MILLENNIALS: 5 WAYS TO MAXIMIZE AND SUSTAIN ENGAGEMENT EXECUTIVE BRIEF

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Many organizations are struggling to attract and retain Millennial employees, and Millennials are struggling to find work they love and their place in today’s workplace. In fact, Millennials are the least engaged generation in the workforce. Employers know they need to engage Millennials so that they deliver their best work, but many don’t know where to start. In this white paper, LifeWorks shares our insights on how to maximize Millennial talent and skill, using technology, core values and a new way of communicating.

A tipping point occurred in the US workforce in May of 2015: Millennials became the largest share of the American workforce.1 Millennials — who were born between 1980 and 2000 and who are between the ages of 16 and 36 this year — now comprise more than one-third of the American workforce.

That number is projected to rise as Millennials continue to transition from college to the working world. At some companies, Millennials already make up a majority of the workforce. By 2020, they will comprise half the global workforce.2

As the Millennial masses continue to grow, employers are right to worry about the viability and future of their businesses. Reports indicate that Millennials feel more disengaged than any other generation before them, and many employers fear that by 2020 we’ll have a workforce made up of people who are simply not delivering to their full potential because they aren’t happy and engaged at work. It’s a real risk to business that we cannot ignore.

Employers know they need to nurture Millennials, but how do we actually engage them? And how do we maximize that engagement and sustain it over time so that we don’t enter another global recession? In this white paper, we discuss five things employers can do right now to start engaging employees to get the best of their talent, and to help grow business.

The Millennial mindset says there has to be a way to make this easier, faster, more flexible and efficient. Mobile, adaptable — everything I need, and nothing I don’t. A way to make the way we interact with the world more personal, inclusive and intuitive.”

“How tech-savvy millennials humanize your workplace,” Fortune

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• Don’t forget that Millennials are digital natives. They grew up with computers, smartphones, and social media, and as a result they possess key technical skills businesses can use to remain agile and innovative. Millennials, more so than previous generations, are comfortable with change and have the ability to adapt quickly and with ease to emerging technology in order to innovate.3 To engage Millennials, employers must meet them where they are: plugged in, agile, technically savvy. If employers can embrace and nurture these traits, they’ll be on a good track to engaging their Millennial workforce.

• Millennials grew up in a diverse world and feel more engaged in a culture of inclusion. They are more likely to have equal attitudes regarding gender in the workplace than any generation before them.4 More Millennials have come from single-parent families and same-sex parent families than any generation in history. As a result, they value teamwork, collaborative decision-making, and a culture of inclusion and connection. “Millennials report higher levels of engagement when operating in an inclusive culture,” wrote the authors of a Deloitte report on the influence of Millennials on today’s workplace.5

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ENGAGING MILLENNIALS: YOUR CHARGE AS AN EMPLOYER

Your charge as an employer is to understand who Millennials are and how to best maximize their talents and skills in order to engage and retain them. That charge begins with one important point: Most of the stereotypes you have heard about Millennials are not true.

There is a stereotype, for example, that Millennials aren’t as committed to their employers as older generations are or were. While it’s true that 21% of Millennials have changed jobs within the last year7 — more than three times the rate for non-Millennials — this in part, may have to do with their age.

Twenty-year-olds have always moved more than their more settled counterparts. However, recent research shows that while Millennials do leave their jobs, they don’t necessarily want to leave.

A MILLENNIAL SNAPSHOT

It’s not just their sheer numbers that make Millennials so significant. This newest generation of employees is the largest and most diverse in history, and they have valuable skills and unique talents yet to be tapped. When it comes to engaging Millennials, here are a few things to consider:

Millennials have talent and potential, yet they are the least engaged of all the generations at work. According to a 2014 Gallup report6, only 28.9% of Millennials feel engaged at work, compared to 32.2% of Gen Xers and 32.7% of Baby Boomers. One explanation for this is that Millennials still aren’t in the jobs they’d hoped for after leaving higher education. Another is that employers haven’t figured out how to tap the potential of this diverse, multi-talented generation.

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A recent Harvard Business Review article8 found that Millennials are actually less professionally transient than previous generations. “Millennials don’t prefer changing organizations every few years,” writes Jennifer Deal and Alec Levenson in their book What Millennials Want From Work. “They would like to stay for a long time: about half say they would be happy to spend the rest of their careers with their current organizations.”9

Maximizing engagement, our focus here, is important across your organization and among all age groups. A growing body of research suggests that employees of all ages have more commonalities than differences in their attitudes and work values. All employees want to work for a purpose-driven organization that values its people and that offers work-life balance and possibilities for career growth.

So much of what you will read here is applicable to employees across the generations. However, we are shining a light on Millennials now that we’ve reached the tipping point, and today this generation is transforming the workplace. Stereotypes aside, let’s discuss what it takes to engage and retain Millennials.

Train supervisors to effectively manage Millennials.

To engage and retain Millennials, organizations must train and coach managers on how to effectively manage them and prepare them to lead. While many Gen Xers are being trained for leadership roles, data from the Pew Research Center shows this demographic is too small to meet the upcoming demand for leaders.

When looking to identify the next generation of leaders, HR departments are looking to Millennials. But only 10% of organizations are focused on developing and equipping Millennials to lead. Organizations must invest now in recruiting, training, and coaching Millennials to be future leaders.

How confident are you that the Millennials in your organization are under the leadership of a supportive, motivating manager — one who sets clear expectations, meets regularly with employees, provides helpful feedback, and serves as a mentor and coach?

Research shows that a large minority of Millennials do not think their manager cares about their well-being, and more than a quarter don’t feel supported by their supervisor.11 Gallup found that engagement is highest among employees who have some form of daily communication with their managers, whether it’s face to face, by phone, or digitally.12 However, Gallup also found that the majority of employees meet with their managers less than once a month.13

Organizations should consider providing training to help managers understand the needs of Millennials, and to help support their career goals and aspirations. For example, two factors that are highly correlated with engagement among Millennials are learning and opportunities for growth on the job.14 Millennials want access to more training and development.

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FIVE WAYS TO ENGAGE MILLENNIALS

A full two-thirds of Millennials expect to be in management by 2024, and 28% are already in management positions, according to a survey conducted by Millennial Branding10, a research and management consulting firm in New York.

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Training has evolved. Managers are providing new assignments and enabling employees to serve on cross-functional project teams, even before they are ready to be full contributors. Another great example is companies that are pairing Millennials with someone with 15-plus years of experience to co-lead projects together. These companies are making an effort to add variety to work assignments, and to provide Millennials with opportunities for engaging with clients. Actions like these boost both employee engagement and personal development.

Maximize communication and technology tools to leverage Millennials’ strengths.

If Veterans (born before 1946) were the Silent Generation, and Boomers (1946-1964) were the Me Generation, Millennials are the Social Generation.

We can’t put too fine a point on the fact that they grew up connected and act as technologically fluent, digital consumers. This informs how they prefer to learn, network, work, and communicate. Yet at times, they arrive at a new workplace and are asked to use communication tools that are inefficient and outdated by their tech savvy standards.

From apps to social media to technology platforms that maximize communication, employers can boost engagement and broaden their pool of potential leaders by offering state-of-the-art technology. However, engagement doesn’t start and finish with technology. Don’t forget about the importance of human connection. According to Deal and Levenson: “For Millennials, connections at work with friends, their teams, and their supervisors are critical to how they feel about work.”15

Millennials’ managers have the greatest power to impact Millennials’ experiences at work.”

What Millennials Want From Work: How to Maximize Engagement in Today’s Workforce

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“ . . . modern employees need something different, which is why the technology and startup world that has been built from the ground up with the modern employee in mind, have become the Meccas of places to work for modern employees (e.g. Google and Facebook).

Millennial Mindset

“Millennials require more feedback than do other generations. Regular meetings more than double the likelihood of engagement. Managers should connect with employees on a daily basis.”

“Managers: Millennials Want Feedback, but Won’t Ask for It,” Gallup

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By providing networking opportunities, mentoring connections, and a formal career coaching program that outlines internal career path options and the steps required to advance, you help Millennials envision a future with your company.

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Raise awareness about resources to help Millennials manage stress.

Several studies report that money is a significant source of stress for Millennials. (The average college graduate with a bachelor’s degree owes almost $30,000 in student loans.16)

A 2015 report by the American Psychological Association (APA) has revealed that stress spills over into other areas of Millennials’ lives.17 Millennials and Gen Xers (1965 to1979) report higher levels of stress than older generations. After money, their chief sources of stress are work and job stability.18

More than half of Millennials say they have lain awake at night in the past month due to stress. The APA report also showed that Millennials are more likely than any other generation to say they’ve felt a sense of loneliness or isolation due to stress in the past month.

To maximize engagement, organizations must recognize and acknowledge the pressures Millennials are under and the stresses they face. Employers must provide resources fine-tuned to meet the needs of this generation, from “soft compensation” perks to technological tools that seamlessly connect Millennials, to resources and support, be it mental health counseling, life coaches, healthcare support, or financial counselors. Millennials are generally more comfortable discussing mental health issues than older generations have been, and in a work culture that supports it, they are more likely take advantage of helpful resources when available.

Make work-life balance and flexibility core values.

A global study conducted by PwC19 found that Millennials want more work flexibility in their work lives and that they place a high value on work-life balance. They want the opportunity to shift their work hours to start their work day later, for example, or put in time at night, if necessary. Even with the promise of substantial compensation later on, most Millennials aren’t willing to make work their exclusive priority. “Many Millennial employees are unconvinced that excessive work demands are worth the sacrifices to their personal life,” the PwC study found.

By all accounts, most Millennials are motivated and hard-working, and they have a strong desire to contribute. But work can be a significant source of stress for them. Because they are often the lowest on the hierarchy at work, and the least able to say no to requests, they are particularly vulnerable to overload and overwork.20 There is research suggesting that Millennials fear using work-life resources available through their employers. About one-third of Millennials believe that “if they participate in work-life programs they will be perceived as less dedicated than those who do not.”21

It is up to organizations to promote work-life balance as a core value, from the top down. It’s about providing training for managers on ways to promote work-life balance, and working with management, HR, and your EAP or work-life program to promote work-life resources to Millennials. It’s also about offering as much flexibility as possible in terms of face time and the shifting of work hours to accommodate personal needs, while also balancing your organization’s productivity.

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In Gallup’s research report How Millennials Want to Work and Live, we get a very useful breakdown of the differences between Millennials and other generations, which may help us to understand how they feel about their jobs, and their lives:

• Millennials don’t just work for financial compensation — they expect their jobs to have purpose. Contrary to popular belief, Millennials care much less about over-the-top benefits like massages and sleeping pods than the popular media would have us believe — purpose and development are more important to them.

• Millennials want to learn from their senior management team — they don’t look at them as “bosses”, but rather as life coaches. And they expect these life coaches to understand them, and help them build their strengths.

• To engage Millennials, it’s time to ditch the annual review. It’s an outdated form of appraisal for a generation that values a constant flow of communication and feedback. Millennials want to have an ongoing conversation. It’s what they value about social media, and what they want at work.

• Gallup’s most important discovery of all is that everyone in the world wants a good job, but that this is especially true for Millennials. For Millennials, a job isn’t just a job. It gives life meaning.

Remember, most Millennials want to stay at their jobs for a long time. But they need to be engaged, and supported to grow and reach their potential.

Millennials have greater expectations around support and appreciation from their organizations than their Non-Millennial counterparts. . . . 41% of Millennials prefer to be rewarded or recognized for their work at least monthly, if not more frequently, whereas only 30% of non-Millennials would like that level of frequency.”

PwC’s NextGen: A global generational study 2013

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Reward, recognize, and appreciate.

The PwC report found that in comparison to non-Millennials, Millennials have greater expectations surrounding support and appreciation in return for their contributions, and they want to be part of a cohesive team. This sets them apart from their non-Millennial co-workers, who historically have placed greater importance on pay and development opportunities.

Companies should also consider the extended scope of recognition in the workplace. While recognition is traditionally associated with managers recognizing individuals, there is also extensive research surrounding peer recognition, as well as recognition-driven cultures in general.

Giving praise and recognition may be straightforward for some managers, but others will have to work on it. Recognition is born out of good communication skills, so analyzing communication across the organization is essential to understanding whether recognition is being effectively delivered.

In terms of delivering recognition effectively, companies should also consider whether they are making use of the technology available to them. Today’s employee engagement platforms can be an effective way to support both employee and peer recognition, and some combine this functionality with other extended functionality, such as employee wellness benefit information and selection.

IN CONCLUSION

“Remarkable connectedness22” is a defining feature of the Millennial generation. They’ve led the world on how to stay in touch via technology, and they are creating a sense of community at work. They are demanding more from their bosses, and organizations will be better for it.

What organizations must do now to engage and retain Millennials is to provide them with direction to help them navigate their jobs and careers. We must help Millennials make quick and easy connections to resources when they have personal or work concerns, or are dealing with stress or overload.

To sustain engagement, employers must provide Millennials with digital tools and technology to bridge connections and to support their organization’s mission and purpose. Most importantly, organizations must work together to strengthen people’s connections across the organization. If employers can deliver using tools, technology, understanding and support, they’ll be on their way to maximizing Millennial engagement, and sustaining that engagement in the years to come.

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Sources:

1. Pew Research Center. “Millennials surpass Gen Xers as the largest generation in U.S. labor force.” May 11, 2015.

2. PwC. “Millennials at Work: Reshaping the Workplace.” 2011.

3. Millennial Branding. “The 2015 Millennial Majority Workforce: Study Results.” October 2014.

4. Deloitte. “The radical transformation of diversity and inclusion: The millennial influence.” 2015.

5. Deloitte. Ibid.

6. Amy Adkins. “Majority of U.S. Employees Not Engaged Despite Gains in 2014.” Gallup. January 2015.

7. Amy Adkins. “Millennials: The Job-Hopping Generation.” Gallup. May 12, 2016.

8. Bruce N. Pfau. “What Do Millennials Really Want at Work? The Same Things the Rest of Us Do.” Harvard Business Review. April 7, 2016.

9. Jennifer J. Deal and Alec Levenson. What Millennials Want from Work: How to Maximize Engagement in Today’s Workforce. McGraw Hill Education. New York. 2016.

10. Millennial Branding. Ibid.

11. Jennifer Deal, et al. Ibid.

12. Jim Harter and Amy Adkins. “Employees Want a Lot More From Their Managers.” Gallup. April 8, 2015.

13. Amy Adkins and Brandon Rigoni. “Managers: Millennials Want Feedback, but Won’t Ask for It.” Gallup. June 2, 2016.

14. Jennifer Deal et al. Ibid.

15. Jennifer Deal et al. Ibid.

16. Jennifer Wang and Portia Boone. “Millennials and Student Debt.” Millennials Rising@NewsAmerica. 2014.

17. American Psychological Association. “Stress by Generation.” 2012.

18. American Psychological Association. Ibid.

19. PwC. “PwC’s NextGen: A global generational study.” 2013.

20. Jennifer Deal, et al. Ibid.

21. Jennifer Deal, et al. Ibid.

22. Amy Adkins and Brandon Rigoni. Ibid.

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