changing the conversation from cost to value

Leading Five Generations in the Workplace

Sodexo Story

Overview | Workforce Trends

Age & Generations

How Would You Respond?

Generations

Generations & Workplace

Q & A

2014 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo.

Today’s Agenda

Global Leader in Quality of Life Services

4

On-Site Services

-> To our 8 client segments

Corporate, Defense, Justice, Remote Sites,

Health Care, Senior Living, Education, Sports &

Leisure.

Motivation Services

-> Available in three services categories:

Employee Benefits, Incentives and Recognition,

Public Benefits

430,000 Employees

132 Nationalities

34,000 Sites

80 Countries

75 Million customers

per day

18th Largest employer

worldwide


Headlines

Diversity and inclusion leads the branding of Sodexo in the U.S.

D&I becomes a differentiator resulting in business growth; integral to

business success

Key component of the Quality of Life Services strategy as company

reinvents business model

Helps brand as more than food service provider


Sodexo’s Ten Key Elements for Culture Change

6 2014 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo.

Top Down

Middle Out

Bottom Up


D&I: Business Rationale Drives Strategy

Workplace

• Attract, Develop & Retain the Best Talent to meet growth targets

• Foster an Engaged & Committed Workforce for productivity and

innovation for clients

• Develop managers who are culturally competent and able to

motivate diverse teams

Marketplace

• Understand our diverse customer population to deliver Quality of

Life Services to our Clients & Customers

• Leverage D&I to identify New Business Opportunities, provide

access to clients and potential clients and Strength Existing

Relationships for client retention

• Cultivate External Partnerships to Support Business Priorities

• Leverage D&I thought leadership to strengthen the brand

Overview: Workforce Trends


Key Workforce Trends in the U.S.

• The number of women in the labor force will

grow by 14.3 % compared to 10% for men

(women 60% vs. men 40% graduating).

The aging population will lead to

unprecedented labor shortages with baby

boomers working longer.

The wired, connected millennials are

motivated differently.

It is estimated that 10% of the workforce is

gay or lesbian.

It is estimated that 1 in 4 people has a

disability

So-called minorities, will constitute a majority

of the nation’s children under 18 by 2023 and

of working-age Americans by 2039. Today 1/3

are minorities.

It is projected that by 2020, 81percent of the

new entrants into the workforce will be

women or minorities.

According to the American Community survey

data used by Pew, Hispanics comprise

16.4% of the U.S. population.

Hispanics are the fastest growing ethnic

segment: • Overall U.S. population is graying but the

Latino population remains young & the

primary feeder of workforce growth.


Changing Demographics | Hispanic Growth

Age & Generations

Workforce Changes Needed to Engage an Aging Workforce

Today 1 in 8 are over 65; by 2034 will jump

to 1 in 5

Every day 10,000 boomers turn 65

The increase of people aged 65 and older

will be at 10 times the rate of the total labor

force

Retirement: 67 is the new 55: Focus on

retention, engagement, knowledge transfer

Older workers seen as blocking

advancement

Employers will need to explore alternative

work arrangements to accommodate a

generation that wants to keep working


Globally, many countries in Europe and Asia are facing precipitous declines in birthrates and aging of the population, while in other countries (e.g. India, Brazil) youth make up the majority of the population.

29

39

30

49

28

1519

24

8

18

25

14

0

5

10

15

20

25

30

35

40

45

50

US Germany China Japan Russia Brazil

2000

2025

Retirees over age 65 per 100 workers

Source: BusinessWeek, January 31, 2005


What Does the Future Suggest?

Aging population working longer

More diversity in the millennials

Multiple generations in the

workplace


Five Generations

Traditionalists

Born before 1945

Influence: Depression & WWII

Baby Boomers

Born 1946 – 1964

Influence: Vietnam War, 60’s, postwar social change

,

Gen X

Born 1965 – 1980

“The Latchkey Generation”; products of

divorced parents.

Gen Y

Born 1981 – 1995

“The Entitled Generation” Influenced by technology &

doting parents.

Linksters

Born after 1995

“The Facebook Crowd”

Influenced by a media-saturated world.

Age is Becoming a Major Factor at Work



And the Creation of “Gray Ceilings

Younger people will no longer be able to support the older people in the developed countries

Many organizations will consider raising the retirement age to 75


Generations in the Workplace



Self Assessment

A 23-year-old

employee requests

every other Friday

afternoon off for a

session with her

“spiritual coach.”


A 48-year-old

employee requests

an off-site for the

department to do

team building

during your

busiest period.




A 62-year-old

outpatient unit

manager has twenty

something nurses up

in arms about his

command and

control style.



A 35-year-old

accounting

support person

cruises the

internet at his

“break” during

the workday.


A 27-year-old full time

program assistant

asks her manager to

look over her resume

because she is going

to place it on

Monster.com. She

claims she is happy

here but wants to

know what’s out

there.


A 44-year-old

physician is of

often late with

reports because

she is taking

care of two

children and a

widowed father

with

Alzheimer’s.


A 25-year-old IT

employee

requests a

meeting to give

you feedback on

your management

style.


A 59-year-old manager

has his administrative

assistant print out all

his e-mails.



A 61-year-old physician tells extended stories at meetings. When you mention this, he says he’s trying to contribute lessons learned.


Generations


We Have Moved from a Baby Boom to a Bust to a Boomlet

Linksters

(born after 1995)

beginning

to enter

the workforce


Each Generation Has Different Perceptions of Leadership and Work

Generation Veteran /

Pre-

Boomer

Boomer X’er Millennial Linksters

Leadership

By

Hierarchy Consensus Competence Pulling

together

Coming

Soon:

The

Facebook

Crowd in a

media

saturated

world

Feedback No news is

good news

Once a year

with

documentation

Asks how

they are

doing

“Gamer

Generation”

– touch of a

button

Work Ethic Work hard,

save

money;

what is

play?

Work hard;

play hard;

worry about

money

Work hard, if

it doesn’t

interfere with

play; save

money

Good

grades; save

money; let

others pay

Balance Don’t quite

get it

Sandwich

generation

Want

balance now

Need

flexibility to

create it


As Well as Different Values, Attitudes and Behaviors

Pre-Boomers Boomers X’ers Gen Y’s Linksters

Outlook Practical Optimistic Skeptical Hopeful Coming

Soon:

Technolog-

ically

dependent

Close ties to

parents

Tolerant of

alternative

lifestyles

Involved in

green

causes and

social

activism

Company

Loyalty

Loyal to the

company

Loyal to the

work

Loyal to

themselves

Always have a

resume ready

Attitude to

Work

Just do it Work should

be meaningful

Work pays the

bills

Work must be

fun

Working

Late

Part of the job A contribution

that will be

noticed

“Will I get

comp for this?”

If consistent,

out of here

Organize

projects/

schedule

Day Runner Palm Blackberry Free internet

application I

downloaded


Veterans in US: Hard Work in Hard Times: 1928-1945

Core Values

Place duty before pleasure

Believe patience is its own

reward; are willing to wait

for delayed gratification

Value honor and integrity

Dedication

Sacrifice

Delayed reward

Conformity


The Traditionalist Believed in the Dream

Wants

• Want others to respect them and value their expertise, which was gained over time and through experience

Preferences

• Hierarchy—respect authority, even sometimes when it frustrates them

• More formal communications

• Spelled out roles and responsibilities

• Clear directions

• Stability

Workplace Behaviors

• Avoid challenging the system

• Maintain dedication to a job, once they take it

• Most are not technology savvy, and tend to avoid using it

• Engage in face to face communications

* 3SC Longitudinal Values Study


Baby Boomers | 1946 - 1964


Baby Boomers | 1946 - 1964 Aging Boomers: Looking Back and Looking Forward


Some Boomer Equations (1946 – 1964)

Work hard = be noticed

Many meetings = achieve consensus

Balance – finding my own personal path

Personal Growth

Being realistic = getting what I need while

“putting up with it”

Optimistic

Upbringing

Were told they would be the generation that

would change the world

Experienced integration in neighborhoods

and schools

Key Events Shaping Their Lives • John F. Kennedy Assassination

• Vietnam War

• Civil Rights Movement

• Man landing on the moon

• Healthier/ Post War Era resulted in a

baby born every 17 minutes for 19

years—resulting in 76 million baby

boomers


Baby Boomers – In the Workplace

Wants

• Want to change the world and the workplace to suit their needs—including government policy and consumer products

• Want to please everyone

Preferences

• Prefer the process of getting things done, sometimes to the detriment of achieving results

• Prefer convenience and immediate gratification versus delayed gratification

Workplace Behaviors

• Live to work—put in long work hours

• Driven—willing to “go the extra mile”

• Good at Relationships

• Good Team Players

• Process Oriented

• Uncomfortable with Conflict

• Judgmental of those who see things differently


Boomers in the Future

First Boomers reached 65 in 2011

2005 –Median Age = 40.5

Work to fund longer retirement

Rise in individuals with disabilities & elder care

Integrate/Reintegrate older workers

Help guide strategic planning: knowledge of

company and industry

Mentor and train others

Nurture the culture: team building and

community service

Need flexibility

Increasingly challenging projects

Opportunities for innovation


Generation X | 1965 – 1980 Remaining Single & Falling in Love Online


X’ers | 1965 - 1980

Upbringing

• 50% were latch key kids

• Learned to be autonomous and self-reliant

• 50% were affected by divorce

• Boomerang Kids—3 times more likely to move back home as young adults (in their 20’s)

Key Events Shaping their Lives

• Watergate Scandal

• Women’s Liberation Movement

• US Corporations began massive layoffs

• Rodney King Incident

Values/Beliefs

• Diversity

• Balance

• Informality

• Self Reliance

• Global


X’ers | 1965 - 1980

2.8 years = median length of employment

“Permanent Temps”

Virtual nomads seeking greater balance between work and home

Wants Want to be independent and self-reliant

Preferences Prefer not to make long term commitments to companies

Prefer full package of workplace benefits that allow for balance—

not just more money

Workplace Behaviors Work to Live, not live to work

Adaptable

Techno-literate

Independent

Not intimidated by Authority—don’t automatically give respect to

authority in the workplace

Will speak up for themselves

Comparison shop during interviews—looking for best salary,

benefits, work/life balance, and raises


X’ers | 1965 - 1980

The “Twixters” Who Won’t

Settle Down

Not Just American

Phenomenon

Canada: Boomerang Kids

England: Kippers (Kids in

Parent’s Pockets Eroding

Retirement Savings

Germany: Nesthocker (Nest

Squatter)

Italy: Mammone 50%: Won’t

Give Up Mom’s Cooking

Japan: Freeter (Free worker:

job hops and lives at home)


Millennials | 1981 - 1995


Millennials | Can Create an Imagined Future


Who is This Generation Y? 1981-1995

Upbringing

• Children of Baby Boomers; 80 million strong

• More demographically diverse than any other generation—1 out of 3 is an ethnic minority

• Best educated generation in US History

• Inter-racial dating is a non issue

Key Events Shaping their Lives

• Oklahoma City Bombing

• Clinton/Lewinsky Affair

• Columbine High School Massacre

Values/Beliefs

• Belief in Collective Action and Optimistic

• Relationship with Parents

• Civic Duty

• High Moral Standards

• Diversity

47

They Were the Centers of the World

Wants

• Want to live in the moment

Preferences

• Prefer to be optimistic about life

• Prefer to earn money and consume it immediately

• See themselves as individuals

Workplace Behaviors

• Technologically Savvy; connected

• Multitaskers

• Inexperienced with handling difficult people and issues

• Demonstrate respect only after they are treated with respect

• Rely on immediacy of technology

• Skeptical—question everything; that’s how they grew up

• Have a need for supervision and structure

They Love Their Parents - “Now parents are cool”



Who is This Generation Y?


They’ve leaned on their

parents all their lives, so:

• Don’t be surprised if mom

shows up at the job interview

• Dad calls to ask how junior is

doing

• Little sister comes to sit in

her cubicle to watch for a

day

You might consider a “Bring

Your Parents to Work” day

At Work, Managers May Find Parents Come Too


Who is This Generation Y?

Get Ready. Here They Come!

They have different

expectations….

• “Start at the bottom?”

• “You’ll pay me what?”

• “About that signing bonus…..”

• “How long with the next

promotion take?”

• “This is a good place for a

while.”

• …AND they are not afraid to

communicate them


Boomer vs. Millennial Resume

Name, Address, Phone

• Objective

• Qualifications

• Education

• Employment

• References

Source: New Paradigm Learning Corporation 2005

Name, e-mail, cell, blog

• What I Know

• Where I’ve Done It

• How Did I Get This Knowledge

• Who I Know and What They

Know

• Who I Want to Meet

• What I Want to Learn and Create

Gen Y & Boomers

The rules for engagement have changed!

– Gen Y advancing

– Boomers reluctant to retire

– What do they have in common?

• Flexible work arrangements

• Giving back to society

• Nonfinancial rewards

• Mentoring

– Tech savvy students teach Boomers

– Boomer mentees

• Progressive Policies for companies

– Creative rewards = employee retention


What Does this Mean for the Work Place?

Techno Savvy: locate details in seconds

Adept at global and diversity issues: online social

network

Team oriented: measure themselves by their peers

Multi-taskers: 90% of 18-24 year olds feel that

listening to the IPod while working improves job

satisfaction and productivity

Lack discretion: given up privacy to Myspace,

Facebook

Misaligned expectations: want to change the world

in the first week; crushed when challenged

Instant gratification- no patience

Work ethic: different

Soft Skills and the basics: over reliance on

computers; conflict resolution and interpersonal

skills lacking


How Can You be Prepared?

Evaluate and increase basic training skills

Provide the reasoning behind processes- “the whys”

Focus on outcomes

Provide more frequent job performance reviews and other ‘in

the moment’ feedback

Keep them engaged- skill development essential

Retention more based on relationships than company loyalty-

“I quit because I can’t stand my supervisor”

Expand work/life balance programs- time and flexibility most

important to them

Place clear parameters on communication frequency and

methods

Source: HR Magazine; May 2007; www.shrm.org


How to Prepare for the Millennials

We will need to create new

criteria for employer of choice

Time Off

Flexibility in hours and workload

Technological job aids

Person-based pay with more at

risk

A la carte/portable benefits


We Will Work in a “Flattened” World With New Forms of Collaboration And….What About Their Future:

2020 Lifestyle

Jobs for life are replaced by short-term

contracts

One in five people will be self-employed

Old age will be postponed by active senior

participation

The family of choice will replace the family

for life

Four out of five Gen Y’s have working

mothers

First time mothers will often be in their late

40’s

They are our future…..are we ready?


How Can We Respond? Sodexo Generational Opportunities

• Recruiting:

– Sodexo Alumni Network & Reconnexions

• Development:

– Generations in the Workplace trainings

– Reciprocal mentoring

• Retention

– Work/Life Effectiveness Taskforce

– iGen Employee Business Resource group

THANK YOU!

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