Understanding the Millennial workforce

By: Together Abroad 07-04-2015 12:55 PM
Categories: ** HR Analysis,

Millenials will make up 75% of the global workforce by 2025. Jerry Grimes discusses what organisations want in their young talent and what Millenials expect in joining the workforce

You have just arrived at work and learn that a new college graduate just joined your team. You walk over to greet your young colleague, what are the first thoughts in your head? Do you expect them to be ambitious and tech-savvy, eager to work hard or do expect your younger, less experienced team member to expect status and rewards without “paying their dues”?

These thoughts about Generation-Y (those born from the early 80’s to late 90’s) or otherwise known as Millennials have become popular in recent years as they prepare to enter the workforce. Millennials grew up in the age of the internet, technology, and social media and are thereby “programmed” to make connections and share information digitally. Millennials now make up a quarter of the global workforce and are expected to comprise 75% of it by 2025. Some consider this group to be the most educated and ambitious generation yet and organisations have to consider how to attract top talent from this group and utilise their talents with the rest of their existing workforce.

A 2014 survey of CEO’s by PwC found 63% of executives worry about finding the right talent to keep their companies competitive. It is apparent that employers now, more than ever, need to align their employer brand to Millennials to attract top talent. But what exactly does Generation-Y expect employers to bring to the table?

A recent study Millenials: A six part series surveyed over 16,000 Millennials from around the world to discover what it takes to successfully recruit and maintain them. Their findings were interesting:
• Over 70% of Millennials across the globe say achieving a leadership position is important
• 64% agreed they are up for the challenge of leadership, including the stress and hard work to attain it
• “Challenging work” means more than just long hours – Millennials expect innovative work and to learn new things on a daily basis
• Millennials’ greatest fear is to get stuck with no opportunities for development
• Having time with family is a top priority to Millennials, with 47% willing to consider passing up a “well-paid and prestigious job” to improve their work-life balance

It seems today’s young talent is focused on three things: employability, lifelong learning, and work-life balance. Millennials expect their employers to help them grow and give regular feedback in measure with both personal and professional autonomy. These are all desirable qualities in a competitive workforce, and therefore important reasons why employers need to fine tune their recruiting and workflow patterns in the coming years to suit the needs of Millennial top talent.

Likewise, the diversity in preference, experience, and age of a global workforce also creates an environment where employers need to set clear expectations of the talent they want to recruit. A new study by Michigan State University’s College Employment Research Institute showed that employers in 2015 are expected to recruit the most new college graduates since the dot-com frenzy of the 1990-2000’s. The difference in hiring graduates now is that employers are more selective in the recruits they choose as competition for qualified candidates is at a 10-year high with a larger pool of college graduates to choose from.

While 76% of recruiters surveyed rate the overall college labour market either good or excellent, recruiters also complained that new graduates often lack the practical experience and skills to work for their company. Recruiters are also concerned by the number of lackluster CVs and motivation letters they receive, trailed by unfocused and unmotivated candidates in the interview. Despite their concerns, employers affirm they are not lowering their expectations of new hires. But, on the flip side, exactly what do employers expect of millennial college graduates?

Results of an employer study, The Role of Higher Education in Career Development: Employer Perceptions revealed the top attributes for a graduate hire included internships, employment during college and college major. Interestingly, these attributes where considered more important than academic excellence. "When employers do hire from college, the evidence suggests that academic skills are not their primary concern," says Peter Cappelli, a Wharton professor and the author of new theories on job skills. "Work experience is the crucial attribute that employers want even for students who have yet to work full-time."

This trend may be rightfully justified when we look at the top industries hiring Millennial graduates. The study shows government and education employers have hired recent graduates at a higher rate than other industries over the past few years while media/communications hire at the lowest rates. Industries like government and education require employees or instructors to be ready to tackle issues on the first day, as overcrowding and budget-constrained resources are often a reality.

The relationship between Millennials and employers today will indeed require both sides to make changes in order to get what they want. Millennials expect employers to challenge them with innovative work in a continuous cycle of learning - all balanced with their private lives.

Also, Millennials’ savvy in the digital age present an opportunity for employers to engage with recruits online, advertising their brand through social media and introducing new ideas like video interviewing that make the process easier on both parties. Those ambitious and talented Millennials still in pre-employment status (i.e. in school) can better their odds in the labour market by balancing rigorous academic coursework with relevant and practical experience.

Jerry Grimes Jr.

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