Via CNBC : Millennials are now the most represented generation in the U.S. workforce, with more than a third of all workers belonging to this group.
And as Baby Boomers continue departing the office for retirement, it’s clear Gen X won’t be able to fill all the open positions they’ll leave behind, paving the way for millennial managers to grow beyond the 28 percent who currently hold managerial-level roles, according to Parade. Already another two-thirds of millennials intend to hold a leadership position within the next decade.
Millennials managers aren’t just taking on low-level management positions or only overseeing the work of other millennials. A study by Future Workplace shows that a growing number of Millennials are managing Gen X and Baby Boomer professionals, with 83 percent of workers saying they’ve seen this within their office. A survey by Upwork, a company that pairs businesses with freelancers, found that 48 percent of millennial managers are director-level or higher already.
Here are five ways these newly-minted managers are changing the workplace:
Learning rests on the employee
Millennial managers are nearly three times more likely to believe that individuals should be responsible for keeping their skills current and mastering new tools and developments within their industry as compared to Baby Boomers, of whom 90 percent believe it falls to the employer to reskill their workers, according to a survey by Upwork and Inavero, a human capital management research.
Personal values matter
A survey of 7,700 millennials conducted by Deloitte found that 64 percent of those in senior positions, such as heads of departments and above, relied on their own values and morals to guide decision making at work. Goals such as meeting their company’s profit or target revenue ranked well below, meaning millennials are generally more concerned with the social impact of a project rather than the dollars and cents.
Remote teams are the norm
Millennial managers are 28 percent more likely to hire remote workers than older leaders, according to that same Upwork survey. Almost 70 percent of younger managers allow their staff to work remotely, and of those that did so, three-fourths managed employees who spent most of their time working outside the office. Only 58 percent of Baby Boomer managers could say the same.
Freelancers will do more
Growing up in the gig economy, and, perhaps even working within it, has made younger leaders more than twice as willing as Baby Boomers to trust freelancers with ongoing or multiple projects as opposed to one-time tasks, the Upwork survey found. They were also the most likely generation of managers to have increased their usage of freelancers in the past year.
Expect more feedback
The days of annual performance reviews are gone. Sixty percent of millennials want to hear from their managers at least once a day, according to JB Training Solutions. That means millennial leaders will likely want to touch base just as often as they did when a junior staffer, adding more frequent check-ins and job assessments to their routines than previous generations did.
Via Forbes : What Do Millennials Want From An Employer, And Should You Offer It?
As the year draws to a close, many of us naturally find our thoughts veering into “year in review” territory. Did my business accomplish its goals this year? How many personal milestones did I reach? And where can we improve in the new year?
In 2019, many business leaders are sure to be focused on courting fresh talent. Whether you’re looking to expand your current roster or replace outgoing employees, you’re likely jumping into a prospect pool that’s full of millennials (with Generation Z poised on the diving board).
There was a time, not so long ago, when it seemed like a foosball table and in-house massage therapists were the tools you needed to entice younger workers. But those workers have matured and so, too, has their list of desired workplace traits and perks. In fact, the results of the 2018 Deloitte millennial survey suggest that the superficiality assigned to that generation is all but gone.
While it’s true that the top item on the millennial wish list is financial rewards or benefits, the study’s authors say that’s tied to the more important, overarching desire to work for employers who are “proactive about making a positive impact in society” and “responsive to employees’ needs.”
Fewer than half (48%) of survey respondents believe that corporations behave ethically, and only 47% said that business leaders are “committed to helping improve society.” This demonstrates a clear and very wide gap between what millennials want and what they believe they’re getting, leaving a lot of room for thoughtful employers to step in and provide what’s missing. But here’s the catch: You have to actually stand for something.
That’s a scary notion to many of us who were trained in the “professionalism means keeping a healthy distance” way of doing business. Holding personal opinions of a political or social nature has always been one thing, but expressing them in the workplace was something altogether different. And broadcasting those opinions and beliefs to the public at large from a leadership position, well, let’s just say it was hardly even considered.
But in these uncertain times, younger workers are looking to business leaders to fill in where government officials have failed or come up short. A recent NPR story points to Nike CEO Mark Parker’s decision to feature former NFL quarterback (and current target of Donald Trump’s ire) Colin Kaepernick in its ads, and the bold move on the part of Dick’s Sporting Goods CEO Ed Stack to remove assault-style weapons from his stores and refused to sell guns to anyone under 21.
Of course, not everybody agreed with their respective choices, and their businesses are feeling the effects — both negative and positive. But that’s the risk you have to be willing to take when you wade into these new waters. Consumers or clients may disagree with your stance and walk away, yet employees and prospective employees may appreciate your efforts to be an agent of change, creating a more meaningful sense of loyalty among your team.
To my mind, it all hinges on authenticity. Parker and Stack took very public stands on social-political issues because they feel genuinely passionate about those issues and understand their power to make a difference. So what’s your stand? Is there a cause or issue that you care about and want to see brought to the fore? If the answer is yes, then it’s time to raise your flag. If it’s more of a, “Hmmm … not sure,” then the next step is to do your research. Speaking out about a topic or cause you know little about, or jumping on a bandwagon to make it look like you care is a huge mistake. People of any age (millennial or not) will see through the facade and any initial gains in public perception will not be sustainable. You’ve got to mean it.
I find it encouraging to learn that millennials are looking for employers who care about the world beyond their company’s bottom line. It’s a healthy reminder of where we all need to be looking. While the reality of profitability cannot be ignored, we all have a responsibility to those who work for us, and to our fellow citizens, to use business as a force for good.
Via Forbes : Why Is There Such A Disconnect Between Baby Boomers And Millennials When It Comes To Work Ethic?
Baby boomers sometimes believe millennials are entitled and lazy, but this couldn’t be further from the truth.
Millennials have entered a professional world where their realities are wildly different from the ones Boomers knew. They prioritize things that don’t make sense to boomers because their environment has different demands.
For example, millennials expect to be fired or let go regularly, so they want work that is directly in line with their own career equity, which are the skills and experiences that help them improve their career prospects. They know their time is limited, so they don’t invest in doing things outside their own path. Boomers, however, are used to working hard for a company in exchange for long-term investment in skills development and for security, like a retirement fund or pension.
But employment security and long-term investment no longer exist in the modern working world. So what are millennials working for?
Having worked extensively with millennials at my companies, I’ve found they often work incredibly hard. But first, they need to feel like what they’re working toward aligns with their own goals and aspirations. Specifically, I hired a lot of freshly graduated art history students to work as account representatives at Lofty.com. I ensured upon hiring them that I knew what they wanted to build in their careers, and ensure that their role within Lofty would amount to that end. This created a management-employee partnership. They worked hard for my company because they felt they were getting something out of it that benefited them.
This may sound foreign to boomers. They come from a world where they were expected to pay their dues by working hard on whatever the company needed, with the expectation that the company would reward them over in the long-term. Now, millennials will work hard when they are given opportunities that help them provide for themselves without any kind of deal.
In order to bridge this generational divide, we have to update the old bargain in a way that boomers can understand and millennials can use. That means understanding where both sides are coming from in order to make the best possible deal.
But first, let’s talk a little further about where boomers are coming from.
Baby boomers have certain expectations of young employees based on their own experience.
Boomers entered a company and were expected to pay their dues in order to move forward. The understanding was if they worked hard for the company for several years, and the company benefited from their work, they’d be rewarded with pay raises and promotions. If they stayed with the company long enough, they’d have a pension and a 401K.
This was the bargain struck between an employee and company in the old days: you work hard and in exchange, we’ll give you security and stability.
Now, boomers expect millennials to work for the same bargain. They think millennials want to progress too fast and aren’t paying their dues, which comes off as lazy. Boomers also assume millennials are flighty and don’t stay in their roles with any kind of commitment. What boomers don’t realize is the other end of the deal they had, the end that’s supposed to be a payoff for the employee, isn’t there anymore.
It’s a whole new world out there, and boomers have to recognize that if they’re going to successfully manage millennials.
They also have to understand what millennials actually want.
Because millennials don’t expect to stay with a company for the long term, their interest is in what can benefit them now.
This doesn’t come from an inability to commit. It’s the result of massive turnover rates, an unstable economy, and a more competitive business environment.
What millennials are learning from their work experience is they will inevitably get fired, let go, shut down, or need to look elsewhere for personal growth. They expect to leave a position in a very short amount of time, so they want to get paid competitively and want to take on more responsibility quickly. They treat work as a way to build their own professional equity and skill set as future bargaining chips so when it’s time to move on, they’re prepared.
Professional services companies like consulting firms, investment banks and law firms have already found a way to tap into this mindset by offering skills development and mentorship. In some ways, they’re preparing their staff to move on to other companies, but they’re also getting an intense level of hard work from millennials in the meantime. In some cases, the employee feels invested and stays long-term.
Tech companies also understand the benefit of this investment and fight to recruit then keep millennial talent. For example, Google also currently sends employees to conferences and boot camps to improve their skills. This is another way to tap into millennial aspirations for a mutual benefit. The team feels like they’re getting skills they can apply anywhere, and the company gets a return on their investment.
While this is one example of what a new bargain could look like, it’s not the only one.
There are other ways to tap into a millennial’s aspirations, but they don’t come from mind-reading.
Boomers managing millennials need to understand their employment relationship is going to be short, so they have to cut to the point. Conversations around what the employee wants from a job need to happen as early as the interview in order to continue motivating throughout the working relationship.
Some questions to ask include:
- What does the employee want from us?
- What are we providing the employee in exchange?
- What does the employee want in the long term? The short-term?
- What do they want from their career?
- What kinds of goals do they have outside of work?
Once a boomer has answers to a few of these, they can start to craft a mutually beneficial working relationship with their millennial staff. This means having regular conversations between employee and employer about what each side wants from the role going forward and how the two can help each other in the best way.
One thing I do at Codex Protocol is have monthly meetings with each employee. We don’t talk about their projects or what they’ve accomplished. I limit the conversations strictly to what they want going forward and how I can help them achieve that. I’ve noticed in my millennial employees, they work the hardest when I’ve given them chances to do work, achieve goals, and build their resume toward what they want long-term.
There’s a way to build mutually beneficial relationships between generations, and it comes from compromise on both sides. When given tasks that make them feel like they’re building toward something, millennials will work to help boomers’ businesses grow. Bridging the communication gap between these two generations can lead to greater outcomes on all sides, and maybe we can finally put a stop to all those think pieces about millennial work ethic.
Via BenefitsPro : 3 ways millennials and Gen Z will put pressure on benefit costs
As these generations make up a greater percentage of the workforce, employers will need to re-evaluate their health and employee benefits offerings.
In tracking employer benefits offerings for compliance, the Affordable Care Act (ACA) did something unheard of in the past: it required employers to aggregate and better manage complex workforce data from unrelated payroll, benefits administration and HRIS systems. This data aggregation brought with it many new opportunities for employer groups: With new insights stemming from ACA compliance and reporting data, employers can gain a deeper understanding of how to use benefits and operational strategies to optimize their workforce.
For the first time in U.S. history, up to five generations are employed in the same workplace, suggesting that there is a wide range of differences in what employees will expect and need from their employers in the years to come. The two youngest generations, millennials and Generation Z, together make up 40 percent of the employee population and their numbers are rising.
As employees in these generations age and become a greater percentage of the workforce, they’ll put more pressure on benefits costs in three distinct ways: 1) Increased enrollment in employer plans, 2) choosing better benefits, and 3) opting for family plans. They will also challenge your company’s retention strategies, forcing the need to re-evaluate your health and employee benefits offerings to achieve the engagement and retention results you’re looking for.
By integrating the same data sources used to comply and report on the ACA—HRIS, benefits and payroll—new insights can be gained. Analyses shared within the Health e(fx) 2018 Insights Report reveal some unique findings on the benefit preferences shown by different generations.
For example, millennials and Gen Z are less likely to enroll in employer-sponsored coverage than employees from older generations. And, when they enroll, millennials and Gen Z workers are more likely to choose benefits with a lower actuarial value, meaning the benefits are cheaper but will also cover a lower percentage of their medical costs. However, as these two generations age, they will impact your budget through:
1. Increased enrollment
Currently 35 percent of Gen Z and 77 percent of millennial employees are ACA eligible for benefits. Of those, only 26 percent of eligible Gen Z employees and 68 percent of millennials are enrolling in employer-sponsored coverage. There are multiple factors that could be impacting this lower enrollment. Due to their stage of life, these younger generation employees are less likely to face significant or chronic health challenges.
Because some millennials and most Gen Z employees are still eligible to be covered under a parents’ health insurance plan, many are not enrolling in their own employer-sponsored benefits, yet. But in the next five years, nearly one in five employees enrolled in family health coverage will have a millennial or Gen Z dependent age out of parental coverage.
2. Choosing better benefits
Every health insurance plan is assigned a metal level—Bronze, Silver, Gold or Platinum—based on actuarial value (percent of covered medical costs that a plan will pay). Plans with a higher actuarial value (such as Gold and Platinum) pay a higher percent of medical costs, but their premium costs are also higher.
A higher percent of employees in these two younger generations select a Bronze-level plan (with the lowest actuarial value) than workers in other generations. In fact, 27 percent of Gen Z and 16 percent of millennials are enrolled in a Bronze plan in comparison to 12 percent of Gen X or 10 percent of Mid Boomers. This means that currently, these younger employees are more likely to have lower premiums for their coverage.
3. Increased family tier coverage
Both younger generations have lower enrollment in family tier coverage with only 30 percent of eligible millennials and 6 percent of Gen Z enrolled in family coverage versus 55 percent of Gen X. As the younger generations age, based on stage of life, more employees in these generations will opt for family coverage.
Why do these factors matter? Because benefits impact retention – but only if your employees enroll to take advantage of those benefits. According to our analysis, the average tenure overall for employees who are not enrolled in health benefits is 3.1 years versus 6.7 years for those enrolled in employee-only coverage and 9.7 years for those enrolled in family coverage. On average, length of tenure also increases with better benefits—as the actuarial value of benefits increase, so does tenure.
As these generations age, employers will have to revisit their benefits strategies to ensure they’re offering quality and affordable coverage to keep these generations invested in staying in one place – at your company. These younger employees are more likely than previous generations to change jobs in an attempt to achieve the wage and benefits that would enable them to live the lifestyle they desire. With the younger generations soon dominating the workforce, their increased enrollment and transition to better benefits and family coverage may impact your budget, and the longevity of your workforce.
Via Independent : How understanding the needs of millennial employees can improve your business
Q As an employer and a manager of Generation X, who manages a workforce of millennials, I would like to understand them better. Is there any information you can give me which will give me a better insight into how to understand millennials?
A Millennials is the name given to those born from the early 1980s to the early 2000s and it is expected that they will make up 75pc of the workforce by 2025. Millennials were the first to grow up and work in the digital age and so the way in which they remain engaged and motivated in their employment journeys is different to the generations before them such as Generation X and Baby Boomers.
Millennials know that getting the job done is about being innovative and working across fields. They are optimistic, confident, committed and can be hugely creative. Largely they are well educated, determined and driven. Furthering their education is of great importance to them and career progression, training opportunities, and personal development are considered far more important than financial reward. They consider work-life balance as key to their career.
They ensure that the company mission aligns with their own ideals and ambitions. They want to know that they will be a valued member of the workforce and will be given the opportunity to grow and develop within the company.
More and more, we are seeing how millennials demand more flexible working hours and, with advanced technology, companies have proved this can be a success.
The best way to maximise the millennial’s potential is by giving them clear instructions, a timeframe to get the work done and the scope to use their initiative. Employers should be aware of the importance of employee engagement and personal development plans to the millennial. Employee engagement involves team-building, motivation, and empowerment together.
Personal development plans can be created following the annual or biannual performance appraisal. Performance appraisals are an opportunity to discuss individual performance and provide detailed feedback. It’s important to note that millennials are less likely to remain in a company as a loyal employee if they feel their personal goals and ideals are not being fulfilled, so this must be considered for talent retention purposes, given there has been an increase in employment opportunities in recent years.
If as an employer you are ensuring to effectively manage your millennial employees, this would also ensure there is an increase in employee engagement. Benefits of employee engagement include increased productivity, producing ultimately better results. Employees are happier, more engaged and more involved in achieving the aims and goals of the business.
In an attempt to understand millennials better, I think it’s important to review the results of a Deloitte survey conducted this year. It outlined that many millennials take on a business’s motivations and ethics. One of the most worrying results from the survey also outlined the dangers of business leaders losing their strongest millennial workers as a result of their goals and valued not being aligned.
According to the survey, only 48pc of millennials now believe corporations behave ethically. This has fallen from 68pc based on the same survey which was conducted last year. This fall is also accompanied by a 15pc decrease in the number of millennials that believe employers are committed to helping improve society. Although millennials are aware that profits are a priority in business, they also believe that companies should focus on a broader balance of objectives such as making a positive influence on society.
If employers want to retain talent, they will need to start showing their employees that they can make a positive change both within the business, society and the world. If employers fail to acknowledge the changing trend, talented employees will look for employment with a company that does. There is a lot of conflicting information out there based on millennials as employees. Although it has been shown that they share values in relation to their employment, they can’t all be painted with the same brush and must be individually managed and motivated.