The Millennial Generation:
A Blessing or Curse for the
Workforce
Terri Manning
Bobbie Everett
Cheryl Roberts
A Study Funded by the Workforce Development Board
It May Take a Village to Raise
a Child, but it Takes a Society
to Raise a Generation
Economic Conditions
Societal Norms
Political Events
Major Crises
Each Generation
• Consists of approximately a 20-year span (not
all demographers and generation researchers
agree on the exact start/stop dates)
• Has a unique set of values
• Reacts to the generation before them
• Looks at their generation as the standard of
comparison
• Looks at the next generation skeptically “these
kids today…”
• Those born on the “cusp” may have a blended
set of characteristics
• They are either idealistic, reactive, civic or
adaptive
Business Today…
• Lives in a world created
by generations who are
(mostly, 95%) no longer
working.
• They were influenced by the military and
created a workplace reflecting a hierarchy
with a clear chain of command.
• Employees worked hard to receive raises,
bonuses and higher ranks. Higher rank (with
the higher salary) was valued and envied by
employees on their way up and held in high
esteem by those at the top.
How Generational Births Will
Impact Retirements
4,500,000
births
4,300,000
4,100,000
3,900,000
3,700,000
3,500,000
3,300,000
3,100,000
2,900,000
(Millennials)
(Boomers)
(Xers)
2,700,000
19
40
19
52
19
55
19
58
19
61
19
64
19
67
19
70
19
73
19
76
19
79
19
83
19
86
19
89
19
92
19
95
19
98
20
01
20
04
2,500,000
Changes in that Workforce
100.0%
87.9%
85.0%
73.9%
80.0%
White
African American
Other Minority
Male
Female
60.0%
54.0%
40.0%
46.0%
20.0%
11.6%
15.0%
9.8%
0.0%
16.3%
5.0%
1900
2000
Who Is Working Today?
Veterans
Boomers
Gen X
Millennials
1,000 die per day
Youngest are 5 years old
14%
33%
Half the size of the
generations on either side
of them
10%
43%
7,198 turned 60 every day in
2006
Who Are Those Generations
• How have their early experiences
impacted the workforce?
• What values did they bring to work?
• As generations change – does the
workforce keep pace?
• Let’s look at them…..
The Veterans (also known as the Silent
Generation or the Greatest Generation)
1925–1943 (adaptive)
• Children of the Great Depression and WWII, this
generation decided not to attack the institutions
created by the generation before them, but
instead, as global thinkers, they chose to focus
on improving and refining them so that they
could be good for everyone, not just a select few.
• The overall goal was not to change the system,
but to work within it.
• While economically very successful, they were
also the inventors of "the midlife crises" probably
because they didn't get a chance to enjoy the
freedoms of their youth.
The Veteran Generation Childhood
• Raised by the GI Generation (civic)
• Large families (3-5 children)
• Strong sense of extended family
(same town or home)
• Grandparents in the home
• Average 10-year-old spent 4-6
hours daily with a significant adult
role model
• Rural society
• Apprenticeship businesses and
farming
• Perception of the world as “safe”
Core Values
Dedication
Hard Work
Conformity
Law and Order
Patience
Delayed Reward
Duty before Pleasure
Adherence to Rules
Honor
Work Values
• Loyal to employer (company man) and expect
the same in return
• Believe they should be rewarded for tenure
• Work ethic = efficiency and hard work
• Stable, thorough and detail oriented
• Don’t buck the system
but work within it
• Uncomfortable with
conflict and
disagreements
• Not change oriented
Marketing to Them
• Faith in the government and national
institutions
• Want quality but believe standard
options are fine (not luxury)
• Loyal customers that
follow the rules
The Baby Boomers 1943–1964
(the largest generation, idealist)
• Divorce reached a low in 1960 of 9%
• Families moved due to GI Bill, GI housing
and industrialization
• First generation to live miles from
Core Values
extended family
Optimism
• Family size smaller (2-3 children)
Team Orientation
Personal Gratification
• Few grandparents in the home
Health and Wellness
• Moms stayed home, dads carpooled
Personal Growth
Youth
• Children spent significant time with
Work
adult role models
Involvement
• Perception of the world as “safe”
Boomers at Work
• Value stability and respect
• Like to see their successes
• Tend to workaholism and have difficulty
balancing their lives
• Are competitive
• See themselves as
the standard of
comparison
Boomers at Work
• Ethic = long hours show commitment
• Team oriented and relationship builders
(don’t like conflict – can’t we all just get
along)
• Not budget minded
• Sensitive to feedback
Marketing to Boomers
• Are individualistic so
they like “customized
and custom-made
products”
• Want to look successful (lots of stuff)
• Seek self-improvement
• Products/services that help them reach a
balanced life (work/home)
• Like technology but see the problems
that come with it
The Gen Xers 1965–1982
A Lost Generation… A Nomadic Generation…..
Half the Size of the Baby Boom (reactive)
Core Values
Dedication
Hard Work
Conformity
Law and Order
Patience
Delayed reward
Duty before pleasure
Adherence to rules
Honor
Generation X
• This is the conscientious, extremely
pragmatic, self-sufficient generation that
has a ruthless focus on the bottom-line.
• Born and raised at a time when children
were at the bottom of our social
priorities, Gen Xers learned that they
could only count on one thing themselves. As a result, they are very
"me" oriented.
• They are not active voters, nor are they
deeply involved in politics in general.
The Gen X Childhood
•
•
•
•
•
•
•
•
Divorce reached an all-time high
Single-parent families became the norm
Latch-key kids were a major issue of the time
Children not as valued – looked at as a hardship
Families spread out (miles apart)
Family size = 1.7 children (many only-children)
Perception of the world as “unsafe”
Average 10 year old spent 14 ½ minutes a day
with a significant adult role model
• Parents looked around and said – we need to do
this better
Gen Xers at Work
•
•
•
•
•
•
•
•
•
•
Cynical and pessimistic
Want work-life balance
Think globally and seek independence
Like technology and want an informal work environment
Don’t want the boomers’ work ethic
Communication is important and talk to adults as
friends/peers (not impressed with authority)
Believe reward should be based on productivity not
hours worked
Want control of self, time and future
Loyalty to people not a company
Impatient with poorer people skills
Marketing to Xers
•
•
•
•
Can spot a phony
Peer to peer referral
Like technology
Like products and services with options
Generation Next (civic)
The Echo Boom/Millennials…
 The Millennials are almost as large as the baby boom-some say
larger - depending on how you measure them (approx. 81M).
 The Millennials are the children born between 1982 and 2002
(peaked in 1990), a cohort called by various names:
Echo Boom
Generation Y
Millennials
Net Generation
Millennial Values
• This generation is civic-minded
• They are collectively optimistic, long-term planners,
high achievers with lower rates of violent crime, teen
pregnancy, smoking and alcohol use
• This generation believes that they have the potential
to be great
• Will provide us with a new definition of citizenship.
• Individualistic but like groups/teams
• Hate drudgery – too boring
• Ambitious yet aimless
• Looking for a mentor (like mom and dad) not a boss
The Millennial Childhood
• The most monumental financial boom in
history.
• Steady income growth through the
1990’s.
• Still great disparity between races.
• Saw their parents lose all their stocks
and mutual funds (college funds) during
the early 2000’s.
Demographic Trends
 Boomers decided to
become older parents.
 Xers gave birth at traditional ages
 More parental education: 1 in 4 has at least
one parent with a college degree.
 Kids born in the late ‘90s are the first in
American history whose mothers are better
educated than their fathers by a small margin.
Demographic Trends – Changing
Diversity
 Increase in Latino immigration Latino women tend to have a
higher fertility rates than nonLatino women.
 Nearly 35% of Millennials are
nonwhite or Latino.
 Twenty percent of this generation
has at least one parent who is an
immigrant.
 Millennials have become the most
racially and ethnically diverse
generation in US History.
Safety Issues
The Safest Generation
• This generation was buckled up
in car seats, wore bike helmets,
elbow and knee pads when skating, and were the
inspiration for “Baby on Board” signs.
The Well-Being of U.S. Teens
• Mortality Rate for US teens aged 15–19 declined from
1960 to 1997.
-Teens are having fewer accidents than Boomers
Major Influencing
Factors
1.
2.
3.
4.
5.
Their parents
The self-esteem movement
The customer service movement
Gaming and technology
Casual communication
Parenting Millennials
• This generation is being parented by welleducated, over-involved adults who
participate in “deliberate
parenting.” They have
outcomes in mind.
• Boomers were the first
generation to be thrown
out in to an unsafe world
as adolescents.
• The 60’s and 70’s were very scary and many
of us felt unprepared for it.
• We were naïve and didn’t have enough tools
in our tool box to deal with it.
Baby Boomers as Parents
• Boomers rebelled against the parenting
practices of their parents.
• Strict discipline was the order
of the day for boomers.
• They made conscious decisions
not to say “because I told you
so” or “because I’m the parent
and you’re the child.”
• Boomers became more
“friendly” with their children.
They wanted to have open lines of
communication and a relationship with them.
Baby Boomers as Parents
• They explained things to their children, (actions,
consequences, options, etc.) – they wanted them to
learn to make informed decisions.
• They allowed their children to have input into family
decisions, educational options and
discipline issues.
• We told them “just because it is on
television doesn’t mean it’s true”
or “you can’t believe everything
you read.”
• We wanted them to question
authority.
The Result
• Millennials have become
“a master set of
negotiators” who are
capable of rational thought
and decision-making skills at
young ages.
• They will negotiate with anyone
including their parents, teachers
and school administrators.
• Some call this “arguing.”
Helicopter Parents
• Helicopter Parent (n) A
parent who hovers over his
or her children.
• Or Snowplow parent: Parents who clear
the way for their children
• ……these (echo) boomers are confident,
achievement-oriented and used to hovering
"helicopter" parents keeping tabs on their
every move. (Anthony DeBarros, "New baby
boom swamps colleges," USA Today, January
2, 2003)
Baby Boomer Parents have been
their Biggest Cheerleaders
• Millennials expect and
need praise.
• Will mistake silence for
disapproval.
• Millennials expect
feedback.
Focus on Self-esteem
• This generation was the center
of the “self-esteem” movement.
• 9,068 books were written about
self-esteem and children during
the 80s and 90s (there were 485 in the 70s).
• The state of California spent millions studying
the construct and published a document
entitled “Toward a State of Self-esteem.”
• Yet they can’t escape the angst of adolescence
– they still feel disconnected, question their
existence, purpose and the meaning of life.
They want to feel valued and cared about.
Focus on Customer Service
• Expect access (24/7)
• Expect things to work like
they are supposed to
• If they don’t “that is your
problem”
• They want what they have paid for
• Everything comes with a toll-free
number or web address
• Want “Gateway Go Back”
in classes
Add the Impact of Gaming
• Gaming has impacted children
– The game endings changed based
on the decisions children made
(Role Playing Games [Legend of
Zelda, Final Fantasy, Chronotrigger])
impacting locus of control.
– Involves a complex set of decisionmaking skills.
– Teaches them to take multiple
pieces of data and make decisions
quickly.
– Learning more closely resembles
Nintendo, a trial and error approach to
solving problems.
We navigated our way through…..
They navigated their way through…..
Technology
• This generation has been plugged in since
they were babies.
• They grew up with educational software and
computer games.
• They think technology should be free.
• They want and expect
services 24/7.
• They do not live in an
8–5 world.
• They function in an
international world.
Cell Phone Technology
• They all have cell phones and expect
to be in contact 24/7.
• Not a phone – a lifestyle management tool
• Staying “connected” is essential.
• Communication is a safety issue for
parents.
• Communication has become
casual for students (IM, email
and cell phones.
Salary Expectations
• Realistically, what do you expect your starting
salary will be when you begin working?
–
–
–
–
–
–
$15-20K
$21-30K
$31-40K
$41-50K
$50K+
Not sure
Millennials
7.7%
29.3%
27.0%
15.9%
7.0%
12.5%
Approximately 65% felt they would earn $40K or less
Importance of Career Components
Items thought to be very important:
• Respected on the Job
• Opportunity for Professional Development
• Ability to Have an Impact on the World
Importance of Career Components
Items thought to be somewhat important:
•
•
•
•
•
•
•
•
•
•
•
Access to Information and Expression of Personal Opinion
Having High Job Prestige
Working with Inspiring Colleagues
Geographic Location of Job
Receive Guidance and Direction from Supervisor
Participating in Company Decisions
Independence/Professional Autonomy
Using Creativity on the Job
Lots of Responsibility
Flexible Work Hours
Dress Code Appropriate to Work Environment
Importance of Job Benefits
Benefits thought to be very important:
Health Insurance
Salary Growth
Plans like 401K
Life Insurance
Bonuses
Employer-paid Retirement
Benefits thought to be unimportant:
Stock Options
Profit Sharing
Jobs in Lifetime
How many jobs do you
think you will hold in
your lifetime?
– 1-3
35.7%
– 4-6
41.5%
– 7-10
16.5%
– Over 10
6.2%
64% expect to have 4 or more jobs
Will We Have a Workforce
Shortage?
• Will the Boomers retire in droves?
• Could see a 4-10 million worker shortage by
2010.
• We don’t have enough well-prepared young
workers.
• Greatest needs in fields with advanced
education such as nursing and education.
• Also industries with mostly older workers
such as the oil and gas industry.
Older Generations Make Assumptions
• That younger generations will measure
success just as we have.
• Young worker must pay their dues and
follow the same paths to success as
previous generations.
• The company ladder will remain intact.
• Workers go where the jobs are.
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
What Millennials Want
• Ability to work whenever
and wherever they want.
• Variation on the job
• Continual feedback from supervisors
• Opportunities to learn, retool and
reinvent themselves
• Challenge, new problems to solve
• To be in charge of their lives and
future
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
Millennials Were Asked….
• What are the top five things
that make you respect a
company?
Top Five
1. Give back to their community.
2. Have fair labor practices.
3. Have products and services that do
what they promise to do.
4. Having products and services that
truly help people in need.
5. Being “green” or “eco-friendly.”
(Just Kid Inc. KID Formation Series, July 2008, “Meet the Millennial
Generation: An Explosive New Consumer Force.”)
What They Are Not Interested In
• Time-honored traditions
• Doing things the way they
have always been done
• Paying their dues
• How their managers got to where they are
(rank)
• A work ethic that requires a 10 hour day
• Unquestioning loyalty to a company
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
Change in Values
Two youngest generations:
– Define success differently
– Their time is equal in value
to
money
– Will pursue other rewards for their work
– The company/corporate ladder has become
irrelevant
– View their predecessor’s experience as a
warning, not a road map
– Don’t value the rules of management,
motivation and reward
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across
the Generational Divide and Increasing Profits, 2007
Skepticism
The two younger generations:
– Have been given ample reason to question
authority
– Don’t believe their leaders tell the truth
– Question the motives and truthfulness of
institutions across the board
– Invest their loyalty and trust in individuals
and therefore, the right boss is critical
(otherwise they change jobs, #1 reason
they quit)
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
What Will It Take for All
Generations to Work Well Together
• A new understanding of what employees
want from their jobs, bosses and workplace
experience
• A new understanding of loyalty and how to
develop it (not through pay, promotions and
benefits)
• A new definition of self – young employees
define themselves by what they do outside
the job, not what they do for a living
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
What Will It Take
• New behavior from leaders who realize
younger workers enter the workforce seeking
self-fulfillment and aren’t interested in
“paying their dues” for an unspecified amount
of time for a vague reward
• Because young people are doing everything
later – staying in school, living at home,
getting married, having kids – this impacts
their commitment to work
Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the
Generational Divide and Increasing Profits, 2007
Reasons US Workers Change Jobs
In 2006, 21% of US workers made voluntary
job changes for the following reasons:
•
•
•
•
•
•
•
•
Growth and earnings potential (30%)
Time and flexibility (23%)
Financial compensation (22%)
Culture and work environment (22%)
Benefits (12%)
Supervisor relationship (10%)
Travel and development (9%)
Management climate (9%)
Benefit News
Changing Workforce
• Workers are demanding the ability to balance their
work and personal responsibilities.
• Workers are not afraid of changing jobs.
• The idea that the best way to grow financially and
otherwise is to stay with one employer has been
eroding to the point of extinction.
• Younger workers and those earning $15,000 or less
were the most likely to change jobs.
• The cost of turnovers range from $7,000 for hourly
employees to $30,000 for mid-level managers and
$80,000 for technical or senior level management
(Center for Workforce Learning).
Charlotte Biz, March 2007
How They Will Push Us…
•
•
•
•
•
More independence in the workforce
Consumer-based fairness
Better technology
Enhanced professional development
Get rid of “that’s the way we’ve always
done it”
• Have more life balance
• Re-establish priorities
What We Know
• Times are changing – in business and
society
• So – leadership must change
• The younger generations are working in
a different economy and business world
• They have different values and goals
THEY WILL NEVER BE LIKE US!
What can managers do?
1. Mentor their employees
• About how the company runs, what makes
people of different generations work well
together. Teach people skills not just business
processes.
• Great leaders can motivate all people by
balancing processes and people’s needs for the
good of the company
Messages that Motivate
• Veterans
– Your experience is respected here
– What has and hasn’t worked in the past is
relevant
– Perseverance is valued
• Boomers
– You are important to our success
– Your contribution is unique and important
– We need you
Messages that Motivate
• Gen Xers
– Do it your way
– There aren’t a lot of rules here
– We’re not very corporate
• Millennials
–
–
–
–
–
You will work with other bright, creative people
You can help turn this company around
You can be a hero here
We value independent workers
Your boss will help you succeed
2. Communicate with employees
• Encourage them to develop trust with others and
empower people to do their jobs. Ask for input
rather than telling them what to do. Open
communication reduces resistance.
3. Value their values
• Want work-life balance. They value family and
friends and want to work their eight hour day and
go home. Older workers think long hours show
your loyalty and productivity. Younger workers
often get things done faster. They value
efficiency and effectiveness and doing things
faster.
4. Focus on Retention
• People leave for several reasons: older
workers retire but younger workers often
leave feeling unvalued.
• Have strategies to retain both groups.
• Older generations like monetary rewards,
younger generations like time off work.
For a copy of this presentation:
http//www1.cpcc.edu/millennial
Click on: “presentations and workshops”
Contact:
terri.manning@cpcc.edu