The Changing Nature of WorkCapturing the Millennial Workforce and Enhancing Organizational Performance through Social Collaboration
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Ready or Not, The Workforce is Changing!
Globalization• Global access to
markets and talent will reshape business – Talent Markets are Global
Demographics• 5 generations will
be working side by side in organizations
Social Web• Social media will
connect employees, customers & partners for immediate connection
Equal and Simultaneous Forces are Shaping the Future of Work
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Traditionalists• Born before
1946• ~46M
Baby Boomers• Born 1946-
1964• ~78M
Gen X• Born 1965-
1976• ~50M
Gen Y (Millennials)• Born 1977-
1997• ~88M
Gen 2020• Born 1998+• ~41M
Get to Know Your Workplace Generations
Do you know the demographic breakdown of your workforce? How is this likely to change in 5 years? What about 10?
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Demographics in Action: The Latest Numbers (U.S.)
2014: Millennials will comprise 36% of U.S. workforce By 2020 Millennials will comprise nearly half (46%)
Gen X = 16% of workforce
Median age of workforce expected to increase to 42 in 2020
How this affects your business: Workforce growing at a slower rate
– Pension and health costs rise just as growth in the tax base slows
– Fewer workers – particularly fewer experienced workers -- threat to productivity.and economic growth
o Departing Baby Boomers create leadership and skills gap
Immigration a strong contributor to workforce growth
– Increased diversity
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Relative Size of the Generations in Most Westernized countries*
< 1946 < 1964 < 1976 < 1997 1997 – ?0
10
20
30
40
50
60
70
80
90
Traditionalists
Baby Boomers
Generation X
Millennials
Gen 2020
???
* Example is US
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Not Surprisingly…Millennials Like Smaller Companies
47%
30%
23%
Concentration of Millennials/Size of EmployerSmall (<100 employees) Midsize (101-1500 employees)Large (>1500 employees)
• Why? More opportunities to do
more/different things – to determine preferences and hone abilities
Fewer layers more direct access to leadership, greater opportunity for mentorship
More exposure, influence on strategic decisions - more likely to be “heard”
“Gen Y on the Job,” www.payscale.com, 2012.
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They lack organizational loyalty.
• Millennials employees have about the same degree of organizational commitment as other age groups. The workforce has changed, not just the people in it. Source: Harvey Schachter, “Five myths about Millennial Workers”
• Furthermore, organizations cannot guarantee job security any more than employees can guarantee they’ll stay.
• Young people of every generation – including when Boomers were the youngest people in the workforce – change jobs more frequently than older people because they’re learning what they like and what they’re good at. Source: Jennifer J. Deal, “Retiring the Generation Gap”
Who Are These Millennials? Dispelling the Myths
MYTH
TRUTHS
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They don’t respect authority.
• Traditionalists define respect as: “give my opinions the weight I believe they deserve and do what I tell you.” Millennials define respect differently, as: “listen to me and take my perspective into consideration.”
• Millennials crave coaching and mentorship. If they didn’t respect their seniors leaders, they wouldn’t be asking for so much of it. However, they also want to be listened to not just told to do something.
• Differences in respect with regard to the generations is often appears to be something bigger than it is; everyone wants to be listened to and they want to know their opinions matter.
Another Myth
MYTH
TRUTHS
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They are only motivated by perks/money.
• What motivates people has more to do with their personality than their age.
• Speaking to pay specifically, 27% of young people think high pay is important compared to 48% of older workers. Source: 27 Shift
• If any conclusion were to be drawn about motivation and Millennials, it would be that they prefer development over cash. In fact, research shows that Millennials prefer development three times more than a cash bonus as a form of benefit. Source: 15th Annual Global CEO Survey 2012.
One More Myth
MYTH
TRUTHS
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More Millennial Facts You Need to Know
Will comprise 75% of the Western workforce by 2025, the largest
proportion in history. Most educated workforce in
history. Tech-natives – grew up with access and
dependence on technology.
Ethnically and culturally diverse due to more open
immigration policies than in
previous generations.
Most educated female
demographic in history.
The children of Baby
Boomers, or older Gen X.
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Embracing Technology to Optimize Your Workforce
Each retiring Baby Boomer subtracts ~40 years of workplace experience
How do you not only fill the gap but surpass your competitors?Collaboration Deliver employee experiences that strengthen knowledge of and appreciation for the customer value
chain
Authenticity Values in action and transparency facilitated through social media/collaboration, open financial books, full
disclosure on pay
Personalization Nurture employee relationships that align with needs of every generation at each life stage
Innovation Offer innovative practices aligned to organizational strategy
Social connection Provide fun, engaging work environments (virtual or physical) Encourage use of social media tools/techniques that allow employees to enable workplace performance
and support life interests
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…When You Can Have HR Technology that Doesn’t Look or Act like HR Technology…
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Business Execution Technology: GPS for Strategic HR
Putting knowledge in the hands of decision makers to support real time decisions
Let’s take a look…
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Predictions for the 2020 Workplace
Your mobile device will become office, classroom, and concierge • Work-life flexibility will replace work-life balance
The global talent shortage will be acute• Recruiting will start on social networking sites• You will be hired and promoted based upon your reputation capital• Building a portfolio of contract jobs will be the path to full-time employment
Corporate social networks will flourish and grow inside companies• Social media literacy will be required for all employees• Leaders will learn to blog (to promote authenticity, transparency)
Lifelong learning will be a business requirement• Development opportunities will be personalized and address generational
needs
The 2020Workplace: How Innovative Companies Attract, Develop and Keep Tomorrow’s Employees Today by Jeanne C.Meister and Karie Willyerd. Copyright © 2010 by Jeanne C. Meister and Karie Willyerd.
© 2012 SAP AG. All rights reserved. 21
Seven Actions You Can Take Today To Prepare
Ensure you – and your leadership - are fluent in the new language of business
Conduct a workforce analysis risk assessment. Determine what your workforce plan should be
Build a recruiting machine to reach candidates where they live – online!
Develop clear learning and development strategy to attract new employees and prepare existing for the future
Prepare your leaders for the new leadership competencies required to lead in the future workplace
Use social technologies inside your secure environment to facilitate communication, learning, and collaboration on leading edge platforms
Make your HCM systems app and mobile friendly