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Showing posts with label Millennials. Show all posts
Showing posts with label Millennials. Show all posts

Thursday, November 20, 2014

Companies Have Always Struggled to Engage Young People 11-20

Companies    Have    Always    Struggled    to    Engage   Young    People

























A capable young manager in a financial services company returns from a month’s vacation. Formerly clean cut and conservatively dressed, he’s now sporting a beard and long sideburns. He also begins appearing at work in bright-colored sport-shirts and bell-bottom trousers. He resumes working with his accustomed vigor and sincerity.
Would this matter to you?  Do you think it would matter to anyone else?
In an effort to explore executives’ views of the benefits and drawbacks of encouraging managers’ individuality, HBR presented this scenario to 3,453 readers and asked them which of four responses would most closely describe their reaction.
Two, or maybe three, of them (0.1% at any rate) thought the young man should be summarily fired. Only 18% thought “What the kid wears and how he looks is his own business.”  The rest chose one of two passive-aggressive options, as you can see.
Beards have recently come back into fashion, but it probably won’t surprise anyone that this survey dates from 1971. That Baby Boomer hippie dresser, if he stayed, is likely now a top manager contemplating the t-shirts, flip flops, and leggings that his Millennial staffers wear to work. I’ll wager he’s probably less passive-aggressive (or at least more politically correct) in his views about how individuality should be expressed in the workplace than his bosses were.
But the truly surprising thing about the survey, published in the November–December issue of that year in an article entitled “Who Wants Employee Rights?”, was how strongly those conservatively-dressed HBR readers favored rights like the freedom to express your individuality, to object to transfers, to push your own political agenda, and to advocate against the primacy of shareholder value.
In an era in which it was joked that the initials “IBM” stood for “I’ve Been Moved,” for instance, fully 54% of the survey respondents from 1971 believed that a company transferring a young executive to a job that didn’t fit his interests had made a mistake and should reassign him to one he likes better. A whopping three-quarters believed that a CEO should allow a group of managers and engineers who fervently believed their company should pledge never to sell arms to aid any conflict not endorsed by Congress should be allowed to argue their case before the company’s board. Only a small minority felt a corporation’s duty is only to its stockholders, and more than 60% believed the interests of owners must be balanced with the interest of employees, customers, and the public.
But perhaps this liberalism is less surprising when you take into account that companies were making a real effort to woo Baby Boomers into business.  Enrollment at HBS hit a historic low in 1969 as the best and the brightest of the Boomers (the generation that didn’t trust anyone over 30) were seeking fulfillment elsewhere. Some accommodation had to be made.
In particular, argues former HBS admissions director Anthony Athos, in another 1971 article, melodramatically entitled “Is the Corporation Next to Fall?” accommodation had to be made for this new generation’s emphasis on personal fulfillment over corporate efficiency.  Athos cites noted MIT professor Kenneth Keniston (who first defined the concept of “the youth movement”) to explain what made the baby boomers different from the generation preceding them into the workplace. He describes a distrust in authority that had reached the level of revulsion — revulsion against the notion of economic quantity and a turn toward concepts of quality, a revolt against uniformity and a struggle against psychological or institutional rigidity in any form, a revolt against centralized power and a complementary demand for populist participation, and a new ethic of “meaningful human relationships in which individuals confront each other without masks, pretenses, and games.”
Alarmingly for HBR’s readers at the time, to get beyond the pretense, Athos says top business school grads were judging potential employers by how many of those hippie dressers were walking the halls. In fact the easiest way to test an employer’s sincerity was “to let facial hair grow and, in the job interview, watch for discomfort or an outright complaint.” Rejection of what’s on one’s head, the theory went, is likely to accompany a low appreciation for what’s in it on the job. “And like many simple tests,” Athos concludes, “this one worked pretty well.”
So what happened to all those would-be hippie dressers? In the 1971 survey, as might be expected, the younger employees were the most liberal. And the cohort coming after them, represented in the survey by students at HBS and one unnamed public mid-Western business school, were more liberal still, leading senior associate editor David Ewing to confidently assume that as these fractious Boomers rose through the ranks, attitudes would become even more tolerant of the exercise of individual conscience and wider forms of individual expression at work.
But that view did not take into account the looming Arab Oil Embargo, which raised the price of heating oil in 1974 higher than many Boomers’ monthly rent, nor the near decade of stagflation. The combination of higher prices and slow job growth sent droves of the best and the brightest back to business school. The hippies of the late 1960s became the dress-for-success yuppies of the 1980s. And offices probably looked much as Athos described his class of graduate business students in the late 1950s—“a colony of penguins indistinguishable to the casual eye.”
I’d be surprised if today’s entrepreneurial Millennials who eye Amazon and Google suspiciously as the new establishment are ranking potential employers by how diverse the clothing is that people wear to work. In fact, one Forbes’s article suggests that GenXers who used to don suits to be taken seriously by their Boomer bosses are now contemplating wearing jeans and t-shirts to emulate the hip, creative, fast-thinking Millennials gunning for their jobs. Whether you wear a uniform or a suit, or jeans and t-shirt, what you wear has never really been an expression of who you are as an individual; it’s always been an expression of which tribe you belong (or aspire to belong) to.
But I wouldn’t be surprised if high-potential Millennials are sizing up potential bosses in the way Athos said his students judged him as a professor back in the 1960s, by coming up with what he calls a “discomforting set of questions”: “Who are you? Can I trust you? Do you care? Are you aware? Are you mature as a man? Are you knowledgeable and still learning? Are you skillful enough to help me, where I am, to see more options? Where are you going? How will I get there? Why is going there important and worthwhile to me?”

Tuesday, November 4, 2014

Engage millennial workers with a strong development scheme 11-04



Engage millennial workers with a strong development scheme



The key to engaging millennial workers is a strong development programme, which is clearly communicated to staff, Sophie Relf says

Young people sharing a tablet
Over the last year Jobsite has been asked by multiple recruiters what millennial candidates are looking for from an employer. To help answer this we’ve conducted research with nearly 5,000 millennials to uncover exactly what they are seeking and what drives them to work everyday.
The research found that millennial workers (those aged between 18 and 31) are seeking more than money from their employers, with almost two-thirds (62 per cent) prepared to leave their jobs for reasons other than salary. In fact, the biggest driver for millennials is development opportunities. Over a third (38 per cent) would leave due to lack of opportunity and 32 per cent have chosen one organisation over another based on its professional development scheme.
After speaking to a number of HR experts, recruiters and millennial workers, we believe that a development scheme with a clear performance review process, mentorship program and regular career discussions is key to attracting, retaining and showing value to this generation of workers.
Jo Harman, head of HR at advertising agency Karmarama, has created a formal performance review process for all staff. She explained that having a median age of 28, the demands of the millennial generation are extremely important to the company.
“We use an online system that allows both parties to input their feedback, such as areas where they feel they are doing well, what they need to improve on and how they feel they are contributing to the agencies culture. This helps us to identify the employee’s motivational drivers, which guides us to create opportunities that they are seeking.”
Using the data that is collected, Jo and her team create training programmes based on the wants and needs of staff. A large proportion of Karmarama’s younger team said they would like to improve their presenting skills, leading to the creation of a unique program titled ‘communicating with impact’, which is available for all staff who want to improve and develop this skill.
She adds: “The system ensures that a formal review takes place every 12 months, with a shorter catch up every six months. This means no review is forgotten and millennial workers are given the regular feedback they need to develop without loads of paperwork to discuss their career plans.”
Frances McCord, a 26 year-old civil engineer at Atkins, says that despite the tough job market, she would never accept a role that didn’t offer the right development opportunities. She says: “Atkins provided a formal development programme, which is aligned with the Institute of Civil Engineers and will continue to help me realise my career plan of becoming a chartered engineer.”  
When going through the results of the survey with the team at Jobsite, no one was surprised that almost all millennial workers (94 per cent) state that their career path is a priority for them. Gordon Rennie, also a graduate at engineer at Atkins, believes that having a plan for your career that you and your employer are aware of is incredibly important both for individual motivation and for driving the business forward.  He says: “I’ve created a plan with the support of Atkins. As a medium-term career goal I want to gain the experience to satisfy the requirements of Chartered Engineer status from my professional institution, the Institution of Chemical Engineers (IChemE) and in the long-term I am looking to advance to senior and, later, Principal Process Engineer. I believe these particular roles and this clear route for progression help to keep me motivated and enagaged within the company.”
Our research also found that twice as many millennials compared to non-millennials have a workplace mentor. Jo Harman recognises this as an interest for millennials and recently created a mentor program within the company. She says: “The programme aims to help drive integration within the agency and encourages staff to share and learn from each other’s skills. It helps give our staff responsibility for their own development and fosters the conversations between senior and junior members of staff that create better understanding and hopefully learning”.
Atkins runs a similar mentoring programme and Frances McCord has regular meetings with her mentor. “We organise quarterly meetings to discuss process and identify ‘gaps’ in my development that we then work on together. This means I always know which opportunities and experiences I need to pursue to continue developing and I can set targets for my personal development plan. I really value my sessions with my mentor - she is very supportive, and keeps me on track with my career ambitions.”
Karamarama also offers employees a wealth of ‘perks’ that range from health insurance, a pension scheme and gym membership to a subsidised staff ski trip. Jo explains that while these are important for the agencies culture and contribute to the happiness of the staff, they are not usually the reason staff are pulled or pushed to another agency. The main reason, especially amongst millennial workers, is a new opportunity or further development that Karmarama cannot offer.
Within the human resources industry, there are multiple stats that connect staff engagement to productivity. Looking at these and speaking to our HR experts we believe engaged staff will on average be 20 per cent more productive. As our research shows, the key to engaging millennial workers is a strong development programme, which is clearly communicated to staff. 

Friday, October 3, 2014

Impact Investing Needs Millennials 10-04



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Impact Investing Needs Millennials


As impact investing tries to make the move from philanthropic thought experiment to powerful instrument for global change, a vital demographic and financial reality is emerging — it’s going to be millennial investors (particularly those inheriting or building significant private wealth) who make or break it.

Since the term was coined in 2007, impact investing — the idea that private capital can be deployed to alleviate pressing social needs like access to clean water, affordable housing or preventative healthcare while returning a financial profit — has attracted significant public and media attention. However, impact investing’s legitimacy as an alternative asset class remains elusive.
Impact investment continues to suffer from limited transaction flow and anemic dollar commitments. Most relevant to stunted growth, however, is cultural resistance — the inertial apathy of traditional financial players who are wary of novel, risky investment structures and skeptical about trading some amount of profitability for social return. Without the commitment of commercial financiers to include impact investments in their core portfolios, or pressure from mainstream investors to insist that they do, impact investment’s route to scale is uncertain.
Enter the millennials (the roughly 80 million Americans born between 1980 and 2000, and their peers around the world), who conceive of financial return differently, and more expansively, than their elders. For millennials, pressing social problems are not just the preserve of philanthropists or governments. Millennials consistently cite social impact as one of the most important roles of business. Of all the generations alive today, millennials are the most willing to trade financial return for greater social impact, according to “Millennials and Money,” a 2014 study from Merrill Lynch’s Private Banking and Investment Group.
According to another study, U.S. Trust’s “Insights on Wealth and Worth,” wealthy millennials are almost twice as likely as their grandparents to regard their investments as a way to express social, political, or environmental values (see chart), and nearly three-quarters of millennials believe that it is possible to realize market-rate returns investing in companies based on their social or environmental impact.
Millennial Impact chart
These opinions matter. Millennials are poised to share in the largest intergenerational wealth transfer in human history — one widely-cited estimate puts its value at $41 trillion in the United States alone by the year 2052.
Millennials therefore represent a sizeable, well-capitalized cohort of investors with a generational commitment to furthering the social good and a desire to engage their peers — and parents — in doing likewise.  As recent events show, they are beginning to act on these principles. At the recentNexus Global Summit on Innovative Philanthropy at the United Nations, which we attended, 600 largely millennial-aged participants from 41 countries representing nearly $750 billion in private and family wealth spent three days exploring and sharing case studies of social investments. Some of the investments had the sophisticated deal structures of large corporate transactions, some showed private sector engagement driving infrastructure development and quality-of-life improvement, and all demonstrated growing connections between policy and profit at national and international levels.
When we contrast our inspiring experience at Nexus alongside the still-limited impact- investment landscape, we conclude that three actions will be critical to accelerating the mobilization of capital by millennials and allowing impact investing to scale to a projected $1 trillion market by 2020.
First, private-sector entrepreneurs need to keep identifying opportunities to build companies that can accept and use impact capital to grow to scale, providing an increasing capacity for deal flow. Some commentators have compared the opportunity presented by impact investing to the early days of venture capital. We find such comparisons premature, but agree in one respect: to scale, impact investing will require a small contingent of ambitious investors prepared to make sizeable bets on promising entrepreneurs in order to demonstrate the asset class’s viability.
Second, millennials should vote with their wallets and demand that retail banks, wealth managers, and advisory firms provide a suite of financial products that range across the risk/return/impact triangle. Wealth management firms acknowledge that they are not yet positioned to give impact investing equal footing to conventional investments. In the “Millennials and Money” report we cited above, Merrill Lynch described one client’s impact investment as “a tricky undertaking for both client and advisor…the collaboration, in many ways an experiment, is ongoing.” For the same investment, the report asks, “what measures should be used to judge the social impact of these investments? How long should you wait for that impact to take hold, let alone a profit stream?” These are the questions investors are looking to advisory firms to answer, not just ask.
Of course, not all millennials will inherit or create millions in personal wealth. But our generation is remarkably consistent in attitude, regardless of financial position — 92% say business success should be based on more than profit. Millennials also believe in the power of private capital. More than half of millennials in the same study (conducted by Deloitte) believed that business, not government, will have the greatest impact in solving society’s most pressing challenges. We expect that wealthy millennials will pave the way for the mainstreaming of impact investment products for their peers as well as their Baby Boomer and Generation X parents and grandparents, whatever the size of their portfolios.
Third, growing impact investing will take collaboration and cooperation. Public- and private-sector actors will need to partner with academia to aggregate information on impact investing deal activity, compile best practices in impact measurement, reduce transaction costs, and inspire new participants through social engagement. The first report of the U.S. National Advisory Board on impact Investment is an important first step; the next challenge for government is to design and foster a supportive regulatory environment, one that regards private capital as positive force to be harnessed, and impact investors as partners in social progress.
We anticipate that millennials’ growing commitment to impact investing on multiple dimensions — dollars committed, deals completed, financial returns achieved, and development goals addressed.  Most importantly, however, we look forward to a growing alignment of developed world capital with a social conscience, driven by one of the core millennial mantras: doing well by doing good.