How organizations can achieve success with a new generation of employees
The face of today’s workforce is constantly changing. As the “Baby Boom” generation – those born between 1946 and 1964 – approaches the retirement, the need for new skilled and experienced talent in the workplace inevitably arises. Increasingly, employers find themselves turning to the next generation, commonly known as the Generation Y or ”Gen Y,” to fill this demand.
With Gen Y employees poised to become our future managers and leaders, employers and HR practitioners need to have a better understanding of how to work with and manage them. It is also important to develop effective strategies to attract, retain and motivate Gen Y employees from the start.
The recent improvement of the economic climate in China is reviving the competition for talent that seemed to subside due the global recession, leading many to expect the return of rampant job-hopping and poaching. The ageing population, declining birth rates and growing investment in China have all contributed to a tighter labor market and multinational companies that have invested heavily in employee training are prime targets for recruiters.
Finding the right mix between compensation, career development and job satisfaction are vital to developing more sustainable long-term attraction and retention strategies.
About Gen Y
One of the key traits of Gen Y employees is their preference for meaningful work that is both challenging and fulfilling. They place significant value on what they do only if it is worthwhile and makes an impact on their workplace and society.
A technologically savvy group, Gen Y is plugged in 24/7 to virtual communication channels such as instant messaging, mobile phones and email, thus enabling them to multi-task, work effectively and achieve a better work-life balance. As a result, Gen Y employees are eager to pursue short-term gratification such as almost instant recognition for a job well done, immediate reviews and frequent feedback.
As lifestyle-centered individuals, Gen Y employees treasure their personal and family time and therefore look for jobs that accommodate their personal lives. They also view their relationships with employers as transactional. For instance, Gen Y employees are more likely to accept their employers’ stated missions, policies and decisions, and will follow specific guidelines and instructions when employers promise a specific ‘quid pro quo’ such as greater mobility in their career development and prospects.
Attracting Gen Y talent
Organizations need to develop new strategies to attract Gen Y employees with the right skill sets to gain a competitive advantage. Gen Y candidates are more likely to seek employment opportunities if they have a positive experience interacting with its management and staff, such as during the interview phase.
It is critical that an organization articulates its employment value proposition, such as the availability of a flexible working environment, an open and inclusive office culture, as well as training and entrepreneurship opportunities.
As Gen Y employees value their connections with their peers, organizations may consider implementing employee referral programs where existing employees can play a part in reaching out to contacts within their social network. Through this ‘word of mouth’ approach, they act as ambassadors for the organization and help attract more young talented individuals.
Retaining Gen Y Employees
Career development is a major concern among Gen Y employees in China. They want opportunities that provide a clearer career path, on-the-job or company-subsidized training programs, job rotation options and challenging project assignments.
Many employers find retaining Gen Y employees a challenge, as they see more of them exiting the company instead of moving up. This can be achieved through comprehensive orientation programs that make employees feel valued from the start.
With greater expectations for short-term rewards, employers may offer a flexible compensation and benefits program based on performance objectives and measures. Many organizations are employing a broader salary and short-term rewards structure according to their employees’ accomplishments.
Gen Y employees also appreciate open and regular communication with their colleagues, coworkers and management. As they are highly appreciative of employers who help develop their career aspirations, it is important that they communicate regularly and openly, and provide feedback on their performance.
Preparing Gen Y for the future
Gen Y employees can be one of the greatest assets in an organization if employers and HR practitioners are prepared and are willing to invest in them. Attracting and retaining this generation of talent is critical to ensuring long-term business success and sustainability. As an organization’s corporate culture evolves with each generation of the workforce, employers need to remain flexible and open to change to successfully attract and retain the talent they need. Those who do are more likely to find a balance between an environment that leverages the strengths of their Gen Y employees and supports the development of a multi-generational workforce.