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Workforce 2020:
Managing Millennials
Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html
2 Workforce 2020: Managing Millennials 3
Contents
Overview 4
Millennials in the Workplace: Changing Priorities 6
Recommendations 10
References 14
Today’s Generation Y graduates (the
millennials) are likely to have a distinct
set of characteristics, perspectives and
expectations from the people who are
managing them. Previous research by
Ashbridge Business School identified
several core attitudes and behaviours of
Generation Y that could cause disconnect in
the workplace. By approaching this research
from the perspectives of both graduates
and managers, we have gained a clear and
compelling picture of the similarities and
differences between them, and the potential
impact of the disconnect in certain key areas
on individual and organisational performance.
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Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html
4 Workforce 2020: Managing Millennials 5
Overview
By the government’s own estimates, by 2020
millennial workers (those born between 1980 and
2000) will comprise 50% of the UK workforce,
a figure expected to rise to 75% by 2025. (12)
The changing demographics of the workplace
presents both challenges and opportunities
for employers and organisations. This paper
discusses why and how ‘millennials’, in particular
graduates, need to be managed differently to
preceding generations. Millennials or ‘Generation
Y’ (Gen Y) are people born between the early
1980s and 2000. In writing this paper, we have
drawn on research from several sources, including
research carried out by the Institute of Leadership
& Management in partnership with Ashridge in
2011, (1) by Hays Recruitment in 2013, (2) Accenture
in 2016, (3) and Deloittes in 2017. (4)
Why is it important?
Graduates are a critical part of the UK workforce.
Following unprecedented growth in higher Mitra Janes, Head of Diversity and
education since the year 2000, around 230,000 Inclusion at DLA Piper
now join the labour force annually. At the same
time, members of the baby boomer generation Workplace flexibility isn’t just a ‘nice to do’:
are retiring. The challenge for the employers there are tangible business benefits of agile
and managers recruiting these graduates is how working – attracting the highest quality talent
best to capitalise on their skills and to generate and then harnessing that talent to deliver
maximum value for their organisation. the best solutions for our clients. We know
that millennials in particular are looking for
The 2011 survey (1) found that there was a lack flexibility in the way they work, and there are
of understanding between graduates and new opportunities through globalisation and
management about what graduates want technological developments. We are working
from work, how they want to be managed, towards an approach which reflects modern
how graduates feel about their manager’s lifestyles and attitudes in which agile working
performance, their own career advancement, and and an inclusive culture are absolutely key.
much more. Evidence gathered since then has
further highlighted the ‘generational disconnect’
that exists in many workplaces. So, what can
organisations and employers do to attract
and retain the millennial workforce, and what
preparation is needed for Workforce 2020?
Please
Pleasereference
referencethis
thisreport
report as
as follows:
follows:
TheThe
Institute of Leadership
Institute & Management
of Leadership (2017)
& Management “Workforce
(2017) 2020:
“Workforce Managing
2020: Millennials”,
Managing Millennials”,available
availablefrom
fromwww.InstituteLM.com/resourceLibrary/ManagingMillennials.html
www.InstituteLM.com/resourceLibrary/ManagingMillennials.html
6 Workforce 2020: Managing Millennials 7
Millennials in the Workplace: The Nature of the Work Being Valued Blurring the work/life boundary
Changing Priorities Despite the importance of salary, The Institute of
Leadership & Management and Ashridge 2011
Being respected and valued by their manager
was the most important management behaviour
The Hays Recruitment research suggests that the
evolving communication media sits much more
Salary and Reward survey found that the top priority for graduates according to graduates, with 43% selecting it as comfortably with millennials than many of their
Although research shows that other aspects are was challenging/interesting work, and in 2013 the one of their top three management behaviour elders; and does contribute to a blurring of the
just as important, or even more important than research discovered that 60% rated ‘interesting preferences. Women placed much more boundary between ‘work’ and ‘life’. Nearly a third
salary, millennials are as intent on negotiating work’ as their most important career aspiration. (2) importance on their managers respecting and of the graduates surveyed said that they were
the best possible pay and benefits package as In 2016 two thirds of graduates said they would valuing them – 47% placed it in the top three, finding it hard to “switch off from work” over the
anyone. Forty-five percent of graduates (1) said take a lower salary to work in a constructive, compared to 37% of men. weekend. (2)
their salary was below their expectations. The convivial workplace. (3) The same research found
Of those graduates who intended to leave their A survey by Cisco in 2011 found that more than
provision of a pension is also more important that more than half of the graduates surveyed
role as soon as possible, 75% felt that their need half of college students globally (56%) said that if
than anticipated, with one third of graduates wanted their employers to provide travel and
to be treated with respect and to be valued had they encountered a company that banned access
considering this among the top six most attractive volunteer opportunities. (3)
not been met, while 74% were disappointed about to social media, they would either not accept a job
benefits. (2) Career Progression their career advancement. (1) offer or would join and find a way to circumvent
corporate policy. (5) In the same year the Institute
Over half (56%) of graduates expected to be in a In 2016 nearly three quarters of recent graduates
of Leadership & Management/Ashridge research
management role within three years of starting considered themselves underemployed. (3)
found that over a third (39%) of graduates
work, while 13% of graduates expected to obtain Work–life balance engaged in personal tasks while at work at least
a management role within a year. Twenty-eight once or twice a week. (1)
percent said that their achievement at work Graduates and managers both value their work–
so far was below their expectations. Seventy- life balance, but managers underestimate its Research conducted by People Fluent (9) shows
In managing four percent of those interviewed who were importance to graduates. Despite their high career that 89% of millennials want a workplace that
millennials, managers intending to leave their current workplace as soon expectations and ambitions, our 2011 survey is sociable and fun. ‘Gamefying’ the workplace,
suggests graduates did not buy in to a long-hours through allowing the use of social media and by
must pay attention to as possible were disappointed in their career
culture in the same way their managers did. In providing instant feedback, has been shown to be
all the following areas: advancement. (1)
fact, work–life balance was among the top five effective in keeping millennial workers motivated
A couple of years later 31% of the graduates things graduates wanted from work. A quarter of and engaged.
• Salary and reward
surveyed said that the ability to progress quickly graduates questioned said they never took work
• Nature of the work was one of their top five factors when looking at Authority, motivation and being managed
home, whereas 38% took work home at least
• Career progression potential employers. Twenty-nine percent said once a week. (1) Our 2011 survey reveals that graduates want
• Being valued a well-defined career path attracted them to a boss to be more a coach and friend than a
working for an organisation. (2) The 2017 Modern Families Index (8) indicates that
• Work–life balance manager in the traditional sense. Further, the
there remains a significant disconnect between
According to the same report, ongoing training research revealed a significant disconnect
• Blurring the work/life millennials’ desire to better balance work and
boundary and development is considered of utmost between graduates and managers over the type
family life, and opportunities employers give them
importance when choosing an employer. of relationship that exists. The graduates’ ideal
• Authority, motivation and to do so.
Millennials are happy for this training to take a manager was a coach/mentor (56%) or friend
being managed The Hays Recruitment research also found
number of forms, including online. (2) (21%) rather than someone who directs (8%), or
• The gender gap that flexibility in working hours was even more examines and audits (2%). Seventy-five percent
The 2016 survey from Accenture found that important to millennials than the ability to earn
• Entrepreneurial attitude of managers believe they are fulfilling the role of
virtually all graduates expected to pursue bonuses. (2) This makes sense in an increasingly
• Loyalty and security coach/mentor, but just 26% of graduates agreed.
additional training to further their career. This globalised world where the people workers
• Social responsibility did include formal training (51 % expected this) Twenty-one percent of graduates viewed their
typically deal with may be spread across different
but again, coaching, on-the-job training, online boss as their friend, while only 5% of managers
time zones.
courses and other media were also expected. (3) saw the relationship this way. (1)
Despite this, Accenture’s survey in 2016 found that
60% of graduates would find it acceptable to take
work home in the evenings or on weekends. (3)
Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html8 Workforce 2020: Managing Millennials 9
According to Hays’ research in 2013, the of graduates stating they were proud to work for
respondents’ two most important qualities in a their employer; 73% were personally motivated
workplace leader are the ability to motivate others to help their organisation succeed; 80% were
and to be supportive, both of which were chosen motivated to go the extra mile at work and 68%
by 47% of respondents. Graduates did not want would recommend their employer as a place to
to be commanded or controlled, but mentored work. (1)
by their bosses. Thirty percent said that their ideal
The research in 2013 also found that, despite their
boss was someone they could discuss private as
enthusiasm for entrepreneurialism, millennials
well as work matters with. (2)
still wanted job security and stability in their
The gender gap careers, even though the idea of a ‘job for life’
had all but disappeared. (2) Further, in 2016 it
The decline of manufacturing and the ascendance
was reported that 61% of that year’s graduates
of the service sector have led to an increasingly
expected to stay with their first employer for at
gender balanced workforce. Research shows
least three years. (3)
that between 1971 and 2011 the female
employment rate rose from 53% to 66% while This longer-term commitment to employers
male employment dropped from 92% to 76%. (10) perhaps reflects a less certain jobs market since
The millennial workforce is increasingly gender the 2008 recession, and subsequent political
balanced, as compared to the baby boomer uncertainty with ‘The Independent’ reporting
workforce. in February 2014 that nearly 40% of graduates
Lucy Baker, Head of People, Rufus are still hunting for jobs six months after leaving
This trend is set to continue with the government
Leonard university. (6) In 2017 Deloitte reported that
estimating that in the years running up to 2020,
“after 12 months of political and social upheaval,
Research told us that staff with a good more women will enter the workplace, and the
especially in developed markets” ambitions to
work–life balance are generally happier growth of male part-time jobs will outstrip the
leave employers within 2–5 years had been
and less likely to leave. We also knew that a growth of male full-time jobs. (11)
tempered compared to previous years. (4)
huge proportion of Generation Y identified Entrepreneurial attitude
flexibility as a top priority when selecting a Social responsibility
workplace. Perhaps inspired by TV programmes like
Research into millennials’ expectations of work
‘Dragons’ Den’, millennials seem to find the idea
We’d noticed an increase in requests for over the last three years (4,7) has shown that they
of entrepreneurialism more attractive overall
flexible working across our business – could are now very much concerned with organisations’
than previous generations. The 2013 research
we lose valuable staff because we couldn’t social responsibility. It has been suggested that,
found that 61% of its respondents were intending
be flexible? Definitely not. growing up with the internet and being more
to have their own business in the future, or
likely than previous generations to have travelled
We’ve fully embraced flexible working, and it already did. (2) This might reflect the Institute of
widely abroad, millennials are considerably more
hasn’t been without its challenges, but a year Leadership & Management/Ashridge research
aware of global problems than their elders.
on, we’ve got a happier, more productive and that found millennials were considerably more
Seventy-seven percent have said that they think
engaged workforce than ever. independent minded than their managers, which
companies are too fixated on their own agendas.
had implications for teamwork. (1)
We trusted our staff and they’ve repaid us There is a suggestion that being involved in
with their loyalty and hard work. Loyalty and security organisations that make a positive difference
In 2011 it was found that UK graduates were to the world results in millennials feeling less
broadly engaged at work, but this did not translate helpless and more empowered. Additionally it
into a long-term commitment to their employer, makes going to work more meaningful if they
57% of graduates expect to leave their job within can see their companies involved in dealing
two years, and 40% within one year. Despite this, constructively with larger issues. (4)
millennials are loyal to their employers, with 75%
Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html10 Workforce 2020: Managing Millennials 11
Recommendations Authenticity Vision
The guidance for managers and leaders below We identify five separate dimensions of great Organisations can benefit from ensuring Visionary leaders encourage idea generation,
is based on The Institute of Leadership & leadership: vision , achievement, ownership millennials and management better inspire those around them, and recognise and
Management leadership framework, derived from and collaboration with authenticity at the heart understand each other. The starting point is nurture technological and other innovations.
extensive research into the knowledge, skills, and centre of the framework. We endorse self-knowledge, understanding one’s own
management philosopher Charles Hampden To build a visionary workplace:
attitudes, behaviours and values that enable values and ethical positions and ensuring
organisational leaders to achieve successful Turner’s definition of authenticity as being “what behaviour reflects those values, i.e. being • Ask millennials for their ideas and
outcomes. lies between people” – a recognition of the authentic. This means organisations suggestions. Share information. Do not
importance of relationships to everyone who encouraging and supporting both managers discourage them from asking questions.
leads or aspires to lead. and millennials and equipping them with the • Encourage entrepreneurialism: the skills
skills to communicate more effectively. needed to be a successful entrepreneur
Research into millennials’ expectations of are needed in any business or concern,
work over the last few years has shown that so encourage these capabilities in your
they are now very much concerned with millennials and channel them into helping
organisations’ social responsibility and ethics. the organisation achieve its aims.
Leaders should talk about the values of their • Embrace digital technology and keep
organisation in a way that connects with the abreast of trends with the help of your
millennials’ own values. Demonstrate to them millennials. Visionary leaders recognise the
Achievement through your actions that you can be trusted, need for change and constantly adapt. They
and that you trust them. link the present to the future and encourage
Managers should consider: people to build that future.
• Regular, open conversations about • Millennials may be more aware than most,
expectations and ambitions, and how better via social media, of emerging trends, so
to align these to their role and organisation. connect into that. Millennials have already
This will go some way to bridging the experienced much technologically driven
disconnect which exists between managers change, but do not assume that they
and graduates. are immune from the impact of change.
Vision Authenticity Ownership • Give millennials and other staff
Research has shown that they, too,
appreciate some stability.
opportunities and encouragement to
volunteer for socially constructive projects
and charities, both in the near and wider
communities. This benefits both the
communities and promotes the millennials’
loyalty to, and identification with their
organisation.
Collaboration • Research shows that many millennials feel
under–employed and under–challenged.
Develop management models to find ways
of giving greater autonomy to millennials
so that they can take the initiative and have
more responsibility.
Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html12 Workforce 2020: Managing Millennials 13
Achievement Ownership Collaboration
Achieving leaders understand the HR • Consider implementing a system of ‘reverse We have evidenced that being respected Collaborative leaders build great project
frameworks within which they operate. mentoring’. (In fact, consider this for your and valued is one of the most important teams and millennials want to get on in the
When recruiting, leaders should, of course, entire workforce as research shows that this behaviours graduates expect from their organisation quickly. Involving them in projects
ensure that their selection processes deliver is more likely to result in an engaged and leaders, and the top priority for graduates is a great way to help them raise their profile
millennials who are a good cultural fit, and more productive all staff team.) Try to make is challenging and interesting work. Just as in the organisation and aid them in developing
who have the requisite skills. However, the constructive use of all the capabilities that leaders demonstrate ownership by identifying skill sets for team working and collaborating
ambition, expectations and focus on the self your millennials possess, and keep them and taking opportunities, they need to with external groups.
are part of millennials’ fundamental make-up, comfortably stretched with the tasks they encourage millennials to do the same.
• Encourage your millennials to network
not character flaws to be screened for during are set. In SMEs, consider millennials for
• Reward good performance with increased inside and outside the organisation (there
recruitment or managed out. the role of non-executive directors. They
responsibility. Delegate as much as you can is a good chance that they have already
must be properly trained, however, because
High achieving leaders focus on outcomes. and give the millennials full credit for their developed skills in this due to social media)
although they do not have the same sort of
Millennials do not like to be micro-managed, contribution. and introduce them to representatives
responsibilities as executive directors, they
and appreciate flexibility to approach a task of key stakeholders, explaining their
are equally accountable • If millennials make a mistake, help them to
in the way they think best. The required importance.
learn from it, rather than get into blaming
results can still be achieved by setting clear • Manage career expectations: career
and shaming them. At the same time, help • Millennials may not be used to sacrificing
expectations, with light-touch monitoring and pathways should be made as transparent
millennials to reflect honestly on their their own individuality for the sake of the
by giving and receiving constant feedback. as possible. There is a clear opportunity
own performance. Make many formal and team, so reward them for subjugating
Leaders need to be flexible and adapt their for organisations to improve the way they
informal opportunities for learning available individual interests to the interest of the
approach to a style that manages individuals, manage graduate expectations regarding
to your millennials; they can never learn too team. They may forget the importance
not the task. career progression, salary and status.
much. of mutually constructive outcomes when
Leaders may need targeted learning and
To engage millennials, leaders should: their own interests are threatened, so
development to help them achieve this. For • Leaders demonstrate ownership by
demonstrate the advantages to all parties of
• Coach rather than manage. The current their part, millennials should be realistic understanding the role of their personal
win:win outcomes in negotiations, and how
generation of graduates want to be about the prospects of early advancement, brand in developing their credibility. Be
they are achieved.
coached rather than controlled and directed, and be willing to collaborate with their interested in what each of your millennials
i.e. taught the skills they need to take managers to find a mutually satisfactory considers their own brand, and find ways • Millennials are more likely to be more
ownership of the job. Remember also that solution. of helping them identify positively with the socially sensitive than previous generations,
managers may need help and support organisation’s brand. so remember that what previous
• And finally, offer competitive salary and
from their organisations to develop the generations might think of as unnecessary
a pension schemes, even to youngsters. • Because millennials have less distinct
core coaching skills required to engage and ‘political correctness’ is probably simple
Stability and security are as important to boundaries between work and life,
empower millennials without impeding their ‘polite consideration’ to millennials. They are
millennials as anyone else. leaders should demonstrate good time
independence. also more likely to be sensitive to cultural
management processes for them, including
issues, so leaders should make use of the
taking sufficient chunks of time completely
understanding of such issues of which older
away from work matters.
people may not be aware.
Please reference this report as follows:
The Institute of Leadership & Management (2017) “Workforce 2020: Managing Millennials”, available from www.InstituteLM.com/resourceLibrary/ManagingMillennials.html14 Workforce 2020: Managing Millennials 15
References
(1)Institute of Leadership and Management with (8)https://www.workingfamilies.org.uk/wp-content/
Ashridge Business School (2011), “Great Expectations: uploads/2017/01/Modern-Families-Index_Full-
managing Generation Y” Report.pdf
(2)Hays (2013) “Gen Y and the World of Work”, (9)https://www.forbes.com/sites/
accessed at https://social.hays.com/wp-content/ jimmyrohampton/2017/02/02/can-social-
uploads/2013/10/Hays_Report_V4_02122013_online. learning-help-your-millennial-workforce-be-more-
pdf productive/#7a3f9588180f
(3)Accenture Strategy (2016), “Great expectations: (10)http://www.adeccogroupuk.co.uk/
Redesigning the employee experience for the SiteCollectionDocuments/Adecco-Group-Workplace-
workforce of the future”, accessed at file:///C:/Users/ Revolution.pdf
user/Documents/ILM/Millenials/Accenture-Strategy_
(11)https://www.gov.uk/government/uploads/
UKGradsStudy_GreatExpectations_PoV.pdf
system/uploads/attachment_data/file/514285/
(4)Deloitte (2017), “The 2017 Deloitte Millennial Survey”, Working_Futures_Headline_Report_final_for_web__
accessed at file:///C:/Users/user/Documents/ILM/ PG.pdf
Millenials/deloitte%202017-millennial-survey-2017-
(12)The Future of Work Evidence Report https://www.
executive-summary.pdf
gov.uk/government/uploads/system/uploads/
(5)Cisco (2011), “Cisco Connected World Technology attachment_data/file/303334/er84-the-future-of-
Report”, accessed at http://www.cisco.com/c/en/us/ work-evidence-report.pdf
solutions/enterprise/connected-world-technology-
report/index.html#~2011
(6)The Independent (2014), “Nearly 40% of graduates
still hunting for jobs six–months after leaving
university” 18 February 2014, accessed at www.
independent.co.uk/student/news/nearly-40-of-
graduates-still-hunting-for-jobs-six-months-after-
leaving-university-9135958.html
(7)Deloitte (2015), “Mind the Gap- the 2015 Deloitte
Millennial Survey”, accessed at https://www2.deloitte.
com/content/dam/Deloitte/global/Documents/
About-Deloitte/gx-wef-2015-millennial-survey-
executivesummary.pdf
Please
Pleasereference
referencethis
thisreport
report as
as follows:
follows:
TheThe
Institute of Leadership
Institute & Management
of Leadership (2017)
& Management “Workforce
(2017) 2020:
“Workforce Managing
2020: Millennials”,
Managing Millennials”,available
availablefrom
fromwww.InstituteLM.com/resourceLibrary/ManagingMillennials.html
www.InstituteLM.com/resourceLibrary/ManagingMillennials.html16
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