staying with the company for more than an average of 4 years, it is very much worthwhile for the company to invest heavily in brand restructuring in order to assure a continuous influx of young talent as the expected turnovers occur. A positive and well-respected brand identity can position the company among the top and will attract the best qualified young talents.
6. Conclusion
The aim of this paper was to present the current obstacles faced by companies and job seekers alike in attaining the ideal corporate environment for a generation with complex motivational factors.
In summary, this report has provided insight into the origins of digital nativity and their current effect on a young generation entering the workforce in addition to the determining factors for sustained success in the perspective of the employee and employer respectively. Through thorough analysis of various academic and professional sources, conclusions have been made as to determining the cause and effect of the environment which shapes young workers. Innovations seen in companies of all sizes are compared to the feasibility of wide-spread corporate culture change in the context of why it is crucial to maintain a positively perceived brand identity (Corbridge & Pilbeam 2010, p. 105) in the minds of Generation Y. While long tenures with a single employer are increasingly rare, the steady recruitment and turnover of talent in faster cycles is a practice which companies can make use of in maintaining their competitive advantage. International perspectives in context of national culture have been analyzed in comparison to access to technological tools which can be utilized to attain valuable skills. In detailed analysis, the status quo of the U.S. Government’s recruitment strategy and brand identity was compared to those employers which have built a reputation for providing favorable environments, roles and growth opportunities for young talent. As the hierarchical level of workers is analyzed, the importance of maintaining a balanced pipeline is essential for sustained success in any type of enterprise.
While the younger generations do not stay with an employer for more than an average of four years (Bls.gov, 2018), the benefits offered should be reshaped to attract talent on current platforms. In the age of information, a single benefit package is no longer able to “sell” the company image. Companies must take the time to create a individually tailored benefit-compensation scheme to satisfy its workers of all tenures. While experienced workers have added value to the company over a longer period of time, younger workers will increasingly take up these positions as retirements become more frequent in the near future. As the largest demographic in the professional labor force (Fry, 2018), the current motivating factors of a purpose-driven generation will become more pronounced in years to come.
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Appendix A
Appendix A: Millennials Are Actually Workaholics, According to Research. Harvard Business Review. (Carmichael, 2016).
Appendix B
Appendix B: SAP Integrated Report. (2018)
