The Perfect Work Environment for Millennial Employees
Determining exactly who a millennial is can be confusing because there are often conflicting ideas of what birth years are included in a generation. However, Pew Research Center defines millennials as those born between 1981-1996.
Millennials are now the largest generation in the workforce, making up 35% of labor force participants as Baby Boomers continue to retire.
According to the same research, with immigration adding more numbers to this group than any other, the Millennial population is projected to peak in 2033, at 74.9 million. After that, the oldest Millennial will be at least 52 years of age and mortality is projected to outweigh net immigration. By 2050 there will be a projected 72.2 million Millennials.
What differentiates the generations?
Generational cohorts are used for many different purposes, including research. A generation is tied together by their formative experiences that shape their worldview.
For example, millennials were between the age of 5 and 20 when 9/11 happened and were, for the most part, able to understand the profound changes that occurred on that day.
They were beginning to enter the job market as the market crashed in 2008, even if that was just to find an after-school job. Most importantly, they came of age as the internet became more accessible and adapted to innovations during their teen and early adult years.
Millennials in the Workforce
For businesses, this can be particularly useful in understanding consumer behavior. But it can also be used in strategic HR management to make a company appealing to millennial employees. It is important to note that millennials are not a monolithic group.
Like any other group, there is diversity and complexity within the group. While understanding the generations can help companies decide where to invest in employees, they shouldn’t make choices based solely on stereotypes and generalizations.
Strategic HR management requires that you assess your company’s culture and goals and design an HR program that supports the business plan.
As younger millennials are finishing school and entering the workforce, this group will have a significant impact on the workplace over the next decade.
What really matters to millennials
Millennial employees are different from Gen X and Baby Boomers in the workplace because they are at different places in their lives.
While Baby Boomers are thinking about retirement, millennials are starting their careers or have young families.
While Gen X is well-established in their careers, older millennials are just starting to reach that point. As such, they generally have different preferences for employee incentives and there are different ways to foster employee engagement when it comes to the millennial workforce.
There’s a stereotype that millennial employees are lazy, bored, and job-hoppers. These negative workplace stereotypes seem to begin with an older generation and hang on for years.
For example, Gen Xers were often stereotyped as slackers who were disaffected and cynical in the 90s. However, it was those “disaffected slackers” that revolutionized their world and the dot-com boom of the 90s emerged and challenged the status quo.
According to Forbes, 55% of startup founders belong to Gen X, so stereotypes may not hold up well over time. Sergey Brin and Larry Page didn’t accept the status quo of internet searches. They challenged the notion of how we find information online by founding a company that has the mission to make information universally accessible and useful.
A more positive outlook on millennials is that they had contact with a diverse group of people when they were growing up and are connected with their networks. They have a positive self-image and generally believe in their ability to get things done. They like teamwork, are extremely literate with technology and tend to prefer a variety of activities. Most of all, they like employee-centered workplaces where they feel like they can have fun and make a difference.
Tips for companies when it comes to handling millennials
All employees, regardless of age, want fair compensation, good benefits, and a positive work environment. Implementing strategic HR management in the workplace is key to attracting and retaining millennial employees.
These strategies can include both employee engagement initiatives as well as employee incentives that will appeal to the millennial worker.
One way to keep millennial employees engaged is by creating a work environment that they thrive in. Due to the fact that they often had structured lives, they like structure and leadership in a company.
However, they also want to be heard at work and want to feel respected. They prefer companies that have a commitment to an open and honest work environment instead of a command-and-control approach to work.
A Gallup study in 2016 found that 60% of millennials are interested in new opportunities. Given the high cost of recruitment and training, companies want to reduce their turnover as much as possible.
Older generations tended to see a job as a long-term commitment between a company and an employee with loyalty expected from both.
However, since the 1980s companies have gone through high-profile restructuring and cost-cutting measures. Millennials grew up in an age where their parents may have been downsized, perhaps several times. They tend to see a job as an opportunity to challenge themselves and build their own skills. Once they are bored, they move on.
However, companies that provide changing tasks and opportunities for career growth are preferred by millennials as employers of choice.
Even small employers can provide opportunities for learning on the job. One example of engaging millennial employees is a job rotation program, where the employee learns different aspects of the company’s operations, which often leads to a management position. In a flat structure, this might include the opportunity to work on strategic projects.
Recognition is another way to engage millennials. They want to know when they are doing a good job and what they need to improve upon.
They prefer consistent feedback and ongoing discussions to a formal yearly review. These informal “check-ins” are a great way to recognize achievements as well as discuss individual development.
Millennials are defined by the events that shaped their early years. Now, they’ve grown up and are entering the workforce to establish their careers. Their preferences are shaping company cultures and employee incentives.
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