Ccl gen y_research_int_summary_arial

© 2015 Consulting cum laude GmbH | Generation Y Research 2014 1CCL is a company of International Campus AG

GENERATION Y – A EUROPEAN PHENOMENON

RESULTS OF A EUROPEAN COMPARATIVE STUDY IN GERMANY,

UK, SPAIN & THE NETHERLANDS

Management Summary, Generation Y Research 2014 (in cooperation with Facit Research)

© 2015 Consulting cum laude GmbH | Generation Y Research 2014 2

PREJUDICES ABOUT GENERATION Y GO BEYOND

REALITY

A differentiated analysis of a target group with

considerable potential and growing importance.


Generation Y in the context of demographic

trends

Generation Y is largely well educated and highly qualified. Having

diverse interests, being cosmopolitan and belonging to the group of

the "digital natives“ whilst being highly creative, too, Gen Y is very

well aware that they possess these qualities.

Over the course of the next few years, an increasing number of

Baby Boomer and Generation X executives and employees will be

retiring, and will no longer be available as resources within

companies.

Generation Y will have to fill this gap. However, suitably qualified up-

and-coming members of this generation are a scarce yet valuable

resource, so there will be a struggle to secure their services.

The recruitment of qualified professionals from Generation Y is

therefore of strategic relevance if one is to safeguard corporate

success in the future and maintain the current number of

companies.

Only those companies that create working conditions which motivate

this generation and thus unleash its full potential will survive and

continue to prosper in the future.

Companies that lose the "battle for talents" because they aren't

sufficiently attractive to Generation Y will be faced with considerable

– and to some extent existential – problems.

Generation Y "Millennials"(1982 – 2000)

Generation X(1964-1982)

Baby Boomers(1946-1964)

Generation Z(since 2000)

United Nations, Department of Economic and Social Affairs, Population Division. World

Population Prospects: The 2012 Revision.


We designed this study with the aim to create differentiated and deep insights into the mind set, wishes

and dreams of a generation whilst combining it with clear action recommendations for companies on how

to react to this oncoming generation.

The findings of previous studies seldom provide companies with concrete options in terms of what they

ought to do, and fail to answer the following question that is put by deciders: “What does that mean for my

company?" Our study, which was developed in conjunction with the market research institute facit

research, tackles these shortcomings. We arrived at a differentiated verdict, so what could possibly be

more logical than to directly and profoundly involve the very target group we're dealing with in the design

of the study? So this is what we did.

Our procedural model differs markedly from the majority of all the previous publications about Generation

Y:

1. Experienced market research specialists, managers, and advisors from Generation X joined up

with representatives of Generation Y to develop this study.

2. The study aims to put prejudices to the test and analyse what is said about the generation, how

it sees itself, what it wants, and above all, why this is so. Finding answers to the question of

"why do we act like we do?" was very important, not only for us as consultants, but in particular

for Generation Y itself.

The procedural model we followed for our

Generation Y study provides some

differentiated results (1)


Our procedural model differs markedly from the majority of all the previous publications concerning

Generation Y (continued):

3. As a first step, we used psychological in-depth interviews to ask 50 representatives of

Generation Y from Germany, the Netherlands, Spain, and the UK about their values, needs,

attitudes, motivations, and drivers. These interviews provided some initial pointers concerning

the various segments within Generation Y.

4. Based upon the results of the interviews, facit research, corporate deciders, experienced

consultants, and consulting cum laude joined up with a hand-picked team from Generation Y to

develop and legitimize a quantitative online study in order to ensure that the relevant – and thus

right – questions would be asked, not only from the companies' perspective, but from that of the

target group itself.

5. 1,000 participants from Germany, the Netherlands, Spain, and the UK respectively (total

n=4,000) were surveyed with the aim of identifying elements that all the respondents had in

common, and in particular differences within the segments that had been distinguished, too.

6. The target group comprised people aged 18 to 32 with an academic background (1/3 students,

1/3 graduates, 1/3 Young Professionals), and from the following subject areas: Natural

Sciences, Engineering, Economics/ Business Administration, Computer Science, Law,

Sociology, and Psychology. Interview length was ca. 45 minutes, and drop-out rates were

extremely low. The individual feedback was very positive.

The procedural model we followed for our

Generation Y study provides some

differentiated results (2)


IS THE GENERATION Y A

LUXURY PHENOMENON OF THE

STRONG GERMAN ECONOMY?


NO! GENERATION Y EXISTS ACROSS EUROPE!

IT‘S A BORDERLESS MINDSET.


Generation Y shares many of the same values and has the same expectations for their future lives

across countries. There are many similarities to the findings of the German study: the desire for high

sociality in working life, high demands on management and corporate culture, and the wish for work-life

blend of fulfilling private and professional life. Additionally status symbols do not matter anymore.

Generation Y does not only exist in the powerful economies in Europe. Even in countries that were

more affected by the euro crisis, such as Spain, traits commonly labeled as Generation Y traits can be

found. Their quest for sense in life, values, visions and motivations within the 18 to 32 year olds don’t

correlate with the economic strength of a country. It is like an invisible glue that connects the younger

generation of European nations and thus is for high future relevance for all international corporations,

either from a employer brand or consumer brand perspective.

Despite many similarities, the international comparison confirms again: There is not a common

Generation Y but some country-specific differences that must be understood as a company to draw the

right conclusions in employer branding and consumer marketing.

Besides country-specific characteristics, there are segment-specific differences in the Generation Y

population that have to be understood to avoid clichés and dangerous overall judgments.

Generation Y exists across countries

Generation Y attitudes and inner drivers are largely independent of the economic situation

in the country.


Identification of 6 Generation Y segments in

Europe

Indifferent

Follower

Proper

ConservativeSelf-centred

Entrepreneur

Craving High-

PerformerCompetitive

Professional

Unpretentious

Comfortseeker

Proper Conservatives aspire to traditional

values such as family, relationship, and

security. They know what they want and are

motivated to achieve these goals via (amongst

other things) a considerable willingness to

perform/achieve in their studies and their job.

Their driver is to establish a sound

foundation for life.

Competitive Professionals are spurred on by

their environment. Pressure and deadlines

motivate them, regardless of their own actual

goals.

Their driver is competition, but financial and

job security too (security-seeking).

Unpretentious Comfort-seekers (Happy

Campers) don't have any major requirements.

The most important thing for them is to feel

good. They may not have a clear vision of the

future, but they value freedom and

independence and thus a multitude of options.

Their driver is inner contentment.

Self-centred Entrepreneurs want to be their

own boss, and only then will they be truly willing

to assume responsibility. Competition and

challenges appeal to them, and they can then

overstep their limits (being stretched). Their

drivers are very diverse, and particularly aim

for independence and self-reliance.

Active Craving High-Performers are

constantly looking for something new; their own

freedom and – if possible – a variety of options

are important to them. However, they know

exactly what they want and are always looking

for challenges.

Their drivers are very diverse, and

particularly aim for recognition.

Indifferent Followers lack their own vision of

the future. They don't like to be restricted. Self-

reliance, mobility, and change are important to

them.

They lack any pronounced drivers, and

prefer to be driven instead.

We identified 6 Generation Y segments which are distinguished by attribute characteristics based on

attitudes and behaviour. What this means for companies is that they must be aware of the different drivers

and duly create the corresponding framework conditions in order to fully unleash the specific potential of the

respective types of employee.


Self-centred

Entrepreneur

Indifferent

Follower

Craving High-

Performer

Proper

Conservative

Competitive

Professional Unpretentious

ComfortSeeker

The distribution of the six Gen Y segments across

Europe

Basis: Total: n=3.711; data in percent

17

13

23

18

21

8


3%11% 7% 12%

11%

17%15% 10%

30%14%

9% 13%

25%14%

13%19%

14%28%

20%

24%

18% 15%

36%24%

UnpretentiousComfortseeker

Self-centeredEntrepreneur

Solid Tensionseeker

Performing Traditional

Demanding Performer

Indifferent Conformer

Self-centred

Entrepreneur

Indifferent

Follower

Craving High-

Performer

Unpretentious

Comfort-seeker

Competitive

Professional

Proper

Conservative

Country-specific distribution of the segments

If deciders within HR and Marketing are to be successful, it's vital to understand the factors that influence

the way the different Generation Y segments act. Only then will one make the right corporate decisions,

avoid wasted coverage, and get the right employees and customers. This is particularly relevant for globally

active companies because there are country-specific differences in the percentage-based distributions of the

various segments.


SIMILARITIES AND COUNTRY-SPECIFIC

DIFFERENCES OF THE GEN Y IN DETAIL


LEADERSHIP & WORKING ENVIRONMENT

Leadership quality is important for all. Dutch are less

concerned about the opinion of others. Germans need a

harmonious environment to perform.

!

!

!


WAY OF WORKING

The countries clearly differ when it comes to deadlines,

quality of work and a willingness to do overtime

!

!


PERSONAL STRENGTHS & WEAKNESSES

All want to achieve good results and take responsibility.

Crises don’t really matter. Germans stick to decisions.

Spanish want lots of options.

!

!

!

!


OVERARCHING OBJECTIVES

Personal freedom is important. All want and to afford

things in life without worrying about money. Spanish

want to take opportunities. Status is not relevant.

!

!

!

!


VISIONS FOR THE FUTURE

Relationship and family is of high importance for all.

Visions of the future are less pronounced among

Spanish. English want to be successful in their job.

!

!

!


PERSONAL SUCCESS

Especially for Germans personal success means

satisfaction and financial security. Top position of

chosen career is important for Spanish in English.

!

!


1. IF ONE'S JOB AND PRIVATE LIFE CAN'T BE RECONCILED, THE LATTER

TAKES PRIORITY

The 10 metatrends of the German study results in

European comparison

German results can be confirmed: 58% of the Gen Y in Europe say, that private life

is more important that the job (Germany: 62%).

The reconciliation of work and private life is more important for Spanish (70%) than

for the English (44%). For Germans (57%) and Dutch (53%) it is an important aspect

too.

English seem to give job a higher priority than all others: 44% say that job and

private life is equally important (D, NL, E: 24%). Even for 23% job is the most

important thing in life. Germans don’t think so (10%). In average only 16% of the

Gen Y thinks that job is most important

However, 40% strictly separate job from private life, the rest is open for connection

and blending.


2. COMPANIES WITH HIGH SOCIAL COMPETENCE & QUALITY ARE

DESIRABLE


European comparison

Interestingly, the results of the German study are confirmed with regard to the

requirements of an ideal employer: At first places are 1. job security, 2. good working

atmosphere, 3. good work-life balance, 4. personal development opportunities and

5. trustful working relationships

Almost identical are the top 5 results for characterizing a good working atmosphere,

that makes an ideal employer: 1. mutual fairness, 2. reward/praise for working

results, 3. personal appreciation, 4. collegial work environment and 5. friendly

relationship with colleagues

3. MAJOR REQUIREMENTS FOR MANAGERS AT EVERY LEVEL

Top rankings of German study are confirmed with regard to a good management

style: 1. being supported individually according to the strengths and personally

developed (68%), 2. creating preconditions to pursue work with joy and engagement

(46%), 3. encouraging to perform to the best (43%), 4. giving regular feedback

(42%) and 5. making decisions that are aligned on a clear result (41%).


4. WHAT MOTIVATES THEM MOST? WHAT MOTIVATES ANY GENERATION!

The results prove the German Gen Y study predominantly: on the top positions of

the most important factors for personal motivation are 1. praise (44%), 2. boss

recognises personal performance (41%), 3. boss adopts own ideas and takes them

seriously (40%).

In Germany recognition of performance (52%) and adopting ideas by boss (49%)

are significantly more important than for their European Gen Y neighbours.

In the UK, the Gen Y feels even more motivated by praise (51%) and regular

feedback (32%). For Spanish these motivators are less important.

Money is not the main driver of this generation, but sociality, humanity and

appreciation in personal interaction.


European comparison


5. CORPORATE CULTURE AND VALUES OUTWEIGH STRENGTH AND

PRESTIGE

Big similarities across Europe. Top 5 Factors that foster identification with the

company: 60% guarantee socially acceptable working conditions, 60% openness to

change, 58% innovation and future orientation, 56% consistency with personal

values and 54% fair player also with respect to its competitors.

For the Spanish “fair play” is by far most important (75%).

Germans focus very much on socially acceptable working conditions (72%).

For English prestige (36%) and being a "global player" (33%) is relatively important

as an identification factor with the company.

Germans don’t really care if a company is prestigious (20%).


European comparison


6. MULTI-OPTIONALITY, TEAMWORK, AND FUN ARE THE WATCHWORD


European comparison

Teamwork is the preferred structure within companies for the European Gen Y

(60%).

Corporate forms with missing classical structures (12%) and/or don’t have a boss

(10%) play a minor role for the Gen Y in Europe.

42% of the Spanish (Average: 26%) want to work in a company in which no

individual bears more responsibility, and it's shared by the entire group instead.

The Gen Y in the UK (69%), Spain and the Netherlands (both 80%) also prefers a

mix of different interesting and challenging activities as the first option (Germany:

86%).

Dutch are more strongly related to social work content (72%). In the UK the desire

for self-employment is most pronounced (41%). Spanish prefer creative work

environments (69%) and start-ups (51% ). Germans feel in advisory and research-

based activities most comfortable (58%) and are not looking for self-employment

(21%).


7. DO THEY IMMEDIATELY RUN AWAY IF THINGS DON'T SUIT THEM? YES AND

NO!


European comparison

The international comparison shows that other nations draw conclusions much

faster if work is not fun than the Germans.

Germans (55%) and Spanish (52%) tend to bite through first, if the work is

not fun and actively try to ensure that it will get better. For English (39%)

and Dutch (41%) this behavior is less pronounced.

Common for all is the statement that one waits first 3-6 months and is

leaving the company, if nothing changes (39%).

On average, 15% would immediately leave if the work is not fun. The

Germans would not usually act fast (8%). But one in five Spanish

immediately draws the consequences (21%).

One in four English (24%) is rather of the opinion that the work does not

exist for fun, but primarily to make money (Germany 14%)


7. DO THEY IMMEDIATELY RUN AWAY IF THINGS DON'T SUIT THEM? YES AND

NO!


European comparison

1/3 of all young professionals (33%) want to change their employer within the next 2

years, 13% are undecided. This represents a potential loss of nearly 50% skilled

manpower and know-how. More than 60% are actively addressed by HR

departments of other companies or employment agencies in the first few years.

The main reasons for leaving the company are very country-specific:


8. IDENTIFICATION AND PERSONAL DEVELOPMENT ARE THE TOP JOB-

RELATED OBJECTIVES


European comparison

For Gen Y in all countries, it is important to have a job that you can identify with

(Total: 66%). This is for Germans (75%), however, much more important than for the

Dutch (52%).

Also of great importance are:

To constantly develop further (Total: 62%). This is particularly important for

Spanish (69%).

To achieve a lot in the job and enjoy success in this profession (Total: 55%).

Again, this is more important for the Spanish (63%).

To work as an expert in his field and constantly expand knowledge (Total: 55%).

Of minor importance are:

To reach the top level of management (Total: 32%). UK (40%) and Spain (38%)

are in leading positions in comparison to Germans (28%) and Dutch (25%).

Dutch people at a young age have no clear idea about their job goals (in all

matters comparatively lower than average figures)


9. RISK AND OPPORTUNITY: PROCEDURES WHEN LOOKING FOR A JOB ARE

VERY DIVERSE


European comparison

German proceed in finding a job clearly more targeted and proactive as in other

European countries. 69% of Germans apply only to employers that they find

attractive (Spain: 59%, UK 52%, Netherlands 42%).

Furthermore, Germans (61%) inform themselves more intensively about potential

employers than others (Total: 44%).

Unsolicited applications in the UK are not a common practice. Only 32% chose this

path. In Germany there are almost twice as many (61%).

Behavior is comparable if no job is found after 6 months. 52% lower their

expectations and then take a job which is not first choice (54%). 48% even apply to

jobs, assuming not to meet the requirements.

Germans, Dutch and English look for companies that are explicitly interested in an

employee's personality too (37%). For Spanish this is relatively unimportant (23%).


10. QUALITY OF LOCATION AND PROXIMITY TO FRIENDS DETERMINE THE

CHOICE OF JOB


European comparison

While Germans (59%) and English (54%) primarily look at cities with a high quality

of life for a job, Dutch (39%) and especially Spaniards (21%) are not as picky and in

this more flexible.

The same applies to regionally restricted job search. 43% of the English just look for

a job in the current place of residence. Only 21% of the Dutch search this way.

A common desire is to find a job in a place/town, where lots of friends or the family is

located (Total: 40%). Job offers in a completely unfamiliar city without social contact

are thus likely to be rejected.

Spanish would move home at any time for a job (82%, Total: 51%, Germany 41%).

This applies also to the usage of cross-national job search in which Spain takes the

lead in comparison to others (50%, Total: 22%, Germany: 6%).

Germans would even refuse an attractive job in an unattractive city (39%).

Home Office/remote working is less desirable for Spanish (1%). Germans (20%),

Dutch (25%) and English (29%) are less averse to these forms of work.


Preferred types of company of the Generation Y

in European comparison

Again civil services take a leading position, followed by research institutes. All forms of

advisory or services companies are not really on the wish lists of the Gen Y. Banks and

financial services are not desirable employers for the Generation Y (except for English:

17%). Germans tend to prefer more industrial companies.


Germans in comparison are very satisfied and the most demanding employees.

Here, it seems, the gap between the needs of the German Generation Y and the

market offering are currently furthest apart.

To 90% of Germans between 18 and 32, success is defined as complacency.

Followed by financial security with 72%. Getting rich, becoming part of top

management as also reputation in front of others are not top of the agenda.

They no longer share the strong desire to climb the career ladder. Instead they back

away and distinctively satisfy at their private desires instead of pushing their

business success. At the same time, German Gen Y shows as the hardest bite.

They are leading with unsolicited applications (61%) to precisely grab the job they

really want.

Additionally, in case their time at work is not being joyful, it is also them who fight

until work is creating joy again (55%).

German Gen Y characteristics at a glance


In England, in comparison to Spain, the Netherlands and Germany a more

pronounced career and money focus can be found. The UK Gen Y’s could be called

the European 'Straight Arrows'.

English know very early what they want to study and quickly finish their studies.

Internships are the exception.

Success in business is part of their vision for life. Building wealth is of importance

above average. And if the question between job and private life is asked, the British

are most aligned with the job.

For 44% of the UK Gen Y, job and private life are equally important and even 23%

say the job is the most important thing in life. Work must not create joy, but is

primarily there to make money.

They want to become top managers and walk as soon as development opportunities

are lacking. Global players with high corporate prestige are their premium choice to

start career with.

UK Gen Y characteristics at a glance


Interestingly, Spanish and German are often on the same line. Spanish, however,

are characterized by a significantly higher flexibility. Due to the economic crisis in

the country and the extremely poor conditions in the labor market, the Spanish

Generation Y shows highest mobility and is hard working in their training and

professional development.

Spanish youngsters change the study subject much faster, if this results in better job

prospects. Additionally, taking advantage of opportunities as soon as they arise is

more important.

The fun factor is not very important. Similarly, the location of work is not so

important: "Home is where the job is". Overtime is incidental to the Spanish, they

want to make an effort and the most of their life.

This makes them tend to be more "hungry" than the young generation from other

countries. And they also seek companies with a strong social competence. Fairness

in business is by far of the biggest importance to the Spanish. The reconciliation of

private life and daily work is of higher relevance than in other countries.

Spanish Gen Y characteristics at a glance


In the Netherlands, the rebelliousness of Gen Y is more obvious. Money is

comparatively unimportant, career just a word.

Making a difference, moving things forward and enjoying life are important. The fun

factor plays an even more important role as well as the sociality of work.

International experience in studying and top positions in career are not so important.

Neither are wealth or assets. They are less willing to work overtime than other

nations.

Interestingly enough, Gen Y representatives in the Netherlands rarely resign from

their job due to Gen Y typical reasons such as poor management culture, lack of

development opportunities or less fun at work. It is quite possible that Dutch

companies are ahead of time in this respect. A good reason to keep them in mind,

because they manage to keep their Gen Y staff.

Dutch Gen Y characteristics at a glance


Companies with international operations have to deal more intensively with the

country-specific characteristics and differences of Generation Y and their respective

segments. Why? Because international employer branding strategies and recruiting

campaigns have to consider various country-specific needs and motivators of their

respective Gen Y representatives.

Only by following a very differentiated approach with the aim of a "greatest common

denominator" as an international employer and providing the highest possible

potential for identification of their international Generation Y employees, companies

will win the battle for talent on the global level.

Generation Integration²: Companies are not only facing a great challenge of

successfully integrating Generation Y with all other employee generations (X, Baby

Boomers), but global players have to deal with additional complexity: the

intercultural integration of employee generations.

There are many similarities of Generation Y in Europe. But in some areas

unfortunately they tick completely different. This carries the potential for conflict, one

must recognize and understand early in order to maintain the productivity of

international teams at a high level.

Challenges for international companies


The lack of skilled talents will increase from year to year. With dramatic

consequences for the German economy. The fight for talents will become harder

and German companies seem to be far off from providing a desired working

situation.

There is a high chance to rejuvenate company structures, harvest high employee

potential and position oneself as an employer of choice all through intelligent

processes of employee inclusion in decision making and design processes.

German Gen-Y employees are both the most demanding and the most challenging

employees in terms of how they try to work on the current status of the working

system. This innovation (or conflict) potential can be harvested by co-design

processes for internal structure, products and services. Cross division support and

coworking should be enabled and encouraged.

Germany is highly attractive as an employment market for qualified foreign talents.

Such as many companies in Germany that offer extremely interesting development

perspectives of Gen Y from other European countries. Provided they meet the

requirements for an ideal employer that all members of Generation Y demand,

regardless of which country they come from.

Opportunities for German companies (1)


If German companies manage to position themselves as an "employer of choice"

not only in Germany but also at international level and foster greater visibility in the

global employment markets, they can take the opportunity to expand their sourcing

base and to access highly trained and motivated talents of Generation Y abroad,

which they may have sought in vain in their regional or national focus in the past.

But this bar is pretty darn high. Chances are, however, too!

Opportunities for German companies (2)


ABOUT THE COMPANY BEHIND THE RESEARCH

We help you win Generation Y employees and

customers. With maximum impact.


We enable access to the Generation Y, the employees and customers of the future.

Our Services at a glance

We support you in the battle for talents and customers.

Combined with specific research.


WE MAKE YOUR BUSINESS FIT FOR THE “BATTLE

FOR TALENTS”


We turn your company into an preferred

Generation Y employer

We support you in the fight for the most sought-after qualified young people of

Generation Y ("Battle for Talents") and help you to establish your business as an

“employer of choice".


WE ENSURE THAT YOUR BRAND IS

ATTRACTIVE FOR YOUNG TARGET GROUPS


We make your brand a "must have" for the

Generation Y

We are opening new ways to access young customer groups of Generation Y and help

you to credibly position your brand in order to make it even more desirable.


WE ARE LOOKING FORWARD

TO MEETING YOU!


Contact

Consulting Cum Laude GmbH

Blumenstrasse 28

D-80331 München

T: +49 (0) 89 212 6880 - 1

F: +49 (0) 89 212 6880 - 2

[email protected]

www.consultingcumlaude.com

Roman Diehl

Chief Generation X Officer

[email protected]

Marcel Rasche

Chief Generation Y Officer

[email protected]

Consulting cum laude GmbH is a company of

International Campus AG (www.ic-campus.com).

Thank you very much for your attention

Disclaimer

• This presentation does not constitute an offer.

• We reserve the right to alter information, this

document does not purport to be comprehensive or

free from error, omission or misstatement.

• This document is governed by German law.

• Liability for all statements and information contained

in the document and/or this presentation is, to the

extent permissible by law, excluded.

Ccl gen y_research_int_summary_arial

Documents

Transcript of Ccl gen y_research_int_summary_arial