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by Renee Fellows

March 26, 2008— If you thought the GenX segment of the population had a huge impact on today’s workforce, hold onto your hats. The Millennials, those born between 1980 and 2000 are bringing a new set of challenges and demands to employers and coworkers alike. Viewed by many GenXers and Veterans as the most coddled, self-important and demanding workforce to date, Millennials also bring high levels of creativity, energy and a do-it-all attitude to the office.

An estimated 80 million Millennials (a name they have actually chosen for themselves via an online survey by former ABC News anchor, Peter Jennings) will be entering the U.S. job market over the next fifteen years. That’s 14 in 100 Americans rising through the ranks and joining the U.S. workforce according to the U.S. Census Bureau. A n estimated 25 million Boomers and Veterans are poised to leave the workforce by the year 2020. The mass exodus will not only create a shortage of workers to fill jobs — one Bureau of Labor Statistics estimate put the shortfall at 2.3 million by 2014 – but will leave an intellectual glut in the marketplace as well. For many companies, these employees are highly skilled and often hold the key to some of the greatest successes these companies have ever experienced. From patents to beer brewing techniques, it’s time to start training a new generation to take over the reins.

What exactly is a Millennial?

Let’s take a little walk down the social- and psychographic timeline of the events that transpired to create today’s Millennial. Previous generations of GenX and Baby Boomers (born from 1945 through 1975), growing up in a state of disillusionment with government (post Nixon and Vietnam), divorce, single parenting and the pressures of a working household were determined to raise their children in a highly supervised, scheduled, and hands-on environment. These eager parents intervened on their child’s behalf for everything from schoolwork to soccer coaches, leaving the Millennial child well guarded and unable to handle their own situations without parental assistance. Well meaning GenXers and Boomers overscheduled every second of their children’s days to the point of near exhaustion. And the children, exposed to the greatest era of technology and multimedia influences in history have limited attention spans but are the most well connected culture in the world.

There is also a tremendous divide between the haves and have nots of the Millennial generation with technology being the final straw that broke the gap. Sixteen percent grew up—or are currently growing up—in poverty. That translates to12 million people who will enter the job market with limited or no computer or technological skills. While companies like Microsoft have made significant in-roads toward improving the technological ability of this generation, there is still much to be done in this group to improve even the most basic of reading and math skills.

Millennials are a restless generation, staying in an employment position on an average of only 18 months before they jump to another company. The reason? Generally, they are easily wooed by economics. Holding bachelor’s and even Master’s level degrees, they owe a substantial amount of student loans and are very concerned about making enough money to pay down their debts quickly. According to the National Center for Education Statistics, the number of undergraduates in 2004, a sizeable 17.3 million, was nearly double the figure for 1970 (8.6 million). With increased attendance also comes rising costs. The average tuition and fees to attend a 4-year public university rose nearly 30% from 2002-03 to 2005-06 reports the College Board.

What can employers do to keep Millennials happy?

Step one is to create a work atmosphere that encourages idea sharing and incentives to stay put. "They (the Millennials) don't waste time trying to change things," says Neil Howe, co-author of the book Generations and four other books about this group. "Our message for employers is you want to organize them in groups and structure the work and give them constant feedback."

Millennials are very goal oriented. If you capture this character trait and group younger employees together to work projects with clear parameters and goals, you’ll see a greater response and improved team work. Add a bonus or financial incentive to the mix and watch out – you may just have record-breaking success on your hands.

Utilize their strengths. Generally, Millennials are highly advanced in multi-tasking and using technology. From iPods to laptops the younger set have been using these devices in all aspects of their lives almost since birth (think video/computer games and cell phones). Older employees may find text messaging, Blackberries and electronic scheduling to be confusing and cumbersome at first. Try having younger employees ‘reverse mentor’ older employees on setting up and using new technologies. This will encourage teamwork and make younger employees feel valued while bringing older staffers up to speed.

Know your employees . No matter what age bracket your employees fall into, it’s always important to connect with them on a frequent and real basis. What are their expectations, goals, and dreams? How does their current position help them in their vision to achieve those goals? So often, managers come into work to find a Post-it note on their desk with a succinct “I quit” message from one of their younger employees, never knowing why they were dissatisfied. Millennials also tend to need more direct feedback on their progress and areas of improvement than older employees. By checking in frequently, even if it’s just for a few minutes over a cup of coffee, you’ll be better able to discern any areas of dissatisfaction as well as opportunities to explore new skills.

Take a hands-on approach. Millennials have been raised in a tactile, experiential environment. To that end, don’t sit young employees behind a desk for eight hours a day and wonder why they’re unhappy. Create work experiences that allow younger employees to experience their position first hand and fully understand all aspects of the business. If, for example, they are working in a marketing capacity, have them join the team that will manage special events or trade shows. Their enthusiasm, energy and passion for their position will radiate throughout the crowd and may even motivate older employees to gear up their own energy level another notch.

For more finite tasks like accounting or programming, allow employees to have ‘creative’ opportunities where they can job shadow those in other departments. Employees will gain a holistic view of the company and better understand how their role ties to the greater mission of the organization.

Better retention means thinking outside the box. Employers need to realize that the U.S. job market and economy will soon come to depend on the newest generation to enter the job market. That means we all need to get along and find common ground fast.

Out of the Box Retention Strategies

• Be flexible – in work environments, attire, and work schedules
• Make work fun – That’s right work should be enjoyable. Plan crazy activities to boost morale and make work fun to come to.
• Loan payoff – Consider expanding benefits to include paying off a portion of student loans after a defined term of service.
• Community involvement – If your mission doesn’t already include some charitable giving consider adding a mentor program or allow for employees to volunteer work time to organizations in the community.
• Provide a career path – Millennials look not for an ‘exit strategy’ but rather a pathway to better opportunities and positions.

Provide training opportunities for both management team members as well as their employees. Remember that most employees weren’t born to become a manager. There’s no magical spell that occurs the day a promotion is given that turns an employee into super manager. Effective leadership requires skills that need to be taught and honed. There are many outsourcing professionals who can offer onsite management and leadership training
programs. Take advantage of them and you’ll see a marked improvement in communication, team work, and accomplishments.

Small business management shouldn’t leave you mystified. To learn more about better ways to manage an ever-changing workforce, talk with a Fiducial Advisor by calling 866-Fiducial or visit the web site at www.Fiducial.com.

Renee Fellows is the owner of ClearPoint Marketing Communications in Derry, New Hampshire. She works with small business clients to develop marketing and public relations strategies that bring business and customers closer together. She can be reached at 603-434-9433 or via email at Rfellows@oneclearpoint.com.

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