Keeping up with the ‘Y’

You can’t escape the hype about Generation Y in the workplace. This time last year, newspapers were quick to report on what would be the youngest generation’s first experience of recession or economic slowdown. Many survived by delaying their career plans; opting to spend 2009 traveling or completing further studies. But with the economy now in apparent recovery-mode, those workers aged up to 32 who continued in the workforce appear to have weathered the storm as well as any other generation.

Still, the presence of Gen Y remains a significant cultural issue for HR. More than ever before, it is a demographic that speaks differently and does things in its own way.

Technology is the key differentiator – Gen Y grew up with it. While older workers needed to be introduced to the internet and mobile phone networks mid-way through their working lives, these now-vital communication tools were just part and parcel of teenage life for Gen Y. They have even adopted their language to these new media; with verbal conversations peppered with “SMS-speak” acronyms such as “LOL” (laugh out loud) or “TTYL” (talk to you later).

Compare this to the generation before, one that was once more used to paper-pushing than email; or phone calls to text messages; and it’s easy to see where the cultures can clash. William Chin, Senior Manager, HR, Qualcomm CDMA Technologies, says as well as the different levels of technology savvy, HR can often point to Gen Y’s more relaxed dress code as a possible point of conflict. Also, differing wants and needs with regards to career and work-life balance ensures Gen Y is a necessary, but not necessarily easy, demographic to work with.

It is not all negative however. Rather, Gen Y has been a “breath of fresh air” in the modern workforce – with many HR directors nothing that their fearless dissatisfaction with the status quo and strong education have helped organisations change their ways, means and cultures for the better.

It’s why now, as the recovery slowly evolves, HR considers the retention of Gen Y talents as a vital goal for continued success.

The economics behind Gen Y

Generation Y are the children of a bygone era, explains Jarrod Ng, Director of Human Capital at law firm WongPartnership. Particularly in Singapore, many have grown up in a burgeoning middle class, where big-ticket acquisitions like cars and homes are common place.

“The notion of hard work is closely related to class-mobility,” Ng says. “Where previous generations sought progress from the lower classes into the middle classes, the Gen Y workforce is aware that moving up to the upper classes will take a quantum leap. Therefore, they remain realistic with the things they want out of life and maybe more willing to trade extra income for more personal time.”

He says the differences between generations are small in the wider context of economic history. “We are not chalk and cheese. At the heart of it all, commonalities still exist between the generations, especially in terms of career aspirations, compensation and motivations.

“Don’t we all want to be compensated well? And wouldn’t we all like the flexibility to work from home when we need to? I can’t imagine anyone not appreciating sincere praise from their bosses. There is very little difference between Generation X, Y and the Baby Boomers. Some are just better at articulating it and asking for it.”

Luring and keeping Gen Y

One noticeable difference is Generation Y’s willingness to “job-hop”, seeking new opportunities far more quickly than their older colleagues. Aparna Kumar, Vice President, HR, Asia Pacific, DB Schenker says there are three typical reasons why younger workers appear to “jump ship” more often.

Firstly, there is “buyer’s remorse”, the feeling that all of the down sides of a job weren’t explained prior to accepting. Secondly, Gen Y workers are better at recognising and reacting to the downward spiral of failure which can take place when immediate success is not forthcoming. Thirdly, Kumar says Gen Y will often believe that there is something it really wants that it cannot get or do in the current position.

With a generation that wraps the kind of career they want around the kind of life they want to have, retaining them can be an interesting challenge. It’s led many HR teams to some creative retention solutions.

Ng says a defined career path is the first step. “Gen Y is achievement oriented, so they will want to know where they are headed in their career,” he says. After ensuring a competitive remuneration structure, he then suggests HR considers the value of work flexibility.

“Generation Y loves flexibility and this affinity extends to the working environment. Invest in infrastructure and develop policies that will allow your employees to work effectively from home,” he advises.

Another useful strategy is to ensure that employee benefits are relevant. Comprehensive medical coverage may be very useful as you get older, but for younger workers, gym subsidies and clubbing discounts may be much more attractive.

“The key to successfully dealing with Gen Y is this – listening without prejudice and then responding reasonably,” Ng says. “Once HR adopts flexibility and knows when to stand firm and when to deviate from policy, you will have a potent potion for keeping them.”

The positives of Gen Y

Certainly, Gen Y workers represent a need to do things differently. But if HR can overcome those roadblocks, these smart, tech-savvy workers also represent some strong opportunities.

The generation boasts strong insight on how to best reach its peers in the consumer market. Gen Y workers are eager to contribute and to take on significant responsibility early in their careers. Sam Mitra, Senior Manager, Group Learning and Talent Development, Standard Chartered, says it is a diverse generation that has been taught to work well in teams and knows the importance of specialist skills in the global economy.

“This is the generation that brings technology into the workplace and we do need to keep track of what’s new out there and what can help us work smarter in the workplace.” While Gen Y workers expect competitive pay, they also value meaningful development opportunities – and these allow for some excellent win-win opportunities for forward-thinking businesses.

“Treat them with the respect that you would want from the generations before you and all will work out.”