INSEAD May 2013 - Executive Master Consulting and Coaching for Change Florence Bernet
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Executive
Master
Consulting
and
Coaching
for
Change
Florence
Bernet
Professional
Commitment:
Perceptions
and
Experiences
of
GenY
Professionals
in
Singapore
May
2013
INSEAD
Edited
by
Choo,
Kah
Ying
Morally
supported
by
Nicolas,
Romane
and
Dorian
Inglezakis
1
Table of contents I – Abstract ............................................................................................................ 3 II – Key Words ........................................................................................................ 4 III-‐ Introduction ...................................................................................................... 4 IV – Research aims and objectives .......................................................................... 8 V -‐ Literature review .............................................................................................. 9 Defining commitment ....................................................................................................................................... 9 Intrinsic Motivation, a Foundation for Professional Commitment ............................................ 11 Self-‐Determination as a Process of Commitment Building ........................................................... 13 Experiencing Work as a Flow .................................................................................................................... 15 In the Background of GenYs : Early Adulthood Life-‐Stage ............................................................ 17 Mindset: From the Socializing Mind to the Self-‐Authored Mind ................................................ 18 Cultural Influences on Mindset ................................................................................................................. 19 Global and Local Generational findings ................................................................................................. 19 VI -‐ Methodology ................................................................................................. 21 Methodological overall approach and underlying assumptions ................................................ 21 Laying ground for the research ................................................................................................................. 23 Collecting and analyzing the data ............................................................................................................ 24 VII – Description of the research setting ............................................................... 24 VIII – Findings and analysis ................................................................................... 28 Description of interviewees ........................................................................................................................ 28 How GenYs perceive their environment and expectations ........................................................... 30 Chasing the Dream .......................................................................................................................................... 33 Thought Process on Career Choice .......................................................................................................... 34 Value of work .................................................................................................................................................... 36 Committing (or not) to a job ....................................................................................................................... 38 Being committed ............................................................................................................................................. 41 Generational Perspective ............................................................................................................................. 44 IX – Discussion ..................................................................................................... 45 Perception and value of professional commitment of GenYs in Singapore ........................... 45 Drivers of professional commitment ...................................................................................................... 47 A group of self-‐authoring GenYs ? ............................................................................................................ 48 Implications for organizations .................................................................................................................. 52 X – Limitations ..................................................................................................... 54 XI -‐ Future Research ............................................................................................. 54 XII – Conclusion .................................................................................................... 55 XIII – References .................................................................................................. 56 Appendix A – “Question storming” with Interns and graduates ............................ 59 Appendix B – ESSEC Intercultural workshop outcomes ......................................... 62 2
I
–
Abstract
Despite
a
higher
level
of
satisfaction
towards
work,
the
youngest
of
Generation
Y
(GenY)
workers
(16-‐24
years
old)
are
also
in
greater
number
to
consider
switching
jobs
in
the
short
term.
Amidst
the
high
cost
of
recruitment,
training,
and
the
cultivation
of
talent,
many
traditional
organizations
are
focusing
on
improving
retention.
However,
their
endeavor
is
exacerbated
by
a
general
trend
of
disengagement
in
the
workforce.
To
date,
most
of
the
academic
research
studies
on
GenY’s
work
behaviors
have
adopted
the
quantitative
approach,
with
a
focus
on
the
Western
world.
Thus,
there
is
a
gap
in
understanding
with
regards
to
the
work
attitudes
and
behaviors
of
GenY
Asian
professionals,
specifically
their
professional
commitment.
This
research
study
employed
a
qualitative
ethnographic
research
to
investigate
workplace
commitment
of
16-‐24
years
old
Asian
individuals
(employed
or
about
to
be
permanently
employed)
in
high
skilled
professional
jobs
in
Singapore.
Findings
were
gathered
from
15
Singapore-‐based
young
professionals
who
were
graduating,
or
just
have
graduated
from
Singapore’s
universities,
through
semi-‐
structured
interviews.
Conceptual
frameworks
covering
commitment,
motivation
theories,
and
specifically
self-‐determination,
human
development
stage
as
well
as
the
Asian
cultural
key
factors
in
work
behaviors
were
then
used
to
analyze
the
findings.
Professional
commitment
is
a
concept
experienced
within
the
boundaries
of
set
expectations,
and
considered
as
a
contractual
agreement.
In
a
context
of
life
exploration
and
available
job
opportunities,
with
lesser
familial
influences,
Singapore
based
GenYs
negotiate
their
commitment
primarily
based
on
their
comfort
and
competence
needs.
However,
this
research
study
highlighted
the
greater
importance
of
self-‐awareness
in
building
strong
and
effective
professional
commitment.
3
II – Key Words Professional Commitment – Generation Y – GenY – Millenials -‐ Singapore – Motivation – Mentorship – Self-‐determination -‐ Human Development – Qualitative research – Ethnography III-‐ Introduction According to the Mercer’s 2011 What Works study GenY (also known as “Millenials”, born between 1980 and 2000) and specifically those aged between 16 and 24 are the most satisfied with their organization. Their satisfaction levels with regards to their organizations and their work exceeded those of the overall workforce by 5% and 3% respectively. Yes, of all generations, GenY had the highest number of individuals who planned to leave their role within the next year -‐ 10% more than the overall workforce. Many firms can attest to this phenomenon: according to a Deloitte’s (2010) study, Talent Edge 2020: Blueprints for the New Normal” 72% of decision makers expected an increase in their GenY turnover. Though figures of turnover costs, including both direct and indirect costs, can vary across the board, it could go as high as 150% of the employee’s yearly remuneration package Direct costs refer to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale (Schlesinger & Heskett, 1991; Bliss, 2013). Beyond costs, firms may also lose out on a competitive advantage, for example better customer attraction and retention, or “the loyalty surplus” -‐ “the excess productivity created by employees who stay longer than they do at a typical competing company”(Reichheld, 1996, p128). 4
It
is
arguable
that
this
phenomenon
of
the
lack
of
professional
commitment
could
have
its
origins
in
the
transformation
of
the
economy
during
the
1980s
and
the
1990s.
By
reengineering
their
work
processes,
downsizing
their
workforce,
and
deploying
their
operations
to
lower
cost
regions,
the
corporate
world
has
damaged
employee
engagement
and
loyalty
of
elders
workers
-‐
the
parents
of
GenY’s
(Bardwick,
2008).
Ten
years
ago
–
a
time
when
GenY
studies
were
still
not
a
trending
topic
in
management
literature
–
Walker
Information
and
Global
Network
along
with
the
Hudson
Institute
conducted
a
worldwide
study
on
employee
loyalty,
involving
more
than
9000
employees.
The
researchers
found
out
that
only
34%
were
truly
loyal
–
“working
hard,
staying
late,
go
the
extra
mile,
and
recommending
the
company
to
their
friends”
-‐
Thirty
one
percent
felt
“trapped”
(would
like
to
leave
their
job
but
were
unable
to
so
for
various
reasons).
As
for
the
remainder
of
the
respondents,
8%
were
open
to
external
offers
and
27%
were
actively
disengaged
and
actively
looking
for
alternative
roles
(cited
in
Sweetman,
2001).
In
the
background,
especially
in
the
US,
Judith
Bardwick
identified
that
employees
lost
their
sense
of
job
security
and
the
certainty
of
a
gradual
incremental
rise
in
their
standards
of
living.
She
labeled
the
outcome
of
a
persisting
sense
of
vulnerability
now
and
for
the
future
as
a
“psychological
recession”,
especially
salient
for
the
Baby
Boomers
and
GenX
generations
(Bardwick,
p14).
In
that
context,
intuitively,
it
is
hard
to
consider
gaining
effective
employee
commitment
when
many
organizations
are
not
able
to
guarantee
reciprocal
commitment
in
the
long
run.
On
a
granular
level,
Bardwick
notes
the
results
of
a
study
conducted
by
Towers
Perrin
in
2003
“Working
Today:
Exploring
Employees’
Emotional
Connection
to
Their
Jobs”,
covering
1100
people
from
1004
companies
with
500
or
more
employees.
Fifty
five
percent
of
respondents
felt
they
were
“exhausted,
confused
and
unsupported”
and
that
most
of
the
complaints
included
boredom
due
to
a
non-‐challenging
job,
heavy
workloads
and
feelings
of
helplessness.
She
adds:
“People
felt
the
work
they
did,
their
skills,
and
they
themselves
weren’t
important
to
their
organizations”
(Bardwick,
p36).
5
GenY kids have grown up in this potentially negative climate, which could have affected their personal attachment to an organization. It has been argued also that Late Boomers and GenX parents educated their kids as “trophy kids”. This education approach is characterized by a high level of feedback, praise and encouragement to speak up for themselves (Alsop, 2008, p3). It might be influencing GenY’s attitude towards institutions, their jobs, willingness to invest time and effort and expectations of rewards gained. Over the past 10 years, academics and consultants have covered the topic of Millenials/Gen Y behaviors at work extensively within the western cultural context (Twenge, 2010). However, despite the available literature and articles in the management press (eg “Top 10 tips to manage your GenY workers”), I have encountered a number of managers in the Singaporean corporate world puzzled by the GenY commitment contradiction: they recognize effort and dedication of these workers, but experience difficulties in managing longer term expectations. Even older GenYs in management positions (25-‐30 years old) may struggle to find effective and long lasting levers to convince their younger team members to stay in their jobs. The Asian context seems to have been overlooked by researchers – a gap that should be addressed. Being the obvious, if not the only, growth region for MNCs, and even more impacted by high turn over rates (Khatri, Fern & Budhwar, 2001), Asia is where Talent Managers are the most concerned. For the two past decades there has been a combination of higher growth opportunities that MNCs are eager to benefit from, with an abundant and well educated, but inexperienced, local workforce (relative to European and American ones) (Deloitte’s Talent Edge 2020, January 2012). This situation has led firms to invest significantly in the younger local workforce’s training and development, and a genuine desire to grow such employees from within. At the same time the demand for experienced locals is still outstripping the supply, thus providing them with many more alternatives than staying in the 6
firm
that
would
have
groomed
them
in
the
first
place.
Thus,
training
investment
in
itself
is
not
enough
to
retain
local
talents.
In
fact,
it
may
actually
open
doors
for
these
talents
to
seek
new
opportunities.
Clearly,
retaining
talents
long
enough
for
satisfactory
returns
on
investment
is
therefore
a
much
more
complex
endeavor
than
what
firms
had
experienced
in
Europe
and
the
US
40
years
ago.
Singapore,
despite
the
smallness
of
its
physical
size,
is
the
preferred
location
for
MNCs
to
set
up
their
regional
headquarters
(Asia-‐Pacific
Headquarter
Study,
European
Chamber
of
Commerce
in
China
&
Roland
Berger,
2011).
The
city-‐state
produces
qualified
graduates
through
its
university
system
-‐
a
breeding
ground
for
a
connected,
tolerant
and
diverse
generation.
In
Mercer’s
What
Works
study,
Singaporean
aged
between
16
and
24
years
old
encapsulated
the
GenY
paradox
even
more
so
than
their
counterparts.
On
the
one
hand,
they
appeared
to
be
employees
who
should
be
loyal
to
their
company:
their
satisfaction
with
their
organizations
and
their
work
exceeded
the
average
by
12%
and
11%
respectively.
In
fact
they
also
surpassed
the
average
by
15%
in
their
likelihood
to
recommend
their
current
organizations
to
others
as
a
place
to
work.
Yet
the
proportion
that
considered
leaving
the
job
within
the
next
year
was
higher
than
the
average
by
14%.
These
findings
were
the
highest
across
all
developed
economies
highlighted
in
the
survey.
Actually,
Khatri,
Fern
&
Budhwar
(2001)
explained
the
high
turnover
rate
in
Singapore
by
a
job-‐hopping
attitude,
culturally
embedded.
They
discarded
satisfaction
levels
at
work
as
significant
predictors
of
turnover
intentions.
On
the
other
hand
organizational
commitment
was
found
out
to
be
the
most
important
factor
influencing
intentions
to
leave
or
stay
in
a
firm.
Therefore,
investigating
the
approach
to
professional
commitment
of
a
segment
of
Singapore
based
workers
initiating
their
career
may
enable
to
better
understand
the
roots
of
effective
organizational
commitment.
This
may
offer
new
perspectives
and
levers
to
improve
selection
processes
and
employee
retention
in
the
long
run.
7
IV – Research aims and objectives This research study investigates the perceptions of professional commitment of 16 – 24 year old Asian individuals, who are employed or about to be permanently employed, in highly skilled professional jobs in Singapore. Within the context of this research study, professional commitment is defined as the act of binding oneself intellectually or emotionally to the course of action of an organization at the micro level (role / team) or the macro level (corporation). Distinct from engagement, it is a deeper and longer-‐lasting attitude. The length of time in a job within a specific organization should not be the primary indicator of professional commitment. Rather it should refer to an individual’s meaningful attachment to the organization, which is accompanied by the perception that the organization provides a fertile ground for effective personal and professional growth over a long enough period of time to be beneficial for both employer and employee. From a philosophical point of view however, Marxist theorists have presented employment as a form of alienation. Today, it may be represented in popular culture as a chore and loss of oneself rather than an essential part of an individual. For instance, the widely used term “work-‐life balance” implies that work is not life and life is not work. Yet, as we need some form of revenue generating activity, work constitutes most of our adult life. In today’s world, corporate employment is a reality that many of us have to face. Looking into how one can find alignment between our personal motivation and workplace commitment may offer a counter argument to this suspicion of alienation. The research will delve into Singaporean GenY professionals’ perception and experience of professional commitment. Exploring their decision making process related to professional commitment in the overall context of adulthood transition will allow to identify underlying commitment drivers, and separate extrinsic factors from intrinsic ones. More specifically, the research study addressed the following questions: 8
-‐ How
do
Singaporean
GenYs
perceive
and
interpret
professional
commitment?
-‐ To
what
extent
do
they
value
this
concept,
personally
and
collectively?
-‐ What
intrinsically
enables
the
youngest
of
GenYs
to
experience
genuine
and
long
lasting
commitment
in
the
workplace?
The
result
could
provide
invaluable
insights
to
managers,
talent
managers,
HR
practitioners
and
consultants/coaches,
and
thus
improve
their
understanding,
of
GenY
professionals
work
attitudes
and
behaviors.
Effective
managerial
and
behavioral
intervention
opportunities
could
then
be
implemented
to
increase
the
professional
commitment
of
this
group
of
employees.
V
-‐
Literature
review
In
this
chapter,
the
fundamental
theories
related
to
professional
commitment,
and
the
concept
of
self-‐determination
as
a
key
enabler
of
this
commitment
will
be
discussed.
To
better
approach
GenYs,
life
stage
development
theory
will
be
covered,
as
well
as
research
findings
related
to
cultural
or
generational
effects.
Defining
commitment
The
concept
of
commitment
within
a
professional
setting
has
been
covered
extensively
in
Organizational
Behavior
research
(Meyer,
Allen,
1997,
xi),
often
cited
as
“
organizational
commitment”,
that
emphasizes
one’s
attachment
towards
the
organization.
In
1991,
Meyer
and
Allen
defined
organizational
commitment
as
“a
psychological
state
that
characterizes
the
employee’s
relationship
with
the
organization,
and
has
implications
for
the
decision
to
continue
or
discontinue
membership
in
the
organization,”
(p67).
They
highlighted
three
distinct
components:
affective
commitment,
continuance
commitment
and
normative
commitment
(Meyer,
Allen,
1991).
9
1. The
affective
commitment
refers
to
a
desire
to
be
within
the
organization.
Such
a
desire
stems
from
work
experiences
that
satisfy
employee
needs.
Specifically,
there
are
two
types
of
experiences
that
appear
to
be
significantly
correlated
with
affective
commitment:
a. Employee’s
comfort
within
the
organization
(eg.
role
clarity,
freedom
of
conflict,
equity
in
reward
and
distribution,
and
organizational
support)
and
b. Feeling
of
competence
in
the
work
role
(eg.
accomplishment,
autonomy,
performance
based
records,
job
challenges,
and
opportunities
for
advancement).
2. Continuance
commitment
refers
to
a
need
to
remain
within
the
organization,
due
to
two
main
factors:
a)
perceived
lack
of
alternatives
and
b)
the
cost
of
leaving
is
too
high
exceeding
what
has
been
invested
in
this
professional
setting.
3. Lastly,
normative
commitment
refers
to
an
obligation
to
remain
within
the
organization.
Normative
commitment
may
result
from
the
internalization
of
normative
pressures
(eg.
Familial
expectations,
prior
to
entry;
or
organizational
socialization
after
entry),
or
the
existence
of
material
bonds,
such
as
the
need
to
repay
tuition
fees.
These
three
components
are
present
at
various
degrees
in
each
individual’s
approach
to
commitment.
This
approach
sheds
light
onto
the
diverse
motives
underlying
an
employee’s
emotional
and/or
intellectual
attachment
to
work.
Thus
it
constitutes
a
solid
framework
for
analyzing
the
findings
of
my
research
study.
Figure
1
presents
the
first
version
of
what
I
call
the
‘commitment
landscape
scheme’
–
my
conceptualization
of
the
thought
and
emotional
processes
that
influence
an
employee’s
professional
commitment.
In
the
course
of
this
chapter,
as
I
incorporate
additional
related
theories,
I
will
be
building
upon
this
first
10
version
of
the
commitment
landscape
scheme
to
capture
the
full
extent
of
the
complexity
of
the
mental
processes
related
to
professional
commitment.
Figure
1.
Commitment
Landscape
Scheme
1:
Three
types
of
professional
commitment
Intrinsic
Motivation,
a
Foundation
for
Professional
Commitment
The
above
Commitment
Landscape
may
combine
a
complexity
of
factors.
Each
individual
is
specifically
transacting
with
the
organization
their
personal
efforts
and
attachment
against
benefits
depending
on
one’s
specific
needs.
Therefore
the
exploration
of
motivation
theories
could
provide
insights
into
the
rationales
at
play
in
this
internal
negotiation
process,
and
the
shift
towards
a
committed
mindset.
Fundamental
motivation
theories
stem
from
Abraham
Maslow’s
“Pyramid
of
Needs”,
a
hierarchy
of
needs
that
comprises
the
following
levels
-‐
safety,
love,
self-‐esteem
and
self-‐actualization
needs
(cited
in
Staw,
1977).
Individuals
use
their
cognitive
capacities
(perceptual,
intellectual,
learning)
to
adjust
to
their
environment
and
seek
satisfaction
of
their
needs.
Once
satisfied,
each
level
of
needs
gives
way
to
the
next.
11
In the developed world, where physiological and safety needs are broadly speaking fulfilled, individuals would primarily seek to satisfy their “love” needs (sense of belonging, membership), followed by their “esteem” needs (achievement and recognition), and lastly “self-‐actualization” needs (self-‐ fulfillment or reaching one’s own potential). With regards to work, this quest to satisfy one’s needs may influence one’s professional commitment at a transactional level (eg. “Is my esteem need satisfied in this role?”). However, this approach does not allow to identify intrinsic motivators among all needs to be satisfied. As developed below, intrinsic motivational factors appear to be key in effective work performance and essential to today’s professional landscape. Organizational behavior researchers found out that optimal work and productivity experience actually originated from the intrinsic motivation of individuals. According to theory Y (MacGregor, 1960) and theory Z (Ouchi, 1981), individuals may reach even a higher level of effectiveness and genuine engagement, when they had greater opportunities to be autonomous and to develop competencies in a trusting and safe environment… to the point of lifelong employment. Today, in this uncertain economic climate, with predominantly non-‐permanent employment conditions, firms may not be able to provide a consistently secure environment that allows intrinsic motivation to flourish. As Kissler pointed out in his article “The New Employment Contract” (Kissler, 1994), the concept of trust between employers and employee has shifted from a paternal and secure model to “agreements made between adults as to what needs to be done – agreements that answer the often unstated question: what’s in it for me?” (p 337). Such a shift emphasizes even more the necessity for an individual to build by himself an intrinsic motivation to work. In an contractual relationship with an organization that does not provide guarantees (or weaker guarantees) for a secure employment, one will only be certain of one resource to thrive on: his 12
own
personal
willingness
and
energy
to
progress.
In
this
context,
for
firms,
employee
empowerment
goes
beyond
autonomy
and
trust.
It
is
about
helping
them
move
to
a
higher
psychological
mindset
“where
they
are
solely
responsible
for
determining
their
identity
as
well
as
their
worth”
(Kissler,
1994,
p339).
Another
key
evolution
is
the
shift
from
a
manufacturing
society
to
an
information
society.
This
trend
has
imposed
new
demands
on
the
psychological
resources
of
employees:
greater
capacity
for
innovation,
self-‐management,
personal
responsibility,
and
self-‐direction
(Brendan,
1995).
Against
this
backdrop,
cultivating
an
intrinsic
motivation
towards
work
and
a
commitment
based
on
this
intrinsic
motivation
become
key
to
professional
success,
and
indirectly
to
organizational
performance.
Self-‐Determination
as
a
Process
of
Commitment
Building
To
further
understand
how
intrinsic
motivation
develops,
Leci
and
Ryan
(1985)
developed
a
model
of
intrinsic
motivation
and
self-‐determination.
In
this
model,
human
motivation
is
based
on
fulfilling
three
innate
psychological
needs:
self-‐
determination,
competence
and
interpersonal
relatedness.
Autonomy
orientation
Individuals,
as
they
grow
in
maturity
and
build
up
their
sense
of
self,
are
capable
to
absorb
and
integrate
a
selection
of
standards
and
external
controls
as
their
own,
in
a
conscious
choice
process.
Ultimately,
through
these
processes,
one
experiences
a
consistency
between
their
behaviors,
thoughts,
feeling
and
needs
-‐
“organismic
congruence”
(Leci,
Ryan,
1985,
p154).
Congruent
individuals
are
therefore
able
to
absorb
environmental
elements
as
informational
and
make
conscious
decisions
and
accommodations
to
their
environment,
to
fulfill
their
innate
psychological
needs.
Individuals
with
organismic
congruence
are
predominantly
autonomy
oriented.
Control
Orientation
13
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