5 Keys to Managing Generation Y

This article was originally published in the NZBusiness Magazine, February 2014 edition.

It takes more than a ping pong table and a box of beers to engage Generation Y in the workplace. Upskilling to effectively manage and cater for Generation Y can at times seem like an insurmountable task to tackle but it’s crucial to future proofing your business in 2014.

Generation Y. The Millennials. The I-Generation. Love ‘em or hate ‘em – you cannot afford to ignore them. The exact age bracket of Generation Y really depends on who you ask but we know that my generation now make up roughly about a quarter of the global workforce. Every year more and more ambitious products of my generation graduate from school or university and enter the workforce or world of business. Managers can no longer afford to put their head in the sand of the largest generation to grace the planet to date.

I belong to a generation of whom a whopping 90% claim to check their emails, texts and social media before even getting out of bed each day. We’ve grown up largely as digital natives and our skillset is becoming increasingly valuable to businesses in today’s world. The value Generation Y place on themselves can often be confused with arrogance but belittling or ignoring a quarter of the workforce is both unwise and short sighted.

According to research conducted by The Institute of Leadership and Management, Generation Y workers are academically talented, ambitious and motivated and value interesting and rewarding work over higher salaries. More interestingly though most of them plan to move jobs within two years which creates a huge retention issue for most workplaces. To add to that the research revealed that 32% of recent graduates were dissatisfied with their bosses.

The topical discussion of today’s young people was trashed out by The Vote show on TV3 in early December, on which I appeared as an expert witness opposing the moot “Teenagers have never had it so good”. Greg Flemming of the Venn Foundation made a critical point during the debate noting that people are losing confidence in managing young people. He couldn’t be more right, the world Generation Y operate in is a vastly different environment from their predecessors.

Unsurprisingly New Zealand is chasing the tail of getting a grip on how to remain appealing and relevant to Generation Y. There is a gradual shift in thinking globally about the importance of learning to effectively manage Generation Y in the workplace. People are beginning to realise that as when you expand your business into a market like China, it’s important to learn about Chinese culture to ensure a smooth relationship and healthy interaction. Likewise managers must take the time to walk into the world of Generation Y if they are to have any influence or authority over Generation Y workers. The truly innovative businesses are learning how to partner with a generation that is entering the workforce and starting businesses at a rapidly increasing rate.

With that challenge in mind, let me guide you through the top five key principles of managing my generation:

1. Recognition

We thrive off feedback because it allows us to grow and develop. We’re impatient for action so continual self-improvement is at the centre of our career development. Recognition is both public and private; make sure you recognise the achievements of individuals in front of others but the occasional personal email or compliment can make all the difference to an employee’s motivation.

2. Flexibility

Due to the depth of knowledge we have around technology, it’s inevitable we will cut corners with almost anything you give us. Chances are your Generation Y workers can find a more efficient way to run elements of your business, not adapting to that change will increase frustrations in the workplace. It’s critical that you judge Generation Y on their results not their methods. Your young employees can produce exceptional outcomes for your business and their efforts should be rewarded not minimalised because they found shortcuts.

3. Balance

We’ve watched a generation put their dreams to the side in the same of security and comfort. We’ve grown up around parents who are too often required to put work before home to make ends meet or grow a successful business. Expecting work to be number one in a Generation Y employee’s life will not rub well. Offer your employees more of a work/life balance by relaxing their working hours where possible, most people are only productive for between 2-4 hours a day anyway so don’t be pedantic over time. Remember, it’s about results.

4. Progression

Learning and development is an industry that is showing no signs of slowing down. Embrace it. Most Generation Y employees would rather their workplaces invested more into their personal and professional development than into increasing their commission cheques and bonuses. You should be actively encouraging, funding and supporting your employees to develop their skills and knowledge.

Information has never been more accessible, so make sure you give your employees downtime to allow them to learn.

5. Coaching

Traditional management styles are dead. You command respect and authority through your own actions and being seen as an innovative leader that your team can learn from. As a leader, you attract what you deserve so be aware of the signals you are putting out to your team as well as potential employees.

Engrain coaching as a regular not spontaneous practice in your business.

Attracting, retaining and developing Generation Y talent in your organisation is the single most important action you can take to future proof your business in 2014. In the face of ever increasing competition and a rapidly transitioning online world – not taking action within your own business will undoubtedly be a decision you’ll live to regret.

Don’t leave it till it’s too late, stay competitive and relevant in 2014. Put simply, when it comes to investing in Generation Y – you will reap what you sow. By moving with the times and developing your management skills to cater for Generation Y you are creating space for ambitious, motivated and intelligent talent to thrive and contribute to the growth of your business.

For more tips for managing and motivating Generation Y, connect with Johny O'Donnell on LinkedIn or visit www.GenYCoach.org