Definition of the Generation Y: Who are these Upsilons?
The post-war generation of baby boomers is about to retire and leaves a large void at the labour market. The resulting shortage of specialists is a major challenge for HR managers and companies. On the one hand it is difficult to find the right people and on the other hand is a shift in paradigms taking place. The following generations, the Generations Y and Z, march to a different beat and set up new rules – for companies and executives as well as for recruiters, talent managers and HR specialists.
The Generation Y will provide half of the work force in 2020. This includes everyone born between the early 80s and the late 90s. Also, the subsequent Generation Z is getting ready for the labour market and invests, like their predecessors, in education. They will climb the boardrooms in the middle- and long-term.
The succeeding young professionals are thus highly educated and well aware of that. Their conditions are requested with the according confidence. They strive for fulfilling jobs, that take into consideration their life situations and leave room for self-development and help shaping the firm.
Companies must face this new attitude. In the shift from an industrial to a knowledge-based society, qualified employees are a key component to success. Combined with the skills shortage, there is no way around the Millennials, as the Generation Y is often referred to.
So, what exactly are these new demands and values of the succeeding working force?
Values of the Generation Y: Successful are those who are happy
The Y is pronounced as why, which symbolizes the scrutinizing attitude of this generation. From the organisation, opportunities for development and further training, up to the working atmosphere. Everything is under constant review whether it fits into the desired way of life.
Millennials have another understanding of performance and are triggered by a different set of motivators than their predecessors. Not a big company car or a fancy job title count, but rather immaterial values: a profession that leaves room for family and a private life, a good working atmosphere, smooth teamwork and the possibility of bringing in own ideas. Working- and life-time will merge increasingly, therefore, the job must be fun and boost one's happiness.
How companies become attractive employers for the Generation Y
1) Flat hierarchies and transparent feedback. The Generation Y is very communicative and aims at a communication on eye level, also with superiors. Their motto is self-determination instead of conformity.
2) Invest in new technologies. Generation Y and Z are digital natives. They grew up with a technology driven life style, which leads to a new implicitness of technological applications. The internet is omnipresent and with it the access to information.
3) New Work: be open towards modern and flexible work models, which allow for compatibility of work and private life. There is also in increased demand for sabbaticals and parental leave, also among males.
4) Attend to the know-how of your experts and offer further training opportunities aiming at talent and personality development.
5) Equip the job with planning reliability and attainable goals. The Generation Y considers public bodies as especially attractive employers. Less appealing are start-ups as they bear a higher risk.
6) Get their attention! For example, with Gamification. The pharma company Roche, for example, is using an online programming game to playfully gain recognition among up-and-coming talents.
7) Build a strong employer brand and use social media channels to do so, from blogging to classics like Facebook and Twitter, but also rating portals such as Kununu and Glassdoor. That is the digital home of the Generation Y and it is where they actively seek information about potential employers. Show them your values, what your company stands for and which advantages you offer talents. SMEs should advertise their locational advantages, development opportunities, further trainings and work-life-balance measures.
Here is a self-check to assess how well you are prepared for the Generation Y as upcoming employees in your firm (p. 38 f., available in German only)
Have you addressed this topic or even took measures already? We are interested in hearing about that and are looking forward to your feedback.
Your Coopers team
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