Just the Facts About Millennials

BERSIN & ASSOCIATES © 2011

BERSIN & ASSOCIATES

Research Bulletin | 2011

According to popular media and sensationalist authors, the

generations are “colliding” and “crashing,” a scenario more akin to

a NASCAR race than a day at the office. The drama is perpetuated by

a real difference in perspectives, attitudes and behaviors of older and

younger workers. To wit – in 1965, a 20-year old Pete Townshend of

The Who lamented in his song, “My Generation,”

“People try to put us d-down, just because we get

around. Things they do look awful c-c-cold, I hope

I die before I get old.”

Harsh words, but the lyrics have been sung by every generation since.

Another music group, Green Day, released an album cover in 2001

and Hillary Duff covered it in a 2004 song. Boomers, Gen-Xers1 and

Millennials2 alike – generations just cannot seem to understand each

other’s choices.

Introduction

As the diplomats of industry, HR is challenged to create a workplace

that is structured enough to get work done, but flexible enough

to accommodate employees of various cultures and backgrounds,

genders, and ages – not to mention work and leadership styles,

1 “Generation-X” are those individuals who were born between 1961 and 1981.

2 “Millennials” (also known as “Generation-Y”) are those individuals who were born between 1982 and 2003.

November 17, 2011 Volume 6, Issue 58

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Just the Facts about Millennials (And How Organizations Are Supporting Them)

About the Author

Brenda Kowske, Ph.D.,Senior Analyst


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Just the Facts about Millennials Brenda Kowske | Page 2

education levels, and skills sets. HR’s job is even more complex when

it comes to generational differences; there are so many stereotypes to

sort through, that it is almost impossible to create programs and make

decisions based on fact.

This research bulletin reviews the facts – the published empirical

research – to answer the question, “Just how different is the Millennial

generation?” Once we understand the Millennials, we can turn

our attention to how they are supported by HR and managed by

their bosses. This research bulletin reveals the gaps between what

Millennials need at work and current practices, giving clear direction

for improvement.

The Changing of the Guard

A generation’s identity is at the crosshairs of age and history. When

a major historical event occurs, like a world war, a breakthrough in

technology or a natural disaster, older and younger people experience

them differently. As we grow older, people’s ideas and perspectives

change with age – but this is not always based on their generation. For

example, younger people tend to have more angst and older people

are more conservative – but these differences are the same regardless of

generation. When we read reports of generational differences and the

stereotypes they imply, we are attempting to describe and understand

the identity of that generation3, not their perspectives due to their ages.

Societies are motivated to understand each new generation’s

identity because it will literally change the world. The ebb and

flow of generations change society through what has been called,

“demographic metabolism4.” As a new generation is socialized by older

people into their culture, the younger generation simultaneously brings

their own unique experience of the events occurring around them.

3 Often, research labeled “generational” actually might be reporting age-related differences in opinions or perspectives. Only time-series or longitudinal designs can adequately statistically control for age by comparing the generations when they were the same age. For this report, we have attempted to review the research with an emphasis on true generational, not age-related, differences.

4 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.

This research

bulletin cuts

through Millennial

stereotypes and

reports facts found

in research.

KEY POINT


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The new generation’s identity works as a change agent, counteracting

conservative societal forces, and reshapes culture, societal values,

politics and industry5,6.

As members of the young generation grow up, their perspectives and

values will undoubtedly bring about change – but what kind of change

is uncertain. For example, the GI and Silent Generations (the parents of

the Boomers) had no idea that their children would make giant leaps

toward racial equality in the 1960s. In their youth, the Boomers took

to the streets and raised their voices; they touted that “separated but

equal” was not equal at all. After 60 years of brutal discrimination, they

brought a country together like never before.

Millennials, too, will have a chance to make their mark on history as

they rise to prominence in industry. By 20297, the U.S. workforce will

have waved “bye-bye” to the Baby Boomers (Boomers – ages 51 to 68

at press), leaving Generation-X (Gen-X – ages 30 to 50), the Millennials

(ages 8 to 29) and their successors at the helm of organizations.8 But

how will they lead?

Twenty-eight percent of managerial positions are already held by

Millennials, which is enough talent to succeed Boomers’ share of

leadership positions at 23 percent9; Gen-X comprises the remainder.10 In

other words, we have a pipeline full of Millennials on their way up the

ladder. Undoubtedly, Millennials have not ascended to the same level

5 Source: “The problem of generations,” Essays on the sociology of knowledge / K. Mannheim, Routledge & Kegan Paul Ltd., 1952.

6 Source: “The cohort as a concept in the study of social change,” American Sociological Review / N.B. Ryder, 1965.

7 Source: U.S. Bureau of Labor Statistics, retrieved July 15, 2011, http://www.bls.gov/cps/home.htm.

8 Source: Generational age definitions from, Generations: The history of America’s future, 1584 to 2069, W. Strauss & N. Howe, William Morrow & Company, Inc., 1991.

9 Data reported from the Bureau of Labor Statistics’ Current Population Survey is aggregated into age ranges that do not directly reflect the generational limits used in this paper, but which are a close approximation. They are, in 2011, Millennials aged 16-34, Gen-X aged 35-54, and Boomers aged 55 and older.

10 Source: U.S. Bureau of Labor Statistics, Current Populations Survey Q2’2011, retrieved on September 15, 2011, http://www.bls.gov/cps/demographics.htm.

In the U.S.,

28 percent of

managerial

positions are

already held by

Millennials.

KEY POINT

http://www.bls.gov/cps/home.htm

http://www.bls.gov/cps/home.htm

http://www.bls.gov/cps/demographics.htm


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of management as Gen-Xers or Boomers – yet. When they come of age,

Millennials’ unique characteristics will drive change and reshape the

workplace. Already ahead of the game, this research bulletin reveals

that HR and management have started to adapt.

What We Know Today about the Millennials

In our attempt to peer into the future of the workplace, we shine

a light on young employees today. By looking to empirical research

(which has been conducted primarily in North America), we can describe

the youngest employees as a generation and answer the question,

who are the Millennials, and how do they compare to Gen-Xers

and Boomers?

There are important caveats to consider when reading this research.

• ThisresearchbulletindoesnotdirectlyaddresshowMillennials

are similar to older generations’ identities. However, we have

attempted to review all research on generational differences on

work-related traits and attitudes. If it is not here, we can assume

that they are similar to other generations or the perspective in

question has yet to be tested.

• Thatbeingsaid,manyage-relateddifferencesmayoccurbetween

workforces; differences due to age are far more likely to be the

culprit of differences at work. The remaining conclusions should

be tempered – in general, academics studying generational

differences agree that differences between generations are rare and

often small.11

• WithregardtothedescriptionofMillennials,itgoeswithoutsaying

that these are educated generalities derived from statistics –

statistics can only describe a group and are not meant to be cast

onto individuals.

Caveats aside, rigorous empirical research has found some unique Millennial

traits, which are recapped in Figure 1 and discussed in the following section.

11 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.

With regard to

the description of

Millennials, these

are educated

generalities

derived from

statistics, which

can only describe a

group and are not

meant to be cast

onto individuals.

KEY POINT


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According to this review, Millennials, as a generation, are as follows.

Individualistic and Confident

Millennials had lower scores in altruism, coupled with higher narcissism,

assertiveness12, self-esteem13 and individualistic traits in general14. These

results contradict a commonly held stereotype that more Millennials are

socially focused and motivated by giving back to society. In actuality,

Millennials think they volunteer less than Boomers.15 The data concurs.

As a testament to the decline in altruism, the Corporation for National

12 Source: “Age and birth cohort differences in self-esteem: A cross-temporal meta-analysis,” Personality and Social Psychology Review / J.M. Twenge, and S.M. Campbell, 2001.

13 Source: “Egos inflating over time: A cross-temporal meta-analysis of the Narcissistic Personality Inventory,” Journal of Personality / J.M. Twenge, S. Konrath, J.D. Foster, W.K. Campbell, and B.J. Bushman, 2008.

14 Source: “A review of the empirical evidence on generational differences in work attitudes,” Journal of Management and Psychology / J.M. Twenge, 2010.

15 Source: “How young people view their lives, futures, and politics: A portrait of “generation next,” The Pew Research Center, January 2007, http://pewsocialtrends.org/files/2010/10/300.pdf.

Millennials Are:

Individualistic and confident

Starting adult life with less knowledge

Motivated, but more likely by offering “rewards”

Looking for balance

More satisfied with work

More likely to leave their company, similar to young workers in every generation

Source: Bersin & Associates, 2011.

Figure 1: Unique Traits of Millennials – Based on Research

Statistics only

describe groups;

individual

Millennial

employees might

not share these

traits.

KEY POINT

http://pewsocialtrends.org/files/2010/10/300.pdf

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and Community Service16 reports a Millennial volunteer rate lower than

that of their older counterparts since data collection began in 2003 (see

Figure 217). This data suggests a trend toward a confident, albeit self-

serving, talent pool.

16 Source: “Current Population Survey,” Corporation for National & Community Service, 2010, retrieved September 16, 2011, www.volunteeringinamerica.gov.

17 Source: U.S. Bureau of Labor Statistics.

25.9% 25.5% 25.2%

21.7% 20.5%

21.5% 21.6% 21.2%

26.9% 27.4% 27.7%

26.5% 26.6% 27.6%

28.9%

29.2%

33.5% 33.1% 33.2%

30.4% 29.9% 29.4% 29.8%

28.8%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2003 2004 2005 2006 2007 2008 2009 2010

Perc

ent o

f Gen

erat

ion

Volu

ntee

ring

Millennials (aged youngest to 29) Gen-X (aged 30 to 46) Boomers (aged 47 to 65)


Figure 2: Volunteerism Rates in the U.S. – By Year

http://www.volunteeringinamerica.gov/


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Starting Adult Life with Less Knowledge

Standardized test scores of high-school students in the U.S. continue

to be at an all-time low18. This indicates that, at best, their knowledge

gap is closed in college (for those students who attend) or they lack the

knowledge crucial for responsibilities faced by adults, including their

contributions to the workforce.

Motivated, but More Likely by “Rewards”

Millennials’ motivation for achievement is seemingly alive and well.

Data shows that they are motivated to reach higher levels of education.

Despite a lack of preparation in secondary school, a higher percentage

of people than ever before are gaining bachelor’s degrees in American

universities (31 percent)19, twice the number of college graduates of the

youngest of the Baby Boomers.

When we review actual productivity at work, motivation continues to

shine. Even in high school, Millennials in the U.S. worked to the same

extent as Gen-Xers and Boomers.20 Once graduated, they work equally

long hours as older employees – longer hours than employees have ever

worked in the past.21 Even though research investigating the work ethic

18 Source: “Millennials at work: What we know and what we need to do (if anything),” Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.

19 Source: “Millennials and the world of work: An economist’s perspective,” Journal of Business and Psychology / A.R. Levenson, 2010.

20 Source: “Millennials and the world of work: Experiences in paid work during adolescence,” Journal of Business and Psychology / J. Staff, and J.E. Schulenberg, 2010.

21 Source: “Generation and gender in the workplace,” American Business Collaboration / Families and Work Institute, 2006, http://familiesandwork.org/site/research/reports/main.html.

http://familiesandwork.org/site/research/reports/main.html


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of Millennials has had mixed results (i.e., contradicting findings22,23,24,25),

it seems as though motivation is an important part of their identity.

However, there are some signs that, although Millennials are putting the

hours in, the elements of work that motivate them may have changed.

Some employees are motivated by an internal mechanism; they work by

the mantra “a job worth doing is worth doing well.” However, recent

research suggests that intrinsic, or self-motivated, work values have

slightly declined for this group26. Yet there is no difference in the value

placed on external “rewards” like pay, recognition or status27,28.

Looking for a Balance

Speaking of work motivation, Millennials are motivated to achieve goals

in both their work and personal lives. Work is less central to their life

and their identity29; more younger workers today expect a meaningful

life outside of work.30

22 Source: “Generational differences in work ethic: an examination of measurement equivalence across three cohorts,” Journal of Business and Psychology / J.P. Meriac, D.J. Woehr, and C. Banister, 2010.

23 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.

24 Source: “Generational differences in soft knowledge situations: Status, need for recognition, workplace commitment and idealism,” Knowledge and Process Management / P. Busch, K. Venkitachalam, and D. Richards, 2008.

25 Source: “More similar than different: Millennials in the U.S. building trades,” Journal of Business and Psychology / K. Real, A.D. Mitnick, and W.F. Maloney, 2010.

26 Source: “Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M. Campbell, B.R. Hoffman, and C.E. Lance, 2010.

27 Source: “Generation X and the public employee,” Public Personnel Management / C.L. Jurkiewicz, 2000.

28 Source: “Generational differences in work values, outcomes and person-organisation fit,” Journal of Managerial Psychology / L. Cennamo, and D. Gardner, 2008.

29 Source: “Generational differences: Revisiting generational work values for the new millennium,” Journal of Organizational Behavior / K.W. Smola, and C.D. Sutton, 2002.

30 Source: “New generation, great expectations: A field study of the millennial generation,” Journal of Business and Psychology / E.S.W. Ng, L. Schweitzer, and S.T. Lyons, 2010.

Millennials are

more satisfied

at work as a

generational trait,

but as young

employees before

them, are more

likely to leave their

organizations.

KEY POINT


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As a Generation, More Satisfied with Work

There is good news, too. American Millennials are more satisfied

with their work than are Gen-Xers and Boomers. Where statistically

significant (albeit small) differences exist, more are satisfied with

their jobs and companies, the recognition they receive, their career

development, and job security.31

As Younger Employees, More Likely to Leave Their Companies

Fewer Millennials are considering a job switch than did Gen-Xers –

when they were the same age.32 That being said, age matters. Today,

one-third of Millennials are seriously considering leaving their jobs, as

compared with 25 percent of Gen-Xers and 19 percent of Boomers.33

What Millennials Need from Organizations

Unique workforce characteristics mean tailored programs and processes

from HR and management. Given Millennials’ traits, Figure 3 reviews

the programs that HR may want to consider strengthening in service

of Millennials.

The rugged individualism and confidence exuded by the Millennial

generation, coupled with their high levels of motivation, translate into

programs that take advantage of their “I can do it” attitude. HR should

look closely at its performance management system and processes.

Does it enable Millennials to forge new paths, relying on their own

competence in their drive toward success?

Strong performance management processes (such as setting SMART34

goals, providing regular, systemic feedback, and measuring performance

accurately) enable employees to know how they are performing

31 Source: “Millennials’ (lack of) attitude problem: An empirical examination of generational effects on work attitudes,” Journal of Business and Psychology / B.J. Kowske, R. Rasch, and J. Wiley, 2010.

32 Ibid.

33 Source: Attitude? What attitude? The evidence behind the work attitudes of millennials, Kenexa High Performance Institute / B.J. Kowske and R. Rasch, 2011.

34 “S.M.A.R.T.” stands for specific, measurable, achievable, relevant and time-bound.

Confident,

individualistic

Millennials can

fuel innovation by

questioning the

status quo.

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as individuals and take action accordingly – by their own volition.

Organizations can take advantage of individualism in another way;

harness the good ideas that come from not following the herd.

Innovation derived from independent thinking can be a significant

competitive advantage. Millennials are confident enough to speak up

when questioning the status quo. But often, collaboration is needed

to make ideas reality; an increased focus motivating this independent

group toward a balance between independent thought and

collaboration may be warranted.

35 A “high-potential employee” is an employee who has been identified as having the potential, ability and aspiration for successive leadership positions within the company. Often, these employees are provided with focused development as part of a succession plan and are referred to as “HiPos.”

Bersin & Associates

research found

that the size

of a company’s

employee

population

has significant

relationship

to the overall

effectiveness of the

HR function.

KEY POINT

Millennials Are: Millennials Need:


• Strongperformancemanagementpractices and culture

• Programsthatfosterinnovation

Starting adult life with less knowledge • Effectivedevelopmentprograms

Motivated, but more likely by offering “rewards”• Recognition,suchaspay-for-performanceprograms

that demonstrate “fairness”

Looking for balance • Targetedhealthandwellnessprograms

As a generation, more satisfied with work• Programsthatcapitalizeonworksatisfaction,

like the development of high potentials35 and careers in general

As younger employees, more likely to leave their companies

• Effectiveemployeeengagementprogramsandprocesses for recruiting, selecting and onboarding new workers


Figure 3: What Millennials Need at Work


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Less knowledge gained in high school for Millennials translates into

remedial development efforts on the part of their employers. Strong

development needs assessment practices, including an accurate

understanding of the knowledge, skills and abilities required by the

job, are essential. If confidence becomes overconfidence, Millennials

might be blind to their own development needs. Honest feedback

provides opportunities for accurate self-assessment – the first step in

any development journey. Catering to Millennials’ independent spirit,

HR should provide expanded venues for self-motivated learning. Finally,

coaching and development systems in general should be fortified

for organizations expecting a jump in hiring, perhaps due to a large

wave of retirements. Beyond Millennials’ need for knowledge as a

generation, these more inexperienced employees need additional

educational opportunities.

This is a motivated group, but less so through intrinsic motivations, such

as fulfilling a personal value or being altruistic. This tendency would

force external motivators, like rewards for goal achievement, to play a

larger role – and introduces an opportunity to implement or strengthen

recognition and pay-for-performance programs. The same SMART

goals, along with more regular recognition and feedback previously

mentioned, offer a natural parlay into fair, transparent and earned

compensation. This group will be more open to setting pay expectations

based on the attainment of goals. But HR beware. Millennials’

individualism may mean that they are motivated to commit to goals of

which the accomplishment is in their full control. Setting goals that rely

on others’ successes may act as a demotivator for this group.

This motivated workforce not only has its sights set on work, but also

on home, as well. Work-life balance will be an important aspect of

the employment agreement; many will not sacrifice dreams in their

personal life for the achievement of career goals. The organization will

need to demonstrate flexibility and provide arrangements so that both

are possible.

Overall, the call to action should be tempered by the fact that

Millennials, as a generation, are more satisfied at work than are Gen-

Xers and Boomers. HR should be careful not to change what works!

This satisfaction can be harnessed through high-potential and career

Work-life balance

will be an

important aspect

of the employment

agreement; many

Millennials will not

sacrifice dreams in

their personal life

for the achievement

of career goals.

KEY POINT


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development programs by developing satisfied employees into the

next generation of leaders and experts. This future-focus may help to

counteract Millennial flight.

As with generations before them, younger employees leave

organizations at higher rates. Even with their more positive attitudes

toward work, the motivation to leave pulls harder as they jockey for

their ideal career path. If organizations provide a clear view of their

career paths and the rewards, leaders and HR can capitalize on their

interest in external rewards like status and pay. Additionally, HR should

foster engagement, including through providing career opportunities.

Employee engagement anchors employees firmly within the company,

providing a force equal to tempting job offers.

High turnover also means higher volumes of applicants for open

positions – especially those for which Millennials are qualified. If a high

percentage of an organization’s workforce is comprised of Millennials,

efficient and effective recruiting, hiring and selection, and onboarding

practices are compulsory.

The Report Card: How HR and Line Managers Are Supporting Millennials

When we turn to the Bersin & Associates data collected in 2010, we

see that U.S. organizations have adopted some new approaches for

managing a largely young workforce, but other practices remain the

same regardless of workforce age. To find out the state of practice

in relation to the generations, we compared 550 HR practitioners’

and leaders’ ratings by those in organizations employing primarily

Millennial, Gen-X and Boomer workforces. We formed these groups

by their responses to the question, “How would you categorize your

workforce demographically?”36 Respondents placed their organizations

in the following workforce categories:

36 Respondents could also choose “fairly evenly distributed among ages” and “heavy concentration on mature and young workers, with a gap at the mid-career level.” But, since this report seeks to isolate the practices tailored to workforces of certain age groups, these categories were omitted from the analyses.

Do you have a

high percentage of

Millennials in your

workforce? Efficient

and effective

recruiting, hiring

and selection,

and onboarding

practices are

compulsory.

KEY POINT


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• Mature – Heavily weighted toward Baby Boomers and older (born

1964 or earlier);

• Middle – Heavily weighted toward Generation-X (born 1965 to

1980); and,

• Young – Heavily weighted toward Generation-Y (born 1981

or later).

The size and demographic characteristics of each of these groups

were reflective of each generation’s age and background. While the

Boomer and Gen-X categories were roughly equal in respondent size

(n=232 and n=259, respectively), the Millennials’ category was smaller

(n=59). However, this comes as no surprise as only approximately one-

half of Millennials are currently old enough to be in the workforce.

Generations also work in different industries, a likely reflection of

educational opportunities and selection of careers in their youth.

According to our data, these Millennial and Gen-X workforces are

more likely to be in the banking and financial services, technology, and

business services industries. Boomer workforces are more likely in the

manufacturing, healthcare services and government sectors. Millennials

are also more likely to work in larger companies, defined as those with

50,000 employees or more. The results of this research are summarized

as follows.

HR Has Adjusted to Gen-X’s Needs, but Less So to That of the

Millennials

Our first set of analyses targeted HR performance to answer the

question, how have HR professionals adjusted their performance (as

measured through self-ratings of effectiveness) given the age of the

workforce they serve? Although similarities do exist, HR seems to have

responded to Gen-X’s workstyle, but is still forming practices to respond

to the emergence of the Millennials. In some cases, HR has adjusted to

Millennials much in the same way it serves Gen-X workforces. We see

evidence of these shifts in Figure 4 through the discrepancy between

Gen-X’s and Millennials’ workforce data when compared to that of

the Boomers.

Is HR supporting

Millennials’

unique needs?

Maybe not if their

effectiveness is the

same, regardless

of the generation

they serve.

KEY POINT


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Similarities in Supporting the Generations – There are only two areas in

which HR effectiveness is similar across Millennial, Gen-X and Boomer

workforces – identifying critical knowledge, skills and abilities by role

and level, and promoting health and wellness. Ignoring the fact that

an average of only 32 percent of HR professionals rated themselves as

“world class” or “very effective” across our list of HR responsibilities,

we see that HR may want to improve its performance in specific ways to

adjust to the emerging Millennial workforce. The lack of differentiation

in HR effectiveness in defining critical knowledge, skills and abilities is

particularly concerning. Working with mature workforces, HR should be

particularly skilled in this area, given that one-quarter of the workforce

is retirement-bound within the next 15 years. Only 33 percent of

respondents said that HR was “very effective” or “world class” in

this area.

Differences in Generational Support – We see evidence of HR

adaptation in response to the arrival of Millennials (see Figure 4). When

serving a Millennial workforce, HR has raised its level of effectiveness

in areas related to hiring, development and performance management.

These adjustments in HR’s performance match Millennials’ need for

learning, their individualistic nature and their intentions to leave

their companies.

HR falls short

in providing

individualistic

opportunities for

self-learning for

Millennials.

KEY POINT


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There are some areas in which HR is falling short. HR may be

attempting to mitigate Millennials’ higher turnover rates by improving

engagement strategies when compared to organizations employing

mature workforces. Thirty-four percent of HR serving Millennials rated

themselves as highly effective. However, engagement efforts are most

effective when managing Gen-X workforces (40 percent) – a surprising

gap, given the propensity of Millennials to leave. When it comes to

Millennials’ education, fewer HR respondents reported that they were

effective in identifying participants for development, specifically, their

key talent pool (33 percent). A missed opportunity lies in the lack

of effectiveness in providing self-learning (25 percent), an attractive

development tool for this independent workforce.


Figure 4: Differences in HR

24%

24%

30%

29%

19%

28%

34%

29%

42%

36%

33%

42%

39%

35%

40%

41%

45%

54%

25%

29%

33%

33%

33%

34%

39%

42%

57%

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

Enabling a strong self-learning culture

Identifying and developing future leaders

Encouraging innovation and collaboration

Distinguishing key talent segments

Motivating a high-performance culture

Promoting a highly engaged workforce

Allocating high performers' compensation fairly

Rapidly and effectively onboarding

Attracting, sourcing, selecting and hiring

Young (Millennial) Workforce Middle (Gen-X) Workforce Mature (Boomer) Workforce

Percent Rating "Very Effective" or "World Class"


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Managers of Millennial Workforces Attract Top Talent and Support

Engagement – Like HR, managers have catered to Gen-X, but seem to

not have adapted as adeptly to Millennial workforces. According to HR

respondents’ ratings of line managers’ competence on a four-point scale

of “poor,” “fair,” “above average” and “world class,” there is quite a

bit of room for improvement.

Similarities in Managing the Generations – When HR rated line

managers’ competence, they reported that five skills demonstrated no

differentiation between workforce ages, indicating a lack of focus on

each generation’s unique needs.

According to HR, line managers showed similar skill levels in assessing

and selecting the right candidate – a problem when Millennials are

more mobile than Gen-X and Boomers and, therefore, interview at

higher rates. They also set goals and objectives with equal competence;

regardless of generation, younger workers will need more direction

as they learn how to be effective at work. Managers’ scores in “giving

people honest feedback” were equal across workforces, which might

fall short of Millennials’ learning needs. When it comes to motivation

on the job, not only will goals give them clear direction, but linking

fair compensation to goal achievement has the potential to have

more impact with this group. With their increased focus on personal

and work-life balance, the fact that managers managing Millennials

do not surpass Gen-X workforces in promoting health and wellness is

troublesome, and may play a role in Millennial retention.

Differences in Managerial Competencies – As in HR effectiveness, we

see that more line managers are competent if managing Gen-X versus

Boomer workforces (see Figure 5). More managers are attracting

top talent proficiently (42 percent of organizations’ managers) than

managers supporting mature workforces (29 percent). In the area

of performance management, they are developing both a high-

performance culture (29 percent) and engagement (37 percent) at the

same level of competence as managers of Gen-X workforces. Managers

of Millennials have further honed their skills in managing performance

problems (36 percent), as well as coaching and developing their people

(32 percent) – a trend perhaps indicative of managing younger, less

experienced workers.

More HR groups

and managers

should encourage

innovation – a

critical misstep

in Millennial

management.

KEY POINT


BERSIN & ASSOCIATES





BERSIN & ASSOCIATES




However, those managing Millennials seem to still be adjusting in

the areas on onboarding (31 percent), and encouraging innovation

and collaboration (33 percent). As more Millennials are hired, more

onboarding is needed – a critical activity when tasked with making

this more mobile workforce productive as quickly as possible. Given

their concentration in technology industries, taking advantage of the

free-thinking Millennials and fostering innovation may be a critical

competitive advantage.

Figure 6 references results from Figures 1 and 2 to provide a “report

card” for HR and managers in their attempts to adapt to the unique

characteristics of Millennials. This report card shows that HR and

managers are responding to the Millennials’ unique needs, but there is

also room for improvement.

16%

16%

25%

9%

27%

19%

25%

29%

22%

32%

35%

19%

41%

30%

35%

39%

22%

29%

31%

32%

33%

36%

37%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Identifying and developing leaders

Developing a high-performance culture

Onboarding new staff

Coaching and developing people

Encouraging innovation and collaboration

Managing performance problems

Developing high levels of engagement

Attracting top talent

Young (Millennial) Workforce Middle (Gen-X) Workforce Mature (Boomer) Workforce Percent Rating Favorably


Figure 5: Differences in Managerial Competencies

Given their

concentration

in technology

industries, taking

advantage of

the free-thinking

Millennials

and fostering

innovation may

be a critical

competitive

KEY POINT


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BERSIN & ASSOCIATES




Millennials Are: HR Can Support Millennials with:

HR Report Card

Line Managers Should Manage by:

Manager Report Card


Motivationforhigh-performance culture C

Developingahigh-performance culture C

Setting goals and objectives =

Managing performance problems C

Encouragementofinnovation and collaboration D Encouraginginnovationand

collaboration D

Starting adult life with less knowledge

Astrongself-learningculture D Giving honest feedback =

Identification of critical job knowledge, skills, abilities = Coaching and developing C

Motivated, but more likely by offering “rewards”

Fair rewards for high performance C

Implementing fair and effective compensation plans

=

Looking for balance

Health and wellness promotion = Supporting health and

wellness =

As a generation, more satisfied with work

Programsthatidentifyanddevelop future leaders D Identifying and developing

future leaders CIdentification of key talent segments DCareer development processes C

As younger employees, more likely to leave their companies

Support for engagement D Promotingengagement CEffectivehiringandselectionprograms C Assessing and selecting

applicants effectively =

Effectiveonboardingprograms C Onboarding effectively D

Attracting top talent C= means no difference between generational workforces found.CmeansmoreorganizationsareproficientinthisaspectofworkwhenMillennialworkforcesarecomparedwithBoomers.DmeansfewerorganizationsareproficientinthisaspectofworkwhenMillennialsworkforcesarecomparedwithGen-X.


Figure 6: HR’s Effectiveness and Managerial Competence in Delivering What Millennials Need


BERSIN & ASSOCIATES





BERSIN & ASSOCIATES




Conclusion

This research bulletin has summarized the Millennial generation (at

least what we know to-date, based on real research and empirical

data), and has matched their unique characteristics to reports of HR

and line-manager proficiency. We see some differences in the youngest

of generations’ characteristics and, therefore, it would behoove

HR to improve their skills and those of line managers, accordingly.

As previously stated, the general scientific consensus is that true

generational (as opposed to age-related) differences are rare and small;

consequently, organizations should weigh investment in justifying

practices, processes and skills with generational characteristics. However,

and especially for those organizations facing a major demographic

change as their mature workforces retire, this research suggests

developing the organization in the following areas:

• Becomingadeptatrecruiting,hiringandonboardingtocompensate

for younger employees’ higher turnover rates, particularly in the

area of managerial onboarding skills;

• DevelopingtheMillennials’skillstoclosethegapleftby

secondary education, especially through self-learning resources

and opportunities;

• Supportinginnovationandcollaboration,andfindingthebalance

between fresh (sometimes irreverent) ideas and working with a

team to make ideas reality;

• Providingacknowledgmentforachievementsthroughpay-for-

performance practices and other types of recognition to ensure that

Millennials are motivated to perform; and,

• StrengtheningHR’seffectivenessinpromotingemployee

engagement to counteract Millennial flight.

Companies will

need to develop

the skills of

Millennials to

close the gap

left by secondary

education,

especially through

self-learning

resources and

opportunities.

A N A LY S I S


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BERSIN & ASSOCIATES




As generations continue their march through time, the societal

shifts they drive are mimicked in industry, forcing leaders and HR to

adapt. However, as with any change, organizations that adapt more

quickly can take advantage of the competitive edge which a new

generation brings. The information explained in this report enables

organizations to take empirical insights, and adjust their policies and

actions accordingly. Implemented correctly, organizations should be

able to adapt quickly to effectively support and manage Millennials – a

leverage point for business success in the future.


BERSIN & ASSOCIATES





BERSIN & ASSOCIATES




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Education

Just the Facts About Millennials