2016-6-3 Millennials World-Demographics-Attitudes … · friends/family • Read • Travel • Listen to music Gen X Nielsen, 2015. The Millennial Attitudes and Values Quiz. 2010

Leading Millennials

Cherrie Clark

• Professor of the Practice of Management

• Director, Masters of Finance Program• Owen Graduate School of ManagementVanderbilt University

• [email protected]• 615.477.9500

The Generations Defined

Pew Research Center, 2015

20 to 35 years old today




Expectations

• What is the #1 issue your organization faces with the Millennial generation?

• What do you hope to learn as a result of this session?

The Millennial Attitudes and Values Quiz

• Individually complete the quiz (5 min)

Their World and Their Demographics

Millennials are now the largest generation in the workforce

By 2030, Millennials will be 75% of the workforce

Citi, 5/15/13

Organizations have not prepared future leaders

EDA, 2014

The World has changed

Business Insider

Funeral of Pope John Paul II Announcement of Pope Francis I

Margaret Mead, 1970

Digital media has changed how we live

KPCB, 2015

Millennials prefer “New” media

L.E.K. Consulting, 1/2016

Their preference continues as they age

L.E.K. Consulting, 1/2016

A unique historical moment: who is the authority?

Red Brick Research, 2014

Millennials view parents more as friends than authority figures

UBS, 4/2016

Gallup, 6/2015

Confidence in the authority of institutions is eroding

Who does the population trust?

Edelman, 2016

3/2014

World Bulletin, 2016

Peer‐drive media dominates for all who are online

Edelman, 2016

Socialism is viewed favorably by young Millennials

Fivethirtyeight, 2015

Edelman, 2016

Adweek 4/10/16

According to 500 nominees for Forbes 30 under 30 list:

Climate concerns are the Millennials’ problem

A.T. Kearney, 2015

Terrorism concerns are growing

A.T. Kearney, 2015

For Millennials, the enemy is among us

Takeaways – The World is different this time

• Millennials dominate the workforce now• Their knowledge of technology changes boss/subordinate roles• Authority and influence of parents and institutions are waning• They feel the burdens left by past generations, and it’s personal• Many are concluding that….

Millennials Demographics

Millennials are the most ethnically diverse generation

Pew Research, 2015

11% are U.S.‐born childrenof at least one immigrant parent

Millennials on track to be the most educated generation to date

Pew Research, 2015

Millennial educational attainment is growing

White House, 2014

But debt is growing as well

WSJ, 5/2015

Millennials face a debt burden unknown to past generations

WSJ, 5/2015

What was your average debt upon graduation?

WSJ, 5/2015

Huffington Post, 2/2016

The Great Recession changed the living patterns of many Millennials

Council of Economic Advisers, 10/2014

The American Dream of home ownership is less and less attainable

Millennials are delaying marriage longer than ever

U.S. Census Bureau, 2015

Millennials are different• Digital natives in an always‐on world• Ethnically diverse• Highly educated• In debt• Losing ground on incomes• Living at home longer• Delaying marriage longer• Renting, sharing, voting differently


Top spare time activities

Boomers MillennialsGen X


Boomers• Watch TV• Read• Connect with friends/family

• Travel• Listen to music

MillennialsGen X




Millennials• Watch TV• Connect with friends/family

• Read• Travel• Listen to music

Gen X




Millennials• Watch TV• Connect withfriends/family

• Listen to music• Read• Travel

• Watch TV• Connect with friends/family

• Read• Travel• Listen to music

Gen X

Nielsen, 2015


2010

Takeaways

• Millennials have a PR problem• While Millennials have important differences, they also have strong similarities to other generations

• Understanding and leveraging the Millennial generation is critical to business success

Millennials at Work

Millennial talent is poised to walk out the doorTwo in three Millennials expect to leave by 2020

Deloitte, 2016

The cost of turnover is significant

Millennial Branding, 8/2013

Millennials will more likely take the recruiter call

0% 10% 20% 30% 40% 50% 60%

Boomers

Gen X

Millennials

Percentage of workers who are either actively looking for a new job or always open to a new job

MarketWatch, Fidelity, 10/2015

WSJ, 4/2016

Email from my former student…I ended up taking the BlueChipCompany role for about 8 months where the combination of continual layoffs around me + an opportunity at SharingCompanyDarling drove me to move to the West Coast to their regional hub in Los Angeles (where I currently reside).

I am working at SharingCompanyDarling in a Growth/Analytics role (relatively junior) for just over a year now, and have been given an opportunity to move back to NYC and jump to a slightly smaller startup (TechMusicDarling) in a more high-level strategy role - I am thinking of whether to take this role or continue working at SharingCompanyDarlinguntil an opportunity at a smaller company emerges that I like ... My ultimate goal is to launch my own startup. If you have the time, would love to hear your advice!

April, 2016

Jobs today require more: social ANDmath skills

NYT, 10/2015

Mary Meeker, 2015

How GE recruits Millennials

• https://www.youtube.com/watch?v=OvfU1NpCJQQ

Employees of every generation have similar reasons for changing jobs

IBM, 2014

Who broke the implied employment compact?

How did corporations increase profits?

Corporate Profits After Tax/GDP

St. Louis Fed, 2016

Less training and development due to cost pressure and expected turnover

Bersin, 2013


Sr. Execs “Eager or Excited” for contract workers

ADP, 2015

Takeaways on turnover

• Turnover is a major cost for organizations• Today’s jobs require not the hands, but the heads and hearts of employees

• Loyalty is a two‐way street• To compete, organizations need a flexible workforce

What do Millennials

want at work?

Maslow’s Hierarchy of Needs

Researchhistory.org, 2012

Lower level needs have been met, thanks to prior generations

Espinoza, 2010

Prior generations did not focus onself‐actualization

Hobart and Sendek, 2014

For Millennials, life and work blend together.

Not work/life balance, but work/life integration.

How do you think 1,400 MBAs answered this question?

• Success means striving for:• Family• Impact• Knowledge• Prestige• Respect• Self‐actualization• Wealth• Wisdom

MBAs define success as impact

Most Important Thing to Millennials = Meaningful WorkWhat Managers Think Is Most Important Thing to Millennials = Money

Managers’and Millennials’View of the Most Important Factor That Indicates Career Success to Millennials

Source: “How the Recession Shaped Millennial and Hiring Manager Attitudes about Millennials’ Future Careers,” Career Advisory Board (Levit and Licina), 2011, USA. Survey of 1,023 USA adults.

3%

6%

10%

24%

27%

30%

12%

9%

8%

11%

48%

11%

0% 10% 20% 30% 40% 50%

High Levelof Responsibility

High Level of Self Expression

Challenging Work

Sense of Accomplishment

High Pay

Meaningful Work

Managers

Millennials

73% is not about money

Career Advisory Board, 2011

Millennials prioritize the sense of purpose around people rather than growth or profit maximization

Deloitte, 2016

What do Millennials want at work?

• Meaningful work; a sense of purpose

Accenture, 3/2016

Meaningful work requires personal development

PWC, 2011

PWC, 2011

PWC, 2011

PWC, 2011

Deloitte, 2016

Deloitte, 2016

Personal recognition today

• How did you receive personal recognition outside of work when you were 18 to 35 years old?

• How do Millennials receive personal recognition today?• How often do they receive personal recognition?


• Meaningful work; a sense of purpose• Coaching and mentoring

PWC, 2011


Just as employers want flexibility…

Millennials want flexibility

Important factors if choosingbetween two equal jobs

Bentley U, 10/2014

How much of a pay cut are Millennials willing to take for an improved “quality of work life”?• Quality of work life is defined as:

• Career development• Purposeful work• Work/life balance• Company culture

Fidelity, 4/2016


• Meaningful work; a sense of purpose• Coaching and mentoring• Flexible working arrangements for work/life integration

An inconvenient truth:Millennials want to create and own the company

Bentley U, 10/2014

Red Brick Research, 2015

Mary Meeker, 2013


• Meaningful work; a sense of purpose• Coaching and mentoring• Flexible working arrangements for work/life integration• To create, own and run the organization

How different are Millennials and other generations in their career goals?

Takeaways on what Millennials want at work

• Millennials want to self‐actualize at work • Millennials want:

• Meaningful work; a sense of purpose• Coaching and mentoring• Flexible working arrangements for work/life integration• To create, own and run the organization

• Millennials have the desire and capacity to make the work world better for all generations

How to Lead MillennialsHow to attract, engage and retain Millennial talent

Which one predominates in your organization?The Effective Versus Challenged Perspectives Perspective

The Effective Managers The Challenged Managers

Adaptability Talked about their own need to change in order to manage in “today’s world”

Talked about how others needed to change in order to make it in the “real world”

Self‐efficacy Believed there was something they could do about their situation

Believed that there was little they could do about their situation

Confidence Allowed their subordinates to challenge them (ideas, processes, ways of doing things)

Sanctioned or punished their subordinates for challenging them

Power Used the power of relationship versus the power of their position

Felt the only power they had was their positional authority

Energy Working with Millennials made them feel younger

Working with Millennials made them feel older

Success Saw themselves as key to the Millennials’ success

Saw the Millennials as an impediment to their own success

Espinoza, 2012

Four kinds of behavior account for 89% of leadership effectiveness

McKinsey, 2015

McKinsey Millennial study

• Published 2016• 200 in‐depth interviews with high‐potential young professionals• 60 interviews with talent professionals • 120 companies, including 55 of Fortune 500, across many industries• Primarily U.S. based

McKinsey: Build bridges with data

• People analytics• Track tenure and attrition• Performance evaluations• Qualitative measures of engagement

• Benchmark: P&G

McKinsey: Put communication on steroids

• Real‐time, two‐way communication• Accepts input from everyone• Follow with fairly immediate action

• Benchmark: Hubspot• Conducts Millennial surveys every 90 days• Raw findings and analysis reported to all employees• Anonymous microfeedback platforms

McKinsey: Develop a culture of mentorship

• Offer collaborative work and support from colleagues• Benchmark: W.L. Gore

• All new employees assigned a sponsor to help:• Navigate the culture• Assist in forming other mentoring relationships based on work interests and chemistry

• Benchmark: Sodexo• Mentoring circles of four: 3 experienced ones form connection with newcomer

• Millennials role models: Entrepreneurs under 30 who have changed the world• Millennials chafe at flat organizations that offer limited advancement opportunities• Promote professional development rather than promotions• Benchmark: Barclays Emerge Program

• Opportunities to develop skills• Networking• Manage projects through “extracurricular” initiatives inside or outside the company

• Benchmark: Synchrony Financial• Innovation Stations – collaborative, cross‐functional teams across the U.S.

• Rapid working prototypes of digital solutions• Old‐fashioned rotational programs that include

• Increased mentoring• Exposure to senior leaders• Cross‐functional work• Community service

McKinsey: Get creative about professional growth

• Millennials value blending of their work and personal lives• Benchmark: Journeys

• Core time block when all headquarters employees must be in the office• Employees are responsible for results, regardless of their choice of work hours

• Benchmark: Netflix• Unlimited parental‐leave policy

McKinsey: Make flexibility more than polite talk

• First line managers trained to:• Give (and receive) more frequent development feedback• Manage difficult situations• Learn to adapt to challenges

• Benchmark: Danone• Internal cross‐generation training

McKinsey: Shape midlevel managers into leaders

Takeaways on how to lead Millennials

• McKinsey• Build bridges with data• Put communication on steroids• Develop a culture of mentorship• Get creative about professional growth• Make flexibility more than polite talk• Shape midlevel managers into leaders

Takeaways on how to lead Millennials

• Louis Efron• Act like an owner• Think like a trauma ward• Facilitate life success• Communicate how you are changing the world

Fortune

• Pinnacle Financial Partners• http://reviews.greatplacetowork.com/pinnacle‐financial‐partners

Millennials…

• They aren’t going away• They aren’t like past generations

• Will your organization be the one to achieve competitive advantage through Millennials?

Documents

2016-6-3 Millennials World-Demographics-Attitudes … · friends/family • Read • Travel • Listen to music Gen X Nielsen, 2015. The Millennial Attitudes and Values Quiz. 2010