Pwc Generation y Brochure

Getting to know Y 2010 PricewaterhouseCoopers Generation Y Survey

Introduction Gen Y are clearly a fast growing segment of Kenya’s workforce

Generation Y are the individuals born between 1979 and 1990. In the labour market, these are employees who just turned thirty or are in their 20s, a majority of whom have just joined the workforce. In Kenya, Gen Y is the group who were born around the time of the coup. The defining events over the past decade for this Generation have been multi-party elections, the NARC government, post election violence, the coalition government and the referendum. Gen Y are clearly a fast growing segment of Kenya’s workforce. 66% of the respondents of the PricewaterhouseCoopers 2009 National Human Resource survey reported that Gen Y employees already make up between 25% and 75% of the workforce. Gen Y are not just the next generation of employees, but the next generation of consumers who will ultimately determine whether future businesses will succeed or fail.

Gen Y are not just the next generation of employees, but the next generation of consumers who will ultimately determine whether future businesses will succeed or fail

Understanding the needs of Gen Y

Charles Simba is a manager in Technology in the Advisory Department at PricewaterhouseCoopers.

Generation Y searches for information online, rather than reading manual books or articles

I would characterise Generation Y workers as nice, optimistic and happy. We believe that life is good and we can succeed. We have huge, sometime outlandish expectations of life, the world and the workplace. In many ways, we are returning to traditional values but we also find it easier to communicate with our friends online than in person. Technology is the key to our hearts and minds.

Generation Y is absorbed in a world made possible through technology. We are well aware of how social changes affect us and we use the Internet to stay up to date. While Generation X and earlier generations participated in rallies, protest, and group meetings, Generation Y prefers to launch a movement in cyberspace and encourage the masses to join in via a Facebook group page.

Generation Y’s expressive social networking may have a downside, however; the time that we spend online, interacting with friends in cyberspace and playing video games may be at the expense of face-to-face interactions. For many of us, it is socially acceptable to conduct lively text message conversations or post status updates online whilst ignoring present company.

Generation Y searches for information online, rather than reading manual books or articles. We regularly read more blogs than any other generation and we receive our news from multiple online sources.

Although radio and television still stand out as the most popular media for this generation, Internet use is rapidly growing. It is assumed that Generation Y is too engrossed in using the Internet and new forms of technology for them to notice traditional media. However, Generation Y has not abandoned TV for new media and interestingly, we enjoy many of the same programmes and websites as our older peers.

Generation Y wants to be rewarded for carrying out the most mundane of tasks. We are children of the ‘trophy age’, where there were no real winners or losers in competitive sports. Instead, we all received prizes ‘for participating’. Ours is a mixed bag. Many of us are hard working and efficient, especially because we have the technologies and tools to get more done in less time. The others tend to be downright lazy and self-indulgent, wanting all of our needs to be fulfilled now! For this generation, work is not a place where we go—it is ‘something

Showing up on time and putting effort in without results, therefore, does not count as ‘work’

we do’. Showing up on time and putting effort in without results, therefore, does not count as ‘work’. Our generation is hesitant to adjust their lives in order to fit into the workplace. We would prefer to adjust the workplace such that it suits our lifestyles. We are therefore keen to leverage technologies like mobile computing and the Internet to make our working schedules more flexible. According to PricewaterhouseCoopers’ 2010 HR Survey, the top three most soughtafter benefits amongst Generation Y workers include access to online social networks, flexible dress code and flexible working hours. This generation also values professional networks and gym memberships. Generation Y has been built for the fast lane. With fantastic team work,

advanced skills in technology, social networking and the ability to focus on multiple tasks at the same time, the sky is the only limit. Companies that will reap the most value from this generation must be ready to make some adjustments and adapt to the changing demographics of today’s workforce. These companies will demonstrate successfully that Generation Y adds real value to their organisations, taking their opinions seriously and creating clear progression paths. Employers are struggling to accommodate flexible working hours, according to PwC’s HR Survey, but they are learning to manage Generation Y’s expectations so that our hard work is rewarded appropriately without alienating older generations.

Employers are struggling to accommodate flexible working hours, according to PwC’s HR Survey, but they are learning to manage Generation Y’s expectations

Generation Y Recognition, Engagement and Personal Development

Recognition, engagement and personal development are some of the outstanding characteristics of Generation Y. Almost by definition, ‘the Millennials’ are a generation of question askers, according to PricewaterhouseCoopers’ 2010 HR Survey.

Nicholas Odhiambo, is a consultant in People & Change in the Advisory Department at PricewaterhouseCoopers.

They are driven by praise, entertainment and instant gratification. Not only do they desire to be fully engaged in their workplace but they also want to contribute to major decisions. The traditional career path based on time served and rungs on the ladder is not a concept that they relish. Employers face a number of significant challenges with regard to attracting and retaining Generation Y workers. At the same time, the innovation and creativity embodied by Generation Y is having a profound impact on the business landscape.

Recognition, engagement and personal development are some of the outstanding characteristics of Generation Y

Born between 1978 and 1990, Generation Y workers possess high self esteem and a tremendous need for mobility and flexibility. The availability of information is essential to keeping them engaged and performing effectively. They need to know that their work is meaningful and contributes to major corporate decisions, and

they require constant constructive feedback about their contributions and suggestions. However, they can also have outsized expectations which need to be managed carefully. Research conducted by the Chartered Institute of Personnel Development in the UK shows that 50% of Generation Y workers who join an organization leave within three years. PwC’s HR Survey found that 66% of employers report that Generation Y makes up between 25% and 75% of their workforces; high turnover must not be ignored. Many Millennials have watched their parents work for the same organisations for their entire professional lives only to be laid off. Generation Y workers want to own their own careers; traditional development plans are not enough. Generation Y workers look for work that interests them, adds to their skills base, accords them validation for their contributions and extends to them plenty of opportunities for growth. Generation Y workers often want help in areas like financial success and stability, relationships, health and fitness and career development. Mentoring, feedback, tutoring and relationships with leadership enhance their experience.

For Generation Y, accountability gives them a sense of ownership

Challenging assignments and effective leadership, flexibility, personal freedom, higher rewards and policies supporting work-life balance are the keys to Generation Y’s staying power. Many employers struggle to hire and retain Generation Y workers. Employers must demonstrate creativity, resourcefulness and patience to generate results and keep this generation engaged. An employee attitude survey by

Gallup in 2009 indicates that an engaged employee is one that is praised, feels encouraged and who enjoys plenty of opportunities for development. For Generation Y, accountability gives them a sense of ownership. Extra time spent in validating the ideas they bring, allowing them to participate in brainstorming and transparency, continuous feedback and positive reinforcement signify recognition to this group.

Employers must demonstrate creativity, resourcefulness and patience to generate results and keep this generation engaged

Generation Y places new demands on employees

Janet Ouko is a bright upcoming engineer with the leading pharmaceutical agency. She consistently performs at par or superior to her peers. She is bright and confident just like most of her peers at the company.

Wairimu R. Njage is a manager in People and Change, in the Advisory Department at PricewaterhouseCoopers.

Generation Y can be considered as technology savvy and highly ambitious

While working on a project, she came up with what she considered as brilliant ideas to resolve issues on the project. She discussed them with the project manager who puts the brakes on implementing them as they were fairly radical. She constantly shared her frustrations through Twitter and Facebook with her colleagues in the office. On a separate occasion, Janet bumped into the Managing Director of the company at a golf tournament and in an “elevator” speech presented her ideas. She immediately tweeted her colleagues with the news and updated her blog. Which the Chairman liked, which he recommended that the manager implement. Welcome to the world of Generation Y. Hungry and in a hurry for success. Constantly in need of feedback. Organisations around the world are grappling with the challenges arising from managing different generations at work. The Baby Boomers (those born between 1955 and 1964) are now at the top of their game in the work place. According to research, nearly 90% of the world’s top 200 firms are currently led by Boomers or people from an even older

generation (probably older Boomers who were born before 1955). Only 23 of them are led by members of Generation X (those born between 1965 and 1971). It is worth noting that by 2014, nearly half the employees in the world will those born after 1980. For purposes of this article, Generation Y also known as Millennials can be defined at those born between after 1977). However, research shows that there are various and conflicting age-based definitions. The Baby Boomers created a corporate, political and economic landscape dominated by hierarchical pyramidal structures underpinned by command and control. Generation Y are coming into the workplace against a world context in which the world is flat, dominated by the free flow of information, extensive use of social media, rapidly changing environments and markets and complex issues. As the short fictional anecdote illustrates, Generation Y can be considered as technology savvy and highly ambitious. In speaking with HR managers, Generation Y is typically described as selfish to being very generous particularly with regard to social causes. But is this really the case? There is still room for in-depth academic research to bring out the clear dimensions of the generational issues in the workplace, particularly with regard to Generation Y.

Despite the dearth of research, there are emerging themes that define this generation. Research has identified what we consider as the top five characteristics of Generation Y particularly those who are young professionals. These are generalised but provide useful roadmap for organisations to manage this cohort of employees.

expectations of different generations. However, Generation Y tends to be more vocal about their expectations. The challenges for organisations and HR Managers in designing talent management programmes to take these issues into account will focus on the following: Work Management: Given their need for constant, immediate, constructive feedback managers are bound to be put under pressure in managing Generation Y staff. Emphasis should be put on how this generation can manage their own learning and work with peers to provide a regular flow of information and feedback.

For Generation Y, work is a key part of life and therefore issues around work-life balance although important should be set against the context of fulfilling and enjoyable work. They seek careers and job assignments that are challenging, stretching and intellectually stimulating. Secondly, they tend to be high achievers and therefore it is important for organisations to engage fully with their staff. They expect clear road maps for success with clear, consistent and constant feedback offered. They prefer self managing their work. In line with this they prefer managers to coach and mentor them given that growth and development is important to them. In addition, in a research study conducted by PwC, 80% of Generation Y participants said that they would leave an employer whose corporate sustainability practices no longer met their own. Thirdly, PwC research shows that they will increasingly view the organisation and the world without boundaries. Their focus will be on interest and opportunity, not necessarily on monetary rewards. They will happily begin careers in Kenya or their home countries but will follow well paid opportunities internationally while spending spells in their home country. They are likely to shift across functional areas, roles, multiple cultures and economies without the need to return to their home counties until later in their careers, if at all. The launch of East African Community Common Market

Protocol in July 2010 will amplify this trend. With regard to internal dynamics, colleagues are important to Generation Y employees. The network of friends that they make at work is also important. Fourth, they see their careers defined by an infinite number of possibilities and developing in different directions. They believe that they are in charge of building their own careers through working in positions that would develop them. In line with this, they are keen to learn self management and personal productivity skills as well as gain industry/functional knowledge as well as technical skills. They do not expect jobs for life and also do not intend to work in an organisation for life. One can expect them to leave if not promoted. Fifth, gender equality is now expected and taken for granted. In addition, Generation Y will tend to settle down later than their parent’s generation. In looking at these characteristics, they may not differ from the

Management of Boundaries: Generation Y tend to use technology at lot more than other generations. They reach out to peers in their organisations, build a virtual network of associates around the globe. The challenge is around managing the flow of information, deciding what information should be maintained in the public domain and what can be brought into the work domain. Creating norms and frameworks is important. The Design of Work: Developing intellectual, social and emotional capital is important for this generation. Organisations will need to focus on designing work that is meaningful, delivers sufficient autonomy for the individual to develop themselves, allows for rapid learning, is meaningful , challenging and has within it opportunities for regular feedback. Flexibility: Providing flexibility around working hours, packages and benefits. Most married Generation Y couples will be in the work place as for them, family is not a women’s issue but a issues for men and women.

Generation Y are coming into the workplace against a world context in which the world is flat, dominated by the free flow of information

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This publication has been prepared as general information on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. © 2010 PricewaterhouseCoopers. All rights reserved. PriceewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited each of which is a separate and independent legal entity.