GTI Breakfast News 16 September 'Putting Millennials to Work

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The AnthologistWednesday 16 September 2015

PUTTING MILLENNIALS TO WORK

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Director, GTI

Simon Rogers

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Thursday 5 March Is it time to make a more meaningful connection?Thursday 30 April Gen Z effectThursday 25 June Can we still get their attention?Wednesday 16 SeptemberPutting millennials to workThursday 26 November Conclusive research

2015 dates

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We want to hear from you via twitter

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How do we calculate our index?We ask students two questions:

1. How long do you think it will take you to find your first graduate job?

2. How many applications do you think you’ll have to make?

We then use their answers to produce our Confidence Index scores.

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The overall confidence of the UK’s students

100

The Confidence Index scale:

What does an ‘average’ confidence score mean?

Number of job applications:

22Months to find employment:

5

120

160

80

40

AVERAGE confidence

More confident than average

“I’ll get a job in five minutes.”

Less confident than average

“Help.”

The average score

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UK students’ confidence: Autumn edition

94

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UK students’ confidence: Autumn edition

Part 1 Part 2 Part 3 Part 4

Gra

duat

ion

Recovery of Student

Confidence

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Confidence: diversity cuts

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provides the Confidence Index Datatrendence UK

Our research provides insight to recruiters by:

• Examining the UK market and competitor landscape

• Informing social diversity strategies

• Identifying how to engage early talent

• Refining university campaigns

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Our social mobility expertisetrendence UK

Our social mobility data covers:

• State educated/privately educated• Means-tested funding• Parental education

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Leicester Exchange DebateSocial Mobility2 December 20156-8.30pm at EY (London HQ)

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Launching THIS WEEK!

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• 1.5M users will be using TARGETjobs every month over the coming 4 months

• More employers than any other UK graduate job site

• 764,228 members are currently subscribed and we can email them NOW

• We can segment and target users in more diverse ways than ever before

• Employer content pages will be the most visited parts of the site

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TODAY’S AGENDA PUTTING MILLENNIALS TO WORK

Welcome Simon RogersThe economic updateDeclan Curry, Broadcaster, Business & Economics journalistWhy on-boarding matters for millennialsApril Bryce, Creative Director, Havas PeopleLet’s talk about my generation: what does the workplace look like from a generation Z perspective – and what can be done to change it?Dr. Paul Redmond, Director of Student Life, University of ManchesterTransitions – Gen Z: Get to work!Stephen Isherwood, CEO, AGRThe millennial challenge – do we need to adapt the workplace?Lucy Adams, MD Firehouse, Founder, Disruptive HR and the former HR Director of the BBC

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Declan CurryBusiness and Economics Journalist

THE ECONOMIC UPDATE

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STUFF YOU SHOULD KNOW• USA – End of cheap money ?• China – An entirely expected slowdown

• UK – Year of the pay rise• UK – Still not an export-led recovery• UK – Govt Spending Review

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END OF CHEAP MONEY• US Federal Reserve decides interest rates Thu

PRO RISE: ECONOMY REVIVING- Businesses investing, creating new jobsANTI RISE: BIG RISKS- What impact from China slowdown?- World Bank, IMF warn of “disruption”

• It’s WHEN rates will rise, not IF ….

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CHINA• Economy growing by 7% or less – SLOWDOWN• Years of big growth from investment / production

- led to debt, inefficiency• Transition to consumption & consumerism

- slower but more sustainable ?

• Political impact in China – omnipotent no more

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YEAR OF THE PAY RISE• Wages rising faster than prices

– after 6 years of getting poorer • Avg Wages: +2.4% Apr-Jun ‘15, y/y• Inflation: 0.0% Aug ’15, y/y

- food and fuel prices keep falling• Retail sales rise 29 months in a row• CONSUMER recovery, not EXPORT-led

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TRADE GAP WIDENS• Sales of British goods hit by strong pound

- makes our stuff more expensive overseas- need more €€ to pay £STG prices

• Lowest exports in 4 years• Total exports in July = £22.8 BN, down £2.3 BN• Could cut economic growth: WATCH Q3 GDP

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POUNDING INDUSTRY • Sterling strongest in 7½ years vs “basket”

- NB: Not ALL currencies

At 31 Aug:• £1 = €1.37 UP 9% year/year

… Cheaper holidays in Tuscany!• £1 = $1.54 DOWN 8% year/year

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AUSTERITY AD INFINITUM• New Govt spending review on November 25th

• Sets departmental spending until 2019/20• Total spending reduction = up to £18bn pa (6%)

but NHS, schools, defence, aid protected(NHS = 1/3 of all departmental spending)so much larger cuts at other depts

• Welfare spending EXCLUDED (£217bn pa)

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GROWTH • Economy 5.2% bigger than before crunch• LATEST GDP: +0.7% Q2 ‘15

+0.4% Q1 ’15• Expected to slow - impact of strong pound• FORECAST: +0.6% Q3 ‘15 (BoE)

• **Productivity: +0.3% Q1 ‘15 vs Q4 ‘14

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SOURCES OF GROWTH

Q2 ‘15 vs Q1 ‘15• Services: +0.7%• Manufacturing: -0.3%• Construction: +0.2%• Household spending: +0.7% (16 qtrs)• Government spending: +0.9%• Business investment: +0.9%

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FASTEST IN THE WEST? • Annual growth figures (Q1 2015, y/y):

UK: +2.9%USA: +2.9%Germany: +1.0%France: +0.8%EU: +1.0%Japan: -1.0%

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2015 GROWTH FORECASTS• IMF forecasts for 2015 (revised Jul ‘15):

UK: +2.4%USA: +2.5%Germany: +1.6%France: +1.2%EU: +1.7%Japan: +0.8%

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JOB MARKET• 31.03m people in work Apr-Jun 2015

DOWN 63,000 from Jan-Mar 2015UP 354,000 over last year

• 1.85 million unemployed Apr-Jun 2015 (ILO)UP 25,000 from Jan-Mar 2015DOWN 221,000 over last year

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CONFIDENCE

Business Confidence (CBI)• Becoming less positive – but still expect growth• Index down 4pts on month; down 11pts on yearConsumer Confidence (GFK)• More consumers cheerful about money & econ• Index 3pts higher on month; 6pts higher on year

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HOUSE PRICES

UK GOVT INDEX: +5.2% Jul ‘15, y/yVS: +5.7% Jun ‘15 y/y

England: +5.6% Jul ‘15, y/yWales: +0.3% Jul ‘15, y/yN Ireland: +7.4% Jul ‘15, y/yScotland *DOWN* -1.3% Jul ‘15, y/y

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PERSONAL DEBT

Household debt largely flat• Debt = 145% of disposable income Q1 2015

risen from 144% in Q3 2013Peak debt = 169% in Q1 2008.

• 18,866 insolvencies England & Wales (Q2 ‘15)DOWN 29% over the year; lowest since ‘05

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GOVERNMENT DEBT• Govt to borrow new money every year until 2019

- a year later than forecast in March Budget

• New borrowing 2014: £88bn• F’cast borrowing 2015: £70bn• Total debt 2014: £1,486bn• F’cast total debt 2015: £1,532bn

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MARKETS (at 31 August 2015)• FTSE 100: 6,247.9

DOWN 7% on month; DOWN 8% over year• Oil: $53.0 per barrel

UP 3% on month; DOWN 48% over year• Gold: $1,135 per Troy ounce

UP 3% on month; DOWN 12% over year

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April Bryce, Creative Director, Havas People

WHY ON-BOARDING MATTERS FOR MILLENNIALS

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“The induction or assimilation of a new employee into a company or organisation.”

- Collins English Dictionary

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Based around the 4 Cs• Compliance• Clarification• Connection• Culture

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Let’s talk Millennials• More casual relationships

with employers*• Career restlessness**• “Wet behind the ears”

*HighFliers – sharp rise in numbers turning down or reneging on job offers.**Adecco – 50% of Gen Z expect to stay in their first job for less than 2 years (in London that figure is 18 months)

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And yet…• Ambitious*• Want meaningful

employment**• More connected than

previous generations

*Adecco – Millennials expect to receive promotion in their first year of employment**The Intelligence Group – a defining characteristic of Gen Z is that they care about the world around them

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It’s really a culture thing

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I’m peculiar

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Maybe culture itself has shifted

#liveauthentic

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So, does onboarding matter?

• Less likely to have a part-time job• Insufficient careers advice• Lack of the skills that employers say they need• Yet more focused than ever on career choices

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Onboarding for Millennials• Technology can help build further-reaching

connections and present new opportunities• Learning styles could adapt to reflect millennial

behaviours• Data presents the chance to increase

personalisation

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Meanwhile over at Havas People

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Dr Paul Redmond, Director of Student Life, The University of Manchester

LET’S TALK ABOUT MY GENERATION: WHAT DOES THE WORKPLACE LOOK LIKE FROM A GENERATION Z PERSPECTIVE – AND WHAT CAN BE DONE TO CHANGE IT?

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Recap: Generation Z• World’s first ‘digital natives’• Aspiration: freedom and flexibility• Attach value to 1:1 engagement• 24/7 connectivity• Civic-minded• global mind-set• Entrepreneurial• Credentialist• Referenced by social media

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Research focus • Do current employee engagement activities meet the needs of

Generation Z? • How do Generation Z’s needs contrast and compare with other

generational cohorts?

• Is the language and media used by organisations to engage Generation Z appropriate? In what ways could it be better fit for purpose?

‘Talking about my generation,’ Photiou, K. & Redmond P. (Barclays White Paper 2013)

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Organisation benefits (and risks)• Organisations that engage effectively with Gen. Z employees have

40% lower turnover rates. Within them, Total Shareholder Return (TSR) is 40% higher than average.

• Engaged Gen. Z employees perform 20% above average while being 87% less likely to resign.

• The New Evangelists: as a result of social media, when engaged and motivated Gen. Z employees have been found to act as a powerful magnet for other Z applicants (and vice versa).

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Key Points• 20% of Gen. Z respondents were confused about what their

organisation had to offer them. • 12% were actively considering changing organisation. • Overwhelming numbers of Gen. Z employees felt that their

organisation had an inbuilt bias towards Boomers: “Built by Boomers, for Boomers.”

• Result: A significant ‘reality gap’ now existed between Gen. Z’s expectations and actual workplace realities.

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The New Psychological ContractBaby Boomer Psychological Contract

• Work for organisations• Command & control• Job for life• Career clarity• Employer-provider• Rising income and security• Promotion and progression• Save now, spend later

Gen. Z Psychological Contract

• Work with organisations• Functional teams• Job for now• Portfolio careers• Employer-enabler• Rising income, reduced security• Personal development• Spend now, save later

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Summing up

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1. The 10 Intergenerational Flashpoints

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The 10 Intergenerational Workplace Flash-Points

1. Time-keeping2. Communication Preferences3. Spelling & Grammar4. Customer Service Expectations 5. Conventions Around Dress / Appearance6. Too Informal / Too Formal7. Attitudes To Technology8. Attitudes To Confidentiality9. Use Of Social Media10. Career / Life Aspirations

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2. Gen. Z learning styles

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Generation Z: Preferred learning styles

• Experiential learning: 64%• Face-to-face training: 64%• Further qualifications: 56%• Seminars/workshops: 53%• E-learning: 26%

Gen. Y respondent: ‘Generation Y: releasing the potential’ (Mercer/ACCA, 2010)

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University is worth it if you have the following six experiences (Gallup-Purdue Index, 2015):

1. A member of staff who makes you excited about learning.2. A member of staff who cares about you as a person.3. A mentor who encouraged you to pursue your goals and dreams.4. The chance to work on a long-term project.5. A job or internship where you can apply what you’re learning at

university.6. The opportunity to become extremely involved in extra-curricular

activities.

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Work is worth it if you have the following six experiences:

1. A colleague or manager who makes you excited about your work.2. A colleague or manager who cares about you as a person.3. A mentor who encourages you to pursue your goals and dreams.4. The chance to work on a long-term project.5. A project where you can apply what you’re learning at university.6. The opportunity to become extremely involved in broader

activities.

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3. Knowing when to Nudge

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How much would you choose to save?If you save the following

percentage of your salary …You could expect to accumulate the following amount by age 65

0% £0

4% £125,000

6% £200,000

10% £295,000

11% £350,000

12% £365,000

15% £475,000

16% £499,000

18% £545,000

19% £595,000

26% £795,000

28% £875,000

31% £950,000

41% £1,250,000

Sources: Benartzi and Iyengar, in progress

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CROMWELL ROAD, LONDON, SW5 1 Bedroom, 1 Reception, 1 Bathroom. This lower ground floor apartment consists of a living room with wood flooring, an open plan kitchen and one bedroom. Wood floors and quality fixtures.

PENYWERN ROAD, LONDON, SW5 Studio. Newly refurbished studio apartment. A refurbished studio apartment consisting of a studio room with storage space, a fitted kitchen and a bathroom with shower room.

If you do not save for retirement, you might end up living on the street.

0% 4% 12%

How much would you choose to save?

Sources: Benartzi and Iyengar, in progress

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Final Point

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Stephen Isherwood, CEO, AGR

TRANSITIONS – GEN Z: GET TO WORK!

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Generation Born US Population

Traditionalists 1922-1945 50 Million

Baby Boomers 1946-1964 76 Million

Generation X 1965-1981 46 Million

Generation Y 1982-2000 80 Million

Generation Z 2000-

Source: Pew Research Institute, US Census Bureau, Strausse & Howe

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Student life• The student as

consumer• Clear tasks• Flexitime• Quest for

perfection• Peers

Employee life• The employer as

consumer• Ambiguous tasks• Working week• Quest for

efficiency• Hierarchies

#BNews15Sources: CBI Education and Skills Survey 2014; Prospects and Work Ready Graduates, 2015. Exact wording of categories varies between surveys e.g. top green bar is “self-management/resilience” in CBI survey.

#BNews15 Source: UKCES 2015 “The Death of the Saturday Job”.

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£8,861Per Head

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Lucy Adams, MD, Firehouse, Founder, Disruptive HR and the former HR Director of the BBC

THE MILLENNIAL CHALLENGE – DO WE NEED TO ADAPT THE WORKPLACE?

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Next eventThursday 26 November