“The Millennial Shift”Attract, Retain, & Engage the Gen-Y Worker

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ABOUT ME

PEOPLE LOGISTICS

Donte D. Vaughn, MSM, BSM

• Vice President of People Logistics, LLC., a consulting firm specializing in labor strategy and workforce management solutions for the Light Industrial market space

• Principal Consultant and trusted advisor to companies operating in light industrial environments

• Over 15 years of experience in Workforce Management and Organizational Leadership

Develop a Talent Acquisition strategy that appeals to the Millennial's desire for 'immediate' growth

opportunity.

Foster longevity and commitment among this new generation of workers through empowerment and

strategic succession planning.

Apply management techniques that create the "Coach" dynamic that Millennial's seek, instead of

the "Boss" dynamic.

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LEARNING OBJECTIVES

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WHAT IS A “MILLENNIAL”

HOW MANY OF YOU BELIEVE YOU ARE A

MILLENNIAL?

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WHAT IS A “MILLENNIAL”

• Millennials are the generation born between 1982 and the early 2000’s

• Millennials are also know as “Generation Y”

• Millennials are the first generation born into the digital world, specifically the internet and social media

• Millennials are “Echo Boomers,” as they are the children of Baby Boomers

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WHAT IS A “MILLENNIAL”

HOW MANY OF YOU BELIEVE YOU WORK

WITH A MILLENNIAL?

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THE “MILLENNIAL SHIFT”

• 2015 marked a major shift for the American workforce, more than one in three American workers are part of the Millennial generation

• Millennials are purpose driven, not paycheck driven

• They are looking for something more than just money in a job

• Seven in 10 Millennials consider themselves social activists; this is reflected in the businesses they are choosing to work for

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THE “MILLENNIAL SHIFT”

Source: Bureau of Labor & Statistics (2016)

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

2015

2010

2005

2015 2010 2005

Baby Boomers 31% 38% 45%

Generation X 21% 22% 23%

Millennials 45% 36% 25%

The Millennial Shift Since 2005

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THE “MILLENNIAL SHIFT”

• Millennials are integral to the future of business

• Millennials will be the majority of the U.S. workforce by 2015

• 28% are management level already; 2/3 see themselves in management in ten years

• Hiring managers believe Millennials bring unique skills, especially that they are more technically adept than prior generations (82% agree)

• The majority (53%) of hiring managers report difficulty finding and retaining Millennial talent

• Millennials are becoming ‘disconnected’ from the Light Industrial industry (i.e. Commercial Baking)

Sources: Red Brick Research Group (2015), Bureau of Labor & Statistics (2016)

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THE “MILLENNIAL SHIFT”

0% 10% 20% 30% 40% 50% 60% 70% 80%

Earning potential

The people/team they'll…

Work is exciting

A good mentor / manager

Earning potentialThe people/teamthey'll work with

Work is excitingA good mentor /

manager

Millennials' actual priorities 44% 39% 30% 25%

Hiring managers perception ofMillennials' priorities

75% 12% 24% 16%

What's important to Millennials?

Sources: Red Brick Research Group (2015), Bureau of Labor & Statistics (2016)

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WHY SHOULD YOU CARE?

Millennials need something different than what traditional employers in Light Industrial provide

• 79% of Millennials would consider quitting their regular job and working for themselves in the future

• Freelancing’s flexibility and control appeal to Millennials

• Millennials care more about the people they work with, exciting work and good mentorship and less about money than hiring managers realize

Sources: Red Brick Research Group (2015), Bureau of Labor & Statistics (2016)

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CASE STUDY

Background:

• National Food Processing company founded in 1916

• Manufacturing & distribution environment

• 4 family generations have led the company

• Average employee tenure 20+ Years

• Diverse workforce – various skill-sets

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CASE STUDY

Challenges:

• Recurring spikes in turnover

• Temp-staffing solution struggling to fill needs

• Spike in labor costs (high overtime) as a result of personnel shortages

• Core personnel pending retirement, no-one with the same working knowledge

• Growing workplace culture challenges

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CASE STUDY

DOES THIS SCENARIO SOUND FAMILIAR TO YOU?

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CASE STUDY

Root Cause:

• Communication & cultural disconnect between leadership and employees

• Lack of recruitment strategy to align with local market need

• No investment in retention strategies

• Lack of accountability amongst ‘tenured’ leadership

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CASE STUDY

Challenges Predicated on Market Conditions:

• 65% of the local working class was under 40 years of age

• Wages paid for core positions were under-market

• Food Manufacturing company NOT perceived as “Employer of Choice”

• Low unemployment rate coupled with growth in food manufacturing – job seeker market

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REALITY CHECK

A new report by Deloitte and the Manufacturing Institute finds that American manufacturers could face a deficit of as many as 2 million workers over the next decade, fueled in part by industry expansion but also by the looming retirement of the Baby Boomers.

Sources: Red Brick Research Group (2015), Bureau of Labor & Statistics (2016)

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SOLUTION 1

Develop a Talent Acquisition strategy that

appeals to the Millennial's desire for 'immediate'

growth opportunity

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SOLUTION 1

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SOLUTION 1

Recruitment strategies for Millennials should focus on promoting your organization’s desire to foster their growth as a professional in their field:

• Emphasize training & development programs – How to enroll, phases, eligibility criteria, etc.

• Highlight the potential for pay-advancement – A result of reaching levels of competency and performance

• Share promotion opportunities from within – Entry Level -to- management, and the roadmap to get

there

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SOLUTION 1

WHAT WOULD BE YOUR RESPONSE TO A CANDIDATE WHO ASKED THE FOLLOWING:

“If I join your company….where will it take me?”

“Why should I work for you company vs. your competitor next door?”

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SOLUTION 2

Foster longevity and commitment among this new generation of workers through empowerment and strategic

succession planning

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SOLUTION 2

Improving retention of millennials begins with fostering a culture of empowerment and vision for the future:

• Formalize a mentorship program – leveraging tenured employee’ practical experience to assist with on-the-job training

• Develop & implement cross-training programs that promotes self-progression & learning

• Develop and implement an apprenticeship program that offers the opportunity for entry-level new-hires to learn a new trade

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SOLUTION 3

Apply management techniques that create the

"Coach" dynamic that Millennial's seek, instead of

the "Boss" dynamic

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YOU NEED COACHES, NOT BOSSES!

“Do as I say…not as I do”

“Because I said so!”

“My way of the

highway!”

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YOU NEED COACHES, NOT BOSSES!

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SOLUTION 3

Millennials do not respond to overtly authoritative leadership styles. Managers should take the approach of fostering self improvement, motivation, and development with the Millennial worker:

• Offer consistent feedback – celebrate the good, often

• Seize “coaching moments” before they reach the point of “corrective action”

• Adopt cultural diversity and stewardship training as part of leadership development initiatives

• Establish a ‘balance’ of leadership; forming leadership team that is a reflection of the workforce

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CASE STUDY OUTCOMES

The food processing client applied many of the solutions discussed in this session and the outcomes were highly favorable :

• Achieved 100% fulfillment of all open positions within 2 months of strategy change

• Employee referrals increased by 25% within 1st three months

• Employee retention rate increased by 14% by 1st

year end

• Rework & Error Rates in production decreased by 12% by 2nd year end

• Revenue increased by 18% by 1st end ($12MM)

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OPEN DISCUSSION

WHAT IS ONE THING YOU CAN DO DIFFERENTLY TO ATTRACT,

ENGAGE, OR RETAIN A MILLENNIAL IN YOUR

BUSINESS?

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ANY QUESTIONS OR FINAL THOUGHTS?

OPEN DISCUSSION

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TO LEARN MORE – CONTACT US!

Donte Vaughn, Vice Presidentdvaughn@peoplelogistics.com(856) 685-4930 - Mobile

Steve Schoeffler, COOsschoeffler@peoplelogistics.com(215) 669-8221 - Mobile

WWW.PEOPLELOGISTICS.COM