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Bridging the Gap
An employers guide to managing and retaining
the new generation of employees




                                               BRIDGING THE GAP   |   1
about this publication




             Today’s young workers: Generation Y, have different characteristics, attitudes, and workplace
             expectations to older generations. Based on the latest Australian research, this guide provides you
             with the key information and skills you need to better retain, manage and train this 21st Century
             worker.

             We have also produced an accompanying Employees Guide. You’ll find it and more resources at
             www.mccrindle.com.au




                                                                                               BRIDGING THE GAP    |   2
introduction


The future of industry is shaped not just by the economic and technological changes,
but also by population and generational changes. The key to ongoing success
therefore depends not just on technical excellence but managerial excellence.




Beginning a career in today is a very different experience to those who grew up in the
1960’s, or the 1980’s. In many ways we resemble our times more than we resemble
our parents. Therefore understanding these ever-changing times in relation to the very
                                                                                         In these times of fast change, every
different employee of today is essential for every business owner.
                                                                                         organisation and business is just one
                                                                                         generation away from extinction. Unless we
                                                                                         can understand and remain relevant to the
                                                                                         new generation of employees we will edge
                                                                                         towards irrelevancy.




                                                                                                                         BRIDGING THE GAP   |   3
changing times                                                                  an ageing population

                                                      THE FACTS on an ageing population
Australia, like most developed nations is
experiencing a rapid ageing of the population.        Increasing average age
The result is that there are fewer young people
relative to the population and this is particularly   In 1976 the median age of an Australian was 28 (1) compared to 37 (2) today, and in a decade it will be

evident in those aged 15–19, the traditional          nearly 40 (3). The average age of full-time workers has also been rising and today it sits at 39 (4). The ageing

apprentice age group.                                 workforce is even more evident in some industries and occupations. For example, in manufacturing it is 40,
                                                      in agriculture and bookkeeping it is 43, in education 44, and for a registered nurse it is 45 (5).


                                                      Smaller working age population
This ageing population will continue because
longevity rates are rising and the trend to have      Australia’s population aged 15–64 years, which encompasses most of the working-age population, is in
fewer children later in life is continuing.           decline as a proportion of the total population. Currently 66% of the total population is aged 15–64 years
                                                      but by 2051 it will decline to just 57% (6).


Yet the population and the economy are still          More of the old - less of the young
growing. The result is that the demand for
                                                      Australia’s population will continue to age. The proportion of the population aged under 15 years is
labour is clearly greater than the supply.
                                                      projected to fall from 20% today to around 14% by 2051 (7).


                                                      The war for talent Is a global one

                                                      The median age for the world’s most developed countries is currently between 30 and 42 (8). As a result,
                                                      Australians are in great demand overseas. In the 28–39 year age group, there are 20,000 fewer men than
                                                      women because so many men of this age group are working overseas. The reason for this is that, firstly,
                                                      men still demonstrate greater vocational mobility and, secondly, this is the peak child-rearing age for
                                                      Australian women (9).
                                                                                                                                                 BRIDGING THE GAP   |    4
changing times                                           an ageing population

Next Steps:
• 	 The power has shifted - it’s an employees market: With fewer
   in this age group we have to work harder to attract and retain
   them. Gone are the days when you could get rid of an employee
   and replace them from a plentiful pool or workers.

•	 This new reality is here to stay: Even after the Global Financial
   Crisis of 2008-09, in Australia skills shortages remained. The point
   is that the skills shortages are caused by demographic changes
   (ageing and retiring workforce), not just the economic changes
   (labour demand and supply).

•	 Generation Y really do matter: Some employers, after bad
   Gen Y experiences are tempted to focus purely on employing
   more mature workers from whom they get better loyalty
   and commitment. However, only the Gen Y’s can bring
   youthful idealism and energy, a fresh view to the industry,
   new qualifications and a 21st Century perspective to life and
   technology. Generational diversity is the key to a balanced
   workforce reflective of the varying ages of customers and society.




                                                                                       BRIDGING THE GAP   |   5
increasing options

Education rates in Australia have been            THE FACTS on the increasing options for today’s
increasing over the last few decades. Even
                                                  Education options - There are more education pathways and options available today than ever before.
those considering an apprenticeship are often
                                                  Of all the students beginning high school today, 75% will complete Year 12, compared to only 20% in
completing Years 11 and 12. Therefore we
                                                  1967 (10). The Year 12 retention rate is only set to increase with the Federal Government’s introduction of a
are dealing with the most formally educated
                                                  national Year 12 retention rate target of 90% by 2015. Also, over half of school leavers now go onto further
generation ever and this opens more
                                                  study. University is the most likely pathway: 30% go onto higher education, while 24% continue their
employment opportunities for them.
                                                  studies at TAFE or other forms of education (11).
Combined with this is their technological
literacy and the positive perception that they    New and emerging career options - There are more careers on offer today than ever before — which
have of the IT, service and business sector       is a challenge to traditional trades. In Australia today there is an estimated skills shortage equivalent to 1%
which adds to the recruitment challenge for       of the labour force. This equates to over 100,000 potential jobs for which there are no willing workers (12).
the traditional trades. We are also dealing
                                                  More employable than ever - The unemployment rate is currently hovering around 5%, and even
with a generation that have come of age
                                                  though it has increased slightly because of the economic downturn, it is still very low by historical standards
in an entrepreneurial world with increasing
                                                  (13).
opportunities to start their own business or at
least change careers regularly until they find
                                                  Shorter careers- and more of them - The length of time workers spend per employer has been in
one that suits them.
                                                  freefall for decades. In 1960 employees averaged 15 years per employer. Today the average tenure has
In an ageing population they know that they       dropped to just 4 years (14). Also, today’s school leavers have the opportunity to change careers more than
are in demand and so they are not as worried      ever. It is predicted that the average school leaver today will have over five careers and 20 employers and
about the risks of changing employers — or        be self-employed at least once in their lifetime (15).
even careers.


                                                                                                                                           BRIDGING THE GAP       |   6
increasing options

Next Steps
• 	 One size doesn’t fit all: Greater focus is required to effectively
   attract and recruit young people, who relative to the total
   population, are less numerous. A dedicated approach specifically
   targeting their interests and attitudes, which are very different to
   older workers, does bring about more effective outcomes.

• 	 Age is just a number today: In the workplace it’s not about age
   or life stage, but one’s mindset and understanding that matters.
   Diversity is all that this generation has ever known so work hard to
   provide an atmosphere that values it: whether it is gender, cultural,
   or generational diversity.

• 	 Don’t judge them - just understand them: While derided as
   fickle, self-focussed, and disloyal, the reality is that they just reflect
   their times. Jobs aren’t guaranteed and companies come and go
   so it is not an inherent selfishness but a response to the economic
   realities. Therefore it is best to avoid value judgements and just
   implement what we can to best attract and retain them.




                                                                                BRIDGING THE GAP   |   7
redefined work life

While the benefits of achieving a work/life balance     THE FACTS on the increasing options for today’s employees
are evident to all, the emerging employees expect
                                                        Casual workers - 30% of the total workforce is employed on a casual basis while for Generation Y it is
this balance from the start of their career. They
                                                        over 40% (16).
don’t feel the need to earn it - they just demand it.
While we can wish for the work ethic, commitment
                                                        Global workforce - Australia’s cultural diversity — and links to overseas work opportunities stands at an
and duty of the good old days, these days are all
                                                        all-time high. Over a quarter of the total population was born overseas (17).
we have to work with.
                                                        Sea Changers - The relocation trend continues. Around 6 million Australians live in coastal areas outside
                                                        capital cities with the growth strongest in Queensland and Western Australia (18). Also those relocating are
The reality is that Generation Y value balance in       not just retirees, in fact 4 in 5 were aged under 50 (19).
life, variety in the job, and change in their roles.
Therefore to achieve better retention we need           Balancing work and life - Australians work the longest hours of any OECD country, with 20% of
to create a work culture which provides flexibility     employees working more than 50 hours each week (20). Workers today report an increase in role overload,
and a management style which communicates               time squeeze and deterioration in Quality of Life when work/life balance is not maintained. 46% of those
respect.                                                surveyed state that more flexible hours will best help them achieve the balance (21). Our research showed
                                                        that the importance of work/life balance ranks high among 4 in 5 Australians. However, the younger one
                                                        is the more important it is: 79% of Boomers compared to 85% of Gen Y’s consider work/life balance
                                                        very important. This serves as a reminder to employers of the crucial role of work/life balance in retaining
                                                        workers, particularly younger ones (22).




                                                                                                                                                BRIDGING THE GAP       |   8
redefined work life

Action Steps

• 	 Generation “Why?”: Assess policies and ground rules and ensure
  that there are good reasons that underpin them. Keep in mind that
  by providing a flexible workplace you will meet the needs of not
  just the Y’s but of all of the generations.




• 	 Bridging the gaps - from both sides: Not only must employers
  seek to understand Gen Y, but the Gen Y’s must be trained to
  better connect with the older workers and contractors. After all,
  the new reality is a team where younger supervisors manage
  teams comprising some older workers.




• 	 The revolving door of employment: If they leave to try some
  travel or a new job — keep in touch as they may later want to
  return. They don’t view leaving an organisation as an act of
  disloyalty but a simple life change and so they see no problem
  with returning should circumstances change.




                                                                      BRIDGING THE GAP   |   9
changing generations

In recent times the impacts of the generational changes have dawned on many employers. We are reading
more about the transitioning generations with Australia’s largest generation — the Baby Boomers now
beginning to move into their 60’s and into their post-working life. At the same time many are experiencing for
themselves the generation gap as a new and young generation start work with very different views and values
to the existing leaders.                                                                                         Occasionally in history rapid
                                                                                                                 technological change combines
                                                                                                                 with massive demographic
While having a mix of generations in the workplace is nothing new, traditionally the different age groups        change and with one
were separated by a clear chain of command with the older workers as supervisors and managers while              generation society altogether
the younger were the apprentices and juniors. Not so today. The new reality is one of flatter organisational     alters. Today we are living in
structures where teams of diverse ages work together, and where younger staff are less afraid to argue their     one such era.
point, make a demand, or push back on the older staff.




With all these generations mixing in the workforce, at all organisational levels there is a need to understand
the generational differences and get the most out of this generational diversity.




Without an effective understanding of the different values and perspectives that each generation brings,
we create a breeding ground for conflict. Indeed of all of the diversity in the modern organisation, it is the
generation gaps that are causing most of the angst.




                                                                                                                                 BRIDGING THE GAP   |   10
changing generations




                       BRIDGING THE GAP   |   11
keys to good communication

Traditional Employers        Today’s Apprentices

         Work ethic                  Work/life

        Bank balance                Life balance

         Task focus                 Team focus

        Commitment                   Enjoyment

          Authority               Empowerment

       Independence                   Support

          Structure                  Flexibility

          Tell them                  Involve us

         Conformity                  Creativity

          Tradition                  Innovation

          Regional                     Global

        Long careers                 Many jobs

       Learn then earn            Lifelong learning

           Loyalty                     Variety

                                                      BRIDGING THE GAP   |   12
why is generation y so different?


A generation is defined by the years and thus, the era of their birth. All those
within a generation share not only a similar age and life stage — but also a similar
technological and economic period which shaped them. It is these two factors that we
must keep in mind when managing Generation Y.




Much of what defines them is simply a product of their age. They are not as mature
or experienced as the older generations and so some of their views and values will
change as they move through different life stages and levels of responsibility.




However they are also a product of their times, which have been characterised by 15
years of economic growth, political stability, rapid technological change, fast moving
careers, changing family structures, massive social shifts. They are the world’s first
global generation. We are dealing with the most educated, entertained, materially
endowed, entrepreneurial yet supported and protected generation in history. So both
their age, and their times have combined to create them and differentiate them from
the older generations.




                                                                                         BRIDGING THE GAP   |   13
what characterises generation y employees?

The table below gives a snapshot of what each generation was exposed to as they began their working life. It shows the transition of workplace expectations,
leadership and communication over the last few decades. It is not a table of how to connect with each generation today, but rather a historical analysis of what
previous generations were exposed to in their formative years. Indeed by adopting the characteristics under the Generation Y column, managers are also better
able to connect with Generation X and the Baby Boomers today.


                                                         Baby Boomers                  Generation X                   Generation Y
                                                         Born 1946-1964                Born 1965-1979                 Born 1980-1994
                                                         Aged 40’s & 50’s              Late 20’s & 30’s               Teens and 20’s

                                                         Work ethic                    Achievement                    Ownership
              Values at work:
                                                         Industry-focus                Company-centric                Individuality
                                                         Financial security            Career progression             Job variety
              Motivations for work:
                                                         Responsibility                Opportunity                    Creativity
                                                         Parents                       Careers Advisors               Internet
              Influences over career choice:
                                                         Authorities                   Experts                        Peer Groups
                                                         Tradition                     Observation                    Perception
              Shapers of career perception & views:
                                                         Reputation                    Recommendation                 Experience
                                                         Recruiting                    Training                       Innovating
              Key management tools:
                                                         Supervising                   Promoting                      Empowering
                                                         Technical data                Visual examples                Hands-on learning
              Key communication tools:
                                                         Evidence                      Demonstration                  Participation
                                                         Formal                        Programmed                     Interactive
              Typical training style:
                                                         Monologue                     Dialogue                       Multi-modal
                                                         Control                       Coordination                   Consensus
              Typical leadership style:
                                                         Thinkers                      Doers                          Feelers
                                                         Local                         Regional                       Global
              Influencers and Values:
                                                         Long-term needs               Medium-term goals              Short-term wants
                                                         Telling                       Selling                        Involving
              Management approach
                                                         “Yes boss”                    “What’s in it for me”          “Here’s what I think”

                                                                                                                                              BRIDGING THE GAP   |   14
changing expectations

The 4 main issues that employers struggle with
when it comes to Generation Y
• 	 Attraction and retention: How can I employ them and how can I keep them once
   they join?

• 	 Management and leadership: What management style works best and how can I
   get the best from them?

• 	 Training and development: How can I best communicate with them and what is
   the most effective training style to get results?

• 	 Motivation and recognition: What will inspire them to work more effectively, to
   keep them engaged, and how can I reward them for a job well done?




Let’s look at these four critical areas in detail...




                                                                                      BRIDGING THE GAP   |   15
attraction & retention

To attract and retain them in this high-turnover era we must meet their top 5
workplace needs. This comes straight from our research and study of thousands
of Australian Gen Y workers and in order of importance they look for:


1. Work/Life Balance:
For Generation Y their job matters however it is not their life – but rather it provides
funds that fuel their life. In addition to their job they may also be juggling study,
friends, family, sport, other work and community involvements. So when it comes
to their work schedule and overtime think: flexibility. Remember: if there’s a clash
in the work-life balance, life wins!


2. Workplace Culture:
This has to do with the relationships with others at work. For Generation Y social
connection with peers is one of the top retention factors. Not all of them have
support from home so they are looking for a place to belong. Remember: they
want community, not a workplace. Friends not just colleagues.




                                                                                           BRIDGING THE GAP   |   16
attraction & retention

3. Varied Job role:
Gen Y like change - it’s all they’ve ever known. So offer variety in their job
description and combine it with responsibility and promotions where possible.
Remember: Many quit jobs not because there is a compelling reason to leave,
but because there is no compelling reason to stay.


4. Management Style:
The ideal supervisor is one who values communication not just authority. One who
leads by example and involvement and not just by command and control. Gen
Y’s are just beginning their careers so offer support, mentoring, positive feedback
and public recognition. As John Maxwell says “If you’re leading, and no one’s
following – then you’re just out for a walk”.


5. Training:
Generation Y know that in the 21st Century it is essential to keep their skills up
to date. In fact 90% of Generation Y’s who receive regular training from their
employer are motivated to stay with their employer. So today training is more
than a tool for productivity – it is a tool for retention.




                                                                                      BRIDGING THE GAP   |   17
management & leadership


The right leadership style will not only assist with effective work outcomes — it will also help with Gen Y retention. Our analysis of the causes of employee
turnover shows the central role that leadership plays in employee retention. Specifically, 42% of Gen Y’s surveyed reported that poor management and
leadership was the main reason for leaving their previous role (23).

As shown in the table on page 14, Gen Y’s do not respond well to hierarchical leadership structures. Unlike the Baby Boomers, young workers have been
raised in an environment where they have been given leadership opportunities throughout their schooling and encouraged to challenge and independently
evaluate other’s decisions. As a result Gen Y has brought new values to the workplace. Gen Y’s expect to be treated as equals, they expect to have choices
and input into decision-making processes, and such expectations run counter to hierarchical systems of leadership.

Indeed, 97% of Gen Y’s surveyed valued a leadership style that involved empowerment, consultation and partnership, and would leave if they did not get it
(24).


Today’s leaders require more than just IQ (intellectual intelligence) — these days what is also needed is EQ (emotional intelligence). While technical skills are
essential for managers in all industries — so too are people skills. Emotional intelligence involves being able to understand and manage one’s own emotions
and behaviour, as well as being able to understand and manage those of other people.

The danger of having low EQ leaders is that they may not understand or value the strengths that Gen Y bring to the workplace. Instead of working with Gen
Y’s to capitalise on their unique strengths, they are simply likely to butt-heads with them, creating an unhappy, unproductive and continually turning-over
workforce.




                                                                                                                                             BRIDGING THE GAP       |   18
management & leadership

So what management styles work best?
Authoritarian

Style: The positional leader relying on rank and role.

Verdict: Might be acceptable in the military or in the 1950’s - but not today. No sir!

Directing

Style: Leader points the way from afar and delegates the tasks.

Verdict: They want guidance not gurus. Mentoring not micromanagement.

Consulting

Style: Leader asks the questions and includes the team.

Verdict: A good approach. Gen Y have opinions and want to voice them.

Involving

Style: The participative leader - leading from within and leading by example.

Verdict: This generation loves a leader who empowers the team.

Coaching

Style: Leadership that is not a positional role, but more an influence relationship.

Verdict: This style is made for Gen Y. Two thumbs up!

                                                                                         BRIDGING THE GAP   |   19
management & leadership

Next Steps
•	      Training = retaining: Training is more than being just about skills —
it is about retention. Our studies show that 90% of Generation Y agreed that
if they received regular training from their employer it would motivate them
to stay longer with their employer.

•	      Develop the soft skills not just the hard skills: With this generation
not just changing jobs but careers so frequently, equipping them with
transferable skills is important. Many technical skills are relevant only for
their current role but the people skills will be relevant throughout their
working life.

•	      The manager as mentor: Training is more than a teacher in the
classroom. Their preferred method of training was on the job training, which
required the supervisor to be more than an expert — it required them to be
something of a coach and mentor.




                                                                                 BRIDGING THE GAP   |   20
training and development:

Sometimes it’s not that they’ve failed their training – it’s that their training has failed them
Generation Y have heard the mantra of lifelong education all through school, and they’ve come to accept it. The key therefore to remaining relevant in changing times
is ongoing training. This will keep them effective in their current job, but also employable for their future careers which after all may be just a few years away.


Real

Not only must our communication style be credible, but we must be also. They don’t expect us to know all about their lifestyle, nor do they want us to embrace
their culture. They are simply seeking understanding, and respect. If our communication has a hidden agenda, or we are less than transparent, it will be seen. This
generation can sniff a phoney from a long distance.


Relevant

Obviously what we are communicating has to fall within their area of interest. But the style, as well as the content of our message must be relevant to a generation
who are visually educated and entertained. They think in hyperlinks, they multi-task, value speed over accuracy and they absorb information from multiple
sources. This way of thinking is little suited to traditional communication methodologies. Yes even us males can today do more than just breathing at once.


Relational

Communicating to this generation requires more than just substance, it needs an effective style, all delivered in an environment of understanding, respect, and
genuine interest. While they don’t show loyalty to companies - Gen Y show great loyalty to friends. So build the relationships - in doing so you’ll be building the loyalty.




                                                                                                                                                   BRIDGING THE GAP   |   21
training and development:

Next Steps


•	   Training = retaining: Training is more than being just about
     skills - it is about retention. Our studies show that 90% of
     Generation Y agreed that if they received regular training from
     their employer it would motivate them to stay longer with their
     employer.

•	   Develop the soft skills not just the hard skills: With this
     generation not just changing jobs but careers so frequently,
     equipping them with transferable skills is important. Many
     technical skills are relevant only for their current role but the
     people skills are will be relevant once they complete their
     apprenticeship and begin managing others.

•	   The manager as mentor: Training is more than a teacher in the
     classroom. Their preferred method of training was on the job
     training, which required the boss to be more than an expert - it
     required them to be something of a coach and mentor.




                                                                         BRIDGING THE GAP   |   22
motivation & recognition

While money matters to Gen Y, it is not the strongest motivator. Our research showed
that if remuneration was within the average range, it was not the determining factor in
keeping the job. In fact it wasn’t even in the top 5.




Gen Y’s yearn for recognition, and they have had longer than previous generations in a
supportive education system that has provided this. Our studies show that they have
grown up with a safety-net of support at home, in society, and through their education.
And they expect that support to continue somewhat, even at work.




We’ve met employers who understandably state: “why should I congratulate them for
doing their job” or “their pay is their thankyou”. Generation Y, however responds to
positive reinforcement and are more likely to continue and further improve their behaviour
as a result.




It is true that Gen Y’s are not used to blunt and negative feedback — even at TAFE they
didn’t “fail” they were simply deemed “not yet competent”! Yet providing Gen Y’s with
feedback about work that could be improved is essential. Keep in mind that they do
respond best when feedback is kept “constructive” or “above the line”. Rather than
scolding Gen Y’s for less than optimal performance, highlight behaviours that could be
improved, and provide them with guidance about how improved performance can be
achieved.
                                                                                             BRIDGING THE GAP   |   23
motivation & recognition

Here are 4 keys for effective feedback and communication:

Interest:                                                                        Involve:

If they don’t understand the way you communicate, then communicate the           They are the world’s most interactive generation — wherever they are on the
way they understand!                                                             planet they are logged-on, linked-up, and looking around.

Getting their attention and interest is required before offering the feedback.   A generation ago 70% of students were the strucvtured auditory learners;
Put your point in terms and concepts that make sense to them or are of           today they comprise only 30% (25). We are talking about a generation that
interest to them. They’re called Generation Why for a reason!                    don’t want to sit and listen — they want to see and do.

Remember it’s not about telling it to them — but selling it to them.             Inspire:

Instruct:                                                                        The old adage is true: they don’t care how much you know — until they know
                                                                                 how much you care.
Essentially it’s not a generation gap — it’s a communication gap.
                                                                                 The fact is that we all make decisions not just based on the head — but also
Keep it concise — we are dealing with shorter attention spans today. And
                                                                                 on the heart. So when motivating and communicating with an employee ask
keep it clear — get feedback to clarify that they got your message.
                                                                                 yourself three questions:
Remember the responsibility for the message rests with the communicator
                                                                                 	      1. What do I want them to know?
not the listener.
                                                                                 	      2. What do I want them to do?

                                                                                 	      3. What do I want them to feel?



                                                                                                                                     BRIDGING THE GAP   |    24
motivation & recognition

Next Steps

•	    Find out what motivates your staff: It may not be what
      most motivates you. This can be simply done by conducting
      employee surveys or by having a discussion with each Gen
      Y employee to identify their individual needs and aspirations.
      Implement a developmental plan for each individual.

• 	   Exit interviews: Don’t forget to conduct exit interviews with
      departing Gen Y employees — this is a great source of learning
      and can give you ideas for changes and strategies for the
      future.

•	    Think “workmates” not “employees”: 42% of all Gen Y’s
      surveyed placed “relationship with peers” as one of the top 3
      reasons for getting or keeping their job. An environment where
      they can interact socially and work collaboratively is highly
      regarded by Gen Y’s. So adopt strategies to encourage social
      interaction and relationship building at work to help promote
      positive interactions among team members and reduce the
      occurrence of unhealthy conflict.




                                                                       BRIDGING THE GAP   |   25
employers’ checklist:
1. How is the employment market today different to previous decades?
___________________________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________________________

2. What proportion of your employees fit into each generation?
   • 	 Number of Baby Boomers: ______________________________________________________________________________________________________________________
   • 	 Number of Generation X: _______________________________________________________________________________________________________________________
   • 	 Number of Generation Y: _______________________________________________________________________________________________________________________
3. From your experience, state a distinct characteristic of each generation:
   •	 Baby Boomers: _______________________________________________________________________________________________________________________________
   •	 Generation X: ________________________________________________________________________________________________________________________________
   •	 Generation Y: ________________________________________________________________________________________________________________________________
4. List some strategies which will help you better attract and retain today’s apprentices?
   • ______________________________________________________________________________________________________________________________________________
   • ______________________________________________________________________________________________________________________________________________
   • ______________________________________________________________________________________________________________________________________________
5. How would you describe the preferred leadership style of Gen Y apprentices?
   • ______________________________________________________________________________________________________________________________________________
   • ______________________________________________________________________________________________________________________________________________
6. How can you better motivate and recognise your younger employees?
   • ______________________________________________________________________________________________________________________________________________
   • ______________________________________________________________________________________________________________________________________________
7. What are 2 points to keep in mind when training and communicating with Generation Y?
   • ______________________________________________________________________________________________________________________________________________
   • ______________________________________________________________________________________________________________________________________________
8. List 2 steps that you can take this week to better engage with your Gen Y staff?
   • ___________________________________________________________________________________________________________________________________________	
   • _______________________________________________________________________________________________________________________
                                                                                                                                BRIDGING THE GAP    |   26
references
1.	     Australian Bureau of Statistics (2006) Australian Labour Market Statistics, cat. no. 6105.0.
2. 	    Australian Bureau of Statistics (June 2009) Population by age and sex, Australian States and Territories, cat. no. 3201.0, 
	       www.abs.gov.au/Ausstats/abs@.nsf/mf/3201.0.
3. 	    McCrindle Research (2010) Australia in 2020: A Snapshot of the Future, www.mccrindle.com.au/snapshots/Australia2020.pdf.
4.	     McCrindle, M. (2009) The ABC of XYZ: Understanding the Global Generations, UNSW Press, Sydney, p. 126.
5.	     Ibid.
6.	     Ibid, p. 125.
7.	     Australian Bureau of Statistics (2005) Population Projections, Australia, 2004-2101, cat. no. 3222.0,
	       www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3222.0Explanatory%20Notes12004%20to%202101?OpenDocument.
8.	     McCrindle, M. The ABC of XYZ, p. 128.
9. 	    Ibid., p 126.
10. 	   McCrindle, M. The ABC of XYZ, p. 35.
11. 	   Ibid., p. 105.
12.	    McCrindle Research figures (2010).
13.	    Ibid., p. 133.
14.	    Australian Bureau of Statistics Australian Labour Market Statistics.
15.	    McCrindle Research figures.	
16.	    Ibid.
17.	    McCrindle, M. The ABC of XYZ, p. 35.
18.	    The University of Sydney (2005), Report for the National Sea Change Taskforce, www.seachangetaskforce.org.au/Publications/researchreportno.1.pdf.
19. 	   McCrindle, M. The ABC of XYZ, p. 126.
20.	    Australian Bureau of Statistics (November 2006) Working Time Arrangements, Australia, cat. no. 6342.0, www.abs.gov.au/ausstats/abs@.nsf/mf/6342.0.
21.	    Relationships Australia (2004) Relationships Indicator Survey.
22.	    McCrindle, M. The ABC of XYZ, p. 142.
23. 	   McCrindle Research figures.
24.	    Ibid.
25.	    McCrindle, M. The ABC of XYZ, p. 110.
                                                                                                                                         BRIDGING THE GAP    |   27
Bridging The Gap - Workshops



McCrindle Research exists to conduct world-class research and to communicate the

insights in innovative ways. You will find out more about our research agency at www.

mccrindle.com.au.




Our national research panel is www.AustraliaSpeaks.com.




You can find out more about our purpose built research facility at www.researchrooms.

com. Visit www.theABCofXYZ.com to order a copy of Mark’s book on the global

generations. If you want further input with a workshop or keynote presentation just let us

know. Call us at 1800 TRENDS.




                                                                                             BRIDGING THE GAP   |   28
changing generations




                         BRIDGING THE GAP | 30
                       www.mccrindle.com.au
what characterises generation y employees?

The table below gives a snapshot of what each generation was exposed to as they began their working life. It shows the transition of workplace expectations,
leadership and communication over the last few decades. It is not a table of how to connect with each generation today, but rather a historical analysis of what
previous generations were exposed to in their formative years. Indeed by adopting the characteristics under the Generation Y column, managers are also better
able to connect with Generation X and the Baby Boomers today.


                                                         Baby Boomers                  Generation X                   Generation Y
                                                         Born 1946-1964                Born 1965-1979                 Born 1980-1994
                                                         Aged 40’s & 50’s              Late 20’s & 30’s               Teens and 20’s

                                                         Work ethic                    Achievement                    Ownership
              Values at work:
                                                         Industry-focus                Company-centric                Individuality
                                                         Financial security            Career progression             Job variety
              Motivations for work:
                                                         Responsibility                Opportunity                    Creativity
                                                         Parents                       Careers Advisors               Internet
              Influences over career choice:
                                                         Authorities                   Experts                        Peer Groups
                                                         Tradition                     Observation                    Perception
              Shapers of career perception & views:
                                                         Reputation                    Recommendation                 Experience
                                                         Recruiting                    Training                       Innovating
              Key management tools:
                                                         Supervising                   Promoting                      Empowering
                                                         Technical data                Visual examples                Hands-on learning
              Key communication tools:
                                                         Evidence                      Demonstration                  Participation
                                                         Formal                        Programmed                     Interactive
              Typical training style:
                                                         Monologue                     Dialogue                       Multi-modal
                                                         Control                       Coordination                   Consensus
              Typical leadership style:
                                                         Thinkers                      Doers                          Feelers
                                                         Local                         Regional                       Global
              Influencers and Values:
                                                         Long-term needs               Medium-term goals              Short-term wants
                                                         Telling                       Selling                        Involving
              Management approach
                                                         “Yes boss”                    “What’s in it for me”          “Here’s what I think”

                                                                                                                                           BRIDGING THE GAP 31|
                                                                                                                                         www.mccrindle.com.au
keys to good communication

Traditional Employees    21st Century Expectations

         Work ethic                 Work/life

        Bank balance               Life balance

         Task focus                Team focus

        Commitment                  Enjoyment

          Authority              Empowerment

       Independence                  Support

          Structure                 Flexibility

          Tell them                 Involve us

         Conformity                 Creativity

          Tradition                 Innovation

          Regional                    Global

        Long careers                Many jobs

       Learn then earn           Lifelong learning

           Loyalty                    Variety

                                                                      |
                                                       BRIDGING THE GAP 32
                                                     www.mccrindle.com.au

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Bridging the Gap: Employers Guide to Managing Gen Y & Z

  • 1. Bridging the Gap An employers guide to managing and retaining the new generation of employees BRIDGING THE GAP | 1
  • 2. about this publication Today’s young workers: Generation Y, have different characteristics, attitudes, and workplace expectations to older generations. Based on the latest Australian research, this guide provides you with the key information and skills you need to better retain, manage and train this 21st Century worker. We have also produced an accompanying Employees Guide. You’ll find it and more resources at www.mccrindle.com.au BRIDGING THE GAP | 2
  • 3. introduction The future of industry is shaped not just by the economic and technological changes, but also by population and generational changes. The key to ongoing success therefore depends not just on technical excellence but managerial excellence. Beginning a career in today is a very different experience to those who grew up in the 1960’s, or the 1980’s. In many ways we resemble our times more than we resemble our parents. Therefore understanding these ever-changing times in relation to the very In these times of fast change, every different employee of today is essential for every business owner. organisation and business is just one generation away from extinction. Unless we can understand and remain relevant to the new generation of employees we will edge towards irrelevancy. BRIDGING THE GAP | 3
  • 4. changing times an ageing population THE FACTS on an ageing population Australia, like most developed nations is experiencing a rapid ageing of the population. Increasing average age The result is that there are fewer young people relative to the population and this is particularly In 1976 the median age of an Australian was 28 (1) compared to 37 (2) today, and in a decade it will be evident in those aged 15–19, the traditional nearly 40 (3). The average age of full-time workers has also been rising and today it sits at 39 (4). The ageing apprentice age group. workforce is even more evident in some industries and occupations. For example, in manufacturing it is 40, in agriculture and bookkeeping it is 43, in education 44, and for a registered nurse it is 45 (5). Smaller working age population This ageing population will continue because longevity rates are rising and the trend to have Australia’s population aged 15–64 years, which encompasses most of the working-age population, is in fewer children later in life is continuing. decline as a proportion of the total population. Currently 66% of the total population is aged 15–64 years but by 2051 it will decline to just 57% (6). Yet the population and the economy are still More of the old - less of the young growing. The result is that the demand for Australia’s population will continue to age. The proportion of the population aged under 15 years is labour is clearly greater than the supply. projected to fall from 20% today to around 14% by 2051 (7). The war for talent Is a global one The median age for the world’s most developed countries is currently between 30 and 42 (8). As a result, Australians are in great demand overseas. In the 28–39 year age group, there are 20,000 fewer men than women because so many men of this age group are working overseas. The reason for this is that, firstly, men still demonstrate greater vocational mobility and, secondly, this is the peak child-rearing age for Australian women (9). BRIDGING THE GAP | 4
  • 5. changing times an ageing population Next Steps: • The power has shifted - it’s an employees market: With fewer in this age group we have to work harder to attract and retain them. Gone are the days when you could get rid of an employee and replace them from a plentiful pool or workers. • This new reality is here to stay: Even after the Global Financial Crisis of 2008-09, in Australia skills shortages remained. The point is that the skills shortages are caused by demographic changes (ageing and retiring workforce), not just the economic changes (labour demand and supply). • Generation Y really do matter: Some employers, after bad Gen Y experiences are tempted to focus purely on employing more mature workers from whom they get better loyalty and commitment. However, only the Gen Y’s can bring youthful idealism and energy, a fresh view to the industry, new qualifications and a 21st Century perspective to life and technology. Generational diversity is the key to a balanced workforce reflective of the varying ages of customers and society. BRIDGING THE GAP | 5
  • 6. increasing options Education rates in Australia have been THE FACTS on the increasing options for today’s increasing over the last few decades. Even Education options - There are more education pathways and options available today than ever before. those considering an apprenticeship are often Of all the students beginning high school today, 75% will complete Year 12, compared to only 20% in completing Years 11 and 12. Therefore we 1967 (10). The Year 12 retention rate is only set to increase with the Federal Government’s introduction of a are dealing with the most formally educated national Year 12 retention rate target of 90% by 2015. Also, over half of school leavers now go onto further generation ever and this opens more study. University is the most likely pathway: 30% go onto higher education, while 24% continue their employment opportunities for them. studies at TAFE or other forms of education (11). Combined with this is their technological literacy and the positive perception that they New and emerging career options - There are more careers on offer today than ever before — which have of the IT, service and business sector is a challenge to traditional trades. In Australia today there is an estimated skills shortage equivalent to 1% which adds to the recruitment challenge for of the labour force. This equates to over 100,000 potential jobs for which there are no willing workers (12). the traditional trades. We are also dealing More employable than ever - The unemployment rate is currently hovering around 5%, and even with a generation that have come of age though it has increased slightly because of the economic downturn, it is still very low by historical standards in an entrepreneurial world with increasing (13). opportunities to start their own business or at least change careers regularly until they find Shorter careers- and more of them - The length of time workers spend per employer has been in one that suits them. freefall for decades. In 1960 employees averaged 15 years per employer. Today the average tenure has In an ageing population they know that they dropped to just 4 years (14). Also, today’s school leavers have the opportunity to change careers more than are in demand and so they are not as worried ever. It is predicted that the average school leaver today will have over five careers and 20 employers and about the risks of changing employers — or be self-employed at least once in their lifetime (15). even careers. BRIDGING THE GAP | 6
  • 7. increasing options Next Steps • One size doesn’t fit all: Greater focus is required to effectively attract and recruit young people, who relative to the total population, are less numerous. A dedicated approach specifically targeting their interests and attitudes, which are very different to older workers, does bring about more effective outcomes. • Age is just a number today: In the workplace it’s not about age or life stage, but one’s mindset and understanding that matters. Diversity is all that this generation has ever known so work hard to provide an atmosphere that values it: whether it is gender, cultural, or generational diversity. • Don’t judge them - just understand them: While derided as fickle, self-focussed, and disloyal, the reality is that they just reflect their times. Jobs aren’t guaranteed and companies come and go so it is not an inherent selfishness but a response to the economic realities. Therefore it is best to avoid value judgements and just implement what we can to best attract and retain them. BRIDGING THE GAP | 7
  • 8. redefined work life While the benefits of achieving a work/life balance THE FACTS on the increasing options for today’s employees are evident to all, the emerging employees expect Casual workers - 30% of the total workforce is employed on a casual basis while for Generation Y it is this balance from the start of their career. They over 40% (16). don’t feel the need to earn it - they just demand it. While we can wish for the work ethic, commitment Global workforce - Australia’s cultural diversity — and links to overseas work opportunities stands at an and duty of the good old days, these days are all all-time high. Over a quarter of the total population was born overseas (17). we have to work with. Sea Changers - The relocation trend continues. Around 6 million Australians live in coastal areas outside capital cities with the growth strongest in Queensland and Western Australia (18). Also those relocating are The reality is that Generation Y value balance in not just retirees, in fact 4 in 5 were aged under 50 (19). life, variety in the job, and change in their roles. Therefore to achieve better retention we need Balancing work and life - Australians work the longest hours of any OECD country, with 20% of to create a work culture which provides flexibility employees working more than 50 hours each week (20). Workers today report an increase in role overload, and a management style which communicates time squeeze and deterioration in Quality of Life when work/life balance is not maintained. 46% of those respect. surveyed state that more flexible hours will best help them achieve the balance (21). Our research showed that the importance of work/life balance ranks high among 4 in 5 Australians. However, the younger one is the more important it is: 79% of Boomers compared to 85% of Gen Y’s consider work/life balance very important. This serves as a reminder to employers of the crucial role of work/life balance in retaining workers, particularly younger ones (22). BRIDGING THE GAP | 8
  • 9. redefined work life Action Steps • Generation “Why?”: Assess policies and ground rules and ensure that there are good reasons that underpin them. Keep in mind that by providing a flexible workplace you will meet the needs of not just the Y’s but of all of the generations. • Bridging the gaps - from both sides: Not only must employers seek to understand Gen Y, but the Gen Y’s must be trained to better connect with the older workers and contractors. After all, the new reality is a team where younger supervisors manage teams comprising some older workers. • The revolving door of employment: If they leave to try some travel or a new job — keep in touch as they may later want to return. They don’t view leaving an organisation as an act of disloyalty but a simple life change and so they see no problem with returning should circumstances change. BRIDGING THE GAP | 9
  • 10. changing generations In recent times the impacts of the generational changes have dawned on many employers. We are reading more about the transitioning generations with Australia’s largest generation — the Baby Boomers now beginning to move into their 60’s and into their post-working life. At the same time many are experiencing for themselves the generation gap as a new and young generation start work with very different views and values to the existing leaders. Occasionally in history rapid technological change combines with massive demographic While having a mix of generations in the workplace is nothing new, traditionally the different age groups change and with one were separated by a clear chain of command with the older workers as supervisors and managers while generation society altogether the younger were the apprentices and juniors. Not so today. The new reality is one of flatter organisational alters. Today we are living in structures where teams of diverse ages work together, and where younger staff are less afraid to argue their one such era. point, make a demand, or push back on the older staff. With all these generations mixing in the workforce, at all organisational levels there is a need to understand the generational differences and get the most out of this generational diversity. Without an effective understanding of the different values and perspectives that each generation brings, we create a breeding ground for conflict. Indeed of all of the diversity in the modern organisation, it is the generation gaps that are causing most of the angst. BRIDGING THE GAP | 10
  • 11. changing generations BRIDGING THE GAP | 11
  • 12. keys to good communication Traditional Employers Today’s Apprentices Work ethic Work/life Bank balance Life balance Task focus Team focus Commitment Enjoyment Authority Empowerment Independence Support Structure Flexibility Tell them Involve us Conformity Creativity Tradition Innovation Regional Global Long careers Many jobs Learn then earn Lifelong learning Loyalty Variety BRIDGING THE GAP | 12
  • 13. why is generation y so different? A generation is defined by the years and thus, the era of their birth. All those within a generation share not only a similar age and life stage — but also a similar technological and economic period which shaped them. It is these two factors that we must keep in mind when managing Generation Y. Much of what defines them is simply a product of their age. They are not as mature or experienced as the older generations and so some of their views and values will change as they move through different life stages and levels of responsibility. However they are also a product of their times, which have been characterised by 15 years of economic growth, political stability, rapid technological change, fast moving careers, changing family structures, massive social shifts. They are the world’s first global generation. We are dealing with the most educated, entertained, materially endowed, entrepreneurial yet supported and protected generation in history. So both their age, and their times have combined to create them and differentiate them from the older generations. BRIDGING THE GAP | 13
  • 14. what characterises generation y employees? The table below gives a snapshot of what each generation was exposed to as they began their working life. It shows the transition of workplace expectations, leadership and communication over the last few decades. It is not a table of how to connect with each generation today, but rather a historical analysis of what previous generations were exposed to in their formative years. Indeed by adopting the characteristics under the Generation Y column, managers are also better able to connect with Generation X and the Baby Boomers today. Baby Boomers Generation X Generation Y Born 1946-1964 Born 1965-1979 Born 1980-1994 Aged 40’s & 50’s Late 20’s & 30’s Teens and 20’s Work ethic Achievement Ownership Values at work: Industry-focus Company-centric Individuality Financial security Career progression Job variety Motivations for work: Responsibility Opportunity Creativity Parents Careers Advisors Internet Influences over career choice: Authorities Experts Peer Groups Tradition Observation Perception Shapers of career perception & views: Reputation Recommendation Experience Recruiting Training Innovating Key management tools: Supervising Promoting Empowering Technical data Visual examples Hands-on learning Key communication tools: Evidence Demonstration Participation Formal Programmed Interactive Typical training style: Monologue Dialogue Multi-modal Control Coordination Consensus Typical leadership style: Thinkers Doers Feelers Local Regional Global Influencers and Values: Long-term needs Medium-term goals Short-term wants Telling Selling Involving Management approach “Yes boss” “What’s in it for me” “Here’s what I think” BRIDGING THE GAP | 14
  • 15. changing expectations The 4 main issues that employers struggle with when it comes to Generation Y • Attraction and retention: How can I employ them and how can I keep them once they join? • Management and leadership: What management style works best and how can I get the best from them? • Training and development: How can I best communicate with them and what is the most effective training style to get results? • Motivation and recognition: What will inspire them to work more effectively, to keep them engaged, and how can I reward them for a job well done? Let’s look at these four critical areas in detail... BRIDGING THE GAP | 15
  • 16. attraction & retention To attract and retain them in this high-turnover era we must meet their top 5 workplace needs. This comes straight from our research and study of thousands of Australian Gen Y workers and in order of importance they look for: 1. Work/Life Balance: For Generation Y their job matters however it is not their life – but rather it provides funds that fuel their life. In addition to their job they may also be juggling study, friends, family, sport, other work and community involvements. So when it comes to their work schedule and overtime think: flexibility. Remember: if there’s a clash in the work-life balance, life wins! 2. Workplace Culture: This has to do with the relationships with others at work. For Generation Y social connection with peers is one of the top retention factors. Not all of them have support from home so they are looking for a place to belong. Remember: they want community, not a workplace. Friends not just colleagues. BRIDGING THE GAP | 16
  • 17. attraction & retention 3. Varied Job role: Gen Y like change - it’s all they’ve ever known. So offer variety in their job description and combine it with responsibility and promotions where possible. Remember: Many quit jobs not because there is a compelling reason to leave, but because there is no compelling reason to stay. 4. Management Style: The ideal supervisor is one who values communication not just authority. One who leads by example and involvement and not just by command and control. Gen Y’s are just beginning their careers so offer support, mentoring, positive feedback and public recognition. As John Maxwell says “If you’re leading, and no one’s following – then you’re just out for a walk”. 5. Training: Generation Y know that in the 21st Century it is essential to keep their skills up to date. In fact 90% of Generation Y’s who receive regular training from their employer are motivated to stay with their employer. So today training is more than a tool for productivity – it is a tool for retention. BRIDGING THE GAP | 17
  • 18. management & leadership The right leadership style will not only assist with effective work outcomes — it will also help with Gen Y retention. Our analysis of the causes of employee turnover shows the central role that leadership plays in employee retention. Specifically, 42% of Gen Y’s surveyed reported that poor management and leadership was the main reason for leaving their previous role (23). As shown in the table on page 14, Gen Y’s do not respond well to hierarchical leadership structures. Unlike the Baby Boomers, young workers have been raised in an environment where they have been given leadership opportunities throughout their schooling and encouraged to challenge and independently evaluate other’s decisions. As a result Gen Y has brought new values to the workplace. Gen Y’s expect to be treated as equals, they expect to have choices and input into decision-making processes, and such expectations run counter to hierarchical systems of leadership. Indeed, 97% of Gen Y’s surveyed valued a leadership style that involved empowerment, consultation and partnership, and would leave if they did not get it (24). Today’s leaders require more than just IQ (intellectual intelligence) — these days what is also needed is EQ (emotional intelligence). While technical skills are essential for managers in all industries — so too are people skills. Emotional intelligence involves being able to understand and manage one’s own emotions and behaviour, as well as being able to understand and manage those of other people. The danger of having low EQ leaders is that they may not understand or value the strengths that Gen Y bring to the workplace. Instead of working with Gen Y’s to capitalise on their unique strengths, they are simply likely to butt-heads with them, creating an unhappy, unproductive and continually turning-over workforce. BRIDGING THE GAP | 18
  • 19. management & leadership So what management styles work best? Authoritarian Style: The positional leader relying on rank and role. Verdict: Might be acceptable in the military or in the 1950’s - but not today. No sir! Directing Style: Leader points the way from afar and delegates the tasks. Verdict: They want guidance not gurus. Mentoring not micromanagement. Consulting Style: Leader asks the questions and includes the team. Verdict: A good approach. Gen Y have opinions and want to voice them. Involving Style: The participative leader - leading from within and leading by example. Verdict: This generation loves a leader who empowers the team. Coaching Style: Leadership that is not a positional role, but more an influence relationship. Verdict: This style is made for Gen Y. Two thumbs up! BRIDGING THE GAP | 19
  • 20. management & leadership Next Steps • Training = retaining: Training is more than being just about skills — it is about retention. Our studies show that 90% of Generation Y agreed that if they received regular training from their employer it would motivate them to stay longer with their employer. • Develop the soft skills not just the hard skills: With this generation not just changing jobs but careers so frequently, equipping them with transferable skills is important. Many technical skills are relevant only for their current role but the people skills will be relevant throughout their working life. • The manager as mentor: Training is more than a teacher in the classroom. Their preferred method of training was on the job training, which required the supervisor to be more than an expert — it required them to be something of a coach and mentor. BRIDGING THE GAP | 20
  • 21. training and development: Sometimes it’s not that they’ve failed their training – it’s that their training has failed them Generation Y have heard the mantra of lifelong education all through school, and they’ve come to accept it. The key therefore to remaining relevant in changing times is ongoing training. This will keep them effective in their current job, but also employable for their future careers which after all may be just a few years away. Real Not only must our communication style be credible, but we must be also. They don’t expect us to know all about their lifestyle, nor do they want us to embrace their culture. They are simply seeking understanding, and respect. If our communication has a hidden agenda, or we are less than transparent, it will be seen. This generation can sniff a phoney from a long distance. Relevant Obviously what we are communicating has to fall within their area of interest. But the style, as well as the content of our message must be relevant to a generation who are visually educated and entertained. They think in hyperlinks, they multi-task, value speed over accuracy and they absorb information from multiple sources. This way of thinking is little suited to traditional communication methodologies. Yes even us males can today do more than just breathing at once. Relational Communicating to this generation requires more than just substance, it needs an effective style, all delivered in an environment of understanding, respect, and genuine interest. While they don’t show loyalty to companies - Gen Y show great loyalty to friends. So build the relationships - in doing so you’ll be building the loyalty. BRIDGING THE GAP | 21
  • 22. training and development: Next Steps • Training = retaining: Training is more than being just about skills - it is about retention. Our studies show that 90% of Generation Y agreed that if they received regular training from their employer it would motivate them to stay longer with their employer. • Develop the soft skills not just the hard skills: With this generation not just changing jobs but careers so frequently, equipping them with transferable skills is important. Many technical skills are relevant only for their current role but the people skills are will be relevant once they complete their apprenticeship and begin managing others. • The manager as mentor: Training is more than a teacher in the classroom. Their preferred method of training was on the job training, which required the boss to be more than an expert - it required them to be something of a coach and mentor. BRIDGING THE GAP | 22
  • 23. motivation & recognition While money matters to Gen Y, it is not the strongest motivator. Our research showed that if remuneration was within the average range, it was not the determining factor in keeping the job. In fact it wasn’t even in the top 5. Gen Y’s yearn for recognition, and they have had longer than previous generations in a supportive education system that has provided this. Our studies show that they have grown up with a safety-net of support at home, in society, and through their education. And they expect that support to continue somewhat, even at work. We’ve met employers who understandably state: “why should I congratulate them for doing their job” or “their pay is their thankyou”. Generation Y, however responds to positive reinforcement and are more likely to continue and further improve their behaviour as a result. It is true that Gen Y’s are not used to blunt and negative feedback — even at TAFE they didn’t “fail” they were simply deemed “not yet competent”! Yet providing Gen Y’s with feedback about work that could be improved is essential. Keep in mind that they do respond best when feedback is kept “constructive” or “above the line”. Rather than scolding Gen Y’s for less than optimal performance, highlight behaviours that could be improved, and provide them with guidance about how improved performance can be achieved. BRIDGING THE GAP | 23
  • 24. motivation & recognition Here are 4 keys for effective feedback and communication: Interest: Involve: If they don’t understand the way you communicate, then communicate the They are the world’s most interactive generation — wherever they are on the way they understand! planet they are logged-on, linked-up, and looking around. Getting their attention and interest is required before offering the feedback. A generation ago 70% of students were the strucvtured auditory learners; Put your point in terms and concepts that make sense to them or are of today they comprise only 30% (25). We are talking about a generation that interest to them. They’re called Generation Why for a reason! don’t want to sit and listen — they want to see and do. Remember it’s not about telling it to them — but selling it to them. Inspire: Instruct: The old adage is true: they don’t care how much you know — until they know how much you care. Essentially it’s not a generation gap — it’s a communication gap. The fact is that we all make decisions not just based on the head — but also Keep it concise — we are dealing with shorter attention spans today. And on the heart. So when motivating and communicating with an employee ask keep it clear — get feedback to clarify that they got your message. yourself three questions: Remember the responsibility for the message rests with the communicator 1. What do I want them to know? not the listener. 2. What do I want them to do? 3. What do I want them to feel? BRIDGING THE GAP | 24
  • 25. motivation & recognition Next Steps • Find out what motivates your staff: It may not be what most motivates you. This can be simply done by conducting employee surveys or by having a discussion with each Gen Y employee to identify their individual needs and aspirations. Implement a developmental plan for each individual. • Exit interviews: Don’t forget to conduct exit interviews with departing Gen Y employees — this is a great source of learning and can give you ideas for changes and strategies for the future. • Think “workmates” not “employees”: 42% of all Gen Y’s surveyed placed “relationship with peers” as one of the top 3 reasons for getting or keeping their job. An environment where they can interact socially and work collaboratively is highly regarded by Gen Y’s. So adopt strategies to encourage social interaction and relationship building at work to help promote positive interactions among team members and reduce the occurrence of unhealthy conflict. BRIDGING THE GAP | 25
  • 26. employers’ checklist: 1. How is the employment market today different to previous decades? ___________________________________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________ 2. What proportion of your employees fit into each generation? • Number of Baby Boomers: ______________________________________________________________________________________________________________________ • Number of Generation X: _______________________________________________________________________________________________________________________ • Number of Generation Y: _______________________________________________________________________________________________________________________ 3. From your experience, state a distinct characteristic of each generation: • Baby Boomers: _______________________________________________________________________________________________________________________________ • Generation X: ________________________________________________________________________________________________________________________________ • Generation Y: ________________________________________________________________________________________________________________________________ 4. List some strategies which will help you better attract and retain today’s apprentices? • ______________________________________________________________________________________________________________________________________________ • ______________________________________________________________________________________________________________________________________________ • ______________________________________________________________________________________________________________________________________________ 5. How would you describe the preferred leadership style of Gen Y apprentices? • ______________________________________________________________________________________________________________________________________________ • ______________________________________________________________________________________________________________________________________________ 6. How can you better motivate and recognise your younger employees? • ______________________________________________________________________________________________________________________________________________ • ______________________________________________________________________________________________________________________________________________ 7. What are 2 points to keep in mind when training and communicating with Generation Y? • ______________________________________________________________________________________________________________________________________________ • ______________________________________________________________________________________________________________________________________________ 8. List 2 steps that you can take this week to better engage with your Gen Y staff? • ___________________________________________________________________________________________________________________________________________ • _______________________________________________________________________________________________________________________ BRIDGING THE GAP | 26
  • 27. references 1. Australian Bureau of Statistics (2006) Australian Labour Market Statistics, cat. no. 6105.0. 2. Australian Bureau of Statistics (June 2009) Population by age and sex, Australian States and Territories, cat. no. 3201.0, www.abs.gov.au/Ausstats/abs@.nsf/mf/3201.0. 3. McCrindle Research (2010) Australia in 2020: A Snapshot of the Future, www.mccrindle.com.au/snapshots/Australia2020.pdf. 4. McCrindle, M. (2009) The ABC of XYZ: Understanding the Global Generations, UNSW Press, Sydney, p. 126. 5. Ibid. 6. Ibid, p. 125. 7. Australian Bureau of Statistics (2005) Population Projections, Australia, 2004-2101, cat. no. 3222.0, www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3222.0Explanatory%20Notes12004%20to%202101?OpenDocument. 8. McCrindle, M. The ABC of XYZ, p. 128. 9. Ibid., p 126. 10. McCrindle, M. The ABC of XYZ, p. 35. 11. Ibid., p. 105. 12. McCrindle Research figures (2010). 13. Ibid., p. 133. 14. Australian Bureau of Statistics Australian Labour Market Statistics. 15. McCrindle Research figures. 16. Ibid. 17. McCrindle, M. The ABC of XYZ, p. 35. 18. The University of Sydney (2005), Report for the National Sea Change Taskforce, www.seachangetaskforce.org.au/Publications/researchreportno.1.pdf. 19. McCrindle, M. The ABC of XYZ, p. 126. 20. Australian Bureau of Statistics (November 2006) Working Time Arrangements, Australia, cat. no. 6342.0, www.abs.gov.au/ausstats/abs@.nsf/mf/6342.0. 21. Relationships Australia (2004) Relationships Indicator Survey. 22. McCrindle, M. The ABC of XYZ, p. 142. 23. McCrindle Research figures. 24. Ibid. 25. McCrindle, M. The ABC of XYZ, p. 110. BRIDGING THE GAP | 27
  • 28. Bridging The Gap - Workshops McCrindle Research exists to conduct world-class research and to communicate the insights in innovative ways. You will find out more about our research agency at www. mccrindle.com.au. Our national research panel is www.AustraliaSpeaks.com. You can find out more about our purpose built research facility at www.researchrooms. com. Visit www.theABCofXYZ.com to order a copy of Mark’s book on the global generations. If you want further input with a workshop or keynote presentation just let us know. Call us at 1800 TRENDS. BRIDGING THE GAP | 28
  • 29. changing generations BRIDGING THE GAP | 30 www.mccrindle.com.au
  • 30. what characterises generation y employees? The table below gives a snapshot of what each generation was exposed to as they began their working life. It shows the transition of workplace expectations, leadership and communication over the last few decades. It is not a table of how to connect with each generation today, but rather a historical analysis of what previous generations were exposed to in their formative years. Indeed by adopting the characteristics under the Generation Y column, managers are also better able to connect with Generation X and the Baby Boomers today. Baby Boomers Generation X Generation Y Born 1946-1964 Born 1965-1979 Born 1980-1994 Aged 40’s & 50’s Late 20’s & 30’s Teens and 20’s Work ethic Achievement Ownership Values at work: Industry-focus Company-centric Individuality Financial security Career progression Job variety Motivations for work: Responsibility Opportunity Creativity Parents Careers Advisors Internet Influences over career choice: Authorities Experts Peer Groups Tradition Observation Perception Shapers of career perception & views: Reputation Recommendation Experience Recruiting Training Innovating Key management tools: Supervising Promoting Empowering Technical data Visual examples Hands-on learning Key communication tools: Evidence Demonstration Participation Formal Programmed Interactive Typical training style: Monologue Dialogue Multi-modal Control Coordination Consensus Typical leadership style: Thinkers Doers Feelers Local Regional Global Influencers and Values: Long-term needs Medium-term goals Short-term wants Telling Selling Involving Management approach “Yes boss” “What’s in it for me” “Here’s what I think” BRIDGING THE GAP 31| www.mccrindle.com.au
  • 31. keys to good communication Traditional Employees 21st Century Expectations Work ethic Work/life Bank balance Life balance Task focus Team focus Commitment Enjoyment Authority Empowerment Independence Support Structure Flexibility Tell them Involve us Conformity Creativity Tradition Innovation Regional Global Long careers Many jobs Learn then earn Lifelong learning Loyalty Variety | BRIDGING THE GAP 32 www.mccrindle.com.au