Minding the Millennials

The new generation workers, aka ‘Generation Y’ or ‘Millennials,’ seem to change jobs annually. We see it every day; we hire a twenty something year old and within one year, he or she is gone. We run into the same person five years later and find he or she has changed jobs four times since we last worked together. What happened to the stalwart individuals who worked at one company for 25 years?

During the next few years, we will see an unprecedented number of Baby Boomers retiring. There will actually be more Gen Xers retiring than Gen Yers coming into the workforce. With the smaller number of Gen Yers coming into the workforce, there will be a shortage of workers and the competition to attract and keep new employees will be greater than ever.

Nowhere is this trend as prevalent as in the insurance industry! Like it or not, the insurance industry will be competing to hire and retain Gen Y employees. HR policies will have to be revised in order to attract and motivate this group. Here are my observations of the key traits of Millennials – and some ideas on how to retain them as part of your employee team.

The first step to attract, motivate and retain Millennials is to understand what makes this generation tick. Born between the years of 1982 and 2000, some of the significant events they experienced were the Air India bombing, Persian Gulf War, the unraveling of the banking industry, Canada US Trade agreement and 9-11, just to name a few.

Most Millennials have been around computers, the Internet and mobile devices for the majority of their lives. They live in a world of constant immediate interaction and prefer to communicate with a device rather than in person. Their work and personal lives are blended and they believe there must be a higher purpose in what they are doing, both personally and professionally. Another interesting, but not surprising, fact is that data from 2011 census shows that 42% of adult children between the age of 20 and 29 are living with their parents, as opposed to 27% in 1991.

Some challenges faced by Millennials are independence, work ethic, realistic expectations, patience and communication. The fact that this generation is perpetually connected to their parents, peers and friends hinders their ability to make decisions on their own. Millennials are more interested in lifestyle than working overtime and are not interested in personal sacrifice to advance their career.

At the same time, there is a disconnection between effort and outcome. They believe a university degree entitles them to a six-figure salary with a corner office… on their first day! Spending most of their lives in front of a computer or mobile device, Millennials have poor face-to-face communication skills and prefer online communication (email, text, BBM).

Now, for the good news on this generation. Since they are tech savvy, they can definitely find information needed to complete any assignment. This comes with one caveat; they believe if something is not on the Internet, it does not exist. Millennials also can get along well with members of diverse groups. Again, this stems from their early connection with technology and social media, which has no geographic, social, religious or race limitations.

Since they are not used to making independent decisions, they enjoy working in teams and, in turn, make great team members. Working on multiple projects is second nature for this young group. They have grown up with many things going on around them at once, so multi-tasking comes easy. Millennials are cause-driven and want to be part of a ‘movement’ and ‘make a difference.’ Going green and being eco-friendly is something they can get behind. Just recently, the Occupy movement made headlines and it comes as no surprise that the majority of participants were Millennials.

A better understanding of the Gen Y group should lead to better ways to engage and retain them. One great way is to offer them more time, as in vacation, holidays, personal time and paid time off. Another form of time management is flexibility in their work schedules. This could take the form of a four-day workweek, summer hours or flex scheduling. Since their lifestyle is very important to them, these practices could help keep them in your employ versus moving to the competition.

Another way to retain the Gen Y generation is to offer growth opportunities. Of course, career advancement and educational opportunities are important, but this is more about personal growth. Relationships are very important to Millennials. Working in a friendly relaxed culture that promotes idea sharing is something Millennials enjoy. They want to become friends with people they work with and work with their friends. They enjoy getting together with co-workers outside business hours. They want to have a great boss who is not only friendly but also a mentor who will take interest an in their entire career. The boss should provide constant feedback and allow opportunities for socializing with others in the office.

Another opportunity that will help retain Millennials is allowing them to be part of a cause, providing a sense of purpose. This can be achieved through paid time off to volunteer at a charity, organized food drive or fundraiser.

The reality is that there is a need to hire and retain members of this new generation workforce. We have to learn to manage their wants and needs. Although some of these tips would be a good policy when dealing with all staff, they are particularly effective with Gen Yers. Genuine interest must be shown when dealing with this group. They must feel you are interested. Stop typing, don’t answer the phone and make them your sole point of focus. Create more opportunities for teamwork. This will ensure they can work with their ‘friends.’

Follow the Platinum Rule versus the Golden Rule – treat others like they would like to be treated, not how you would like to be treated. A Baby Boomer or Gen Xer does not want the same things a Millennial wants. It is also important to acknowledge and reward good behaviour. Most importantly, create a work culture that they enjoy with many opportunities for socialization; one where getting the job done is more important than a fixed work schedule.

Times are changing. The insurance industry must adapt its workplace to accommodate the Gen Y workforce. Keeping this group happy and employed with your company will definitely reap bottom line rewards and will be a competitive advantage in the long run.

Always remember, if Gen Yers don’t like where they work, they will gladly quit and just hang out with their roommates: Mom and Dad.

Gino Fiorucci is the CEO of ISB Canada.