millennial study series

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Myths, exaggerations and uncomfortable truths The real story behind Millennials in the workplace

Carolyn Heller BairdGlobal Research Leader, IBM Institute for Business Value

© 2015 IBM Corporation

IBM Institute for Business Value

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Millennials—as digital natives—bring vital value to a workenvironment in the midst of a digital revolution

50% USA workforce

75% Global workforce

By 2020, Millennials willbe roughly 50% of the USA workforce, and 75% of the global workforce by 2030.1

Source: Meister, Jeanne. “Three Reasons You Need To Adopt A Millennial Mindset Regardless Of Your Age.” Forbes. October 5, 2012. http://www.forbes.com/sites/jeannemeister/ 2012/10/05/millennialmindse/

By sheer numbers alone, Millennials have become the catalyst for accelerated change in the workplace.

They are the first wave of digital natives to enter the workforce, and this does distinguish them.

Organizations that have embarked on their own transformation urgently need this digital capital.

2020 2030

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Millennials—as digital natives—bring vital value to a workenvironment in the midst of a digital revolution

50% USA workforce

75% Global workforce

By 2020, Millennials willbe roughly 50% of the USA workforce, and 75% of the global workforce by 2030.

Note : Countries: Australia, Brazil, China, France, Germany, India, Japan, Mexico, South Korea, Spain, United Kingdom and United States. Industries: Banking, Consumer Electronics, Insurance, Media & Entertainment, Retail and Telecommunications.

But how different are Millennials from their older colleagues?

We thought it was time to take stock. So we surveyed:

1,784 employees from companies large and small

From 12 countries, 6 key industries1

2020 2030

3

Millennials21 - 34

Gen X35 - 49

Baby Boomers50 - 60



Myth 1:

Millennials’ career goals and expectations are different from those of older generations

Fact: The organizational traits Millennials think will attract the best employees are strikingly similar to those listed by other generations.

The top five organizational traits Millennials believe are required to help employees feel engaged at work

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Percentage of respondents who agreed

Myth 2:

Millennials want constant acclaim and think everyone should get a trophy

Fact: It’s largely Gen X employees, not Millennials, who think everyone on a successful team should be rewarded, and employees should be recognized for information sharing and collaboration

If a team is successful, everyone should be rewarded

Employees should be rewarded for sharing information and collaborating

5

55% 64% 44%

Millennials Gen X Baby Boomers

55% 66% 43%

Millennials Gen X Baby Boomers



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Myth 3:

Millennials are digital addicts who want to do everything online

Fact: Millennials are comfortable using interactive online tools to acquire new work-related knowledge and skills, but they prefer in-person interaction

39%

37%

36%

35%

35%

34%

33%

27%

23%

…attending in-person classroom training

…working along side knowledgeable colleagues

…accessing self-paced interactive modules, apps or online simulations

…reading education/training manuals/instructions

…figuring it out on my own

…attending a live webinar

…attending a Massive Open Online Course (MOOC)

…watching a video

Millennials prefer to obtain work-related knowledge by…

…attending a third-party sponsored event

Percentage of Millennials who selected these options as one of their top three preferences

39%

37%

36%

35%

35%

34%

33%

27%

23%

Source: IBV Millennial survey: How do you prefer to obtain network-related knowledge and skills? (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)



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Myth 4:

Millennials, unlike older colleagues,can’t make a decision without first inviting everyone to weigh in

Fact: Millennials value others’ input, but they’re as likely to seek advice when making work decisions as many other colleagues

37%

36%

39%

55%

61%

Percentage of respondents who agreed

It is important to havegroup consensus

I make better decisions when a variety of people provide input

Baby Boomers

Millennials Gen X

64%

56%

49%

61%

55%

39%

Source: IBV Millennial survey: To what extent do you agree or disagree with the following statements about how you make business-related decisions? (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)



Myth 5:

Millennials are more likely than employees of other generations to jump ship if a job doesn’t fulfill their passions

Fact: Millennials change jobs for much the same reasons Gen X and Baby Boomers do

Employees of all ages have much the same reasons for moving to another position

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Many employees aren’t sure theyunderstand their organization’sbusiness strategy

Uncomfortable truth

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9

Percentage of respondents with limited or no understanding

Baby

BoomersMillennialsGen X

…my organization’s business strategy

…my manager’s expectations of me as an employee

…what my customer’s want

…my organization’s brand promise

I don’t fully understand…

%6560504035



The majority of respondents believe their organization effectively addresses a number of issues, including work-life management, workforce diversity and environmental/societal concerns.

The sole exception is the customer experience.

Most employees, irrespective of age, think their organization provides a poor customer experience

60%

40%

70%

Millennials

Gen X

Uncomfortable truth

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Percentage of respondents who believe their organization is not addressing the customer experience

Baby Boomers

10 © 2014 IBM Corporation



Only 4% of respondents say their organization has no problem implementing new technologies

Employees of all generations say their organization is slow to implement new technologies

Uncomfortable truth

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The top barriers to implementing new technologies

11 © 2014 IBM Corporation

Impact on current customer experience

Leaders’ lack of technological savvy

Complexity of technology

Leaders’ inability to envision future needs

Organizational culture that is resistant to change

72%

44%

44%

36%

32%



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Recommendation

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Managing a multigenerational workforce entails seeing people as individuals, not generational stereotypes.

Leverage digital natives’ capabilities, but be mindful of preferences and skill sets that transcend generational clichés.

To recruit, retain and grow top talent, employ robust workforce analytics, policies and programs that accommodate individual career aspirations.

Focus on the individual



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Recommendation

1


Managing a multigenerational workforce entails seeing people as individuals, not generational stereotypes.

Leverage digital natives’ capabilities, but be mindful of preferences and skill sets that transcend generational clichés.

To recruit, retain and grow top talent, employ robust workforce analytics, policies and programs that accommodate individual career aspirations.

How to get started

Map a talent strategy in phases.

Assess the current state, set a baseline.

Identify improvements, tools and analytics needed to execute the strategy and measure the results.

Focus on the individual



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Recommendation

2


Tomorrow’s leaders prefer collaboration, consensus building.

Organizations need a collaborative work culture, incentives, and collaboration technologies/tools.

As the workplace becomes more virtual, deploy collaboration tools that leverage the latest in cloud and mobile.

Foster a collaborative culture



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Recommendation

2


Tomorrow’s leaders prefer collaboration, consensus building.

Organizations need a collaborative work culture, incentives, and collaboration technologies/tools.

As the workplace becomes more virtual, deploy collaboration tools that leverage the latest in cloud and mobile.

How to get started

Appoint a “Collaboration Czar.”

Build a team of enthusiastic employees from all parts of the business.

Develop a strategy for improved collaboration and pilot new programs.

Foster a collaborative culture



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Recommendation

3


Conduct a thorough analysis of the experience customers havewith your organization.

Be transparent with employees about strengths and weakness.

Work collaboratively across the business to develop solutions for improvements.

Make customer experiencea priority



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Recommendation

3


Conduct a thorough analysis of the experience customers havewith your organization.

Be transparent with employees about strengths and weakness.

Work collaboratively across the business to develop solutions for improvements.

How to get started

Map the customer journey from the customers’ point of view.

Detail all the interactions that touch your technologies.

Determine problem spots, why they exist, and do a risk benefitanalysis to determine a plan of action.

Make customer experiencea priority



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Recommendation

4


Nearly half of respondents said they aren’t confident they understand the fundamental strategies of their business.

Keep employees in the loop with easy access to company information, mentoring and collaboration tools and programs.

Ensure employees understand how their job supports the organization’s mission—an engaged workforce delivers a better customer experience.

Get everyone on board



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Recommendation

4


Nearly half of respondents said they aren’t confident they understand the fundamental strategies of their business.

Keep employees in the loop with easy access to company information, mentoring and collaboration tools and programs.

Ensure employees understand how their job supports the organization’s mission—an engaged workforce delivers a better customer experience.

How to get started

Use online survey tools to test employees’ understanding of business fundamentals; ensure anonymity.

Form a task force across the enterprise to address weaknesses; develop pilots for improvement.

Be transparent, share progress updates with employees.

Get everyone on board



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Recommendation

5


Leaders may be overestimating how well they’re connecting with their staff.

Leaders need to take an honest assessment of their strengths and weaknesses.

Leaders should ask themselves what they are doing personally to inspire employee confidence, show an interest in employees’ professional development and communicate with clarity and transparency.

Look within



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Recommendation

5


Leaders may be overestimating how well they’re connecting with their staff.

Leaders need to take an honest assessment of their strengths and weaknesses.

Leaders should ask themselves what they are doing personally to inspire employee confidence, show an interest in employees’ professional development and communicate with clarity and transparency.

How to get started

Leaders, take a look at your calendar.

In the last six months, how much time did you spend celebrating team successes, conducting roundtables or mentoring?

Plan creative ways to connect more, in person and virtually.

Look within



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Thank You

IBV Millennial Study Series

Paper #1:

Myths, exaggerations and uncomfortable truths – the real story behind Millennials in the workplace

Download at: ibm.biz/millennialmyths

Paper #2:

To buy or not to buy? How Millennials are reshaping B2B marketing

Download at: ibm.biz/millennialsb2b

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