‘Generation Y’ is the affectionate name given to the demographic cohort that was born between 1980 – 1995, although specific definitions do vary. This group hence forms today’s teenagers and twenty-somethings – a group highly sought after by large recruiters, and whom form the solid base of employees for many multinationals. The problem of how to lead this generation is a hot topic.

What Are Busineses Doing To Attract Generation Y?

As competition has increased among the large graduate recruiters to attract the best ‘Generation Y’ talent, they have been fighting among themselves to paint the best picture of their own workplace. Of course, promises have to be met, and so in painting their company in this brighter way, they have indirectly led to progressive changes in the workplace. These new changes to the working environment include:

1. More flexible working hours for a better work/life balance. (Example – ‘The Big Four‘)

2. Guaranteed acceptance onto management training programmes after preconditions have been met. (Example – Enterprise Rent a Car)

3. Extensive induction training.

4. The opportunity to rotate round departments and roles. (Example – Unilever, P&G and Johnson & Johnson)

5. Higher reliance upon internal promotions to fill vacancies.

It is clear that the recruiters believe that generation Y care less about salary and traditional benefits, and more about the pursuit of an interesting, fulfilling and and less stressful job than their parents. This trend definitely seems to be following the general shift away from Fordism factory workers, and towards independent, respected and empowered workers, that has been taking place in the last century.

What Are Businesses Are Doing To Lead Generation Y?

When it comes to leading ‘Generation Y’ – new leadership styles have evolved to compliment the new ‘people -orientated’ workplace. These have manifested into:

1. Annual reviews taking a more personal development focus, rather than productivity. Managers are trying to adopt more of a ‘coaching’ and ’supportive’ role. Managers are told to encourage and train employees so that in the future they are able to take their place.

2. A more democratic and team-based way of working – where ‘on-the-job’ training is becoming more popular, and instructions on how to actually ‘get the work done’ is now coming from from experienced teammates more often than the manager.

Do These Methods Actually Work?

The evidence isn’t very clear on this issue. Despite all these new intiatives and opportunities that ‘Generation Y’s parents dreamed of, these young workers are extremely likely to leave a company they join after a short period of time (every 4-5 years on average), which is a far higher rate of turnover than their parents, the ‘baby boomers’.

I believe that this is happening for 2 main reasons. Firstly – only a fraction of companies are actually fulfilling the promises made to potential job candidates. The hype that recruiters drum up is unsustainable and almost impossible for companies to deliver on. This it doesn’t surprise me one bit to discover that graduates are continually drawn to the ‘greener’ grass on the other side of the hill.

Secondly, and this is linked with the first reason, managers are going about implementing these intiatives in a reluctant way and unsatisfactory way. Either managers are attaching too many ‘novelty’ intiatives to rudementary and meanial jobs – such that the employee feels like it’s all a show, or managers are only introducing leadership techniques as part of a ‘token’ effort.

For instance, I’m in disbelief at the number of times I’ve heard managers undermine their human resource counterparts with phrases such as “Now, I’ve been told by the people above to tell you that …”. This sort of attitude in implementing policies if effectively negatating any positive effect they were supposed to bring.

Therefore I would argue that, while it appears that ‘Generation Y’ workers are extremely unappreciative of the benefits and perks that exist today – these so-called perks only exist in policy and paper and aren’t created or supported with sincere intention from managers. In fact – this move towards pseudo-policy is alienating our Gen Y workers, and this may be able to explain why they are constantly on the move.

My Recommendation

Changes that companies have made to their leadership and human resource strategies have been well thought out, and do add good value to the role a company could offer a graduate. However I believe that to be able to lead Generation Y effectively, the focus must then be on educating and training managers to sincerely back these new efforts.