Thursday, March 27, 2008
Recruiting the Latest, Greatest Talent
Let’s pretend for a moment that you are a talent agent sitting across the table from a very famous rock star. Let’s pretend it’s Elvis.
Every talent agent out there wants to represent Elvis for obvious reasons—his records and concerts sell out within minutes, advertisers want him to endorse their products, and even Hollywood is calling him to make movies.
This scenario really isn’t all that different from being an employer, sitting across the table from a young, prospective employee. In a workforce where talent is scarce, your company—and every other company out there—will want to hire the latest and greatest talent.
What will you say or do to convince them to work for you?
Today’s young professionals certainly aren’t swayed by yesterday’s tiresome incentives like stock options.
If you really want to recruit Generations X and Y (young professionals under the age of 44) to your company, then focus on the following four values:
Freedom to Work
According to the Society of Human Resource Management, employees under the age of 35 consider work-life balance as the single most important consideration when deciding whether to join or remain with an employer.
Simply put, while Generations X and Y are renowned for being high achievers and dedicated employees, they want the freedom to work when they want, where they want.
Work-life balance options include flexible time off, flexible start-stop times, working at home, working less overtime, part-time work, two people sharing a single job, and compressed workweeks.
Benefits
Xers and Ys also want benefits packages with options specific to their needs.
For example, this demographic is, or soon will be, caring for aging relatives and children under the age of 18. They want child care and elder care coverage to help them foot the bills and maintain balance in their lives.
They also expect parental benefits including paid maternity leave, access to near-office child care centers, on-site lactation rooms, and the option to work from home or to take children on business trips.
Learning Opportunities
According to the Gallup School of Management, 80 percent of young employees say that job training is key to keeping them as employees.
Xers and Ys want to understand what is expected in their present capacity, and more importantly, what will be required to move into the next opportunity. Engage them in the company’s growth strategies and help them understand how they affect the bottom line.
Community Giving
Generations X and Y pursue employment that is worthwhile and meaningful.
These generations are attracted to companies that are supportive of community causes, like the consulting company that pays employees to work with nonprofits, the pharmaceutical company that gives employees the opportunity to work on diabetes research, and the financial planning company that built a playground in a disadvantaged neighborhood.
Like Elvis, young generations are bright and talented and heavily sought after by every company out there.
Take the time to craft a competitive and compelling offer that addresses their specific needs and interests and they are certain to jump on board.
Don’t let the latest, greatest talent pass you by.
In other words, don’t let Elvis leave the building.
Labels: Generations X and Y, National Association of Women Business Owners, recruiting
Monday, March 24, 2008
Get the message: Xers and Ys want work-life balance
During the interview, both on air and off, Don was baffled by the fact that Generations X and Y are spending an average of 20 months on a job before job-hopping, career changing, or starting their own businesses.
He simply couldn’t comprehend that salary and benefits wouldn’t motivate today’s young workers and he questioned me about their dedication and loyalty, saying:
“What’s wrong with these generations? It used to be that you worked hard and you were dedicated because there was a benefit to doing so. In the end you were rewarded with a great retirement package. Aren’t these Xers and Ys loyal? Aren’t they dedicated to anything? Don’t they want a great salary and retirement to look forward to?”
Ah, yes. Spoken like a true Boomer.
Of course, Mr. Shelby is one of millions of Baby Boomers who will be retiring in the next five years. His eyes are fixated on the retirement prize.
But while the Boomers lived to work, Xers and Ys work to live. They aren’t married to their jobs, they focus on the here-and-now, and retirement isn’t even on their radar.
In fact, a new report released by the American Savings Education Council shows that while 86% of Gen Xers and Ys know they should be saving for retirement, very few are actually doing it.
So what does motivate X and Y?
Work-life balance.
Work-life balance gives the what’s-in-it-for-me generation everything they want in a job, including these central perks:
- Flex-Time
Working nine to five is not the only way Xers and Ys want to make a living. They want the option to work when they want and where they want. This means they will work from home, at night, or whatever it takes to get the job done and still be able to attend their children’s soccer games on Wednesday afternoons. - Family-Friendly Benefits
Hard as it is for Boomers to believe, salary and retirement packages are not primary motivators for Generations X and Y. They want the opportunity to choose the benefit packages that best fit their young lives and address their needs here and now. This usually equates to child care and elder care benefits, tuition reimbursement, and reimbursement for home office equipment. - Learning Opportunities
Xers and Ys live in constant fear of losing their jobs, largely due to the fact that the 1970s introduced thirty years of massive layoffs in corporate America. Job security is like a fairy tale to them, so they pursue each and every opportunity to enhance their resumes and further their careers. When employers invest in their training, provide ample learning opportunities, challenge them and further their careers, Xers and Ys take notice. - Commitment to Community
Raised with a global and cultural perspective, Xers and Ys want their work to be meaningful and to make a positive difference in the lives of others. They actively seek out employers with organized employee service projects and a focus on volunteerism and community giving.
Mr. Shelby didn’t understand the work-life balance concept, and most employers still don’t either.
According to a recent workforce study from Smart Business Network, 86 percent of the employees identified work-life balance as the most important career priority. Employers, by contrast, ranked it dead last.
In Watson Wyatt Worldwide’s Global Strategic Rewards study, work-life balance appeared in "top 5" lists of both employers' and employees' views of why the latter stay at or leave a job.
Work-life balance programs are proven to boost employee morale and loyalty, prevent burnout, increase productivity and decrease turnover. Employers should be embracing this concept rather than sticking to the tired traditions of increasing annual salaries and one-size-fits-all retirement packages.
Simply put: Xers and Ys are not motivated by salary or retirement packages. And until Boomer managers realize this fact, they will have an incredibly difficult (if not impossible) time recruiting and retaining the next generation of employees.
Labels: Generation X, Generation Y, WCCO 830 Radio, work-life balance
Thursday, March 13, 2008
Wanted: Younger Realtors
I’m not referring to the slowing market and rumblings of a recession–I’m referring to the fact that the industry is facing a serious talent shortage.
It's hard to accept there might be too few real estate professionals anytime soon, given the huge numbers drawn by a market that only recently slowed. But real estate continues to be dominated by older workers, with a median age of 51 among Realtors, and far too few young professionals are entering the industry.
According to a national study conducted by Deloitte Research, it's become a serious problem that young people aren’t considering real estate careers. The report states the industry needs to do a better job attracting Generation Y workers (young professionals under the age of 26) or the retirement of Baby Boomers will have “dire long-term effects" on the real estate industry's work force.
I know there are brokers and real estate associations out there who are launching marketing campaigns, recruiting at colleges, and posting jobs on Craigslist and Monster.com in an effort to reach out to younger recruits already.
Other companies are adapting their traditional procedures to suit young employees, such as offering more access to technology and the opportunity to work in a team and benefit from mentoring relationships.
But is it working?
Not yet. I think the real estate industry will first need to do a little reputation repair before Generation Y considers it a viable career option, because like it or not this high-tech demographic doesn’t believe Realtors bring value to the table.
I recently browsed the Internet for Gen Y’s comments on the real estate profession. Here were a few of the comments posted out there:
- “The future will show that a real estate agent will become less and less necessary over time. The handling of the legal part of the transaction is rapidly being extricated from the hands of the real estate agent.”
- “Technology is eliminating the need for agents to broker transactions. While an agent is driving around one customer, ten other customers are searching the MLS online themselves and wondering why they are paying 3%.”
- “Realtors used to control the process, now with the Internet they are largely unnecessary.”
- “I don't think Realtors will ever be totally replaced, but we sure could get by on a lot fewer of them. Then maybe the remaining ones will actually earn their money.”
Keeping in mind that Generation Y is extremely tech-savvy and tends to be very skeptical consumers who aren’t swayed by marketing and sales pitches, it’s no surprise they have a low regard for real estate as a profession. The industry as a whole will need to engage in public relations efforts to build trust and persuade young professionals of their merit.
Real estate isn’t alone in this battle. Insurance, accounting, construction, manufacturing, and a plethora of other industries are equally endangered by the passage of the Boomers. Our society has changed, and if the industries don’t also change and cater to the needs of the next generation, it will be nearly impossible for them to survive.
The real estate industry’s desire to employ younger agents isn't just about ensuring desks aren't empty when the Baby Boomers retire. Younger agents connect with buyers, whose median age is just 39, according to the National Association of Realtors.
This makes the Gen X and Y consumers an especially hot commodity in real estate right now. Real estate relies on relationship management because most of the business comes from referrals. This is especially true with younger buyers, who trust the referrals of their peers more than anyone else.
According to statistics, the real estate industry is headed towards a rocky and uncertain future. The industry needs to consider the challenges that lie ahead and find ways to bridge the talent gap before it's too late.
Otherwise, this very well could indicate the foreclosure of the real estate profession.
Labels: Generation X, Generation Y, National Association of Realtors, real estate industry
Thursday, March 6, 2008
Boomers: Peace or pandemonium at work?
Watch out below! Just when we thought the workplace was free from intolerance, today’s young professionals are bumping into age discrimination on their way to the top.
For years we heard about women hitting their head on the metaphoric glass ceiling, never able to move higher on the ladder to success and get ahead of their male counterparts in the business world.
Today we’re hearing about the gray ceiling as a result of the massive numbers of Baby Boomers who consume most of the senior-level positions in today’s businesses, making it increasingly difficult for the under-40 performers to move up.
Consider the stories of these three young professionals I heard from just this week:
- After being named a salon’s top revenue-generator for two years in a row, the Gen Y stylist approached her Boomer manager about moving up into a new position within the company. Instead of promoting her, the manager gave her a $150 bonus and told her there was nothing else that could be done. The stylist left the salon to work independently and a considerable number of customers left with her.
- A Gen X school administrator interviewed teachers for an open position. An enthusiastic Gen Y applied and so did a Baby Boomer. The Boomer candidate stated in her interview that she didn’t want the job, but was taking it so she could collect a salary for the next few years prior to retirement. Nevertheless, because this teacher had considerably more experience, the school administrator was advised to hire the Boomer.
- A Gen Xer was hired to re-energize a foundation’s programs and outreach efforts. The youngest person on staff, she reports to management and a board comprised of people twice her age. When she approached her superiors about hiring other young professionals for the purpose of succession planning and building a diverse workforce, they shot her idea down saying they had hired one Gen Xer and that was enough.
Ouch! Is it possible that gray-ceiling incidents are treading close to reverse age discrimination?
I think it’s likely that we will begin to hear more about age discrimination as more Xers and Ys enter the workforce in the coming years, much like we heard about sex discrimination as more women entered the workforce in the 1980s and early 1990s?
In August 2006, Fortune magazine published an article titled, Are you stuck in middle management hell?. The article features the stories of many Xers who have been unable to move upward and onward because of Boomer management.
One Xer was quoted as saying, “Youthfulness is valued in the workforce because it's seen as with-it and relevant, but it's a paradox. The senior managers in their 40s and 50s are paranoid about keeping their own jobs, so they do everything they can to keep you down.”
While it’s hard for me to believe that Boomers are purposely ousting the Xers and Ys, I do believe they are more comfortable ‘sticking to their own kind’. That’s why we’re hearing more about prolonging retirement, and not nearly enough about succession planning and bringing up the next generation of employees and executives.
Let’s face it. The Boomers differ from the Xers and Ys in nearly every way. The generations possess different work ethics, values, needs, and interests, so the challenges of working together are evident.
And the Boomers have their pride, too. The Boomers worked tirelessly to build the businesses of America. Their generation is the very essence of loyalty and legacies and deserves and wants respect and admiration of younger generations.
But herding the Boomers together to create a gray ceiling isn’t going to benefit anyone or any company in the long run.
While loyalty and legacies are valuable, important, and very respectable, the approaching retirement wave should be a valuable reminder that succession planning is of the utmost importance.
The time is now to focus on a new generation of leaders who will create their own legacies, as well as carry out the legacies the Boomers began. If we fail to focus on the next generation, we fail our businesses, families, economy, and country.
Undoubtedly, the Boomers play a key role in our country’s ability to bridge the talent gap. They have wisdom to share, and a workforce to recruit and retain. They are also setting the tone as to whether this is going to be a time or peace or a time of pandemonium in America’s workforce.
If the Boomers insist on sticking to their own kind, pandemonium will ensue and Xers and Ys will seek their revenge sooner or later. Right now, they are seeking it in business start-ups and leaving corporate America in overwhelming numbers.
Babson Women’s Business Blog addresses this point candidly: “Boomers! You may have paved the way, but the next generation has seen the enemy (er...ceiling) and it is you.”
So what will it be, Boomers? Will you extend peace-making efforts to the Xers and Ys and meet their demands for less hierarchy and more opportunity in the workforce?
Or will you continue to ignore their pleas and wait for conformity?
Here’s some advice: If you want to win the war for talent, give peace a chance.
Labels: age discrimination, Baby Boomers, Generation X, Generation Y, gray ceiling
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