April 2006

Managing Generation Y

Julie Bromley

National Training and Human Resources Manager

The Power of Partnerships

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Generation Y is now Australia’s largest demographic , representing 4.67 million Australians 70% of Aussie hospitality workers are Generation Y 80% of RFG Franchisees employ 8 – 20 staff at any given time That means over 12,000 Gen Y staff are in our stores right now creating our customer experience and influencing our sales and business growth

The Changing Australian Workforce

Generation Born Age Formative Influences

Baby Boomers

1946 – 1964 47 – 65 years Into of TV, cold war, Vietnam war, rock and roll, decimal currency launch

Generation X 1965 – 1981 30 – 46 years AIDS, launch of POC, single-parent families, multi-culturalism, company down sizing

Generation Y 1982 – 2000 11 – 29 years Internet, cable TV, globalism, September 11, environmentalism Facebook,

Generation Z

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Missed Sales & Business Opportunities

Your business success depends on the team representing you

Your people help differentiate your business from the competition

Well trained staff recognise opportunities to grow sales

Staff who care about the business minimise costs

Product & service innovation usually comes from the shop floor

Unhappy staff under-perform

Happy staff work harder, faster, longer and with a smile !

Turnover – The Hidden Cost

Team member turnover costs your business money

Recruitment costs & training

Lost productivity Missed sales Business confusion and

Franchisee stress Before unhappy team

members leave, performance goes down & absenteeism often increases

Turnover is inevitable. Turnover higher than

Franchisees in similar circumstances is not

Your Gen Y Team – Can you afford not to care?

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Million $$$ Questions

Generation Y

? Who are they are what do they want ?

? How can I attract them to my brand ?

? How do I manage them to help my bottom line?

? What can I do to keep them ?

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Who are Generation Y?

Street smart

Aware

Lifestyle centred

Informal

Independently dependant

Tech Savvy

Stimulus junkies

Sceptical

Impatient

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What do they want ?

Work with purpose and meaning

To feel important

Promotional opportunity

New challenges and experiences

Fair compensation

Increased employability

Individuality & creativity

Flexibility & ethical operation

To belong & be engaged

Passion and optimism

Modern & edgy

Empowerment

Mentored not directed

Fairness

Recognition

Personal connection

Involved and valued

Competency

From a Job From a Boss

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Focus on the outcomes

(Remember the WIIFM)

Communicate your success stories

Pay attention to your workplace

culture

Live up to your promises

Be aware of what the competition is doing

(don’t be afraid to borrow!)

Go where the talent is

How can I attract them to my business or brand

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Borrow from the big guys ...

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Develop a culture where they feel valued, can learn, influence outcomes and experience

flexibility

Explain why

Create a connection

Have systems to reduce micro-managing

Develop a team identity

Reward loyalty

Be pragmatic

Managing Gen Y to help your bottom line

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A RFG Perspective –

Getting Gen Y involved and motivated

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Introducing RIOT (RFG Information & Online Training)

Brand specific online training platform that hits

the Gen Y hotspots Better, faster, cheaper than paper or one on one methods Employees access any time Helps build a community and increases communication Learners progress at their own speed and revise material

to refresh their skills

Ideal for a high turnover / casualised workforces

11,485 people engaged in RIOT training across our brands

Over 100,000 hours of brand training in 7 months that was previously not happening

17The Power of Partnerships

Structured training where the learner controls to pace

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Different learning methods

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In-store training tools, coaching sessions, staff blogs

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DK and Coffee – A Gen Y Success Story

 Accredited over 250 qualified baristas and 636 qualified coffee makers in under 12 months

Royal Bean sales volume increase of 9%

Stimulated a poor performing category, improving profitability

Created a coffee culture and an expanding customer base

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Give Gen Y a reason to stay

Make hot buttons a focus

Be flexible, allow for differences and remember that their not you

Focus on the good rather than the bad

Help people achieve what they want

Don’t take success for granted

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Know your People Scorecard

Do you have staff that under-perform ?

How many team members are you turning over?

What are ….. Your results vs industry average Your results vs region What is your store trend

Why did the team members actually leave?

Are we learning from our past turnover experience?

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Generation Y are a deciding factor on your bottom line

- now and in the future

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Thank You