The New American Workspace: Millenials at the Gate
By David Kilby
Millennials are the new core workforce. Their concept
of “work” is different than the traditional. They bring
bold, new approaches of what work should be, how and
where it should be performed, and what the rewards
for work should be.
Summary:
Millennials are the new core workforce. Their concept of “work” is different than the traditional. They bring bold, new approaches of what work should be, how and where it should be performed, and what the rewards for work should be.
This has made some employers uncomfortable.
Millennials are not going to change. Employers must reassess their concepts to bring out the best of the unique Millennial personality. In other words, for some employers, the concept of the “work environment and process” must change.
In this eBook, you’ll learn how employers can find, hire, train and retain the brightest and best employees; employees who will help move their companies ahead for the next two decades.
I wanted a word that described my vision of the employment landscape— the work picture – like artists and their landscape painting. So, I invented “Workscape.” It doesn’t seem to be a valid word in the English language. But I like it. If you like it, use it. My compliments.
— DK
Introduction
Last year I published a book— The New Productivity Engine: The compelling impact of financial wellness in the workplace.
Written for everyone, including employees, it delivered my vision for financial wellness as an employee benefit that is needed, wanted and highly valued by everyone— employees, employers and human resources professionals. While there has been resounding progress, there is still certainly a good way to go before we can claim total success.
When I look at the U.S. workscape today, I see a dramatic shift in the attitudes, personalities and attributes of incoming workers. I see Millennials – Gen Y.
The Silent Generation, (born 1928- 1945), are retired or have passed on. Baby Boomers, (born 1946- 1964) are mostly retired. Gen X (born 1965-1980) are looking forward to retiring.
The people surging into the work force are the Millennials – Gen Y, (born between 1981- 1996), who will make up the bulk of America’s workers for the next 20 years.
They have a unique cultural background, an exceptional set of skills, and an unlimited future.
And, if our businesses are to prosper, we need recruit, hire, engage, and retain the brightest and best of them as soon as possible.
I hope this helps.
— DK
Millennials want a flexible work schedule. They love technology, and technology has made flexibility commonplace. Sometimes they are just acting on their chronotype, their personal clock governed by their circadian rhythm
Sleep expert Dr. Michael Breus divides us into four chronotype categories. “Dolphins” sleep lightly, wake early but not completely refreshed; they’re not morning people. About half of us are “bears,” who sleep deeply for eight hours and wake up with the sun. “Lions” are at their peak in the morning, but start to fade as the day progresses. “Wolves” are the night people who have trouble getting up before 9 am, but most productive during the evening.
My take: Scheduling work times based on chronotype may improve productivity.
— DK
Some Millennials are likening
an undergrad college degree
to their parents’ high school
diploma.
About Millenials:
Millennials: U.S. workers born between 1981 and 1996. Millennial psychology is affected by five major factors:
Their parents & parenting techniques
9/11
Schools & colleges/education
Technology/social media
Climate change
Of course, there are plenty of other factors, but these are the big ones.
Their parents & parenting techniques
Millennials have been parented by Baby Boomers and Gen Xers. They have relentlessly been taught that:
They are special
They can accomplish anything they want
Each one can individually make a difference
9/11
The most significant world event during the life of an American Millennial is the terrorist destruction of the World Trade Center in New York in 2001. The event was a watershed and the images have been repeated endlessly on TV, movies, social media for nearly 20 years.
Schools & Colleges
Millennials have been taught that activism (strikes, marches, and even violence) are options to effect change.
Concepts such as safe places, micro aggressions, behavioral triggers, and such help Millennials pursue their dislike of stress and differences of opinion.
In most cases, students are not being taught the four basic financial life skills: spending, saving, borrowing, and planning. (Although some colleges are now instituting financial skills courses.)
The most significant world
event during the life of an
American Millenial is the
terrorist destruction of the
World Trade Center in New
York in 2001.
Technology/Social Media
Even though the Internet was only
developed 30 years ago, and smart
phones and other devices are just a
decade or so old, digital media has
changed our workscape forever. Video
of a catastrophe in New Zealand,
with analysis, is on our phone almost
instantly.
According to some research,
social media users often
obsessively depict their life
as they would like it to be—
not how it actually is. Being
constantly reminded that “my
life is better than your life”
generates problems.
Some analyses equate social
media “likes” with severe drug
addiction where the dopamine
receptors in the brain get a
repetitive “high” with each
positive response.
There are trends toward social
media diets, where some users
are making a personal effort
to limit social media hours to
counteract wasted time and
some of the negative aspects.
Advertising on social media,
along with the impact of
“influencers,” encourage
Millennials to buy items that
they may not be able to afford
(or actually want).
The ability to facilitate
purchases at any hour, on any
device, is only adding to the
level of financial stress
Everything is personal.
Everything is tailored to
the unique individual user.
Compelling and accessible.
Technology has made
information sharing and
data capture available to the
masses. If advertisers and
media aren’t taking advantage
of targeting capabilities and
emotional connections, they’ll
soon be obsolete.
Artificial intelligence is both
exciting and terrifying. I’m
not sure where it’s going, and
I seriously doubt that many
Millennials can give me a
definitive answer.
Long entrenched culture changes little over months, and even years. My expectation is that millennials will (at least in the short-term) suffer from most of the same financial problems as their parents. It has been shown that children often mirror the behavior of adults.
In fact, the recent results of studies into millennial finances bear up this belief.
A 2017 report by PwC, “Financial Stress and the Bottom Line,” finds that “employees reporting financial stress tend to be younger and are more likely to be female; 35% of millennials and 44% of Gen X say that they are financially stressed, compared to 21% of Baby Boomers. 59% of women say they are financially stressed compared to 41% of men.”
The data seems to show that the financial stresses on millennials today are not that different than it was on their parents.
— DK
Here are just a few of the positive attributes Millennials bring to the workscape:
Prefer flat management
structures
Well educated
Skilled in technology
Very self-confident
Able to multi-task
Energetic
Have high expectations for
themselves
Prefer to work in teams
Seek challenges
Look for work-life balance
Recognize their need for social
interaction
The financial stresses on
Millennials today are not that
different than it was on
their parents.
Nearly half (48 percent) report using credit cards to cover monthly necessities.
while they may be different/unique/ exceptional in many ways, millennials have the same trouble paying their bills as everyone else.
Let me state this in a different way:
Although modified solutions may be needed to deal with millennials in the workscape, the need for financial wellness benefits has grown even greater.
— DK
The Law of Unintended Consequences
If you’ve ever taken Six Sigma
productivity training, you’ve used the
term to describe a set of results, often
negative, that was not intended as an
outcome.
Ill-conceived Decisions
vs Fiscally Responsible
Solutions
One obvious answer to the
problem of not having enough
money to pay the bills raised in the
PwC report would be to increase
wages across the board. This
solution might be embraced by
many Millennials.
However, it has been proven in
numerous cases that within a short
time, businesses raise prices to
cover the wage increase, and soon
we have the same problem. It’s a
vicious cycle.
In our entrepreneurial and
capitalistic society, businesses are
in business to make a profit. When
costs go up, owners say, “Why
should I take less? I’ll cut my costs:
(reducing package size or quality).
Or, I’ll pass the increase along to
the customer.”
When businesses don’t make a
profit, they go out of business. If
government takes over a business,
results show the rate of success to
be extremely low
Then the Law of Unintended
Consequences may take over.
Here’s Some More Information
A 2017 Google Consumer
Survey of more than 5,000 adults
conducted by GOBanking.com
found that:
57 percent of the respondents
have less than $1,000 in
savings—a 12 percent decrease
from 2016, and five points
down from 2015.
20 percent of Americans don’t
have a savings account.
39 percent of Americans
have $0 in savings. None.
Nada. Zero. Up from 34
percent in 2016.
Now you’re probably ready to google “financial wellness platforms.”
There are a number
of them available. I
recommend examining each
in detail before making a
final decision.
All of them offer
employee education.
a few offer motivation
elements for completing
the educational elements
– contests, online
competitions, rewards
along with personal
financial dashboards and
robust planning tools.
Very few offer sensible,
practical financial
solutions like early wage
access, credit and banking
resources with no risk or
administration required by
the employer.
Education absent of
practical solutions to
solve today’s financial
challenges is not
financial wellness.
Employees cannot be
expected to plan for
tomorrow when they can’t
handle challenges today.
I highly recommend
choosing the financial
wellness platform that
has all three benefits
for maximum employee
coverage and satisfaction,
plus maximum productivity
benefits for the
employer.
— DK
What’s Your Corporate Strategy for Attracting Millenials?
Organizations are tailoring their
job postings, descriptions and
benefits to correspond with the
Millennial wish list.
Think cutting-edge, personal and
emotional:
Innovation and change. Ex:
all-expenses paid trip to SXSW
(If you’re a Millennial, you
already know. If not: South
by South West is an annual
arts and cultural festival held
in Austin, Texas. It describes
itself as ‘10 days of unparalleled
discovering, learning and
networking with creatives.’ And
you really do need to know).
Working for a cause, meaning
and reason.
The ability for continued
personal growth, skill
development and career
advancement.
Equality.
Flexible hours, locations and
the ability to work from home.
Technology.
Even if your
organization doesn’t
have the resources
to compete with
the really big
players, you can
still do a good job
of attracting the
brightest and the
best Millennials. A
few tips:
If you want to
catch the biggest
fish in the lake,
you put the best
possible bait
on the hook.
That brings the
biggest fish.
If you want to hire
the brightest
and best, you
make the offer
of employment
the best possible.
That brings the
best candidates.
Yes, it might cost
more money to
have an incredibly
good offer. But
if you get the
best person in
the position, it’s
likely they will be
more productive
and engaged than
a low end, cheap
candidate who
leaves after a
year.
— DK
Hiring the Brightest & Best
The 3-point Employe Wish List:
Qualified candidates. Employers want to find people
who have a good probability of
high performance on the job. It
certainly helps if the candidate
has related background training
or has held the job in the past.
Candidates with training in animal
husbandry are probably not going
to be selected for interviews for an
accounting job.
Informed candidates who
want to be hired. Job candidates who have
researched the organization, know
and accept the culture, and want to
make a long-lasting contribution
are always welcome in interviews.
Enthusiastic, innovative,
engaged workers who
can benefit and progress
through ongoing training
and development, and stay
with the employer for a
long time, are pure gold.
Employers want to find people
who have a good probability of
high performance on the job
A few years ago, a
consultant was engaged
to guide the local TV
station through the
creation of a strategic
plan.
One requirement for
the assignment included
involving every station
employee in appropriate
elements of the
process.
Over a two-month period,
the consultant led
meetings, workshops,
group assignments,
roundtables and oneon-one’s, culminating in
a debut of the station’s
strategic plan.
While the details of the
strategic plan were
important, the real and
lasting value was in
bringing station staff
of all levels together,
engaging them to create,
agree on, and push
forward team-driven
common goals as part of
an overall plan.
— DK
Did You Know?
The average cost of hiring an
employee: $4,129.
A study by the Society for Human
Resource Management (SHRM)
says that the average cost to just
hire (not including onboarding or
training costs) a worker is $4,129,
and it takes around 42 days to fill
a position. The cost increases for
upper management, decreases for
hourly workers.
But this doesn’t really tell you
much. Maybe you have a dedicated
HR department and hire 300
people a year. Maybe you use
outside consultants and hire 10
people a year.
And here is the most expensive
model: Replacing an employee
According to SHRM, turnover
costs are often estimated to be
100% to 300% of the base salary
of replaced employee (150%
commonly cited.)
Not only do you have to pay
for hiring and training the first
(wrong) worker, now you will
incur that cost all over again, plus
the cost of lost productivity in the
interim.
Millenial Employment Check List
Remember the Millennial Wish List?
Let’s reprise it as an expanded check
list. How many millennial criteria can
your business meet or exceed?
No added or unnecessary stress
This doesn’t mean “No Stress.” Even mattress testers have job stress: “What if I wake up?” Consider these stress relievers:
Flexible work hours
Working remotely
Financial wellness program including money management, savings goals and responsible credit and banking resources
Financial Help
Millennials really don’t want to live with their parents. But there are student loans, car payments, and other financial obligations. Consider these financial opportunities:
Working remotely (saves on transportation, lunch and clothes).
Financial education
Well, that’s easy! Consider a
financial wellness program:
Millennials really want to live
within their means. But, they
haven’t yet been educated on
how to do it. They would really
appreciate help.
Millennials are smart-device
people. Financial wellness
programs work because we
have the device platforms (or
software, if you like) readily
available. Take advantage of it.
Moving out of the 77-percentof workers-without-$500
-in-the-bank category is a very
realistic goal for Millennials.
Financial wellness programs
can help them get there more
quickly by providing the ability
for them to establish savings
accounts. Then they can move
ahead.
Want to personally
participate & contribute
Knowing the company mission and
purpose is essential. Millennials
want to be proud of their company.
They want to brag on social media. Providing portals to serve
are essential. Consider these
possibilities:
Appoint new hires to
committees in corporate
foundation, fund-raising and
community volunteer work as
part of their orientation and
probationary requirements.
Provide corporate social
media posts so employees can
boast to their circle about the
company and how they are
contributing.
Encourage millennials to join
the financial wellness contests
and competitions within their
company and the platform.
Millennials are competitive,
want to excel , and want to
help others.
Want constant feedback
Throughout their lives they’ve
been challenged and constantly
coached. They expect the same
at work. They also want to meet
colleagues and make new friends.
Consider these opportunities:
Appoint a peer mentor for each
new hire to be their daily guide
for the first few weeks.
Appoint a management mentor
for each new hire. They should meet regularly—at least
every two weeks—to discuss
progress, goals and issues.
A financial wellness program
that encourages fiscal goal
setting, budgeting, education,
and has a robust feedback
component to show and
reward progress.
you may have noticed
a trend
Part of the answer for every
Millennial wish can be partially
fulfilled by a practical financial
wellness program.
Not only will it help them, but
it will provide you with workers
who are more productive, more
engaged, and who stay with you
longer. That means more money on
your bottom line.
Managing for Engagement & Retention
Quid pro quo—something for
something. A fair exchange. You
work, I pay.
For Millennials it may seem a
bit more complicated: You pay
and offer the benefits I want and I’ll
work, remotely at times, on my flexible
hours, while you provide mentoring and
feedback, regular pay increases, and a
chance to influence the corporate culture.
Of course, there’s a lot more to the
employer-employee relationship,
and Millennials might take it to
the limit—or so it might seem.
They’re asking for a lot, so what
do you get back in return if you
accommodate their requests?
They’re more likely to stay
with you—if they are engaged.
According to a 2016 Gallup report,
How Millennials Want to Work
and Live, “Seventy-one percent
of employees in the Millennial
generation… are either not engaged
or actively disengaged at work.”
The Gallup report then turns that
around.
“Millennials who are engaged
at work are 26% less likely than
Millennials who aren’t engaged to
say they would consider taking a
job with a different company for
a raise of 20% or less. Engaged
Millennials are also 64% less likely
to say they will switch jobs if the
job market improves in the next 12
months…”
Difficult question:
How do I ensure that
Millennial workers are
engaged?
Here’s one example:
Some Millennials do not feel
comfortable approaching
management with their concerns
such as:
seeking to learn more
looking for a raise
requesting more responsibility
“Considering that ongoing
development is a fundamental
job expectation and top retention
factor for Millennials, trepidation
among these workers about talking
with their managers is a serious
problem for employers.”
The Gallup report continues
(emphasis theirs).
The report concludes: “Managers
also need to convey that they care
about Millennials’ long-term plans.
It is managers’ responsibility to
ensure that Millennials understand
their future in the company
and communicate that workers
don’t have to go somewhere
else to advance. Assuming that
Millennials can visualize the
potential for advancement—or
grow on their own—is a big
mistake.”
The takeaway: Employers must be
vigilant and proactive in managing
their employees on a personal level,
especially Millennials. Otherwise
they are likely to be disengaged and
move on—and that will cost you
money.
Another example:
Millennials love their phones.
One study found that Millennials
check social media (Snapchat and
Instagram lead, with Facebook
running a distant third) an average
of 11 times a day. That doesn’t
include texting, Googling, emailing
or talking.
However, according to David
Kurzmann of Women’s Best,
“Managers should know that
Millennials have opened their
eyes to technology. This means
that employees are much more
capable of applying technology
for professional purposes than
previous generations.”
The takeaway: Creating a company
support app, or building a corporate
presence on Instagram, may be a
company goal. It’s possible that a
random Millennial will have a better
idea and a more elegant solution
than your Gen X marketing director.
Get to know the workers and see
who has the talent. Millennials
want to contribute. That’s Quid pro
quo at its best.
40% of
workers with
poor training
leave within the
first year.
But, let’s talk for a
minute again about
financial wellness.
How do employers
integrate it into the
company culture,
how can they get it
established, and how
do Millennials react
to the concept?
Integrating financial wellness as an
employee benefit into the company
culture takes some thought and
time, but it is not difficult. And
it is not expensive – typically less
than 5% of what you spend on
traditional benefits.
Like any other employee benefit,
financial wellness soon becomes
part of the benefit landscape.
Management and employees
may not be completely versed
on the concept—so there is an
introductory component followed
by voluntary online sign up for
employees. Millennials, used to
online forms, have no problem here.
For company staff, including the
HR office, there is no additional
work after the initial sign-up.
Financial wellness program
information is included in the new
hire package.
Employee access to the financial
wellness benefits is completed
directly online with the financial
wellness provider. The company
and the HR office is not involved.
Financial wellness platforms can
actually cut the work and stress
level for the HR office. No more
requests for payroll advances or
loans, no more raids on the 401(k)
plan, no more follow-up, decisions
or collections required.
With all access online, Millennials
can use their financial wellness
benefits from anywhere at any
time. No waiting for office hours.
Reduced stress. Faster response.
A robust financial wellness
platform includes real time fiscal
education with constant feedback;
competitions and contests with
tangible, immediate rewards
to motivate users; and benefits
that address real world problems
with practical solutions. Above
all, it must be personal. The
experiences, tools and resources
must be tailored to each individual
employee to achieve maximum
participation and behavioral
change.
For the employer,
financial wellness
has practical
economic benefits
that bring ROI of
300% and greater.
Increased productivity
(workers are spending less
time on personal financial
problems at work)
Increased engagement
(workers are getting the
employee benefits they want)
Better worker health (decrease
in financial issues reduces
stress and health issues)
Reduced workload for HR
office (no more requests
for payroll loans or 401(k)
withdrawals)
Better employee retention
(More engagement = More
retention. Replacing an
employee can cost over 150
percent of the worker’s annual
salary.)
Everyone wins with financial
wellness!
Guthrie-Jensen, an
international training
consulting company, cites
Gallup as the source:
87% of millennials claim
that professional
development and
career growth are very
important.
They also cite go2HR: 40
percent of employees
with poor training leave
their jobs within the
first year.
Deep Patel in Forbes in
2017 says, ”Remember
that millennials are
fast learners, who have
figured out the latest
technology through
self-education and
intuition. Similarly, they
are capable of learning
new methodologies
because they are a
naturally curious
generation, and because
they want to advance
their careers.”
The takeaway: Good,
relevant and interesting
training helps to
keep MILLENNIALS more
engaged, enables them
to offer more value, and
encourages them to stay
longer.
— DK
EMBRACE THE MILLENNIALS AT YOUR GATE.
They Are Your Future!
At the opening of this ebook, I
talked about the current and
future state of the American
workscape.
I promised to show how
employers can find, hire, train
and retain the brightest and
best employees; employees
who will help move their
companies ahead for the next
two decades.
These employees, of course,
are millennials, people born
between 1981 and 1996, and
we hear a lot of negative
things about them. They are
very different from the Baby
Boomers, different than the
Gen Xers. Millennials are the
product of smart devices
and participation trophies
and parenting that was more
concerned with “feelings”
than “facts.”
They make some employers
uncomfortable.
So, let’s look at the facts.
We are well into the age of
smart devices and online
services. We are hurtling
into the world of Artificial
Intelligence (AI). And who
knows what comes after that?
All of these elements,
known and unknown, are
going to have an impact on
our businesses. Who better
to take us forward than
the workers who grew up
intuitively knowing how to
download and use an app, or
create a widget that solves a
problem?
Our role, as employers and
leaders, is to provide them a
suitable place to land, with
a culture that encourages
them to thrive. We need to
engage them, reward them,
and retain them.
In the coming decades of
American business, millennials
are our bright future.
