VOLUME-II | ISSUE 6 MAY 2012

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Managing Generation X & Y

The multi-generational approach to hiring and retention

ccording to a recent TJinsite study, Generation Y (Gen Y) represent majority of the workforce in most of the companies (67%), followed by Generation X (Gen X) which represents 28% of the workforce in the surveyed organisations. More than 81% of the organisations are actively hiring Gen Y.

can maintain a healthy work-life balance. As the two groups are different, the selection practices adopted for the two also varies. Employers revealed that while

selection method for recruiting both Gen X & Y candidates. In case od Gen X recruitment portals took an edge over other channels of recruitment as more than 50% of the employers voted

to learn something new and growth is more important these days. Though, Gen X still considered money as the best retention option but for the younger population (65%) training and growth opportunities are more essential. Training and development leads not only to higher productivity but also to higher retention as stagnation in work results in greater dissatisfaction. In todays employment market, it is comparatively easier to hire resources than trying to retain them. Earlier the employees were happy to continue in the same organisation for years. This generation was known as the baby boomers and were considered as assets by the companies as they never contemplated career moves. However, this scenario has changed with large number of people belonging to baby boomer category retiring and creating a huge void. This void is being filled by the newer generations who are referred to as the Gen X (born between 1965-1979) and Gen Y (born between 1980-1994). Job hopping is very prominent among people belonging to these groups. Thus, both recruitment and retention of employees are equally important.

Both these generations are willing to change jobs anywhere from five to ten times over the course of their career, reveals the study. Where there are certain similarities, there are varied differences as well in the approach and attitude of these two generations. The study observed that the various deciding factors for Gen Y to take up a job in order of preference were salary (42%), job profile (23%), flexibility (18%) and brand value (14%) . Almost 35% of Gen X workforce considered job position as the most important deciding factor followed by job profile (22%), salary (18%), brand value and flexibility (11%). This generation of employees demand creative freedom and authority to perform their job. Gen Y want attractive salary package and flexible working hours and schedules, so that they

selecting a candidate, in case of Gen X, experience evaluation accounts to around 50%, and the same criteria weighs much less (17%) for Gen Y. Skill sets matters the most (48%) when hiring Gen Y. Nearly 64% of the employers prefer using interview as the

for it. For Gen X, reference/word of mouth are said to be more preferred and effective recruitment methods. Like the hiring approach for Gen X & Y differs, the retention strategies are also varied. The TJinsite study clearly revealed that job satisfaction, opportunity

Inside Insite
n

Survey Highlights

Guest Column

Expert Speak

Each generation of employees has a different set of values, working style and expectations from the work environment. The employers need to understand this difference and develop strategies to manage the multi-generational workforce. Explores more with TJinsite on pg 3 & 4.

Our Guest Columnist this month, Shubha Kasi, Director-HR, SunGard, tells us why appraisals arent and should not be just about money. She asserts that appraisals must be as continuous as performance and the two must not be separated. To read more on the subject turn to pg 6.

In an exclusive conversation with TJinsite, Mukund Menon, Director HR for India &, Singapore, Steria, shares the approach, strategies and challenges in hiring and retaining and engaging Generation X & Y. Read the excerpts from the interview on pg 8.

VOLUME-II | ISSUE 6 MAY 2012

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VOLUME-II | ISSUE 6 MAY 2012

H I R I N G & B E YO N D
www.research.timesjobs.com

Survey Highlights

Jobs in demand for Generation X and Y

C
For 67% of the organisations Gen Y makes up for the majority of workforce population

82% of the organisations likely to recruit Gen Y employees in future

urrently, Generation X employees are most indemand for Back office/ Administration profiles (33%) followed by sales/marketing and HR functions (28%), stated the surveyed employers. On the other 36% of employers claimed that for Generation Y employees IT and Sales and Marketing profiles are most sought after. Being techsavvy Generation Y is the ideal choice for IT jobs. Another TJinsite study revealed that Generation Y employees are also seeking jobs in IT and Sales/Marketing domain. The employers believe that given the aggressive nature of Generation Y, the sales and marketing profiles are suitable for them. Generation Y employees are more accustomed to using social networking and new technologies which allows them to work from

Which of the job functions/roles are most in-demand ?

36% 28% 12% Information Technology Sales & Marketing
Generation X anywhere, anytime, making them more suitable for such jobs. On the other hand, Generation X is good at people management skills and thus the administrative and personnel management roles suit them the best, feel the employers. Nearly 35% of the employers stated that an ideal mix of both

36%

33%

28% 7%

20%

Back-office/ Administration
Generation Y

Human Resource

generations across functions basis expertise helps in attaining organisational goals. HR managers pointed out that organisations which are able to recognise and become accustomed to Gen X and Ys needs are more likely to retain them longer.

35% of Gen X employees consider job profile most while choosing a job

Process and challenges in hiring Generation X and Y

lthough Generation X and Generation Y have certain characteristics in common, their differences present the challenges in hiring the best. A recent study by TJinsite revealed that 35% of the Generation X employees are more concerned about the job position and profile, whereas 45% of the Generation Y is lured by salary Since, Generation X . employees are hired largely for mid-management positions, work experience in terms of number of years and also hands-on domain experience matters most, said 75% of the surveyed employers. Nearly 48% of the employers feel that relevant skills are of utmost significance while hiring Generation Y employees. Nearly

What is the deciding factor for Gen X & Y to choose a job?

45% 34% 36% 28% 18% 7% Job Profile Salary
Generation X 33% of the employers feel that reference/word-of-mouth works best in sourcing Generation X candidates. Recruitment portals delivers best results in hiring Generation Y candidates, feel 28% of the employers. Besides

20% 12% Flexibility

Job Position
Generation Y

other recruitment and talent management issues close to onethird of the HR managers find the increasing gap between baby boomers and Generation X and Y employees as another big HR challenge.

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Survey Highlights

Retaining and engaging Generation X and Y

arlier TJinsite studies have shown that the secret of a successful recruitment strategy lies more in retaining employees than finding the best fit. The TJinsite study revealed that job satisfaction and growth opportunities are becoming more and more important for the current generations. Nearly 65% of the surveyed employers believe that the best policy to retain Generation Y employees is providing them with training and growth options. On the other hand about 37% of the employers feel that monetary benefits are the best way to retain Generation X employees, followed by flexible work schedules. Providing training and development opportunities

Which strategy works best to retain Gen X & Gen Y?

65% 37%

25%

23% 10% 1%

27% 11% Flexible Work Schedules

33% employers stated Reference/Word of mouth delivers best results while recruiting Gen X

Training & Opportunities

Monetary Benefits
Generation X

Non-Monetary Rewards
Generation Y

30% employers prefer recruitment portals & agencies for hiring Gen Y

help in attaining higher retention as it avoids monotony and work dissatisfaction. It was found that Generation X employee training was focused more on developing leadership (32%) and technical skills (30%)

whereas Gen Y employees preferred area of training was soft skills (48%). The preferred training method employed for Generation Y is on-the-job training and for Generation X workshops and seminars.

Leadership style of new generation workforce

he study cited that the two groups vary in their leadership skills and styles as well. Nearly 57% of the employers feel that Generation X employees makes for better leaders. Where, both Generation X & Y value team work and communication, there are differences in their approach. Generation X leaders have strong leadership style coupled with individual control and micro-management. On the other hand, Generation Y employees prefer a mix of leadership and individual control sans micromanagement, stated nearly 50% of the surveyed employers. The new generation leaders value action, traditional ways of working doesnt appeal to them.

For 57% of the employers Gen X makes for better leaders

According to 35% of the surveyed employers, Generation X & Y leaders feel that flexible work culture brings in more efficiency and improves productivity Generation Y being . more tech savvy endorses the use of technology to gain efficiency at workplace, stated one-third of the employers. Approximately 40% of the respondents claim that Generation Y staff should be handled with less leading & control, but with a more creative, collaborative and situational methods. The employers need to find ways to bridge the generation gap in the multi-generational workforce. This is a challenging task and takes great skill. All this starts with understanding

Which generation of employees posses better leadership skills?

65% 43%

Generation X

how the new generation of leaders thinks.

Generation Y

VOLUME-II | ISSUE 6 MAY 2012

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Events

Summit on Enhancing the Health, Wealth & Quality of the Workforce

Rewards & Benefits Strategies in a Talent Scarce Market
Organised by DMA
elhi Management Association (DMA) organised a two day Summit on the theme of Enhancing the Health, Wealth & Quality of the Workforce: Rewards & Benefits Strategies in a Talent Scarce Market on 5-6 April, 2012, at Hotel Crowne Plaza, Gurgaon. Mercer was the Knowledge Partner. Mr C S Puri, Life Patron-DMA, welcomed the eminent gathering of learned speakers and inquisitive participants. MrSukantaDey, President-DMA, gave the opening remarks. The keynote address was delivered by Mr Samik Basu, Programme Director & Chief People Officer PepsiCo India Region who shared that the Summit provided a platform to engage thought leaders in comprehending the evolution of total rewards and what that evolution entails for each of us in this changing talent landscape enhancing workforce wealth through investment portfolio approach to employee segmentation, workforce health through ROI driven employee wellness programs and flexibility in benefits management and workforce quality through compelling focus on rewarding high performance and driving engagement. The first session highlighted the Talent Challenges in a globalized environment: CEOs expectation on deploying total

EVENTS
AR END CAL

rewards to optimize talent strategies. Mr Nishchae Suri, MD-Mercer, Mr Manish Choudhary, VP & MD-Pitney Bowes Business Insight (India) and Mr Vijay Rai, President & CEO, Powercon Knowledge Services were the eminent speakers.

remuneration and the trends on retrials. The last session for the day was lead by Mr Mukund Menon, Director (HR)-Steria India on Elements of Employee Value Proposition & Retention Strategies. The second day of the Summit began with the panel discussion on Pay for Performance chaired by Mr Anurag Aman, Mercer-Principal. Mr Sandeep Girotra, Head (HR)-Convergys and Mr Rajeev Sharma, Director (HR-South Asia Markets) Tetrapak shared their thoughts on why there is a need for robust benchmarking and differentiating reward elements for high performers. Dr Nimitha Menon, Health Management Sr ConsultantMercer, moderated the subsequent session on Engaging Employees: Healthcare to welfare. Mr Manmohan Bhutani, Vice President-Fiserv Global Services, Mr Anurag Mohit, Director (Total Compensation)IBM India andMr Dhyan PS Chauhan, Head (HRD), Accretive Healthcare discussed about the increasing focus on health & wellness, concerns for employer-employee health now and in future and health & wellness strategies. Ms Sonu Iyer, Partner and National Leader for Human Capital Global Mobility Practice-Ernst & Young acquainted the audience about

Upcoming Events
RAIs 8th Retail Technology Conclave 2012 17th-18th May, 2012, Mumbai Organised by RAI The Bharatico BP0 Conference 23rd May, 2012, New Delhi Organised by BPO Association of India International Convention of Human Resources Professionals 25th-26th May, 2012 Organised by IHRD

Industry leaders deliberated on the elements such as knowing what employees value, optimizing benefits investments, rewards as retention framework and creating a great employer brand
The next session on Evolution of Total Rewards was chaired by Mr Muninder Anand, Director (IPS)-Mercer. Ms Leena Sahejwani, Rewards Head-GE India, moderated the session on Changing face of Employee Compensation & Benefits. Ms Ira Gupta, Head Talent, Leadership & ODGSK and Ms Deepti Mittal, Head (C & B-HR Shared Services)-First Source shared their views on the trends around long term incentive plans, impact of current economic & business environment on executive

theImpact of changing tax regulations on compensation structure & Implications of Direct Tax Code. Delegates from the corporate sector like HR leaders, C&B specialists, management consultants and academicians attended the two day Summit. The vote of thanks was delivered by Mr Dey .

VOLUME-II | ISSUE 6 MAY 2012

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Guest Column

Are appraisals just about money?

Shubha Kasi is a post graduate from XLRI (1992). She leads the centers of excellence for performance management and compensation & benefits at SunGard. Previously, she was leading the Asia Pacific research center for Mercer, where she pioneered techniques in modeling, forecasting and analyzing compensation structures. She combines strategic thinking and analytical ability with excellent people skills to provide leadership. She has worked across industries in both HR and non-HR roles, bringing this experience to her both free-lance consulting and corporate roles.

Shubha K, Director-HR, SunGard

hat makes IPL matches so exciting? Apart from the game itself, its the high energy during those couple of hours that define the event. Without exception, the audience is seen shouting, clapping or punching the air for every boundary or a wicket taken; swearing in dejection at every dropped catch or missed stump. Whats going on? Feedback is what is going on performance of every ball bowled, hit and fielded is delivered instantaneously In addition to the . feedback that is given, there are the stats that keep flashing on screen CRR, RRR, highest score so far, who has the orange cap When I was watching the match last night, it occurred to me that from an HR perspective, it was perfect: feedback was immediate. Could you imagine meeting Sachin Tendulkar at the end of the year and giving him consolidated feedback? Management science somewhere lost sight of the fact that Performance Management Systems should focus on the first word and not the last in that name. The HR community at large over-engineered the systems and lost touch with the employee whose performance, the process was supposed to enable. We separated the appraisal or the feedback from the performance and I believe that was the single largest mistake we made. In an ideal world, appraisals must be as continuous as performance. Practically though, it is laughable to propose a system that entails daily or weekly feedback. But thats where the

disconnect is. No system gives feedback, only managers do. The key to an effective performance management system is to equip managers to give feedback on an ongoing basis. So, success is not in the forms and templates, but in training managers to give feedback as quickly as possible, as closely dovetailed with the performance as possible. So far, we have been talking about managers where do HR and the appraisal system come in? While managers should be delivering instantaneous, task based, operational level feedback and advice, HR should complement this at a more long term and importantly strategic level. With the managers providing year along feedback, during a formal sit down performance review discussion, there should be no nasty surprises. Instead, such a meeting can revolve around the employees ability to learn and change; areas where he / she needs help; the aims and aspirations that the employee has, and so on. This is where HR should pull in the metrics that track performance delivery, giving an opportunity to the employee to step back from the daily routine and see where his efforts are taking him. All well, but what about the outcome of an appraisal process? The standard and often, unfortunately, only outcome is the annual increment and promotion lists. And mind you, these are not small outcomes and are probably the single most significant changes that occur in an employment history Let us not delude ourselves on .

the importance of money in our work lives. However, as important as money is, it is neither sufficient nor complete, in determining employee satisfaction with work. So, then, what else must the appraisal process do to meet these needs? In addition to salary hike and promotions, there are opportunities for outcomes that are not always optimized by organizations and managers. When I get appraised, merely being told what I do well and what I need to do to improve isnt enough. I would want the opportunity to actually improve. This may call for a role change exposure to areas that will improve me, and areas that will allow me to shine and so on. Also if there are areas where I have tried, but find that I am unable to enjoy or perform I would expect that I be moved out of those areas. In addition to role related impact there are issues around company culture, manager effectiveness, team health etc. which will come up during an appraisal which can be addressed in a formal setting. The frequency of appraisals needs to be such that you give the appraisee sufficient time to perform and yet, not enough time for appraisers to forget. Having two appraisals a year is a good solution, with one focusing on the increments and promotion and the other focusing on the development and role areas. This frequency of formal appraisals, in conjunction with smaller, immediate review meetings will help address employee and organizational needs.

VOLUME-II | ISSUE 6 MAY 2012

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Recent News

TJ

R E S E A R C H

I N

N E W S

Lack of recognition hinders employee productivity

In a poll concerning employee productivity, TJinsite, research and knowledge arm of TimeJobs.com, revealed that more than 35% of the employees consider lack of recognition of work as the biggest hindrance to their productivity According to them, rewards and . recognition for achievements at workplace act as morale booster, which in turn increase their productivity "In today's tough . economic environment, it has become incredibly important for companies to recognize, reward and value their most valuable and difficult to source assets, their Generation C employees (who are better informed and have more choices) by embracing the 'recognition culture' ", emphasized Sakaar Anand, Vice PresidentHR, CA Technologies. He also underlined that the recognition culture is not built by rewarding a few top performers once a quarter.
n The Economic Times, May 2012

Open dialogues crucial for post appraisal feedback

Nearly 68% of the organisations deemed post appraisal feedback process as an essential part of performance management system in a survey conducted by TJinsite, the knowledge and research arm of TimesJobs.com. Supporting the need of post-appraisal feedback mechanism, Anagha Wankar, Head - Human Capital Management of Fujitsu Consulting India mentioned, "Post appraisal feedback is just as important as the actual appraisal process. It gives us a look into how the efforts are being viewed and helps keep us grounded." In TJinsite's survey, nearly 62% organisations voted one-on-one discussions as one of the most preferred post appraisal feedback method. "There will always be a chance of expectation mismatch and surge of emotions after appraisals. Therefore, a direct dialogue with the supervisor and HR is the key", claimed Subrat Chakravarty, VP & Head HR - Business Services Division, HCL Technologies Ltd.
n The Economic Times, May 2012

Women forming a significant part of the IT talent pool

"Women question the status quo and bring refreshing new thoughts. They are more assertive than men and make quicker decisions." believes Prince Jayakumar, Head-Talent Acquisition, Logica India. According to the National data collection agencies, 30% of the workforce in software industry is female and they are at par with their male counter parts in terms of wages, position at the work place. "Women form a significant part of the IT talent pool, and given the skill deficits and employability issues in this sector, IT organizations need to make the most of the opportunity they offer. There need to be stronger mentoring programs in organisations to encourage women in technical streams", acknowledged Prince Jayakumar during an interaction with TJinsite, research and knowledge arm of TimesJobs.com. In his view, women who are able to survive this primary barrier advance much faster in their career than men.
n The Economic Times, May 2012

Education sector unlocking job opportunities in smaller cities

Smaller cities such as Kozhikode, Lucknow, and Visakhapatnam have emerged as the top employment providers in education sector. According to a TimesJobs.com study these cities have registered a growth of close to 50% in the vacancies in education sector in the past quarter ending March 2012. Other cities in the list include Ranchi, Nasik, Allahabad, Nagpur and Kochi which reported 15-25% jump in job opening in the education sector. Today, with government initiatives, foreign funding and industry endeavors the education sector is expanding fast. Its expansion in the smaller cities has unlocked a host of new job opportunities in the sector. Opening up of big and renowned educational institutions and surge of coaching institutes combined with the growth of supporting infrastructure is a major factor contributing to the rise of employment opportunities in these cities, suggest industry experts.
n The Economic Times, May 2012

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Expert Speak

GEN X and GEN Y Employees

What are the key works attributes of generations X & Y? Talking, particularly about the Indian IT industry, Gen X employees are the ones who have put India on the global IT map as a potential leader in IT domain, with their hard work, knowledge, intelligence and creativity . Whereas, Gen Y are the young leaders, gamechangers, global by default and will lead the competition and take it to the next level. They are driven by working with mobility concept and follow a method in madness working style. What motivates these generations to continue in the existing job? For Gen X, it is mostly the sense of pride and feeling that he/she is running the business/vertical/ department, obviously with considerable wealth generation, motivates them to stick in the current job. Going by the general trend, Gen Xs are usually stable and aim for higher/senior position(s) within the same organisation. In case of Gen Ys, money is the leading factor in affecting their employment decisions. Who makes for a better leader Gen X or Gen Y employees? Both types can develop into good leaders. A considerable pie of Gen X employees are already leading businesses across industries with their industry intelligence and work experience. And, Gen Y workforce is still learning and evolving to leave a mark. In fact, to nurture and promote young employees at Steria, we do periodic assessments to identify potential leaders from the bottom and escalate their growth via our fast-tracker program. What sort of recognition and rewards works best for Gen X & Y employees? There are two basic hard factors for both Gen X and Gen Y in rewards, which are work and money In case of . Gen X, wealth-creation options such as ESOPs works well in keeping them motivated. However, Gen Y is more aligned towards monetary rewards followed by instant recognitions such as Star of the month or Bravo Award. efficiently Whereas, Gen Y is . sales savvy and has the right aggression to pull numbers, which is essential for IT industry . Which generational group makes up for the majority of your workforce? We dont have so-called generational groups in our workforce, but the average employee age in our organisation is 28 years. How do you engage employees in todays multi-generational workplace? Our strategy is to create a corporate culture, where we give equal growth opportunities to all employees. While hiring a candidate, the attitude is the

Mukund Menon Director HR India & Singapore Steria

Mukund Menon is Director HR for India & Singapore at Steria, a 40 year old IT Integrator with revenue of 1.6 bn Euros and more than 20,000 employees worldwide. In this role he Heads HR and Administration and in addition he has responsibility to help build Professional Services business in India. He has a bachelor's degree in commerce and masters in HR from the University of Madras. In his last 23 yrs of experience in the industry around 11 yrs had been in the US with responsibility around global locations. In conversation with TJinsite, he talks about how to engage and retain Gen X and Gen Y employees in the company.

What are the deciding factors for Gen X and Y to choose a new job?
Gen X looks for:
l Stability l Esteem l Peer Group l Business Knowledge l Wealth Creation l Career Goal

Gen Y looks for:

l Brand Name l Growth prospects l On-the-job learning

and development
l Salary l Overseas Opportunity

What are some of the key work traits that Gen X should learn from Gen Y? In my viewpoint, Gen X has the power of innovation and creative excellence through which they have positioned India as a progressive IT destination, globally But, . they are not able to market their full potential

biggest differentiator at Steria. We pick and hire only candidates who we think can fit into our companys DNA and able to identify with the companys vision. This practice in-turn helps us to manage a healthy multigenerational workplace environment.

Disclaimer: Information provided in this newsletter shall not be reproduced, published, re-sold or otherwise distributed in any medium without the prior written permission of TimesJobs.com and a clear acknowledgement to TimesJobs.com. Contact: TJinsite, TimesJobs.com, Plot No 6, Sector 16A, Film City, Noida. Write in to girish.bindal@timesgroup.com
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