Generations X, Y, & Z

I was honored to receive the National Association of Women Business Owners of Minnesota’s 2008 Innovative Business Award last week. NAWBO even asked me to keynote the awards gala, which was especially flattering.

As CEO of one of the only generational marketing companies in the United States specializing in Generations X, Y, and Z my business is indeed innovative, and at 35 I am a young entrepreneur.

But being a young and innovative entrepreneur is rapidly becoming more common than ever before.

Nearly 465,000 people create new businesses, on average, per month in the United States. Today, the vast majority of those businesses are started by Generations X and Y–individuals between the ages of 14 and 44.

In fact, Xers and Ys are spending an average of 20 months on the job before job hopping or starting their own company, which is a mixed blessing for America’s economy.

Here’s the good news: The influx of small businesses in America has spurred a wealth of innovation in the form of new products and services.

For example, BusinessWeek just named its list of Best Young Entrepreneurs of Tech. The list of millionaires under the age of 30 includes the founders of FriendFeed, which lets subscribers monitor more than 30 social networking sites on a single site, and Mint.com, which is considered an easier way for businesses to categorize expenses and flag problem spending in comparison to using Intuit and Microsoft software.

Here’s the bad news: Most industries, with the exception of technology, are struggling to maintain a workforce.

Dare I say all industries, with the exception of technology, are struggling to maintain a workforce.

The Bureau of Labor Statistics projects a shortfall of 10 million workers within the next 10 years, which means two employees will be leaving for every new hire entering.

What most business leaders fail to realize is that the looming talent gap is largely due to the generation gap. My fellow Gen Xers aren’t content working for corporate America, and neither are the Ys, so they’re doing exactly what I have done. They are leaving to start their own businesses.

We are using all that pent up frustration with working nine to five and our fear of downsizing, mergers, layoffs, and big business scandals and forging new ways of working.

So while innovation may be hot within small business start ups, big businesses are struggling to survive.

The fact is, if we fail to focus on the next generations now, we fail our businesses, families, economy, and country. Whether you are an employer or an employee, whether you are a Boomer or Gen Xer or a Y—as a citizen of America, this threat to our nation’s economy will affect each and every one of us.

Employers stand a chance in bridging the talent gap if they simply rethink the way they motivate their young workforce. This is where innovation in business is needed most right now.

In crafting the perfect pitch these days, employers need to put something far more valuable on the table than retirement benefits and 14 days of paid vacation. Generations X and Y are looking for meaningful work; work that makes a positive difference in their lives personally and professionally, and also benefits their communities.

• Personal
  Generation X and Y are renowned for being high achievers and dedicated employees, but they want the freedom to work when they want, where they want.
  
  These generations are not opposed to working in the evenings or on week-ends, if it means being able to see their children’s soccer games in the afternoons.
  
  Also known as work-life balance, Generations X and Y measure their work time in terms of quality, not quantity. In other words, they want to enjoy their work and they don’t want work to interfere with their personal time.
  
  In fact, employees under the age of 35 often consider work-life balance as the single most important consideration when deciding whether to join or remain with an employer.
  
  Work-life balance benefits include flexible schedules, the opportunity to work from home, parental benefits, increasing vacation time, and customized medical plans.
  
  
• Professional
  To recruit both Gen X and Y, appeal to their desire to learn. It’s ironic, but younger workers value learning a variety of skills to become as marketable as possible. We want to be prepared to take on more responsibility and we work in fear of being laid off or downsized, which is why we are cautious about committing to one employer.
  
  The irony is this: The more marketable you make us; the more likely we are to stay. Eighty percent of employees say that job training is key to keeping them as employees.
  
  Engage Xers and Ys in the company’s growth strategies and help them understand how they affect the bottom line. They want to not only understand what is expected in their present capacity, but even more importantly, what skills they will need to obtain to move into the next opportunity.
  
  
• Community
  These generations are attracted to companies that are supportive of community causes. So whether your company is giving employees paid time off to work with nonprofits, or organizing company-wide service projects or fundraisers, that connection to community is critical to recruiting and retaining younger talent.
  

Employers also need to understand that the rules of engagement have changed. The X and Y workforce isn’t going to pay their dues and patiently climb a corporate ladder.

You can blame technology and credit cards for creating a workforce that expects instant gratification. You can blame parents for using time-outs with their toddlers and allowing their college grads to move back home for creating a workforce that expects nurturing relationships. You can even blame Starbucks for creating a workforce that expects customization and catering to their wants and needs.

In any case, giving Xers and Ys menial tasks and minimal responsibility puts them on a fast track to the exit sign. Instead, give them access to career pathing, training opportunities, recognition for exceptional work, a paid day on their birthdays, access to CEO meetings, child care services, home office equipment, fitness memberships, and social opportunities.

Above all, Xers and Ys want to be surrounded by positive relationships at work. Lack of positive relationships with bosses and co-workers is the number one reason why X and Y employees leave a job.

Treat your talent well, and they will outperform time and again. (And don’t be surprised when they show up on the first day of work with ideas on how to improve your company!)

Innovation in business is admirable and often necessary. Entrepreneurs are getting younger and more successful all the time. There’s even a book out there right now teaching parents how to help their children become successful business owners.

Generations X and Y (and soon Z) have created new ways to work because what’s worked in the past isn’t working for them. Their contributions have been positive, but the fallout of the under-40 workforce could leave our economy exposed and vulnerable to serious setbacks.

We must find a happy medium. Innovation needs to be at work in small business and big business alike to create workplaces that are rewarding and fulfilling to the careers of young Americans.

Whatever career path they choose, there needs to be a place for younger generations to succeed and prosper.

That is the American dream after all, isn’t it?

Labels: American dream, Generation X, Generation Y, innovation at work, talent gap

# posted by Sarah Sladek, Limelight Generations @ 8:40 PM