A Business Approach to Generations And Talent Management

A Business Approach to Talent Management and Multigenerational WorkforcesRecruitment & Retention Strategies Leading into the FutureAnnikaHylmö, Ph.D.Ahylmo@mac.com

2Defining the GenerationsTraditionalistsBorn 1925-1943Baby BoomersBorn 1944-1962Generation XBorn 1963-1981Millennials Born 1982-2000

3Today’s AgendaIntroductionsDemographic Challenges Facing US BusinessesUnderstanding Talent Management for Your BusinessDefining the GenerationsCafé Discussion: What This Means for Your BusinessGenerational Motivations and Expectations, incl. TechnologyCafé Discussion: What You Need to DoTaking Action - Next Steps & Opportunities

Example Effects of Demographic Shifts Facing Sample US Industries5

Science & Technology: Loss of ExpertiseThreat of lay-offs & outsourcingReduced availability of future leaders (Generation X & Millennials)Increased pressure on existing leaders (Baby Boomers & Generation X)Increased pressure on in-house expertise & excellenceA need for both technical & management skills (Baby Boomers & Generation X)Lack of junior people positioned to take over (Generation X & Millennials)Challenges of immigration lawsMotivation & turnoverFailure to understand motivation reduces productivityTurnover costs will continue to skyrocketOrganizational need to adapt to new technologies Resistance to implementation6

7Law Firms: Shortage of TalentTraditionalists and Baby Boomers…representing close to 50% of attorneys in the USwill retire or change careers in record numbersThe Pending Shortage of Generation X Lawyers Significant setbacks to firms’ succession plans Millennials Challenging “Workaholic” Cultures Publicly ranking of firms on the internet byDiversityBillable hourPro bono participation metrics

8Banks, CPA Firms & Finance: Aging WorkforcePressure On Existing TalentIncreased sales & relationship management skillsChanging delivery of financial servicesIncreasing Demands For TalentIncreased regulation Consolidation Increasing Shortages Of Qualified WorkersTraining cutbacks in late 1990’s and early 2000’sNegative perceptions of Banking of Securities industryA Graying Workforce60% of CPA firms have pre-retirement age owners (55-62)By 2020, 75% of all CPAs will be eligible to retireOnly 21% of all firms have a succession plan

Talent Management refers to integrating, developing, and retaining workers to meet current and future business objectives

11The Cost Of Employee TurnoverAverage cost to replace 1 employee = 1.5 times their salaryCan be as much as 5 times their salarySkilled employees are more expensive to replace than entry level employeesLoss of employees in key demographics reflecting customer bases can mean lost opportunities and market sharesIt’s All About Profitability# of Employees x Attrition Rate (%) x$ = ???Right Management

Demographics Matter!US Birthrates12

US Working Population (2011)13

What Will a 5% Shift Mean for Your Business?5% increase in Millennial employees5% increase in Millennial customers5% increase or decrease in Generation X employees5% increase or decrease in Generation X customers5% decrease in Boomer employees5% decrease in Boomer clients5% increase in Boomer customers

Planning AheadBusiness StrategyWhat is the mission and purpose of your business?How do you intend to accomplish your goals?What do your business environment and industry look like?Workforce TrendsWhat does your current workforce look like?What does your future talent supply and demand look like?Gap AnalysisWhat talent gaps do you need to close?What strategies do you have to close the gaps?17

Sample - High Tech Consultancy:Mission & PurposePurpose:Ensure that clients can maintain 100% success with critical projectsHow goals are accomplishedHighly specialized expertise partners to clients Offer continuity while client personnel changesBusiness environmentGovernment contracts and private sector overlapsSingle source suppliersLong-term projects supporting continuously changing technologies

Sample - High Tech Consultancy:Workforce TrendsCurrent workforce: Graying workforce means potential loss of expertiseLacking mid-level managers A strong incoming cadre of younger employeesFuture workforce supply & demand: Shortage of Science/Technology/Engineering/Math (STEM) graduatesIncreasing competition for talent from other sectors

Sample - High Tech ConsultancyGap AnalysisTalent gaps to be closed: Single points of failure and subject matter experts en route to retirementMid-level managers taking over when current upper-levels retire in coming 10 yearsEnsuring ongoing pipeline of knowledgeStrategies: Knowledge transfer, mentoring, recruitment & retention, and more…

Meeting Challenges by Meeting Four Generations!22

Traditionalists (1925-1943)Holders of the KeysBoards & structuresTraditions & legaciesKnowledgeInfluences Growing Up…Silver screen & radioGI BillGrowth of suburbiaPlay clothes & school clothesIT…Punch cardsMagnetic tape & disksFORTRAN & COBOLBaby Boomers (1944-1962)Leaders of the PackExperienced strategic managers Competitive edgeOptimistsInfluences Growing Up…Little League & HalloweenTelevision & rock radioVietnam WarWomen’s & civil rights“Summer of Love”Space explorationCredit cardsIT…Integrated circuitsSemiconductorsMS-DOS23

Generation X (1963-1981)Millennials (1982-2002)Critical Thinkers & InnovatorsMidlevel managers looking at a glass ceilingFlexibility & independenceWork & family/friends balanceInfluences Growing Up…Divorces & recessionsCorporate downsizingAIDSFailure of technology & astronauts as victimsMTV--“Video killed the radio star”IT…IBM & Apple PCsFloppy disksInternetComputer viruses24Emerging LeadersOptimism & confidenceDiversityTeamwork & participationPositive feedbackVariety & multitaskingFlexibility & virtual workInfluences Growing Up…Technology is givenConstant coachingGirl power, green movementWar in the Middle EastFaceBook, Twitter, YouTube, DiggIT…Laptops, tablets & iPodsAvatars & wikisCloud computing

Different generations have different expectations…Common sense ≠ Common sense

Should We Be Concerned?Executives that are concerned about Xers and Millennials leaving:66% worry about Millennials49% worry about Generation XersWho actually plans on leaving when the economy turns?54% of Millennials25% expect to stay for life (December, 2009, up from 14% in 2008)63% of Generation Xers50% of Boomers48% of TraditionalistsDeloitte; Fidelity

27Many US Industries Face…Reduced Tacit Knowledge BaseReduced Availability Of Experienced Peers Increased Occurrence Of Errors, Mistakes, And OversightsIncreased Workloads Increased Stress Levels At Work And At Home - BurnoutProductivity, Profitability, Effectiveness, Sustainability

28Take a Moment and Consider…What are the generational challenges that you see coming up for your business?What are the implications of not doing anything?

Looking Into the Future:Technology Impacted By & Impacting Generations29

It’s about adoption & comfortOlder generations adopt later than younger generationsYounger generations take technology & portability for grantedOlder generations have less patience with technological “hick-ups”Younger generations assume that glitches are part of beta versions

Retain by Focusing on Motivation & ExpectationsAn Introduction to the Language of Doors

32“Schedule an appointment”Traditionalists (1925-1943)Motivations & Expectations for WorkGiving back & creating a legacy Mentoring others & knowledge transferAdjusted schedules & project based employmentFormal & Structured CommunicationLimited phone conversationsStructured meetings & hard copy record keepingRespect for tenure & knowledgeMaintain professional &personal boundariesProfessional attire for work

33“If my door is open, knock & ask if you can come in”Baby Boomers (1944-1962)Motivations & Expectations for WorkWork often means going to a physical officeMoney & prestigeProfessional identity & career developmentCareer, employment & retirement alternatives – many have years left on the jobMostly Formal CommunicationHard copies & structured emailsFormal decisions made in meetingsInformal political interactions in hallwaysStructured feedback at designated intervalsProfessional attire for work

34Generation X (1963-1981)“Check my cubicle to see if I’m there”Motivations & Expectations for WorkAutonomy, independence, & balanceReward for results, not face-timeSkill development offset lack of career opportunitiesNetworked organizations as opposed to silosRemote & virtual work enabled by cloud technologyMore Informal CommunicationFocused meetings only as neededFrequent feedback & rewardsSoft copies shared as emailed attachmentsOnline professional networking, some socialPrefer “Casual Friday” dress every day

35“Door? What door?”Millennials (1982-2000)Motivations & Expectations for WorkMeaningful opportunities for participationRapid promotions & multiple jobsMentoring & feedbackLearning to be skilled at work & growing into leadership positionsJust in time innovationDigital information sharing using collaboration platformsInformal CommunicationContinuous anytime, anywhere, anywayInclusion in meetingsImmediate feedback & recognitionEncouragement during critical feedbackInformal attire for work

36Sample “Best Practices”Home Depot--work/life balanceDaycare & eldercare programsPet insuranceFoxEntertainment--focus on relationshipsCatered take-home dinner delivered to desksOngoing engagement relationship with college career servicesProcter &Gamble--multidirectional mentoringFellowship program for doctoral candidates with P&G mentorReverse mentoring programsGoogle--internal connectionsInternal FaceBook connecting all “Googlers”Free food & snacks distributed throughout workplace

37Planning Ahead Starts Now:Time to Take Action

Take the Next Steps: Know Your Optimal 5% SolutionKnow Your ComponentsIndustryOrganizationPeopleGenerationsGet Help With Your 5% SolutionNeeds assessment to establish benchmarksCustomized strategic solutionsUtilize existing resources Maximize efforts38

39That which seems the height of absurdity in one generation often becomes the height of wisdom in another. ~Adlai Stevenson

40Contact InformationAnnikaHylmö, Ph.D.The Insight GenerationPhone: (310) 663-4556Email:info@insightgeneration.comWeb: www.insightgeneration.com

A Business Approach to Generations And Talent Management

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