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Three Strategies for Managing Generation Y

Tags: Strategy, Job, U.S. Army, Parent, Recruit, Merrill Lynch & Co. Inc., Generation Y, Soldier, Training, Deloitte, Recruitment & Selection, Workforce Management, Human Resources, Andrew Tilin, Millennials, Gen Y

We know what you’re thinking: These millennial kids really need mentors, flextime, and the reassurances of Mom and Dad? Why not dissipate their demands with the swift crack of a whip?

Veteran leaders, however, will tell you that old-school management techniques only serve to drive young recruits elsewhere. Getting the most from millennial employees requires a new approach — and that means you may be the one who needs to change. Here’s how three high-profile employers — Deloitte, Merrill Lynch, and the U.S. Army — have learned to handle the needs of a new generation.

U.S. Army

The Challenge:
Command-and-control management is a non-starter with Gen Y
The Solution:
Lead by example

Five years ago, U.S. Army drill sergeants won respect the old-fashioned way: through fear and intimidation. When a bus of newbie “future soldiers” pulled up, the waiting drill sergeant immediately screamed orders, created chaos, and instilled fear. Problem was, the rate of recruits leaving during basic training had ballooned to 10 percent. “We might have gotten away with more of that negative atmosphere with previous generations,” says Jim Schwitters, the commanding general at the U.S. Army Training Center in Fort Jackson, S.C. “Now we know that’s generally not the best starting point.”

Schwitters slowed the hemorrhaging of new recruits by instilling a management method that millennials understand: lead by example. Helping to rewrite Army training regulation 350-6, which embodies the military division’s training doctrine, Schwitters wanted drill sergeants behaving more like mentors and less like, well, drill sergeants. He says the time was ripe to make some of the military’s newest soldiers, whom nowadays can see action in Iraq just six months after enlisting, feel empowered from the get-go.

Today the first challenge that new recruits face is a “confidence obstacle course” that’s tough but empowering because it’s not overwhelming in its difficulty. The drill sergeants then do virtually everything they ask their soldiers to do — from navigating obstacle courses to marching with heavy backpacks to properly handling a rifle. The mentoring has worked, and attrition among new recruits has dropped nearly 50 percent. “When I ask a new soldier what has motivated his accomplishments, he’ll frequently say, ‘I’ve been inspired by the drill sergeants that lead me,’” Schwitters says. “He’ll say, ‘The drill sergeant cared about me and did everything that I was asked to do.’”

Deloitte

The Challenge:
Hiring managers can be clueless about what makes millennials tick

The Solution:
Invest in a management-training regimen

In 2004, Deloitte’s Stan Smith, a national director specializing in human resources issues, got a call from a partner who was furious at some of his young associates. He’d assigned them some work over the weekend, and they’d asked him to reschedule it because they already had other plans. Smith ultimately heard more such complaints, and the friction helped push Deloitte off Fortune magazine’s “100 Best Companies to Work For” list in both 2004 and 2006 — tough setbacks for a top company’s HR director.

Smith fought back by educating the managers instead of trying to change the young staff. “I wanted to help our leaders understand that the world they grew up in doesn’t exist anymore,” he says. “They were going to have to deal with these young people’s needs.” In early 2006, Smith produced and printed the first in a series of in-house educational brochures about generational changes in the workplace, filling it with think-tank research. (Example: both Gen X and Gen Y employees grew up in a consumer economy and see themselves as customers, which means they expect to influence the terms and conditions of their jobs.) Deloitte’s brass not only read the brochure, some took it home to their kids, who said the information was spot-on.

Now, change is in the air. Deloitte has begun overhauling its orientation process to make it millennial-friendly, and the company has retrained its management to adjust to millennials’ desire for flextime. As for Smith’s latest projects, he’s produced three additional brochures on the subject. His new book, Decoding Generational Differences, was distributed in-house earlier this year, and it obviously reads like a success story. Deloitte now is enjoying its second consecutive appearance on the “100 Best Companies to Work For” list.

Merrill Lynch

The Challenge:
Mom and Dad often come with the package
The Solution:
Market your company to parents, too

Many millennials were raised by hyper-involved soccer moms and dads. Now, in a number of industries, HR managers report that these hovering “helicopter parents” are helping their adult children negotiate pay and benefits, angle for promotions, and decide which job offers to accept. Though many HR reps initially were shocked by it, the phenomenon is now so widespread that companies are shifting gears and marketing themselves to parents as well as potential recruits. For example, when Office Depot launches its new website this summer, it will include a reassuring message to parents, an attempt to convince Mom and Dad that the company is an opportunity worthy of their progeny.

The phenomenon caught the attention of Merrill Lynch’s Elton Ndoma-Ogar in 2006. A diversity recruiter for the company’s global markets and investment banking division, Ndoma-Ogar realized that the applicants and their parents were reviewing Merrill’s job offers. For those parents who haven’t worked in the industry, he says, “They only see and hear all these horror stories” about long hours and tough demands. His efforts at recruiting diversity candidates were hurt, he says, because he wasn’t sufficiently reducing parents’ fears and concerns.

Ndoma-Ogar responded by launching Parents’ Day in 2006 for a select group of summer analysts working in his division. The company flies caretakers to Manhattan (parents have come from as far as Nigeria), teaches them about the business, provides a tour of the Big Apple, and emphasizes company support and benefits, such as free meals and transportation for employees working overtime.

“The day provides a sense of comfort that sons and daughters are being taken care of,” he says. Still in its nascent stages (Merrill has limited the program to a small number of diversity candidates), the company is considering expanding Parents’ Day. Last year, only one student whose parents attended the event didn’t accept the firm’s subsequent job offer.

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  • dina@...05/20/08 Report as spam
    1

    Helicopter Parents

    This is so true! I have two Gen Y daughters, both working and completing
    their studyies. There is no issue regarding their work, or study, that they
    wouldn't ask me for advice. I help them put together application letters, role-
    play interviews, brain storm issues and possible scenarios, ensure they keep
    work/life balance etc. I read the report on Helicopter Parents to my daughter
    and she said "Yes, of course we'll ask you. You've been there before and done
    it."
    And I do check out the company if they want to apply for a job. One of the
    first things would be for me to look at whether the company has employee
    friendly policies (flexible hours, work from home, gender equality etc.).
    Everything I wanted at work, but had to fight for it. If not - I'd say 'Don't
    bother'. And they don't have to bother if it's not suitable, because they both
    live at home and have our support for as long as they want. Which would be
    reflective of many Gen Ys these days. I guess, behind every Gen Y is a Baby
    Boomer parent.
    Dina

  • richard.clarke@...05/21/08 Report as spam
    2

    helicopter parents

    hang on - I'm a boomer in my fiftees - my mom used to help me out in this way over 30 years ago! is it really that new

  • Ginger@...05/22/08 Report as spam
    3

    RE: Three Strategies for Managing Generation Y

    Your right. Military style management techniques do not work with this generation. They need to feel heard and that they matter. One of the most important things a manager of young people can do is make sure their employees feel they are making a contribution and that they are valued by the company. Here is new article by motivational speaker Garrison Wynn on how managers can help generations work better together:

  • babs197605/23/08 Report as spam
    4

    RE: Three Strategies for Managing Generation Y

    It's amazing to hear the great lengths prestigious companies are taking to
    recruit Gen Y. Bending over backwards is putting it lightly.

    Based on the examples given in this article, these companies are enabling
    their behavior and following the exact foot steps their parents beat out for
    them - to expect everyone, including their employers, to do I say or be gone
    with you.

    I believe these strategies are doing more harm than good - they're retarding
    their growth and developing self entitled/absorbed people who will be inept
    at dealing with adversity when they don't get their way.

  • loslosbaby06/17/08 Report as spam
    5

    RE: Three Strategies for Managing Generation Y

    I am 41 and CEO of a startup company ( http://www.productify.com ). We have dealt with the 20-somethings that are constantly texting, and feel truly put upon to not socialize on the Internet while they work.

    We have turned it around, and put this out to them like its a perk. Some social trends we block (IRC) and some we allow (Yahoo IM). We have contained another aspect that drives us [older] managers nutz: If they work sub-hours, we pay sub-salary. We dock by the hour.

    The only motivators we've had that work are A) weekly bonuses (attendance, calls handled, sites signed up) B) small raises, lots of them.

    Start them out at 75% pay, treat a hire like a probational hire, and then raise them into their pay bracket as they "get with the program".

    (Still, the cell-texting not-here-on-Mondays-keep-the-pay attitude is going to murderlate the US...its bad)

    G.

  • LiquidLeader07/16/08 Report as spam
    6

    Time To Grow Up

    When will all this playtime end? Gen Y was raised to believe they are equal to adults...problem is, none of them know how to communicate. Texting, iPods and portable gaming is not about a cool way to live, it is about avoiding the real world.

    Someday, somehow, you will all be required to grow up and actually work without all those gadgets...no more flip flops, no more iPods at work, and no more scheduling meetings around Yoga. Especially when Germany suddenly took the lead last year with a GDP that put the United States in second place. They have 83 million people and the USA has 350 million.

    What was that about being more efficient because you multitask?

    When Germany, China and India start producing more goods for a LOT less, the USA will have to crack the whip to compete. After all, there is something called ROI, and Gen Y doesn't seem to know anything about it.

  • mlwilliams88808/06/08 Report as spam
    7

    Seriously - This is getting out of hand!

    I am a gen Xer that was taught by my parents that hard work is admirable and required to succeed. Without that in your bones, you do not have competition which is healthy and makes employees grow through challenge. Now that everyone wins a trophy in base ball, will they all get the same pay and the same promotion at the same time? How will these twenty-somethings deal with conflict as they rise through the ranks? Every day business decisions require conflcit resolution and I have not seen one of them negotiate successfully. I personally am disgusted by our complacency with their behavior.

  • mdkds08/13/08 Report as spam
    8

    RE: Three Strategies for Managing Generation Y

    I agree with those who have expressed the idea that continuing to coddle this generation will ultimately lead to increased problems for US competitiveness in the world economy.

  • smkhabela08/27/08 Report as spam
    9

    RE: Three Strategies for Managing Generation Y

    I work with a group of gen Xers. Recently we've (management) been bombarded complaints that we don't consult them when making decisions: as though decision making is a shared responsibility...While this very same group, does not meet deadlines, constantly needs to be chased after to produce the goods. Granted some of these younsters are hardworking, eager to learn and they have some bright ideas too. However all it takes is for your organisation to have two "bad" ones', then you've got your hands full. That's when we military style works best. We try to accommodate them (time-off, long lunch breaks etc)as far as possible, however that seems to be met with the same attitude all the time...consult consult consult. I wonder if China and India would have made the strides they've made if they had consulted all their workforce with every decision they made.

What do you think?
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