Download - Millennial myths, exaggerations and uncomfortable truths - The real story behind Millennials in the workplace

Myths, exaggerations and uncomfortable truths The real story behind Millennials in the workplace

Carolyn Heller Baird Global Research LeaderIBM Institute of Business Value

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© 2015 IBM Corporation

IBM Institute for Business Value

Table of contents

Introduction - The Millennial impact

Study methodology

Five myth busters

Three uncomfortable truths

Recommendations

Summary

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Millennials—as digital natives—bring vital value to a workenvironment in the midst of a digital revolution

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5050%% USA workforceUSA workforce

7575%% Global workforceGlobal workforce

By 2020, Millennials willbe roughly 50% of the USA workforce, and 75% of the global workforce by 2030.1

Source: Meister, Jeanne. “Three Reasons You Need To Adopt A Millennial Mindset Regardless Of Your Age.” Forbes. October 5, 2012. http://www.forbes.com/sites/jeannemeister/ 2012/10/05/millennialmindse/

By sheer numbers alone, Millennials have become the catalyst for accelerated change in the workplace.

They are the first wave of digital natives to enter the workforce, and this does distinguish them.

Organizations that have embarked on their own transformation urgently need this digital capital.

2020 2030

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The hype swings from one extreme to the other

Millennials are open-minded, have a strong sense of community, and

are bent on saving the world.2

Notes: 1 Stein, Joel. “Millennials:The Me Me Me Generation” Time magazine. May 20, 2013. 2 Feldmann, Derrick & Emily Yu. “Millennials and the Social Sector: What’s Next?” Stanford Social Innovation Review. June 18, 2014.

Millennials are lazy, entitled, selfish and shallow.1


Yet the buzz about Millennials suggests that thedifferences between them and their older colleagues go much deeper

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http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCAQFjAA&url=http://www.fandm.edu/uploads/media_items/stein-2013-me-generation.original.pdf&ei=PpVaVKZzz6vIBNfkgrgM&usg=AFQjCNG-Z_WiUV5LrpwhcH3B1jFWve0P9g&sig2=qu0CKy3Hlzbbp_FshgtNvA&bvm=bv.78677474,d.aWw/

http://www.ssireview.org/blog/entry/millennials_and_the_social_sector_whats_next



©2015 IBM Corporation April 15, 20235

The first paper is the one we are covering today: Myths, exaggerations and uncomfortable truths – The real story behind Millennials in the workplace

Get the Executive Report: ibm.biz/millennialmyths

The IBV Millennial study is a 2-part series

The second paper in the Millennial study series:To buy or not to buy – How Millennials are reshaping B2B marketing

Get the Executive Report: ibm.biz/millennialsb2b



Table of contents


Study Methodology

Five myth busters


Recommendations

Summary

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In a multigenerational study of

1,784 professionalsfrom companies large and small across 7 regions and more than 6 targeted industries, we compared the workplace preferences and behavioral patterns of Millennials, Gen X, and Baby Boomers

So what’s the real story?

Now that the first wave of Millennials is reaching the top echelons and making – or influencing – major business, it’s time to take stock.

65%

Millennials

(21-34)

20%

Gen X

(35-49)

16%

Baby Boomers

(50-60)

Generational breakdown

All respondents - currently employed with at least a bachelor’s degree

Each generation - wide range of job roles, from senior leaders to entry-level staff

30% – 40% of respondents influence B2B purchasing decisions (single purchases of US$10,000 or more)

Source: IBV Millennial survey issued July-August 2014

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ages in summer of 2014



Table of contents


Study methodology

Five myth busters


Recommendations

Summary

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50 90807060403020100 100

Myth 1: Millennials’ career goals and expectations are different from those of older generations

Fact: Millennials have similar goals as their older colleagues—and they place much the same weight on each goal.

Make a positive impact on my organization

Help solve social and/or environmental challenges

Work with a diverse group of people

Work for an organization among the best in my industry

Do work I am passionate about

Become an expert in my field

Manage my work/life balance

Become a senior leader

Achieve financial security

Start my own business

Percentage of respondents who ranked the following goals among their top two career aspirations

Source: IBV Millennial survey: Select the two long-term career goals that are most important to you. (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)9



Percentage of respondents who agreed

Myth 2:

Millennials want constant acclaim and think everyone should get a trophy

Fact: It’s largely Gen X employees, not Millennials, who think everyone on a successful team should be rewarded, and employees should be recognized for information sharing and collaboration.

64%55% 44%

If a team is successful, everyone should be rewarded

Employees should be rewarded for sharing information and collaborating

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55% 64% 44%

Millennials Gen X Baby Boomers

55% 66% 43%

Millennials Gen X Baby Boomers

Source: IBV Millennial survey: How should work performance be rewarded? To what extent do you agree or disagree with the following statements?(Millennials n=1,153, Gen X n=353, Baby Boomers n=278)



Fact: Millennials are comfortable using interactive online tools to acquire new work-related knowledge and skills, but they prefer in-person interaction.

39%

37%

36%

35%

35%

34%

33%

27%

23%

…attending in-person classroom training

…working along side knowledgeable colleagues

…accessing self-paced interactive modules, apps or online simulations

…reading education/training manuals/instructions

…figuring it out on my own

…attending a live webinar

…attending a Massive Open Online Course (MOOC)

…watching a video

Millennials prefer to obtain work-related knowledge by…

…attending a third-party sponsored event

Percentage of Millennials who selected these options as one of their top three preferences

39%

37%

36%

35%

35%

34%

33%

2727%%2727%%

2323%%2323%%

Source: IBV Millennial survey: How do you prefer to obtain network-related knowledge and skills? (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)

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Myth 3: Millennials are digital addicts who want to do everything online



Myth 4:Millennials, unlike older colleagues, can’t make a decision without first inviting everyone to weigh in

Fact: Millennials value others’ opinions, but Gen X is even more inclined to want a variety of people to provide input and to seek group consensus.

37%

36%

39%

55%

61%

Percentage of respondents who agreed

It is important to havegroup consensus

I make better decisions when a variety of people provide input

64%

56%

49%

61%

55%

39%

Source: IBV Millennial survey: To what extent do you agree or disagree with the following statements about how you make business-related decisions? (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)

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Myth 5:

Millennials are more likely than employees of other generations to jump ship if a job doesn’t fulfill their passions

Fact: Millennials change jobs for much the same reasons Gen X and Baby Boomers do.

Employees of all ages have much the same reasons for moving to another position

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Myths: Implications

Fact:Build a workplace environment where Millennials, as well as older employees, will thrive

Millennials and most older employees want…

Career goals and expectations

Leadership style and recognition

Use of digital technologies

Decision making

Job satisfaction

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2

3

4

5

To make a positive impact and feel inspired and informed

To be treated ethically and fairly, and valued fortheir contribution to the team’s success

To maximize their digital acuity, but also balance virtual interactions with in-person engagement

To collaborate with colleagues and others so the best ideas can surface and flourish

To receive competitive compensation and work in a creative, innovative environment

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Table of contents


Study methodology

Five myth busters


Recommendations

Summary

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Many employees aren’t sure theyunderstand their organization’sbusiness strategy

Uncomfortable truth

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Percentage of respondents with limited or no understanding

…my organization’s business strategy

…my manager’s expectations of me as an employee

…what my customer’s want

…my organization’s brand promise

I don’t fully understand…

%

6560504035



The majority of respondents believe their organization effectively addresses a number of issues, including work-life management, workforce diversity and environmental/societal concerns.

The sole exception is the customer experience.

Most employees, irrespective of age, think their organization provides a poor customer experience

60%

40%

70%

Millennials

Gen X

Uncomfortable truth

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Percentage of respondents who believe their organization is not addressing the customer experience

Baby Boomers

17 © 2015 IBM Corporation



Only 4% of respondents say their organization has no problem implementing new technologies

Employees of all generations say their organization is slow to implement new technologies

Impact on current customer experience

Leaders’ lack of technological savvy

Complexity of technology

Leaders’ inability to envision future needs

Organizational culture that is resistant to change

Uncomfortable truth

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72%

44%

44%

36%

32%


The top barriers to implementing new technologies

18 © 2015 IBM Corporation



Employees need to understand their business fundamentals so they…

More engaged employees will lead tohappier customers

Uncomfortable truths

Implications


Employees need improved technologies so they…

─ feel their role matters─ feel part of a bigger mission─ feel empowered to make a difference…And can become enthusiastic brand ambassadors

─ can be more collaborative and innovative─ can be more efficient and effective─ can be informed decision makers…And can design and deliver differentiated

customer experiences19



Table of contents


Study methodology

Five myth busters


Recommendations

Summary

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We’ve made five practical recommendations for helping a multigenerational workforce thrive in today’s volatile environment

Recommendations

Focus on individualsUse robust workforce analytics, policies and programs that accommodate individual career aspirations, not generational stereotypes

Foster a collaborative cultureDeploy collaboration technologies and tools along with adoption programs and incentives

Make customer experience a priorityInvestigate weaknesses, be transparent, and work collaboratively on improvements

Look withinLeaders assess how well you are personally connecting with employees

Get everyone on boardHelp all employees understand the business fundamentals

Implications for business leaders

The “Millennial” mindset transcends age.Employees in each generation want:

A diverse, collaborative, innovative workplaceThe tools and technologies to help them be their bestDelighted customersInspirational leaders who are invested in employees’ engagement and development

These attributes will be the competitive differentiators that attract and retain top talent.



Table of contents


Study methodology

Five myth busters


Recommendations

Summary

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Millennials as a catalyst for change


Millennials, as digital natives, bring the digital capital organizations need to accelerate their business transformation

Gen X and Baby Boomers have also adopted new ways of doing business - they want many of the same things Millennials do

Organizations need nuanced talent strategies and robust analytics for a multigenerational workforce; employees of all ages are complex individuals

Summary

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