256 Building human resource management systems

MANAGING FOR SUSTAINABILITY

Generation Me!

In some workplaces, a generational war is being fought among employees. On one side are the baby boomer employees, who were born after the World War Il. Nearing retirement age, this cohort of employees typically value hard work and loyalty, accept guidance and authority but resist change and are not technically savvy. On the other side are generation Y employeesemployees in their 20s, who may challenge traditions, are technologically astute, like to enjoy their lives and are not as concerned with loyalty to employers. There is a perception among baby boomers that gen Y employees are 'transient, ambitious and focus almost exclusively on themselves'. So, how do the characteristics of this age cohort have an impact on the effectiveness of traditional approaches to recruitment and selection? Mercer and ACCA conducted a study entitled Generation Y: Realising the Potential, to examine how organisations can best utilise the attributes of gen Y workers. The researchers surveyed over 3200 employees in the finance sector, in 122 countries.

The results of the study provide some interesting insights into the wants and needs of gen Y employees in the finance industry. The findings suggest that young employees want a variety of different qualities in an employer and that gen Y is indeed a generation of contradictions. Extrinsic rewards are important to this group and there is an expectation that remuneration systems should be 'quick, clear and transparent'. But attractive salary packages, which include other tangible benefits, are not the only things that attract gen Y employees to organisations. Gen Y employees are also interested in making use of flexible working conditions that facilitate work-life balance. Maintaining a desirable lifestyle is a very important consideration for 68 per cent of the young workers in this study. Gen Y employees also want to work for employers that exhibit the same kinds of values as they possessand this desire for congruence between organisational and personal values has important implications, as managers must ensure that organisations have clear and accurate value statements that are available to prospective employees. Finally, young workers are seeking opportunities for career development, with 73 per cent of respondents identifying career opportunities as a very important issue when selecting an employer. And despite the technological proficiency of this younger generation, respondents in this survey reported a preference for face-to-face learning opportunities, with only 26 per cent of respondents demonstrating a desire for online training and development.

Such studies provide important food for thought for HR professionals. There is ample research to suggest that there are marked differences in the requirements of different generations of employees. Recruiters must be aware of the need to identify and manage the expectations of gen Y employees, in an increasingly competitive labour market.

Source: Adapted from R. Bebbington, 2011, to realize the potential of Generation Y', HC Online, 27 January.

CRITICAL THINKING QUESTIONS

I What does this case tell us about the importance of various HR functions, such as recruitment, compensation and pay, and training and development, working together to attract and retain young workers?

2 Do you foresee any problems with relying on this type of research to design recruitment drives for gen Y employees?