George Brown College

Motivating Generation Y employees

Organizational Effectiveness (HRM 4004)

Cecena, Oscar Richa

Motivating Generation Y employees

Executive survey
The Generation Y (or Millennials) has entered the Canadian workforce. This is the generation that was born between the late 70s and the early 2000s. This means the market is full of people from this generation that is looking for a job.

As the Human Resources department for the company, we have done a complete analysis of the National Generation Y Survey Results provided by the upper management. Our goal is to propose a new model to attract and retain Generation Y employees.

Analysis of survey results

The survey used for this research shows information regarding the attitudes of Generation Y Canadians towards career aspirations and workplace expectations. As a growing company, we need to understand our employees and prepare our strategies to keep them highly motivated.

Below youll find the more important points we found for the purpose of this analysis:

Most of the permanent employees (62%) say their job aligns with their desired career path Only 43% of the contractors say their current job aligns with their desired career path Millennials are loyal to their employer and expect a high degree of loyalty in return They are more motivated by career advancement and emotional fulfillment than by financial rewards

They are eager to learn They bring enthusiasm to the workplace

Motivating Generation Y employees

Quality is more important than quantity. This means they believe their value is demonstrated by their work and passion, not by the number of hours they spend at work Millennials have realistic expectations and expect recognition and compensation accordingly

Analysis of existing examples

From the results on the survey and other companies experiences, we can learn that one of the keys to motivate Millennials is by having fun when working. They are eager to learn and are enthusiastic persons, so if we want to attract and retain them, this company needs to provide a positive workplace.

Google is an example of a positive work environment. This year they got to the top in the Fortune list of 100 Best Companies to Work For (Fortune) by focusing on their employees quality of life. Google lets many of its hundreds of software engineers, the core of its intellectual capital, design their own desks or work stations out of what resemble oversize Tinker Toys. (Stewart)

In addition to a positive work environment and having fun, maintaining the company culture aligned with the belief that work is just a part of life not life itself has given organizations a more innovative thinking. This is mainly because Millennials grew up while being part of different activities besides school like sports, social events and teams (Javitch). This means that continuing with this tendency encourage the employees to be part of activities outside the office, creating a better perception of the workplace.

Values should be represented in the work environment. This is an efficient way to attract employees that believe in the organization culture, and it becomes easier to empower them to develop a career in within the company.

Motivating Generation Y employees

Its important that the employees believe in the companys core values. An example of this could be AOL Canada, a company that has been recognized as a great place to work this year. They focus on encourage a positive environment influenced by the company culture, mission and people. (AOL Canada is Recognized as a Great Place to Work, Business Wire)

Another important fact is that this new generation of employees dislike bureaucracy and traditional hierarchies (Goudreau) and as it has been observed in the book Canadian Human Resources Management, that in most of the cases people leave their bosses, not the organizations (Schwind, Das and Wagar 27). Creating an environment with a small power distance where everyone is equal helps changing the traditional perception of hierarchy and provides a better communication between levels.

Open communication motivates employees. This has been achieved by Google by removing physical barriers by having the whole team in the same floor without doors or walls that could prevent an open communication. (Stewart)

Recognizing the work and the employees should be an integral part of our model. NetApp, sixth in the list of Best Companies to Work For according to Fortune, has a policy to let the vice chairman know when an employee is caught doing something right so he can thank them personally. This boosts the morale and makes employees feel valued, they will know the work culture supports their work and development within the organization. When recognition goes to a persons sense of competence has more impact in motivation than when it focuses just in the result. A sense of competence is a core psychological need that drives intrinsic motivation and a continuous interest in the work at hand. (Robinson)

Motivating Generation Y employees

Companies that trust their employees are better at creating a positive workplace. Ranking 20th in the Fortune list, Millennium: The Takeda Oncology Company, has an unlimited honor system for sick time. This means the company absorbs the cost of the days the employee doesnt work due to illness without asking for any other proof than their word. This shows the companys culture of trusting and caring for their employees.

Innovation is crucial for companies, Intuit is an example of how rewarding innovation is important for motivation. This company encourages employees to spend 10% of their time working on projects they are passionate about, and at the end of the year the company rewards his top innovator with a price up to $1 million. So besides the paid time working in personal projects, employees have the chance to receive a bonus. This is the reason why Intuit ranks 22nd in Fortunes list.

Health benefits is something that Gen Y workers look for when deciding for a job, and it also has an important benefit to the company. By incorporating health and safety in their daily culture, Sears was able to reduce the number of lost days in a 59% from 2010 to 2011 and by 76% in 2012 from 2011. So this end up being a good benefit for both parts.

Extrinsic motivation is always available, an example of this is what IBM under Lou Gerstner did in 2007 before the recession hit the Canadian economy. They sold shares to their employees at a special price so they could feel they were working for their company. This helped IBM to survive the 2008 recession.

Motivating Generation Y employees

Proposal
Based on our knowledge and the analysis of the companies above, we found Gen Y employees react better to intrinsic motivation, so our proposal below focuses on it rather than in extrinsic motivation. The following points will be the focus of our strategy:

1. Make sure new and existing employees understand the company culture and values, and they are compatible with them 2. Create a positive work environment where people want to be by removing communication barriers and providing special zones for people to talk and exchange ideas 3. Keep the employees informed of the companys activities and decisions. If possible, engage the employees to participate 4. Encourage informal team building activities to be done by team and schedule a formal one every six months, so the employee is comfortable and maintains a sense of loyalty to the organization 5. Create a healthy work-life balance by offering more flexibility in working hours and days off. 6. Encourage employees to use part of their time (4 hours per week) to work in personal projects 7. Create a job enrichment program to prevent layoff in case the company is not earning profits. During the contingency period, selected employees will be in the following situation a. Wont be assigned to any project b. Weekly hours will be reduced to 16 (2 days) c. Salary will be reduced by 50% d. Their time will be used to pursue certain certifications to become more competitive in the future e. The contingency plan will last for six months top

Motivating Generation Y employees

8. Schedule a company social event every year and a sports competition every six months 9. Apply performance reviews every three months and create a training plan according to the results

Bibliography
Sniderman, Pat R., et al. Managing Organizational Behaivor in Canada. 2nd ed. Nelson, 2010. Print. Schwind, Hermann, et al. Canadian Human Resource Management. 9th ed. McGraw-Hill Ryerson, 2010. Print. Saks, Alan M., et al. Managing Performance through Training and Development. 6th ed. Nelson, 2013. Print. Best Places To Work In Canada In 2013. Huff Post Business Canada. The Huffington Post Canada. 10 Apr. 2013. Web. 29 May 2013. AOL Canada is Recognized as a Great Place to Work. Company Information Center AOL Canada. Business Wire. 10 Apr. 2013. Web. 27 May 2013. 100 Best Companies to Work For. Fortune. CNN. 4 Feb. 2013. Web. 29 May 2013. Stewart, James B. Looking for a Lesson in Googles Perks. Business Day. New York Times. 15 Mar. 2013. Web. 29 May 2013. Javitch, Favid G. Motivating Gen X, Gen Y Workers. Run & Grow. Entrepreneur. 10 May 2010. Web. 29 May 2013.

Motivating Generation Y employees

Robinson, Joe. How to Keep Employees Engaged. Run & Grow. Entrepreneur. 23 Apr. 2013. Web. 29 May 2013. Bridge, Andrew. Ten ways to motivate the next generation of workers. The Top Tens. The Globe and Mail. 16 Nov. 2012. Web. 29 May 2013. Goudreau, Jenna. 7 Surprising Ways To Motivate Millennial Workers. Leadership. Forbes. 7 Mar. 2013. Web. 28 May 2013. Associate Well-Being. Corporate Social Responsibility. Sears. n d. Web. 31 May 2013. Jayaseelan, Sunanda. Wipro applies thought, cuts costs but saves jobs. IBN Live. CNN. 24 Apr. 2009. Web. 1 Jun 2013.