Managing Generation Y

Techniques and Recommendations for Managing the Generation Gap

Shelter Diagnostic System (SDS)

Managing Generation Y: Techniques and Recommendations for Managing the Generation Gap Generation Y, here defined as people born between 1978 and 1986, comprises a unique and often challenging workforce. These young employees often have radically different expectations about compensation, management, training, organizational communication, and the work environment than their predecessors. These differences may lead to misunderstandings and conflict within organizations. Ron Alsop, a consultant and former editor of the Wall Street Journal, notes that the impatient Generation Y, with their great and sometimes unrealistic expectations, is clashing with the older pay-your-dues Generation X in a commentary for a recent Harvard Business Review article. However, Generation Y should not be categorized simply as a group of young complainers. According to Tamara Erickson in the same HBR article, Generation Y is both innovative and creative. This generations tends to set high expectations for themselves and their manager; a characteristic that can result in a wealth of positive organizational outcomes when guided appropriately. Correctly managing and harnessing this creative and high-performing generation involves patience, an understanding of Generation Ys motivators, and a stream of constant feedback. Generation Y grew up being challenged by teachers and accepting multitasking as a way of life. They demand a steep learning curve, and, the organization that can offer this, will be rewarded with high performing, innovative, and loyal employees. Generation Y is the student supervisors will benefit from assuming the role of teacher rather than over-managing. How is Generation Y Different? Generation Y has grown up in a decidedly different world than that of Generation X and The Baby Boomer Generation. Computer based technology is a natural extension of the self. The internet has offered them a world where I dont know is never an acceptable answer. A simple Google search

offers more information on a given topic than could ever be needed. Technology has created a generation accustomed to instant results and instant gratification. It has also made a workforce that is in dire need of a real challenge. Molly Smith, in a recent Reuters article, identifies five major trends in Generation Y. This group is characterized by different expectations about compensation, communication style, management style, benefits, and the work environment. Generation Y is characterized by a desire to receive training, take on new challenges, expand capabilities, and as a result advance, writes Smith. A simple raise for a job well done may not lead to the expected results. More money does not have the same impact as being given more responsibility and new challenges. Compensation takes on a whole new meaning when dealing with Generation Y. Thanks to the instantaneous exchange of information offered by email, text messaging, and the aptly named instant messenger, Generation Y is accustomed to a direct and timely communication style. They value frequent encouragement and recognition for their efforts writes Smith. The outcome is engaged employees who are motivated to show their best work. Management style should take advantage of this need for recognition in Generation Y and focus on the importance of the performance evaluation. Benefits for this workforce are centered on the importance and utility of training. Generation Y is eager to learn and master new skills in the workplace. Training can also be a time to foster identification with the overall mission of your organization, an area where Generation Y seems deficient. By aligning the broad goals of the organization with their need for challenge, high performing employees are created. This generation truly is a different, and decidedly special, class of employee. Meeting and interacting online is just as real as face-to-face meetings for this generation, writes Smith. The work environment looks completely different to Generation Y. With their outcome-

oriented approach to work, management should focus less on mandating how its done and more on the overall project picture. Generation Y has many resources at their disposal and they are eager to show the new and exciting ways they can use them. Often, this means working outside the classic 9-5 work structure. Generation Y is a highly coddled, yet highly capable workforce. According to Julian Birkinshaw and Stuart Crainer in a recent Business Strategy Review article, Generation Y feels underutilized. This workforce is characterized by a need for self-role definition. The authors write that Microsoft management saw this specific need and took advantage of it. The outcome was a highly successful video game console and workforce of highly competitive and successful employees. Are you harnessing the power of Generation Y? This report outlines five action steps that can be implemented immediately by management to ensure the most productive, innovative, and loyal set of Generation Y employees. Action Steps 1. Training Generation Y employees Incorporate active and ongoing training o Generation Y can best be categorized as organizational students. Offer frequent training opportunities where these employees can sharpen current skills and learn new ones. Focus on individual differences o Getting to know the strengths and weaknesses of each employee will allow managers to appropriately use the human resources they offer. Remember that Generation Y brings a different skill set into the workplace. Get them to identify with the organization o Training gives you the opportunity to create identification with the mission of your organization. This is an area where Generation Y is deficient. High performing Generation Y employees are created by aligning Generation Y employees need for a challenge with the organizations goals. This sense of organizational identity can be strengthened by helping Generation Y understand why certain policy and procedures are in place. This understanding and agreement with policy is necessary for appropriately trained employees. 2. Integration

Make them own a task o Instead of simply telling these employees what to do, challenge them to be creative and consider ways to improve even the most menial of tasks. Giving these employees projects from incentive planning to developing new procedures empowers these employees and keeps them committed to the organization. Coach, dont Manage o Generation Y demands more of a time commitment from management; they have been called both high performing and high maintenance. Act as a mentor to these young employees. This will increase organizational commitment, satisfaction, and overall performance. Specific and Difficult challenges o Goal Setting Theory, a leading psychological theory on motivation, suggests that people are motivated by specific and difficult challenges. This is all the more true for Generation Y. Make sure the outcome of a task is clear and dont be afraid to push these employees. 3. Feedback Frequent Performance Evaluations o Supervisors should discuss performance with Generation Y employees on an ongoing basis. Consider quarterly performance checks instead of the usual annual and biannual evaluations. Make sure to really invest time and effort into giving appropriate feedback that employees can act on. Hold them accountable o Have coworkers publicly rank their teammates in the office from top to bottom, based on the effort each employee put in that week. Employees are then asked to explain why they voted for the top person and to suggest how others could improve. This information can then be used in formal performance evaluations. Listen o Welcome these employees new ideas and fresh perspectives. Generation Y employees are interested and eager to participate in decision making. However, in some workgroups, older colleagues might not let them participate until theyve paid their dues or earned their right to do so. Encourage ideas from all employees different points of view foster creativity and innovation. 4. Dealing with Stressors Emphasize Community o Having new hires meet together on a monthly basis provides the opportunity to bond, share experiences, and learn. Programs similar to Big Brother or Big Sister which place each new hire with an advisor, coach, and confidant are growing in popularity. (Just make sure this person isnt the new hires evaluator.) Looks can be deceiving o A potential area for conflict between generations centers on having fun at work. While earlier generations strictly define fun at work as a planned party, Generation Y

employees enjoy work while chatting and being silly. Dont mistake this generations relaxed and friendly demeanor for doing nothing. Generation Y employees can think very well while relaxed. 5. Incentives for Generation Y Flex time o The standard 9-5 work schedule is being challenged in organizations by Generation Y. These outcome focused employees want flexibility in how tasks are completed. Offering non-traditional work schedules allows employees to complete tasks in new and exciting ways. Public recognition o Often public recognition for a job well done is more effective than a pay raise and no recognition. Proper encouragement leads to engaged employees who are motivated to show their best work. Try implementing between-department or between-employee competitions based on an agreed upon measure of performance. The prize need be nothing more than bragging rights.

Sources and Additional Reading Birkinshaw, J. & Crainer, S. (2008). Game on: Theory y meets generation y. Business Strategy Review, 19, 4-10. Erickson, T.A. (2009). Gen Y in the Workforce. Harvard Business Review. Retrieved February 2, 2009 from http://hbr.harvardbusiness.org/2009/02/gen-y-in-the-workforce/ar/1 Howe, N. and Strauss, W. (2000). Millennials Rising The Next Great Generation. Retrieved January 31, 2009 from http://www.millennialsrising.com Lower, J. (2007) Brace yourself here comes generation Y [Electronic version]. American Nurse Today, 2, 8. Retrieved January 31. 2009 from http://www.americannursetoday.com/ME2/Audiences/ dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421 841978F18BE895F87F791&tier=4&id=C22BE15C5F2244EB8481087AF0A096B7&AudID=6C45C3E 9DDC442E7BF0460913E1F2E3C Raines, C. (2003). Managing millenials. Connecting generations: The sourcebook. Retrieved January 31, 2009 from www.generationsatwork.com/articles/millenials.htm
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Sokolov, B.A. (2004). Crafting a Code of Conduct for the 21 Century College. 2004 Whitepaper. The National Center for Higher Education Risk Management. Retrieved January 31, 2009 from www.ncherm.org Smith, M. (2008). Managing Generation Y as they change the workforce. Reuters. Retrieved January 31, 2009 from http://www.reuters.com/article/pressRelease/idUS129795+08-Jan2008+BW20080108