Engaging a new generation of employees The IBM case

Yiannis Koutrakis

Area HR Leader, South East Europe, IBM

Why Millennials are so important?

Environmental Crisis

Globalization 2.0

Demographic change

Digitization

Technology convergence

Source: IBM Research – GTO 2009

1990's 2000's

Outsourcing Offshoring In-house Virtual communities

Challenges

Widely

distributed

teams

Multiple

technologies &

platforms

Limited

transparency

Disjointed

processes

1980's

Specialization,

economy of scale

Producer / consumer

not clearly separated Highly complex Labor arbitrage

2010‘s

Customer needs

Superior quality

Low cost

Time advantage

To create the experience now being demanded, a new type of

economic organization is required – the ecosystem

71% of executives believe

consumers will demand

more complete experiences1

64% of executives believe new

business models will profoundly

impact their industries2

Ecosystems are emerging,

attracting new flows of value

and economic activity

Source: [1] 2013 Global Digital Disruption Executive Study Q18. To what extent do you agree with the following statements about customer behavior and expectations today, and in

five years? Rate on a scale of 1 to 5, where 1 = Strongly disagree and 5 = Strongly agree.

[2] 2013 Global Digital Disruption Executive Study Q12: “Please rate the extent to which the following trends will have an impact on your business” (n = 1089)

Disruption is already here Change will only accelerate Ecosystems are emerging

At the threshold of a massive explosion in the history of computing

Devices on the edge are becoming significantly more intelligent and connected

The Challenge: Four years from now... Employees will be in co-operative relations 80% of the time.

The work will float frictionless in transparent processes and flexibility will be a key parameter.

Assignments will increasingly involve external partners.

Proactive processes will be strengthened by predicative capabilities.

The organization will not be the centering point, but instead, a community of people with different

affiliations will: Employees, consultants, alumni, external experts.

Batch will be forgotten and real-time will be the norm.

Liquid talent focused on speed and quality (agile).

Digital reputation will be key in delivery.

Career advice from Millennials for Millennials

“Do ore, orry less. Liste ore, speak less. Assistant Engineer, Electronics, China

Al ays ask, Why? You ll dis o er ho the thi gs you do e ery day i pa t your o pa y, a d you ll lear u h ore a out the usi ess that ay.

eCommerce Sales Associate, Automotive, United States

I e adopted y otto fro A azo s Jeff Bezos: Work hard, ha e fu , ake history. Developer, IT, Spain

Al ays e kee to lear a d e up to date o the latest te h ology a d tre ds i the arket. Quality Assurance Leader, IT, India

• Generation WHY

• Generation Next

• Nexers

• Digital Generation

• Echo Boomers

• Baby Busters

• I Generation

• Net Generation

• Gaming Generation

Success driven

Lifestyle centered

Diverse

Inclusive

Entrepreneurial

Spontaneous

Adventurous

Co e ted…24/

Self-confident

Optimistic

Hopeful

Independent

Determined

Goal oriented

Global

Community minded

………………….…

.......................

“o e o se e s efe to the as the dumbest generation a d de ide the as narcissists. Others applaud Millennials as passionate, idealistic humanists with a mature touch of pragmatism. Approximately one of three people alive in the world today is a member of the Millennial generation, now 1.7 billion strong, born in the 1980s and 1990s. Because of their great numbers, their activism and their accomplishments, this age oho t is shaping our world. Tu ultuous so ietal ha ge pla es Mille ials s ua ely i a fast future e i o e t. Yet cha ge is the Mille ials’ étier, and they feel comfortable with it. Millennials matured in lockstep with the evolution of digital technology, including cellphones, the Internet and web-based businesses. Due to the 200 e essio a d its afte ath, Mille ials ofte a ’t fi d jo s, so a y ope their own businesses. They think o pa ies should ha e a se o d otto li e ased o o ki g fo the pu li good.

Millennial-owned companies often promulgate idealistic social-responsibility agendas.

Why Millennials should NOT be the only

important generation?

How do we engage Millennials?

What kind of work environments attract, retain, and motivate Millennial coworkers?

24

• You be the leader. This ge e atio has g o up ith st u tu e a d supe isio , ith pa e ts ho e e ole odels. The You e the pa e t TV o e ials a e ight o . Mille ials a e looki g fo leade s ith ho esty a d i teg ity. It’s ot that they do ’t want to be leade s the sel es, they’d just like so e g eat ole odels fi st.

• Challenge me. Mille ials a t lea i g oppo tu ities. They a t to e assig ed to p oje ts they a lea f o . They’ e looki g fo growth, development, a career path.

• Let me work with friends. Millennials say they want to work with people they click with. They like being friends with coworkers.

Employers who provide for the social aspects of work will find those efforts well rewarded by this newest cohort. Some companies are even interviewing and hiring groups of friends.

• Let’s have fu . A little humor, a bit of silliness, even a little irreverence will make your work environment more attractive.

• Respect me. T eat ou ideas espe tfully, they ask, e e though e ha e ’t ee a ou d a lo g ti e.

• Be flexible. The usiest ge e atio e e is ’t goi g to gi e up its a ti ities just e ause of jo s. A igid s hedule is a su e-fire way to lose

your Millennial employees.

Connecting Generations: The Sourcebook by Claire Raines

Workforce “Jams” At IBM e e gage our people through hat e all ja s a d so ial edia. A ja is a large-scale, 72-hour event that

invites all employees to participate and comment on a topic. These popular events first debuted more than a decade ago,

he e used alues ja s to e ha e our three alues—dedi atio to e er lie t’s su ess, i o atio that atters and trust and personal responsibility—to be more contemporary and driven to our future.

In 2013, participation in

the Client Experience

Jam reached record

levels of engagement

with over 248,000 IBMers

participating from 150

countries.

How we started the change?

#reinventPBC: An ongoing co-creation dialogue with 380,000 IBMers

The Case for

Change Based o IBM’s

transformation, the

market and IBMers

Design Thinking Initial workshop and

ongoing throughout design

phase

Invitation to

Co-create The beginning of a dialogue

with the entire workforce

Deliberation

Forums 10 forums shifting

workforce dialogue from

PBC to future state

Polling

Questions Validating points where

form discussions did not

illustrate a majority view

Playback Zero

Naming Requesting feedback on

experience prototype and

brainstorming a name

Program

Announcement The experience revised with

IBMer feedback and 2015

changes

Naming Minipulse Continuing the co-creation

with IBMers selecting the

name

TENS OF

THOUSANDS o

comments and ideas (#getsimple, engagement survey, pilots, roundtables)

Benchmarking other firms and notable research

50+ participants

Global representation

100 active sponsor users

2,000 comments

75,000 views

5,000 comments

88,000 views

1,400 comments

24,000 responses

19,000 experience the Minimum Viable Product and provide additional feedback

600+ ideas for new name

600+ comments

140,000 views

17,000 votes

49%

Checkpoint

41%

Touchpoint

10%

Check-in

Social Business: Unlocking Innovation

The social interactions enable people to rapidly learn, act with

greater confidence and influence others in entirely new ways. In a

social business environment, IBM has been able to:

• Build disti t e pertise aki g it eas for people to lear , lo ate e perts and access relevant information based on the collective knowledge of

specialized communities.

• Foster stro ger relatio ships reati g a ore a al ti s-driven

environment personalized at every touch point to optimize decision-making

and motivate action.

• Opti ize orkfor e tale t rei e ti g ho e re ruit, oti ate a d retain the best talent using workforce science, analytics and comparative

benchmarks

Predictive Retention

We know that retaining our top talent is

critical not only to maintaining a

competitive advantage, but to reducing

tur o er ost as ell. IBM’s ulti-faceted

analysis uses survey technology and

analytics to impact retention practices.

Talent

IBM recognized, in this age of the empowered individual, the need to

transform the way we work. We also recognized that our most important

asset—our people— had to be at the center of that change.

At IBM, successful talent

acquisition is defined by attracting

the right candidates to the right

roles through precision and

science, and using social tools to

make them more productive more

quickly.

IBM developed and deployed a

toolkit that provides hiring teams

with globally consistent

messaging, creative guidance,

templates and imagery.

IBM recognized that attrition is

highest in the first 90 days after

hire.

New2Blue paves the way for

new IBM employees to quickly

connect with colleagues, find

experts and access all the

resources they need to perform

their jobs.

Expertise at IBM

Faster response to client needs for expert insight truly

sets IBM apart from the competition and helped drive

the creation of Expertise. Expertise is a discovery tool

that allows IBMers to quickly find colleagues who can

provide the insight needed to do their jobs.

Accessible in multiple formats

Easy to use

Increases efficiency

Various data sources

Comprehensive keyword filter

What it means for HR?

The 2014 C-suite Study highlights the importance of developing a customer-activated enterprise

Open up to customer influence.

Breaking down barriers to extend collaboration inside and outside– i gi g the usto e ’s oi e di e tly into the boardroom

Pioneer digital-physical innovation.

Fusing traditional activities with social, mobile, and digital networks to create new products, services,

and business models

Craft engaging customer experiences.

Developing unique interactions that fulfill customer expectations and differentiate the organization from

its competitors

The HR function will need to address a

number of new workforce challenges in a

customer-activated world

This intensive customer focus will require a workforce that is more collaborative, flexible and transparent

Shifting ground: business landscape changes for CxOs

73%

68%

61%

54%

52%

20%

33%

25%

28%

20%

Bigger partner network

Social/digital interaction

Partnering to increase value

Focus on customers as individuals

Organizational openness

Neutral

Smaller partner base

Face-to-face interaction

Partnering to increase efficiency

Focus on customers as segments

Operational control

11%

CEOs’ strategic priority in attracting top talent

CEOs re og ize the i porta e of tale t…

78%

41%

58%

Previous

3 years

Next

3 years

Importance of workforce challenges today

Tale t de elop e t a d e plo ee e gage e t are alread o CHROs’ radar…

65%

60% 60% 58% 57%

55%

68%

80% 87%

Talent

development

Employee

engagement

and

commitment

Talent retention Workforce productivity

Sourcing and recruiting

Performance management

evaluation

Talent management

Rapid development of

workforce skills

Collaboration and knowledge sharing

Percentage change in importance of workforce challenges: today vs. 3–5 years

… ith i reasi g fo us o olla oratio a d rapid skill de elop e t o er the e t three to five years

44%

35%

32%

22%

14% 12%

54% 55%

68%

Collaboration and

knowledge sharing

Rapid

development of

workforce skills

Talent management

Performance management evaluation

Workforce productivity

Talent retention Employee engagement and commitment

Talent development

Sourcing and recruiting

34%

32%

28%

Effectiveness in addressing workforce challenges today

20%

Performance management evaluation

Talent development

Workforce productivity

Talent management

Rapid development of workforce skills

While the majority of CHROs believe in their ability to retain talent, less than half are effective in other major workforce capabilities

Sourcing and recruiting

38%

37%

42%

42%

60%

20%

Employee engagement and commitment

Talent retention

Collaboration and knowledge sharing

Three core elements drive the ambitions of Gen Y in the workplace

• Impact--Making a difference is a strong motivational force behind Gen Y's efforts. Though salary and benefits continue to dominate the no. 1 and 2 on the importance list, making an impact ranks no 3.

• Communication--The instant communication framework Gen Y developed through extensive computer usage has led to a need for more professional feedback than that of past generations. Communication platforms such as SMS, e-mail, video chat, and blogging have engendered a mindset that necessitates constant communication with others. That mindset has carried over into the workplace.

• Flexibility--The divide between work and life is continually growing narrower as more people shift from the bricks-and-mortar to a remote workplace. The rate of remote office workers has increased significantly in the past two years.

Source: Wikipedia

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16

Yiannis Koutrakis

koutrakis@gr.ibm.com

+30 210 6881 522

@YKoutrakis

/yiannis.koutrakis

in/ykoutrakis

/Yianniskoutraki/