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Acknowledgements
The authors would like to thank everyone who participated in this research, not only for generously giving up their time but for their free and frank views on a topical subject. Participating organisations are listed in the Appendix. We would particularly like to acknowledge the interviewers and survey distributors: Rebecca Coatswith, Rory Hendrikz, Pushpa Prashara, Trudi West, Linda Elomari (Emirates Foundation) and the team at Petronas Leadership Centre in Malaysia. Also our colleagues: a special mention for Eileen Mullins; Judy Curd, Ayiesha Russell, Helen Lockett, Emma Bradbury, Annette Weston, Khaldoon Al Doory and Jackie Carter, as well as the Institute of Leadership and Management for their partnership in the UK survey in 2011. The views and opinions expressed in this report are those of the individuals who were interviewed in compiling this report and do not necessarily represent the views and opinions of Ashridge.
Ashridge Business School Berkhamsted Hertfordshire HP4 1NS United Kingdom www.ashridge.org.uk ISBN 978-0-903542-87-6
Gen Y is the same across the world. It is the gap with their managers that creates the differences
INtroDuctioN
Who is Generation Y?
Generation Y (Gen Y) is the group of people under 30 years old. In recent years there has been much publicity about how widely different this generation is from those who have gone before. Gen Y is often classified negatively as consisting of disenfranchised, antisocial technophiles with short attention spans and poor communication skills. Media articles therefore focus on character traits, motivating young people and how older generations can adapt to Gen Y. The reality for the workplace is far more complex. Overall, there is a consensus that Gen Y: has grown up in a very different environment to previous generations comes to the workplace with different skills is motivated by different things thinks differently about learning and development approaches work relationships differently. Gen Y is not a group of homogenous clones. It is made up of individuals with a wide range of skills and behaviours. Yet some common trends are appearing in both this generation and the workplace that require attention and analysis.
INTRODUCTION
Four years ago I was quite sceptical about how dramatic changes would be with Gen Y in the workplace. Now I can see them, really see them
European HR executive
International perspective
The world has changed dramatically, so both the global economy and local culture have had an impact on Gen Y. As one of our interviewees said: Each generation grows up with an economy that influences the perception of what the world is and what the future will be. Rapid changes in technology, communication, human resourcing and business models, combined with shifting political and cultural norms provide a very different background to Gen Ys workplace when compared to that of their parents. Although Ashridge research has found many aspects of Gen Y that apply around the world, such as their focus on self, peer orientation rather than respect for hierarchy and a preference for a strong work/life balance, there are other areas of local emphasis (Fig. 1). In India, technology is a strong driver of Gen Y in the work environment. In the Middle East, the multi-national aspect of business combined with an increasing number of locals educated abroad and returning is affecting how Gen Y approaches work. In China the one child policy has created a very strong view of a spoilt and cossetted generation. In the UK a lack of career direction with frequent job experimentation and orientation towards fun at work is noticeable. In Malaysia, although more loyal to their companies than elsewhere, Gen Y seeks international experience and varied careers. None of these characteristics is unique to a geographical region. They apply everywhere, but have a stronger emphasis in different parts of the world. The economic and cultural changes in the last forty years have in fact impacted more on the managers of Gen Y who have had to live through those changes. It has also meant that Gen Y is dealing with bosses who struggle to adapt to the approach to work that young people bring. There is puzzlement and sometimes frustration on both sides, who view the world of work through different lenses. As the Baby Boomers and Generation X make way for the leaders of the future, all generations need to review their differences and find new ways of working for the future. As a manager in the UK National Health Service put it: They are so energetic and refreshing. But how do you harness it in a way that benefits the company and Gen Y?
Experimenting
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Questioning
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Gen Y
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INTRODUCTION
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Mobility
Life experience sums it up. Gen Y are intelligent but lack life skills
UK manager
Research method
The current research phase took place between October 2011 and August 2012. An online survey was sent to international respondents and made available via the Ashridge website. This survey mirrored the one used in the UK and Western nations in early 2011. The only difference between the two surveys is that the international version was designed to be 100% multiple-choice rather than have open questions, in order to make processing easier. The options for the questions were based on the replies given in the 2011 survey. The international survey was available in English and Arabic. Interviews/focus groups were also conducted with recent graduates with fewer than five years of full-time work experience, together with managers/HR staff and senior executives who have experience of working with Generation Y employees. The interviews were mostly face-to-face although some were conducted by telephone.
INTRODUCTION
The biggest disbelievers about the change in working life are the Board, and they have the power in this organisation
UK manager
Business sector In the Middle East, the respondents were mostly in the public sector. The Indians and Malaysians were strongly private sector workers, but the UK had a more even public/private split. Complete demographic data is available in the full report on this research. To obtain a copy of the full research report or for more information, please contact: rebecca.coatswith@ashridge.org.uk Note that throughout this report, international data is grouped into four core regions. The first is the Middle East: mainly the UAE, but also Qatar, Saudi Arabia and other Middle Eastern countries; the second is mostly India but includes Sri Lanka, and the third largely Malaysia but includes Singapore/Hong Kong. The final region is labelled as UK, but also includes North America and continental Europe. These regions are listed throughout this report as Middle East, India, Malaysia and UK but are not exclusive to specific countries. The Chinese data was not large enough to include in the survey results so all Chinese information is based on interviews.
Key themes
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By combining the results from the survey and the interviews, four key themes emerged from this research. The content of the four sections is explored in more depth in the full report and includes: Expectations of work, employee turnover and external influences Work experience, development and maturity
National and corporate culture Attitudes and behaviour, relationships and work/life balance.
This document is a summary of the research. Each section of the full report contains a commentary, case studies/real experience, quotes from our interviewees, statistics from the survey and some summary recommendations.
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There also appears to be less focus in young graduates in what they want from a job and where they are happiest. It may be due to the rapid pace of change in todays world or to less of an emphasis from young people on the importance of work in their overall lives. The job market has moved on from when the managers started work. As an international business leader comments: The world has changed. Industries may become obsolete overnight, which wasnt the case 20-40 years ago. The graduates left us with the impression of uncertainty in terms of work. A typical comment from one young interviewee was: When I left
The picture is not all negative. There are organisations and individuals that thrive with graduates in their midst, who retain them and where both experienced and new staff learn from each other. There are other organisations which have understood their value as excellent developers of people even if those young people move on. We had plenty of examples of managers who have gone back to the roots
The biggest concern for the worldwide managers we interviewed is the issue of retention of young people. Compared to the past, they see that graduates have little patience with a job and will leave quickly if they feel it doesnt meet their own personal ideals. As one UK manager notes: They dont always deal well with the unexpected and revert quickly to the plan as it relates to their own personal expectations rather than the need of the organisation.
university I didnt have a clue. I just wanted to save money and travel. Managers feel strongly that todays graduates lack work experience compared to previous generations, although these comments are probably translatable into life skills rather than hands-on work tasks, as many managers admitted having little experience of work when they started. The graduates have high expectations of responsibility, progression and challenging, interesting work where they can make changes. The managers have expectations of excellent skills, teamwork and adaptation to the organisation. There is a mismatch.
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There is an element of come in, get a bit of experience, then Oh, Im going to follow that shiny red balloon over there
International executive
Graduates do not aspire to the jobs of their more mature colleagues. Graduates have strong external peer networks which managers should exploit more. Graduates struggle however with building internal work networks of non-peers.
Graduates cite university as most influential in preparing them for work. Managers think universities do not develop key skills for the workplace. Organisations facing the reality of high turnover are looking to gain reputation and brand as a great people developer company.
If things do not work out at one organisation, they will move on. They dont feel a need to go through the pains of rectifying the problems
Indian executive
EXPerieNce
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One key issue that emerged from our research was the lack of experience in young people, possibly due to frequent job changes and lack of life skills. Globally, managers are seriously concerned that leaders of the future are not gaining real experience, either first hand or from others, to allow them to judge risk and make better decisions. Managers discussed a number of different approaches to ensure that graduates gained experience quickly. Many companies are developing internal world of work courses for new graduates. Others are looking at improved methods of coaching and mentoring.
Knowledge management, particularly with experienced Baby Boomers leaving organisations, is gaining more attention. For those organisations with the infrastructure and people to manage such schemes, in at the deep end programmes giving graduates high levels of responsibility early on with fall-back support are successful. Fast-track talent management initiatives are also being reviewed to ensure that reflection and learning are sufficient to give depth as well as breadth to leaders of the future. There is one question that managers ask how do you get graduates to realise that staying put to gain experience is more valuable than constantly moving jobs?
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Fig. 4: Cumulative percentage of graduates who want their managers in certain roles
It is important to provide on-boarding education in expectations of behaviour at work early on in a graduates employment.
EXperience
Graduates want and need coaching and mentoring from other staff to improve these people skills and to help them take more ownership for their own development. 40% - 70% of graduates want their managers as a coach or mentor, with the Middle East being the lowest and Malaysia the highest.
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Thirty is the new Twenty. Graduates are enjoying their twenties exploring jobs and having a good work/life balance. They settle at thirty and will end up working later in life than their current managers.
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We can look out the window and see first world infrastructure. It is very easy to change buildings. It is very difficult to change people
UAE senior manager
Culture
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There are two aspects to culture the national culture of the country or region, and the internal culture of the organisation. In the last 40 years or so there have been enormous global changes in business, with the rise of Asian manufacturing and back office support capabilities and the worldwide criticality of key resources such as oil and raw materials for technology. Our international interviews and survey showed that these changes were having a major impact and challenging some of the more traditional cultural behaviours as the global business world shrinks. At the same time national culture was seen as a core strength in business success and in particular in respectful conduct in todays fast-paced world. National culture plays a strong part in the behaviour of both the managers and graduates we interviewed, but mostly the managers. In the Middle East, India, Malaysia and China there is a greater respect for the hierarchy than in the US/UK/Europe. Decision-making processes are
therefore more likely to be restricted to a small senior team and not transparent or accessible to those lower down the organisation. This behaviour causes frustration in younger people, especially those who have worked in multinational organisations or lived abroad. Family ties for Gen Y are strong all over the world, more so than for previous generations, creating a reluctance for young people to move abroad to gain additional experience, but certain cultural aspects may make it more of a challenge for some communities. Women are beginning to make strong headway in parts of the world where very recently they had not been considered in more senior roles. Cultural traditions also impact skills such as the verbal culture in the Middle East and a strong written culture in India. Historical views on state-owned vs. capitalist business models affect career choices in young people in China and the Middle East, where the public sector is seen as more familiar and safe.
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I dont think we recruit young people who fit the culture of this company
UK manager
In reviewing corporate culture, we found several companies which had a strong culture and clear view of the types of individual and the behaviours required to make the organisation a success. There were also extreme frustrations from both graduates and managers in a variety of organisations, in both public and private sectors, where there was a misfit between the culture and the graduates, or between the perceptions of the culture by different people. Individual managers are questioning their corporate approach to recruitment of young people, especially in the UK. A number of organisations are looking at novel ways of engaging Gen Y and improving loyalty.
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Lack of management transparency in decision-making is one of the major Middle East issues for Gen Y. It is also a challenge in Malaysia.
When recruiting graduates it is better to emphasise attitude to work and match to the organisational culture than degree level or university attended.
CuLture
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Without eliminating the old practice we need to blend in both old and new
Malaysian graduate
Worldwide, graduates are proud to work for their organisations (72-87% agreeing/ strongly agreeing) but are less keen on recommending their organisation to others. Malaysia and India have the largest gaps between pride and recommendation. Gen Y craves public recognition for work well done. Young people also react well to motivational activities that embed them in the culture and exploit their interest in entrepreneurial activities. Young people can act as a valuable asset in detecting high quality people managers in the organisation. They compete to work for those key managers.
CuLture
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I dont have experience of being brought up in a different time period. I wish I did. I could understand Gen Y better
UK scientific manager
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Views on the graduate/manager relationship Attitudes to progression Respect and trust Communication Feedback both positive and negative Work/life balance Focus on self vs. focus on team/organisation.
In general our graduates felt that they got on well with their immediate managers, although they struggled with more senior executives due to differing communication styles. Many graduates found their immediate line managers who were close in age to be easier
Work/life balance is in the minds of both managers and graduates. Graduates do not live to work and want both interesting work and plenty of leisure time. Managers are now seeking more leisure, having worked hard since leaving school/university; some are burning out with stress. Graduates do not want this lifestyle and that creates a challenge for talent management and succession planning initiatives.
There are a number of areas where young people and managers have widely different attitudes, and these differing approaches impact both productivity and longevity in graduate jobs. Key areas from this research include:
to communicate with, yet others found younger managers more competitive with them in terms of career progression. Graduates felt that many leaders were more focused on heading for retirement and unlikely to champion change. The managers on the other hand admired the intelligence and energy of their graduates but struggled on many other fronts with them. They saw them as seeking personal fame and recognition with less of a focus on teamwork and less respect for experience.
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It is obvious that the world of work has changed considerably in the last 20 years, particularly impacting human behaviour and interaction. As a senior executive in India put it: In our day the management approach was paternalistic. We were taught how to behave and we would follow orders. There is now a new way of doing things. Good organisations and individuals are finding the best ways to move into this brave new world.
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M pe an ct ag at in io g At ns tra ct yo ing/ un re g tai pe nin Un op g d le ap er s pr ta oa n ch din of g w y o pe oun rk op g le m De iss ve in lop g sk ing ills gr M ou an p ag di in ffe g re ag nc e es
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Managers are seen as burning out through heavy workload. Graduates are more likely to value and ring-fence their leisure time than their managers. The biggest challenge for managers is managing the expectations of their graduates. 66% of Malaysian managers claim this is the case. 33% of Indian managers find attracting and retaining young people is their greatest challenge.
Both managers and Gen Y need to adapt to the changing world of work. They view the workplace through different lenses and both sides need to focus on seeing the other viewpoint.
Between 54% and 81% of all employees do personal tasks at work, reflecting a more blended approach to the work day. 40% of Indian gradates however claim never to do any personal tasks during work time.
The best advice for young people worldwide from previous graduates is get work experience. Managers also recommend developing emotional intelligence and people skills.
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India Managers
Malaysia Graduates
Malaysia Managers
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CoNclusioN
There is a key message from each of the four themes explored in this report: Expectations Graduates expect responsibility and support and believe they need development in technical skills; managers expect them to fit into the culture, work hard and develop their emotional intelligence and people skills. Experience For success in leadership decision-making and risk-taking, graduates need to gain deeper experience. Organisations need to support graduates in gaining this experience, either first or second-hand. Graduates need to review their desire for frequent job changes. Culture National culture does have an impact on the way graduates and managers view the world of work, but in a global economy it impacts managers more than graduates. It is important to hire those who fit the corporate culture and to review that culture to see what is fundamental to the organisation and which practices are no longer important. Attitudes and behaviour Managers and graduates view the world through different lenses. Both managers and graduates need to be aware that they may be focused too much on their own view of the future and need to understand how they are perceived, define common goals and work together. The world is shrinking and the work environment is changing. Businesses are appearing and disappearing and job skill requirements are evolving. The Gen Y workers may want to explore many different types of job before they reach 30 and organisations may want to employ more temporary or contract labour. Loyalty to organisations has been replaced by loyalty to brands and to personal contacts or friends gained through social media. As one of our international business leaders commented: When I grew up cell phones and the internet didnt exist. Nokia were making rubber boots and tyres for cars. I cant tell you what the world will look like in 20 years time, but if you are well equipped to participate in the changes then that is the best advice I can give. Work/life balance has become more important for workers of all ages. Gen Y does not want to end up as the burnt-out senior managers they see today, and organisation leaders and HR executives are noticing that there needs to be a different work model. Gen Y members speak loudly and make their voices heard. The leaders of organisations need to have a hard think about what is essential in the business and what is not, how new methods of communication and behaviour can be adopted, how recruitment and progression are designed to fit the organisational culture and future direction and how they can mentor or coach young people in the people skills needed to become leaders of the future. Young graduates need to think more carefully about how and when they communicate, how to fit into the cultural and standards of respect of the organisation and how to become a team player. Most importantly they need to consider how to gain valued experience and emotional intelligence to make them more employable and to have the patience to gain that experience in depth. There is a future and it is different. Gen Y, with some help from their experienced colleagues, can lead the way.
CONCLUSION
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The leaders are not staying with the times and many people are losing respect for them
Recent graduate
ConcLusion
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APPENDIX
Interview and focus group participants
In addition to the companies we have met previously, and those who wish to remain anonymous, we would like to thank the following for contributing to our recent interviews on Gen Y for this report:
Abu Dhabi National Oil Company Afton Chemical Corporation Aegis Media Ashridge Business School Association of MBAs BraveNewTalent Centrica plc Chiumento CPB Group CSC India Cummins Inc. Deloitte LLP Department for Economic Development, Dubai Emirates Foundation Emirates Nuclear Energy Corporation Ernst and Young Federal Authority for Government Human Resources, UAE Foreign & Commonwealth Office
Google India Pvt Ltd. London Borough of Bexley London Fire Service London School of Hygiene and Tropical Medicine John Lewis Partnership Malaysian Institute of Management Mersey Care NHS Trust (and individuals from other NHS trusts) Petronas Leadership Centre Pyry Management Consulting Reckitt Benckiser Group plc SHL Group Ltd. Sony Inc. Statoil ASA The Home Office Time Warner Inc. UK Border Agency University of Warwick
APPENDIX
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To obtain a copy of the full report or for more information please contact: rebecca.coatswith@ashridge.org.uk
APPENDIX
Research Department Ashridge Business School Berkhamsted Hertfordshire HP4 1NS United Kingdom Tel: +44 (0)1442 841178 Email: research@ashridge.org.uk www.ashridge.org.uk/research