Friday, January 18, 2008
Reputation matters to Xers, Ys
More than 90 women attended yesterday's Minnesota Women in Marketing and Communications Learning Lunch to hear Sara Gavin, president of Weber Shandwick’s Minneapolis office, give a great presentation on safeguarding your company’s reputation.
Gavin explained reputation preservation is now widely sought after by the world’s business leaders, ranking as equally important as a company’s financial well-being.
This wasn’t the case ten years ago. But the last decade has seen many of the world’s most admired companies descend from their once lofty positions, repeatedly making the case that every company is susceptive to reputation damage and reputation is critical to market value.
As a result, the instances of the past 10 years have made a lasting impression on Generations X and Y. Actually, today's young professionals have always had a pretty grim outlook on corporate America. The 1970s introduced 30 years of massive corporate layoffs in America, so Xers and eventually Ys grew up observing their parents being harshly dismissed after dedicating long hours and years of service to their jobs.
Sara Gavin noted in her presentation that many social factors are contributing to the increased focus on corporate reputation management. Business news is now considered front page news, thanks to an active business climate characterized by corporate scandals, mergers and downsizing, and consumer demands for increased corporate responsibility.
Furthermore, today’s news is heavily mixed with interpretation -- from the commentary on business news channels to the advancements in technology that give every John and Jane Doe a chance to publish their thoughts on blogs and podcasts.
Due to advancements in media and technology, consumers, employees, and stakeholders have access to more information and are disseminating more information than ever before, and companies have an increasingly difficult time managing their reputations.
Indeed, reputation management is rapidly on the rise and justifiably so. But I would add to Gavin’s list of reasons for corporate America's renewed sense of self. Corporations are being held accountable by their employees for the first time in history -- young employees.
Generations X and Y have entered the workforce with high expectations and even higher demands.
Take into consideration that today’s 30-somethings and 20-somethings are spending an average of 20 months on the job, then leave to job-hop or start their own businesses. This constant churning is wreaking havoc on those businesses -- and even entire industries -- that are trying desperately to recruit and retain a younger workforce.
What many employers don't realize is that Xers and Ys are skeptical and critical of corporate America and less willing than their Baby Boomer predecessors to commit their time and energy to the corporate workforce. Why? Because Xers and Ys have never known employers to be trusting or loyal. Xers and Ys have been witnesses to a string of dishonest business leaders, corporate mergers and downsizing, the dot com boom and bust, and the unforgettable Enron.
In short, corporate America has a lot of making up to do with its young employees and future executives.
While the Baby Boomers aspired for the corner office and title of president or CEO, Xers and Ys are demanding more. Through their job-hopping, their start-ups, their employers, and even their brands of choice, Xers and Ys are expressing their distrust and disinterest in corporate America. They expect corporate America to change its ways, re-establish their trust, be responsible to our communities, and think of work as being about people and not about places.
That’s a big reason why corporate reputation matters today. And knowing what we know about Xers and Ys resistance to corporate America, and the pending threat of a workforce shortage – it just may be the most important reason.
Gavin explained reputation preservation is now widely sought after by the world’s business leaders, ranking as equally important as a company’s financial well-being.
This wasn’t the case ten years ago. But the last decade has seen many of the world’s most admired companies descend from their once lofty positions, repeatedly making the case that every company is susceptive to reputation damage and reputation is critical to market value.
As a result, the instances of the past 10 years have made a lasting impression on Generations X and Y. Actually, today's young professionals have always had a pretty grim outlook on corporate America. The 1970s introduced 30 years of massive corporate layoffs in America, so Xers and eventually Ys grew up observing their parents being harshly dismissed after dedicating long hours and years of service to their jobs.
Sara Gavin noted in her presentation that many social factors are contributing to the increased focus on corporate reputation management. Business news is now considered front page news, thanks to an active business climate characterized by corporate scandals, mergers and downsizing, and consumer demands for increased corporate responsibility.
Furthermore, today’s news is heavily mixed with interpretation -- from the commentary on business news channels to the advancements in technology that give every John and Jane Doe a chance to publish their thoughts on blogs and podcasts.
Due to advancements in media and technology, consumers, employees, and stakeholders have access to more information and are disseminating more information than ever before, and companies have an increasingly difficult time managing their reputations.
Indeed, reputation management is rapidly on the rise and justifiably so. But I would add to Gavin’s list of reasons for corporate America's renewed sense of self. Corporations are being held accountable by their employees for the first time in history -- young employees.
Generations X and Y have entered the workforce with high expectations and even higher demands.
Take into consideration that today’s 30-somethings and 20-somethings are spending an average of 20 months on the job, then leave to job-hop or start their own businesses. This constant churning is wreaking havoc on those businesses -- and even entire industries -- that are trying desperately to recruit and retain a younger workforce.
What many employers don't realize is that Xers and Ys are skeptical and critical of corporate America and less willing than their Baby Boomer predecessors to commit their time and energy to the corporate workforce. Why? Because Xers and Ys have never known employers to be trusting or loyal. Xers and Ys have been witnesses to a string of dishonest business leaders, corporate mergers and downsizing, the dot com boom and bust, and the unforgettable Enron.
In short, corporate America has a lot of making up to do with its young employees and future executives.
While the Baby Boomers aspired for the corner office and title of president or CEO, Xers and Ys are demanding more. Through their job-hopping, their start-ups, their employers, and even their brands of choice, Xers and Ys are expressing their distrust and disinterest in corporate America. They expect corporate America to change its ways, re-establish their trust, be responsible to our communities, and think of work as being about people and not about places.
That’s a big reason why corporate reputation matters today. And knowing what we know about Xers and Ys resistance to corporate America, and the pending threat of a workforce shortage – it just may be the most important reason.
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