Presentation to UH Presidents Council Nov 6 2013
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Presentation to UH Presidents Council on Nov 6 2013 about what Millennials can expect from the work place
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Presentation to UH Presidents Council Nov 6 2013
- 1. Generational Conflict in the Workplace
- 4. No, I've never noticed, 16% Yes, there are, but they NEVER pose challenges, 12% Yes, they SOMETIME S/OFTEN pose challenges, 72% Neil Howe & Reena Nadler, WHY GENERATIONS MATTER: Ten Findings from LifeCourse Research on the Workforce, Feb 28, 2012
- 5. "I see no hope for the future of our people if they are dependent on the frivolous youth of today, for they are reckless beyond words. When I was young, we were taught to be discreet, respectful of elders, but the present youth are exceedingly disrespectful and impatient.“ – Socrates, c. 400 BC Image credit: marzolino / 123RF Stock Photo
- 6. • • • • • • • • • • Pragmatic Cynical Value liberty, survival Children of Artist Children in Awakening Nomad • • • • • Principled, creative Ruthless, narcissistic Value vision, values Children of Hero Children in High • • • • • Open-minded, expert Sentimental Value due process Children of Nomad Children in Crisis Hero Prophet Rational, Competent Unreflective, bold Value community Children of Prophet Elder in Awakening Artist
- 7. • Gen X • GI • Millennials Nomad Prophet • Boomers Hero Artist • Silent • Homeland
- 8. Nomad Washington Hero Jefferson Artist T Roosevelt Image credit: paolag / 123RF Stock Photo Prophet Lincoln
- 9. Hero: GI (1901-1924), Millennial (1981-2004) Artist: Silent (1925-1942), Homeland (2005-Present) Prophet: Baby Boom (1943-1960) Nomad: Generation X (1961-1980)
- 10. 24,000 23,000 22,000 21,000 20,000 19,000 18,000 17,000 Homeland 41 million 16,000 Under 5 to 9 5 years years Generation X 61 million Millennials 85 million 10 to 14 years 15 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years Series 1 Baby Boomers 81 million 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years Silent & GI 58 million 65 to 74 years 75 to 84 years 85 years and over
- 11. Shortage Equilibrium Surplus World Economic Forum, Stimulating Economies Through Tenant Mobility, 2010
- 12. 4.5 M Millennials/year enter economy w/ 130M jobs 160,000 120,000 4.5 M Boomers/year enter economy w/ 50M jobs 80,000 40,000 0 F-48 F-52 F-56 F-60 F-64 F-68 F-72 F-76 F-80 F-84 F-88 Total Non-Farm Payroll, Bureau of Labor Statistics, May 2013 F-92 F-96 F-00 F-04 F-08 F-12
- 13. Image credit: violanda / 123RF Stock Photo
- 14. -37% Absenteeism -25% High-Turnover Orgs. Low-Turnover Orgs -65% Safety Incidents -48% Patient Safety Incidents -41% Quality (Defects) -41% 10% Customer Productivity 21% Profitability 22% -80% -60% -40% -20% 0% 20% 40% Gallup, State of the American Workforce: Employment Engagement Insights for US Business Leaders, 2013
- 15. Image credit: michaeljung / 123RF Stock Photo
- 17. Selfless, rational, competent Unreflective, mechanistic, overbold Community, affluence, technology Children of Prophet Generation Young adult in Crisis, Elders in Awakening Thomas Jefferson, John Kennedy, Walt Disney, Ronald Reagan, Mark Zuckerburg Millennial (1982-2004), GI (1901-1924)
- 18. Hero Generation Born 1983 – 2004 Politics: Clinton-Lewinsky, No Child Left Behind, relatively stable political culture, 9/11, War on Terror Society: helicopter parents, every body gets a ribbon, zero tolerance, social media, diversity, self-esteem Business: Technology bubble, startups, Facebook, Google, Apple, Netflix Culture: focused on technology, celebrity sex tapes, “famous for being famous”, sharing
- 23. Be brutally honest in the interview Don’t hire them if you sense a whiff of entitlement Do a hunger check Everyone announces themselves in the interview Shake them up a little When you find the good ones, help them move up – even if that means losing them Lesley Jane Seymour, How I Hire: 6 Ways I Find and Hire Hardworking Millennials, Sept 24, 2103
- 25. Principled, resolute, creative Narcissistic, presumptious, ruthless Vision, Values, Religion Children of Hero Generation Children in post-crisis, young adult in Awakening Ben Franklin, Abraham Lincoln, Franklin Roosevelt, Steve Jobs, Bill Clinton Baby Boom (1943-1960)
- 26. Prophet Generation Born 1943 – 1960 Politics: Eisenhower, JFK/LBJ – Great Society, Moon Landing, Civil Rights, Vietnam, Riots Society: mass movement to suburbs, consumer culture, child-focused because of boom Business: “Business of America is Business”, creation of large national corporations, challenge to be noticed at work Culture: focused on values, family, “truth, justice and the American way”
- 28. 4.5 M Millennials/year enter economy w/ 130M jobs 160,000 120,000 4.5 M Boomers/year enter economy w/ 50M jobs 80,000 40,000 0 F-48 F-52 F-56 F-60 F-64 F-68 F-72 F-76 F-80 F-84 F-88 Total Non-Farm Payroll, Bureau of Labor Statistics, May 2013 F-92 F-96 F-00 F-04 F-08 F-12
- 30. Protecting through involvement What’s best for the GROUP of children Giving children what they need to be successful Aspirational – you can do anything! Everybody wins Adapted from Frank N. Magid Associates, The Pluralist Generation, 2012
- 31. 50% Percentage who DISAGREE: "I believe in working only so long as it adds value for the client or customer. Working harder or longer is pointless." 46% 40% 36% 32% 30% 20% 10% 0% Boomer Gen X Millennial Neil Howe & Reena Nadler, WHY GENERATIONS MATTER: Ten Findings from LifeCourse Research on the Workforce, Feb 28, 2012
- 32. Alan Framm, One In Four Working Baby Boomers Say They'll Never Retire, Survey Finds, Huffington Post: Retirement, 4/5/11, http://www.huffingtonpost.com/2011/04/05/babyboomers-retirement-fears_n_844957.html
- 33. Emphasize how the company mission affects the customer or the greater society at large Involve them in decision making processes Lead and establish authority by example Encourage them to forge social connections in the workplace Understand they may want to communicate differently: memos/phone calls vs. email/texts Try to limit “office politics” in work assignments and evaluations Provide continual training and assistance with technology
- 35. Savvy, practical, perceptive Unfeeling, uncultured, amoral Liberty, survival, honor Children of Artist Generation Children in Awakening, midlife in Crisis Queen Elizabeth I, George Washington, Ulysses Grant, George Patton, Harry Truman Generation X (1961-1981)
- 36. Nomad Generation Born 1961 – 1982 Politics: Nixon resignation, Energy crisis, Iranian hostage crisis, IranContra, Challenger, Gulf War Society: end of 1960s, “Me” decade, divorce revolution, working Moms, “quality time”, latchkey kids, Catholic church/Boy Scouts abuse Business: downsizing, multinational corporations Culture: focused on technology, nontraditional families, independent youth, alienation
- 39. 65% 59% 0% 10% 20% 30% 40% 50% Women 60% 70% 80% 90% 100% Men Sylvia Ann Hewlett and Lauren Leader-Chivée, The X Factor: Tapping into the Strengths of the 33- to 46-Year-old Generation, Center for Work Life Policy, 2011
- 40. Sylvia Ann Hewlett and Lauren Leader-Chivée, The X Factor: Tapping into the Strengths of the 33- to 46-Year-old Generation, Center for Work Life Policy, 2011
- 41. Try to find opportunities for advancement Xers are caught between Boomers who expect face time and Millennials who expect work life balance Measure performance by accomplishment/achievement Allow them to work independently or look for “entrepreneurship” opportunities Eliminate red-tape and bureaucracy Provide continual training and assistance with technology
- 42. 90% 81% 80% 70% 71% 70% 60% 50% 40% 30% 20% 14% 12% 8% 10% 0% Baby Boomer Generation X Importance Millennials Satisfaction LifeCourse Associates, INDEPENDENT INSURANCE AGENTS AND BROKERS: THE GENERATION GAP, 2012
- 43. Authority – How to be an authority to older customers Communications competence – talk on the phone Endurance – stick with the program long enough to be successful Social Networking – how to leverage your social network for business, and how to do old-school in person networking
- 44. Help the client identify explicit need Let the client know you understand the need Bring focus on how your solution (you) solves the need ASK FOR THE BUSINESS
- 45. PRELIMINARIES 5% 80% DEMONTRATING CAPABILITIES 10% INVESTIGATING 5% OBTAINING COMMITMENT Successful sales professionals put their main effort here.
- 46. Image credit: stlylephotographs / 123RF Stock Photo
- 47. Sales call reluctance is the fear of self-promotion in professional sales .
- 48. Not Selling, 59 .0% CSO Insight, 2011 Selling, 41 .0%
- 50. Category Anticipated Calls Cumulative Calls Missed Calls Missed Meetings Missed Deals (1/4) Average Commission Missed Revenue Metric 32,700 26,501 (6,199) (32) (8) $30,000 $(240,000)
- 51. Introduce two other connectors Introduce two people with an idea in mind Have a dinner of interesting people Follow up Re-establish contact Show up Interview people Produce something of value Time James Altrucher, Become a SuperConnector, October 2011 Image credit: Ratchanida Thippayos / 123RF Stock Photo
- 52. You should feel the greatest satisfaction if one day your subordinate can do your job better than you ever did, not disparaging. For this is the ultimate in achievement …. The next generation must be more than ready to fill our shoes; they must be ready to run faster in them. -Lieutenant Col. Om Prakash, 87th Flying Training Squadron commander
Notes de l'éditeur
- Why can’t we all just get along?
- I see no hope for the future of our people if they are dependent on the frivolous youth of today, for they are reckless beyond words. When I was young, we were taught to be discreet, respectful of elders, but the present youth are exceedingly disrespectful and impatient.“ – Socrates, 400 BC
- Why are we even talking about this? – because there are not enough 35-45 year olds to replace your currently retiring employees and leaders.
- It’s not just a problem in the US – it’s a problem across most of the developed world. All of the countries in red show a skills gap by 2020. The gaps reflected in this chart are based solely on numbers – the gaps widen when you consider qualitative issues like job mismatch and employability.If that’s not enough to scare you, there are a couple of other statistics that should. In 2011, a study by the Manpower Group showed that 52% of employers had difficulty filling positions because of talent shortages. That’s partly because of the last graph. Drilling down the problem is as much inflexibility as anything else; Peter Cappelli of the Wall Street Journal says “With an abundance of workers to choose from, employers are demanding more of job candidates than ever before. They want prospective workers to be able to fill a role right away, without any training or ramp-up time.” So the qualified workers you want are not there in the labor force. And right now companies are concluding, in the words of Robert Goldfarb of the New York Times: “Let them grow up on someone else’s payroll.” That strategy can work, but the economy is shifting, even if it’s imperceptively slow. CareerBuilder surveys they showed that last year 54% of companies reported they were hiring recent college grads, up from just 43% in 2009. Of companies hiring, 29% said they were paying more than the year before. So you’re going to have more competition to get the best grads. The other shift that’s going to limit your strategy is that people are quitting jobs again. The BLS prepares a report called the Job Openings and Labor Turnover Survey – and the April report showed that more people are now changing jobs than at any time since 2008, and that the numbers have jumped dramatically over the last few months. To recap – the replacement employees you need aren’t in the workforce, you’ve got increased competition for the very best of unskilled recent college graduates, and the economy has sufficiently improved to allow your best existing workers to quit and take a new job. So what do you do?
- I think there are three key reasons why the Millennials think so differently from you Both the Boomers and the Millennials average about 4.5 million people per year. So in 1965, the Boomers were competing with 4.5 million potential workers in an economy of 71 million jobs, while the same number of Millennials are today competing in an economy twice that size. So the boomers had to stay late, had to show up on Saturday, had to have "face time" with the boss so that you would get noticed; there were four or five other people that could or would take that job if you didn't keep it. Today's 25 year old millienial simply does not face that same type of challenge. On top of that, for the first time in history, the youngest generation in the workforce possesses technological skill dominance over the older, supervising generations. So, not only is the competition much less to get a job for these workers, they may often have better skills than the people who have just hired and are supervising them.
- Percentage of Millennials Planning to Change Jobs When Economy Improves: 70% UNC Kenan-Flagler Business School, The Force of Gen Y, June 28, 2012, http://under30ceo.com/infographic-the-who-how-and-why-of-leading-gen-y/Employee engagement is the extent to which employees are motivated to contribute to organizational success and are willing to apply discretionary effort to accomplishing tasks important to the achievement of organizational goals.Rudy Karsan and Kevin Kruse, WE: How to Increase Performance and Profits Through Full Engagement, 2011John Fleming and Jim Asplund, Human Sigma, 2007Hay Group, “Engage Employees and Boost Performance,” Working Paper, 2001. http://web.archive.org/web/20061123123100/http://haygroup.ca/pdf/knowledge_engaged_performance_working_paper.pdfEngaged workers are 18% more productive, 12% more profitable, and 27% less prone to absenteeism. High-engagement companies had an EPS 18% higher than competitors and had growth rates 2.6 times of low-engagement competitors. High-engagement employees can outperform low-engagement employees in highly technical and sales positions by as much as 120%.Researchers from UC Berkeley studied married police officers in the 1990s and found that job stress spilled over into their marriages. Mental job stress led to more marital conflict than physical exhaustion. High mental stress lead to increased cardiovascular activity with lower bodily activity. Couples were “amped up” on the inside but passive on the outside. A 1985 study by NYU showed the opposite – an enriching job led to better marriages while a challenging work environment made both partners more argumentative.Studies at Queen’s University show a similar impact on how a mother’s job stress effects her children, and research has shown that fathers who report low job satisfaction have children who misbehave more frequently at school.Researchers in Finland studied the health impacts of job satisfaction and published their results in the British Medical Journal. They studied workers from 1973 through 2001 and found that workers who were dissatisfied with their jobs and compensation/reward opportunities had a BMI 0.6 higher than satisfied employees – about 5 additional pounds. They also found that workers who rated their managers as effective were 1/3 to ½ less likely to have a heart attack – in other words, having a good boss made employees as much as 50% less likely to have a heart attack.But most shocking was their finding that dissatisfied workers were 2.4 times more likely to die of a cardiac event – almost the same risk to your health as smoking!
- Gallup surveys revealed that slightly more than one-third of non-executives and non-managers strongly agreed that they understand their company’s brand promise and brand differentiation – and these are the employees who likely interact with customers every day.
- “We attended schools eviscerated by budget cuts in an era when kids weren’t a priority; now many schools have better computers than some offices.” Ted Rall, 1994 http://www.rall.com/rallblog/searchablearchives/essays/marketing-madness-a-postmortem-for-generation-x
- Meet the 21 Valedictorians of Medford, OR High school! Ashland High has 10 valedictorians this spring, North Medford High has 10, and South Medford has its 21. Redmond, Oregon – 29 valedictorians.Enterprise High School, Dothan, Al – 34 valedictorians – 1 out of every 12 studentsVanguard High School, Ocala Florida – 25 valedictoriansBluffton High School in Ohio – They only had 9, but that was more than 10% of the graduating class.Richard Sweeney, Millennial Behaviors & Demographics, New Jersey Institute of Technology, December 22, 2006Millennials, by their own admission, have no tolerance for delays. They expect their services instantly when they are ready. They require almost constant feedback to know how they are progressing. Their worst nightmare is when they are delayed, required to wait in line, or have to deal with some other unproductive process. Their desire for speed and efficiency can not be over estimated. The need for speedy satisfaction, or as some believe instant gratification, permeates virtually all of their service expectations.Engagement requires recognition but also appreciation. What’s the difference? It’s something the military understands. Recognition is a medal a soldier is awarded posthumously. Appreciation is a letter that comes from a commanding officer describing the contributions of the fallen soldier.
- Father knows best. Father Knows Best was the classic wholesome family situation comedy. It was set in the typical Midwestern community of Springfield, where Jim Anderson was an agent for the General Insurance Company. Every evening he would come home from work, take off his sport jacket, put on his comfortable sweater, and deal with the everyday problems of a growing family. In contrast to most other family comedies of the period, in which one of the other parents was a blundering idiot, both Jim and his wife Margaret were portrayed as thoughtful, responsible adults. When a family crisis arose, Jim would clam the waters with a warm smile and some sensible advice. Leave it to beaver Leave It to Beaver portrayed the iconic postwar American family: June the perfect housewife, Ward the dad (what did he do for a living, anyway? And why did he always wear a suit to dinner?), big brother Wally, and of course Theodore ("The Beaver"), the good-hearted kid whose adventures propelled the show. Leave It to Beaver debuted in October of 1957 on CBS. In the fall of 1958, CBS dropped the series. ABC picked it up and ran it for an additional 5 years.Andy Griffith Show 1960-1968.The Andy Griffith Show is definitely a TV classic. It ran from 1960 to 1968, producing 249 episodes.The main character, Andy (Andy Griffith), was a widowed father of the polite little boy named Opie (Ron Howard) and is a sheriff, who works with nervous and very suspecting Barney Fife (Don Knotts). They all live in the nice southern town of Mayberry. But, Mayberry can get a little dangerous when the town drunk Otis Campbell (Hal Smith) is on the loose. Thelma Lou (Betty Lynn) is Barney's sweetheart, although Andy had to help him describe his feelings to her. Aunt Bee (Frances Bavier) is the very loving and caring, but stern housekeeper for Andy and Opie. Donna Reed show The Donna Reed Show premiered on September 24, 1958, on ABC. The show revolves around housewife, Donna Stone, and her family--husband Alex who is a pediatrician, 14 year-old Mary, and 11 year-old Jeff. The Stone family reside in the midwestern town of Hilldale. Donna was the perfect American housewife and mother. She was always neatly-groomed, lovely, good-natured, thoughtful, and capable. Alex was handsome, well-respected in his profession, usually thoughtful and sometimes ill-tempered. Mary was a typical teenage girl of the time, pretty, popular, and prone to bouts of insecurity now and then. Jeff was the average boy, rambunctious, bright, preferred sports to studies, and a total burden to his sister. The episodes involved the usual family problems and adventures, with Donna usually saving the day in her quiet, capable way.
- I think there are three key reasons why the Millennials think so differently from you Both the Boomers and the Millennials average about 4.5 million people per year. So in 1965, the Boomers were competing with 4.5 million potential workers in an economy of 71 million jobs, while the same number of Millennials are today competing in an economy twice that size. So the boomers had to stay late, had to show up on Saturday, had to have "face time" with the boss so that you would get noticed; there were four or five other people that could or would take that job if you didn't keep it. Today's 25 year old millienial simply does not face that same type of challenge. On top of that, for the first time in history, the youngest generation in the workforce possesses technological skill dominance over the older, supervising generations. So, not only is the competition much less to get a job for these workers, they may often have better skills than the people who have just hired and are supervising them.
- It should be no surprise that this generation, with its values orientation reinforced by media and culture reacted strongly against what it perceived to be injustice. As we will see with the other generations, the Boomers retain that childhood programming.
- Finally, the third explanation is that Millennials have also radically redefined expectations of their value and ability to contribute to success. And what's more, their parents encouraged them to think that. Parents demanded explanations from teachers for bad test scores and grades. Parents complained to the principal when Billy got in the honor society and Johnny did not. Parents borrowed the money for questionable degrees instead of more vocationally oriented courses of study. Parents sent them to summer camps every year instead of asking them to get a job. As the old 1980s PSA about drugs used to say “I learned it by watching you.”
- The second explanation is that they have a dramatically different view of time. As Cam Marston says in Managing the What’s in it for Me Workforce:To the Boomers and Matures, time was something they had to invest in their careers. They became workaholics because they invested their extra time back into their work. To them, time is/was cheap, and giving it back to an employer through long hours of work was expected. To Gen Xers and New Milliennials, time is expensive and needs to be controlled as closely and tightly as money itself. Time has become a very real currency, just like dollars themselves, and giving control of it to the workplace is definitely not a part of a plan to become successful. When I look at my own kids, and how overscheduled they are today and know that the millennials grew up in that same environment, I can appreciate how they value control of their time.Richard Sweeney, Millennial Behaviors & Demographics, New Jersey Institute of Technology, December 22, 2006Millennials prefer to keep their time and commitments flexible longer in order to take advantage of better options; they also expect other people and institutions to give them more flexibility. They want to “time and place shift” their services, to have them where and when they are ready. They want more granularity in the services so they can be interrupted and finish when they are ready without any loss or productivity.
- This presents a lot of challenges for employers. Obviously they can’t work forever. Understand how to structure succession planning, and how to handle ADA/job difficulty requirements. –in 2010, a survey by the Administration on Aging revealed that 37% of people over the age of 65 reported some type of disability. http://www.aoa.gov/Aging_Statistics/Profile/2011/docs/2011profile.pdf
- According to a 2004 marketing study about generational differences, my age cohort "went through its all-important, formative years as one of the least parented, least nurtured generations in U.S. history." Census data show that almost half of us come from split families; 40% were latch-key kids.
- they are the bench strength for leadership, the skill bearers and knowledge experts corporations will rely on to gain competitive advantage in the coming decades. Approaching or already in the prime of their lives and careers, they are prepared and poised for leadership. Thwarted by Boomers who can’t afford to retire and threatened by the prospect of leap-frogging Millennials, 41 percent of Xers are unsatisfied with their current rate of advancement and 49 percent feel stalled in their careers.37 percent of Xers are planning to leave their current employer in the next three years.This generation has triple strengths: outsized ambition, enormous self-reliance and unflagging resilience. All three were inculcated into this cohort by the social, cultural and economic environment in which they grew up; all three have been enhanced by the circumstances shaping Gen X’s adulthood.Rev. Amy Zeittlow,Lessons from American Girl Dolls, Gen X, and Divorce, Huffington Post, March 13, 2013 http://www.huffingtonpost.com/rev-amy-ziettlow/lessons-from-american-gir_b_2807740.htmlAs my daughter and I flipped through the catalogue discussing the dolls' merits, we found ourselves gravitating to Julie Albright from 1974. I thought, A Gen X doll! Cool! I'm Gen X! I wondered what historical event of the 70's American Girl might highlight that had changed Julie's life forever. Nixon? Inflation? Journalist Stephanie Obley summarizes Julie's story: "Julie Albright's life is changing. The 9-year-old's parents have just divorced and she now lives in an apartment a few miles from her childhood home. She misses her best friend, her pet rabbit and most of all, her father. Holidays are difficult. She doesn't want to tell her friends about the divorce."I had been reading each doll's bio out loud, enjoying a warm mother-daughter moment, but my daughter's face fell as she heard Julie's story. "Well, that's SAD!" she cried out. I quickly noted to myself that we had already read about dolls living through war, slavery, and persecution, all very sad. But then I realized that for most young children reading the American Girl catalogue, war, slavery, and persecution do not live with them; their parents do. So, for a daughter like mine, the saddest doll is the divorce doll.
- Six million dollar man – independent agent of government who undergoes technological modifications after an accident and fights injustice.
- Everyone know what this is? The seagull. What does a seagull do? It soars in, flies around and squawks, then leaves. Any one ever have the seagull manager? Are you a seagull?First thing is don’t be a seagull.Richard Sweeney said “Millennials are interested in processes and services that work and speed their interactions. They prefer merit systems to others (e.g. seniority). Millennials are furious when they feel they are wasting their time; they want to learn what they have to learn quickly and move on. Millennials have no tolerance for services that do not continuously and reliably work. Example, if a student believes that a particular teacher is ineffective, he or she will do whatever it takes to find another teacher, even taking a distance education class. “
- This presents a lot of challenges for employers. Obviously they can’t work forever. Understand how to structure succession planning, and how to handle ADA/job difficulty requirements. –in 2010, a survey by the Administration on Aging revealed that 37% of people over the age of 65 reported some type of disability. http://www.aoa.gov/Aging_Statistics/Profile/2011/docs/2011profile.pdf
- Penelope Trunk - “But the real trend that we really have here is that Generation X puts parenting before anything else—even men. Gen X is horrified by the self-centered parenting that they received. And Gen X is an inherently revolutionary generation. We have little to lose: We are the first generation in American history to earn less than our parents.” -2007Penelope Trunk - “NattavudhPowdthavee, an economist at the University of London who studies money and happiness, points out that earning a lot of money and maintaining intimate relationships both take a lot of time. So you have to decide where your time is best spent.”-2007
- We tracked the calls and meetings of our trainees and we found they typically fell below their targets. At first I thought it was a reporting issue, but we even installed a call counter and the totals still didn’t improve. We found that they were discouraged by poor results from a lack of training – they never knew what to say. I also believe – although they would not admit it – that they were afraid of calling people on the phone. The phone has fallen out of favor for those under 30. A recent survey showed that over 75% of them send more than 20 texts per day. The survey reports:Among all teens, the frequency of use of texting has now overtaken the frequency of every other common form of interaction with their friends. Fully two-thirds of teen texters say they are more likely to use their cell phones to text their friends than talk to them by cell phone.One millennial describes the phenomenon:"Of course I text people. Usually to tell them to call me. It sure beats having them answer the phone and saying I'll call you back, or leaving a message that then have to listen to, and then call me and maybe get me maybe not."It’s really hard to get a meeting by texting a prospect.
- In their book The Psychology of Sales Call Reluctance, Shannon Goodson and George Dudley surveyed 11,000 sales people and found that 80% of new sales people failed because of sales call reluctance. Steve Kloyda describes the phenomenon:“We've all found ourselves on phone calls, lost in no man's land because we were not prepared. The client hears hesitation, discomfort, a shaky voice, and perhaps a less than smooth attempt to right the ship. If we string several of these calls together, our confidence can falter and our reluctance to make the next call deepens.”Goodson and Dudley also discovered that another 40% of experienced sales people reported episodes of sales call reluctance severe enough to potentially end their careers in sales. We tracked the calls and meetings of our trainees and we found they typically fell below their targets. At first I thought it was a reporting issue, but we even installed a call counter and the totals still didn’t improve. We found that they were discouraged by poor results from a lack of training – they never knew what to say. I also believe – although they would not admit it – that they were afraid of calling people on the phone.
- More than anything, these workers need your leadership and guidance, and your recognition that they are on the path to success. And outside of time, setting up these kinds of programs is mostly free. Those lessons are applicable to any industry. Sales is the key challenge for this generation. A 2011 survey by CSO Insight showed that sales people only spend about 41% of their time selling.A little more than 41 percent is spent selling by phone or face-to-face. The survey also pointed to a very clear relationship between time spent with customers and sales reps making quota. For example, salespeople who spent 35 percent or less of their time selling by phone or face-to-face achieved quota only 55 percent of the time; however when salespeople spent more than 45 percent of their time selling, the chances of them making quota went up to 62 percent. More belly-to-belly selling time fattens salespeople’s wallets.
- We measured calls, meetings, and revenue per transaction. Over the course of a year, we found our trainees were 6,000 calls short of their targets – only about 15 calls per week per associate short.
- We were able to show that the short fall – 15 calls per week – based on call to meeting ratios, deal closing ratios and average commissions – resulted in $250,000 in lost opportunities.This is the kind of data we started integrating into our onboarding materials. Although this shortfall represented a small percentage of the company’s revenue, it should have represented about $20,000 per new agent – a significant amount for trainees who worked on straight commission.
- Lt Col Om Prakash, who trains fighter pilots for the Air Force, says:You should be glad if with your help the new Airman learns their job better than you, not discouraged. You should be proud if your student can one day fly feats beyond your skill, not envious. You should feel the greatest satisfaction if one day your subordinate can do your job better than you ever did, not disparaging. For this is the ultimate in achievement …. The next generation must be more than ready to fill our shoes; they must be ready to run faster in them. Thank you.