Taking the right approach with Generation-Y

Nawaf Dhubaib, MHRMgt

Nawaf.Dhubaib@gmail.com

Outline• Proposition• GCC Economic, Political and Social

environments.• Generation-Y

– Who are Generation-Y?– Traits of Generation-Y.

• HR– HR’s Role in the organization.– HR practices in relation with Generation-Y.

• Take-away message.• Research Sources.

Technology Savvy?

Technology up-to-date?

Proposition

• Big segment of current GCC population is of Generation-Y

• Understanding Gen-Y is important to HR professionals in the GCC.

• Long-term and sustainable business model is everyone's ethical responsibility. To shareholders, governments and society.

GCC Economic Environment• One constant is change! Uncertainty of future

outcome.

• Oil & Gas dependent economy:– Subject to Oil market price fluctuation.

– Hard to plan for the future.

– Studies suggest that Global Oil production might peak around 2020.

• Global Economic center of gravity is shifting to the East.

• GCC Government wages bill is over 10% of GDP (Saudi & Kuwait is more than 16%). Total expenditure is over 22% (Bahrain & Saudi is >50%). (2004)

Political Situation• Geopolitical changes

– Government’s coping with change by changes in policies.

– Changes will be cascaded to labor policies.

• Unemployment, is a security issue.– Arab spring was triggered by unemployment

grievances.

– There is a correlation between unemployment rate and crime rate.

• Globalization. Your problem, is everyone’s problem.

Social Environment

• Total unemployed in GCC is 500,000. With an annual addition of 200,000 new job seeker. (Girgis, 2002)

Economic and Social Commission of West Asia (ESCWA, 2004)

Country Unemployment rate

Qatar 12% ( > 50% female)

Bahrain 21%

Oman 49%

Saudi Arabia 26%

Social Environment

• GCC Social Structure:

Renewable growth rate is 2.1

Economist (2002) using data from Dubai Inc.; Gulf Investment Corporation; US State Dept; UNDP)

Country Population ‘000

Growth rate

% of <15 Years Old

% non-citizens

% of Expat in WF

Bahrain 650 3.6 28.8 40 64

Kuwait 2,300 4.9 33.5 64 81

Oman 2,400 3.9 44.5 26 55

Qatar 720 6.5 26.8 80 90

Saudi 23,000 4.1 43.4 27 55

UAE 3,300 8.8 26.7 82 90

Social Environment• Sex ratio in GCC:

• Global ranking. China’s rank is 10th (107.9)• (Economist, 2010)

Rank Country Males per 100 females (2010)

1 Qatar 306.9

2 UAE 203.6

3 Kuwait 146.1

4 Bahrain 134.4

5 Oman 129

6 Saudi Arabia 120.7

Generation-Y

• Generation: Group (of similar age) of people who share same experience, outlook, views, values and attitudes that were shaped in a stable life experience.

• Generation-Y usually referred to who was born after 1977-’79

Generation-Y

• Understanding Generation-Y paradigm.

• Gen-Y have no point of reference to:

– “Broken record”

– Cold War

– Busy signal, no answer, calling number.

• Gulf war I, II or III?

Gen-Y Traits

• High self-esteem.

• Technology native.

• Change, change, change!

• Virtually open.

• Virtually collaborative.

• Global citizenship.

HR’s Role

• HRM is the strategic art of managing the workforce and getting the most of it.

• HR subsystems:

– Performance Management.

– Selection and Recruiting.

– Training and Developing.

– Job Analysis and Work design.

– Compensation and Benefits (Reward).

HR’s Role

• HR practices, is the accumulated successful practices from:

– Academic empirical studies.

– Knowledge sharing.

– Common Sense.

– Experience.

– Trial and Error.

• HRM is a dynamic profession.

HR and Generation-Y

• Big segment of the GCC nationals are from Generation-Y.

• Incompatible HR practices may prove to be a hindrance to the Nationalization efforts in the GCC.

HR practices with Generation-Y• Some ideas of tweaking HR subsystems to get

the most of Generation-Y.

• Performance Management:– Leaders should be coaching rather being directive.– Frequent feedback to validate their performance.– Career path should be clear.

• Selection and Recruiting:– Using social media to broadcast your job openings.– Use your employees’ social network.– Virtual background check.

HR practices with Generation-Y• Training and Development

– E-training, must be more interactive.

– Collaboration. (Knowledge sharing)

• Job analysis and work design– Work/life balance.

– Fluidity in work environment.

• Reward system– Recognize performers as frequent as possible.

– Use the digital media to recognize them.

Take-away message

• HR professionals are the advocates of Generation-Y.

• We are the guardians of culture rather than policies.

• Be flexible and listen to employees.

• Buy-in of executives is HR’s job, by presenting a case in $ figures and solid data.

Are your HR policies ready for them?

Research Sources• Achoui, M. M. (2009). Human resource development in Gulf countries: an analysis of the trends and challenges facing Saudi Arabia. Human Resource Development International , 12 (1), 35-46.

• Dosary, A. S. (2004). HRD or manpower policy? Options for government intervention in the local labor market that depends upon a foreign labor force: the Saudi Arabian perspective. Human Resource Development International , 123–135.

• Eisner, S. P. (2005, October 1). Managing Generation Y. SAM ADVANCED MANAGEMENT JOURNAL , pp. 4-15.

• Fergany, N. (2002). ARAB HUMAN DEVELOPMENT REPORT. New York: United Nations Publications.

• Harry, W. (2007). Employment creation and localization: the crucial human resource issues for the GCC. The International Journal of Human Resource Management , 132–146.

• Herbison, G., & Boseman, G. (2009). Here They Come— Generation Y. Are You Ready? JOURNAL OF FINANCIAL SERVICE PROFESSIONALS , 33-34.

• Hesketh, T., & Xing, Z. W. (2005). Abnormal sex ratios in human populations: Causes and consequences. PNAS , 103 (36), 13271-13275.

• Hewlett, S. A., Sherbin, L., & Sumberg, K. (2009, July-August). How Gen Y & Boomers Will Reshape Your Agenda. Harvard Business Review , pp. 2-8.

• Hirsch, R. L., Bezdek, R., & Wendling, R. (2005). Peaking of World Oil Production and Its Mitigation. American Institute of Chemical Engineers , 2-8.

• Hutchings, K., Metcalfe, B. D., & Cooper, B. K. (2010). Exploring Arab Middle Eastern women’s perceptions of barriers to, and facilitators of, international management opportunities. The International Journal of Human Resource Management , 21 (1), 61–83.

• Montana, P. J., & Petit, F. (2008). MOTIVATING GENERATION X AND Y ON THE JOB AND PREPARING Z. GLOBAL JOURNAL OF BUSINESS RESEARCH , 139-148.

• MUYSKEN, J., & NOUR, S. (2006). Deficiencies in Education and Poor Prospects for Economic Growth in the Gulf Countries: The Case of the UAE. Journal of Development Studies , 42 (6), 957–980.

• Yeaton, K. (2008, April 1). Recruiting and Managing the 'Why?' Generation: Gen Y. THE CPA JOURNAL , pp. 68-72.