Engaging with Gen Y | BTalk Australia

(12min 23) Gen Y are criticised for assuming the world will change around them. They expect high salaries for as little work as possible. They don’t respect their boss and show little loyalty for the company they work for.

Well, get used to it! There will be more and more Gen Ys in the workforce so you’ll need to learn how to get the best from them. On today’s BTalk Australia Phil Dobbie asks social researcher Mark McCrindle how you can bridge the generation gap and build a strong working relationship with your younger employees. He has 5 key points to consider if you want to build loyalty and productivity.

What do you think? Whether you’re an employer or a Gen-Y employee, let us know. Add comments to the Talkback section at the end of this post.

See also: Understand Y | BTalk Australia

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• Transcription

Phil Dobbie: Hello. I’m Phil Dobbie, and welcome to BTalk Australia. Today: managing Gen Y. You’re the boss. They work for you. Why should you change your ways?

Mark McCrindle: The changes have been going on for some time. Employees of all ages now aren’t going to put up with the old autocratic leadership styles. But, you know, the young generations aren’t even taking a job or a role until there’s the right work/life balance and the right situation for them.

Dobbie: And how do they know that before they get into the job? I guess they tell from the interview, do they?

McCrindle: Well, they can. Even before they come to the interview, they are assessing the employer brand. You know, getting the right employment value proposition is essential. And so that’s everything from the website, through the advertising material that talks about the job. Of course, they’re able to go online and search around and find out what other people say about that organisation or industry. And, you know, we probably think at the moment, well, in this downturn, you know, we don’t have to worry as much about staff engagement. The Gen Ys should just be grateful for a job now. But actually, the long-term trends are for a continued tight labour market because we have an aging population and we have mass retirement coming. Big succession planning issues. Today’s leaders easing on out as they move into their sixties. And we have just higher turnover rates. We have shorter careers. So attracting and retaining is still an issue even though the demand side has eased. We’ve got a slight relaxing of the employment situation today.

Dobbie: Isn’t that sort of a simplistic view? We hear a lot about Gen Y getting their own way over lots of things. And should they be able to always get their own way? I mean they’re still quite young. They’ve got a lot to learn. Are they going into situations with, you know, a degree of naivety and expecting everyone to change around them?

McCrindle: Yes, they are. And they are a little naive in that sense. I guess like any generation of young people they’re probably a bit more precocious and a bit more empowered than they should be. I do agree that, you know, employers have to shape them. Leaders in business shouldn’t follow the young generation. They should lead the young generation. So we’re certainly not saying let’s adapt to their every need and give in to their every whim. But from a pragmatic perspective, if the employer brand isn’t right, if what we’re offering isn’t working, and if we have high turnover, that starts to cost the business money. And it is possible to still lead them, you know. To not placate their every need. But yet, be flexible enough, adaptive enough to be relevant to for the 21st century — therein you’re getting that balance. That’s where you’ll really find the answers. You’ll have less turnover. You’ll save costs on recruitment, and you’ll have a happier and more engaged workforce. And in a more flexible context, you learn from the younger ones as well as the older ones. And you definitely get some better outcomes.

Dobbie: How do you lead someone who thinks they know everything already?

McCrindle: Well, the first step is to show them some times where their wild, youthful enthusiasm is useful. While their fresh ideas and their innovative way of thinking does help, they also have to learn from the experience and the advice of all the people who in many ways are more likely to represent the cashed-up customer than the young person is. So it’s showing that you’re prepared to listen and to tweak and to change things with them. But they have to learn to respond to the experience and the leadership of today’s existing managers.

Dobbie: It sounds like where this is all breaking down is really on how the bosses are communicating.

McCrindle: Communication is key. I think also providing the right workplace situation and the right job description is important. So our research has found that there are five things that Generation Y want in a career or in a job. But they’re exactly the same five things that the Gen Xs and the Baby Boomers wanted as well. Top of the list is work/life balance. The right mix between the job role and their life would go on that list. A flexible leadership or management culture where the management is going to adapt and be a little flexible to the needs of the staff. We’ve got a broad job description, because that’s essential today to make sure that staff aren’t being locked into one area and being bored. But being stimulated and even being offered promotions and advancement. We’ve got training as an essential today. And so it’s a generation that really are looking for ongoing training and development because they know that their old skills get outdated quickly. And it’s even as simple as providing the right work aesthetic so that they can enjoy the place where they work and the people would see they work. In other words, that fifth one is providing a bit of a community. A workplace where people feel fully engaged and therefore enjoy the work experience.

Dobbie: Now let’s look at a couple of those. The work/life balance and a flexible boss. They sound like to me they could be arguments for, oh, I’m looking for a job where I can slack off a little bit. Do you think the work ethic of the younger generation is what is once was?

McCrindle: No, I don’t think it is as good as once it was. Therefore, we do need a really efficient management structure that is going to bring about the productivity outcomes. I mean particularly in an era like this, we can’t afford to be just promoting or looking after people that are there for the ride. We have to have clear structures where there are employee reviews and where there are clear job descriptions defined and outcomes managed. But at the same time, we can get the balance with providing a manager who does have a warm tone — who is able to not always be autocratic and in many ways authoritarian. But able to able to coach and mentor and bring the best out of their staff. So it is important to ensure that productivity outcomes are gained, but that can be delivered through a warm and engaging management style. We don’t just have to adopt the old school, autocratic approach.

Dobbie: That is part of the problem as well. Because a lot of these young people, they’re early on in their career, and they might not even be sure what their career is. And I guess it’s harder to be devoted to something if it’s not exactly where you want to be. How do you manage that situation?

McCrindle: That’s part of the manager’s role as well. That’s why we hear about leaders today, managers today, not being just a boss and authority figure. But being a coach, being a mentor. And that often extends beyond just coaching them in the role. It’s even helping them develop their career. It’s pointing out what might be an effective training pathway for them. And sometimes even giving some life skills input as well. And in that, you build some loyalty. You build some real engagement with that staff member. And they’ll be less likely to move on than otherwise they would. Now they are still going to move on. We have a one-third tenure rate today compared to 1970. That is, in 1970 average national normative tenure, average number of years we stayed per employer was 12. Today we’re down to four years on average nationally. So Gen Y are in an era where people do move on — where we have multiple careers, and where people like a bit of variety in their job role. And so we’re not going to keep people as long as we used to. We’ve got to change the definitions there. But if you can get four or five years out of a staff member, you’re doing exceptionally well. And I think we’ve to manage to those new realities.

Dobbie: So is respect a part of it? Is it really all about trying to, as a boss you’ve got to gain respect from your employees before you’ll get 100 percent out of them?

McCrindle: Yes. That’s exactly right. And we’re talking about timeless issues here — respecting others. Understanding that there is diversity in the workplace, and whether that’s gendered others, cultural others, or even as we’re discussing generational diversity. It’s a recognition that people are different, and that they have been shaped in a different era, in a different context. And we have to respect that, respect them, and respond appropriately because of that. So yeah — when we show a bit of respect, when we are a little bit malleable and able to respond and move with the particular segment we’re talking about, then they will understand that and appreciate that and deliver, you know, some loyalties, some commitment because of that.

Dobbie: Yes. And I guess that’s what’s really changed, isn’t it? In the olden days, you know, you just by default used to show your boss respect. It was just taken for granted. Whereas these days if you’re the boss you’ve really got to work and earn it.

McCrindle: Exactly. That’s right. They don’t follow the rank or the badge anymore. But they will follow us, you know, if we’ve shown them we really do care for them. There’s a relational heart to our role as boss. Sure, we’re going to expect outcomes. We’re going to have those reviews. But also there’s that affection, that relationship that is part of what we do. That community, and people look for that even in the workplace today.

Dobbie: Now you see, Gen Y seems to be behaving like I was, you know, 30 years ago. I think I was just born into the wrong generation. I was the first Gen Y. I showed no respect for any of the bosses I had earlier in my career.

McCrindle: Well, that’s right. I mean, you know, every generation of young person has pushed back a little against the authority figures. But now of course the technology and the times have empowered this generation, and so they have more options. They are more global. They are more entrepreneurial. They don’t just have to look for a job. They can start their own job and they can retrain and move to another industry. So they have options. And in the past you might not have liked the job or the boss, but you had to get on and do it anyway. No so today. Even in the downturn they still have options. They can head back to the Uni and do some further study. Or stay with mom and dad, and try their luck starting their own operation. So they have options and it is an aging population. We therefore have to work with the generation we’ve got. Be a little bit flexible and responsive, and hopefully by meeting some of their needs they’ll meet ours and the workplace all around will profit.

Dobbie: So the boss today it’s not all about spreadsheets and numbers. A good half of your time sounds like really has to be spent on people management, which would be uncomfortable for a lot of managers. But going forward that’s the way of the world, isn’t it?

McCrindle: It is. And this has come on us since the 1980s. You know, we had Daniel Goldman writing his book on Emotional Intelligence. So the latest it’s not IQ, it’s EQ now. And Ken Blanchard writing about situational leadership. So it’s not one leadership style fits all. It’s tweaking your leadership style based on the context and the group that you are leading. There’s a great quote in a book on leadership by John Maxwell where he says, look, if you’re leading and no one’s following, then you’re just out for a walk. And I think that’s the point. They don’t follow the rank anymore. They’re not following it because we’re not effectively communicating what we’re all about. And they’ll only follow us when they believe in us, when they respect us, and that takes a bit more of the people skills, as you said.

Dobbie: Excellent. All right. Thanks so much for your time. I’m going to put my walking shoes on now, Mark, and see how many people will follow me.

McCrindle: Absolutely.

Dobbie: Thanks for your time today.

McCrindle: I appreciate it. Thanks very much, Phil.