Newsletter 21

Newsletter Issue 21 August 2011

Having donated Ksh.1M in 2009 in support of the construction of the Peace Village Children’s Home as part of its CSR

activities (raised through activities and events), MSRA organized yet another Mt. Kenya Charity Challenge climb in further support of the Home. The Climb took place from June 30th to 3rd July this year and attracted 13 participants. These included Jonathan Karanja- champion-, Laurence Mukonzo, Mwongela Mbuvi (Nielsen EA), Maria Kabiru, Rachel Gicho, Leonard Vidali, Eric Njogu, Mark Mwagu and Edwin Wanyande (SBO Research), Anastacia Kanyarati, Connie Akola, Emmah Mwaniki (TNSrms), and Derrick Giles of the British Council. Almost Ksh.50, 000 was raised for the Home through this Climb

In the words of one of the participants, Maria Kabiru, the experience did not disappoint: “we were so excited on the D-day- like small children on their first day of school. It was exhilarating; mingling with participants from the various agencies as we witnessed the breathtaking views of the unfolding scenery. It was not all rosy however; it nearly outdid some of us as we came to the realization that it is a totally different experience to climb a mountain vis a vis walking on a treadmill. It taught us the true meaning of the adage, it was an uphill task. We learnt to endure; to persevere. I learnt a few lessons too; that it’s all in the mind, one’s attitude determines how far they can go- even in the business scenario.

Generation Y shakes up the corporate workplace….by Synovate

Two thirds of Kenyans in formal employment and aged below 30 are not satisfied with their jobs according to a new survey by Synovate. These young people, also known as Generation Y, are giving employers sleepless nights as majority are not willing to stay in the same job for more than a couple of years. As a result the cost of recruitment for companies has risen and will continue to rise as more of Generation Y enters the workforce. The survey conducted between 5th and 9th July 2011 also found that close to three quarters of respondents (74 per cent) had worked with their current employer for three years or less, 14 per cent had been in their current job for 3-5 years and only 12 per cent had stayed over five years. A third of those surveyed (34 per cent) had worked for at least two employers. These findings illustrate the challenges human resources managers are facing trying to retain Generation Y employees who have arrived at work with a new attitude and are shaking things up. They are ambitious, technologically savvy and hungry for success - impatient - even. They may be starting their working life at the bottom but this is not to say they’ll accept rock-bottom salaries. By the time they graduate from university, many already have professional qualifications under their belt. They walk in with high expectations of their jobs and employers. Modern conveniences like internet and computers are assumed to be a given. They are focused on getting to the top in the shortest time possible. Expecting them to stay in the same job for twenty-five years with a pension as a reward is likely to provoke laughter. If not satisfied with a job they’ll move on fast. Generation Y consists of the generation of people born during the 1980s and early 1990s. The name is based on Generation X, the generation that preceded them. Their total population in Kenya according to the 2009 Census by Kenya National Bureau of Statistics is 9,415,354 (5,520,907 in rural and 3,894,447 in the urban areas) and constitute the core of the next working force. Generation Y, also called Millennials, will have a huge social and economic impact simply because of their numbers.

Generation Y has never known life without the Internet, cell phones, fax machines, voice mail, and chat rooms. Weaned on technology, this generation would have no personal reference for a time before ATMs, VCRs, PCs, CDs, MTV, and MP3’s. The Internet and export of American culture via TV shows, dress and music has resulted in some startling similarities in the way young people think and behave worldwide. The challenge for HR managers is how to attract, manage and retain Generation Y. This means playing to their strengths, which includes building trust, inspiring loyalty and harnessing their energy. They are forthright and not afraid to challenge the status quo. Their high expectations also need to be managed. If you don’t give them challenging jobs you lose them. Show them a clear career path that will allow them to change paths within the same company or they get bored and leave. Address their impatience to get ahead by explaining why experience is important and give them leeway to create. For instance an accountant can be asked to create templates to help access information faster. They also value open communication and dialogue as opposed to autocratic management and laying down the law. Generation Y also value work-life balance. To manage them successfully, human resource managers may have to initiate personal counselling at professional level coupled with mentoring. The Synovate survey found that most of Generation Y in Kenya believe that one should work hard and get rich. 88 per cent of those polled agreed to this statement with only 12 per cent stating that one should live each day as it comes without worrying about the future. Almost half of the respondents (48 per cent) lived alone in rented houses, 31 per cent lived with a spouse or partner and 11 per cent still lived with their parents.

Asked what they would prefer as a reward for good work performance, 40 per cent said a salary increment, 30 per cent preferred a promotion and 15 per cent a cash bonus. For many Generation Y’ers, corporate loyalty is dead and job-hopping is par for the course. Stick to a job for too long and a Yer is apt to wonder what’s wrong with you. Part of the reason for this is that many graduates grab the first job that comes along just to earn a living. Then they keep looking till they find a job they like or one in their area of training This generation also watched as people in their parents’ generation were retrenched after many years of service in the same company, many going home with a pittance. Employers have embraced new staffing strategies like employing staff on contract and concepts like downsizing and restructuring have become the norm. Nowadays people in their twenties are getting retrenched. Any wonder then that Gen Y’ers outlook is short-term? Retention strategies being employed by organisations include benchmarking pay and perks to industry levels to avoid losing staff to the competition. Also training with bonding designed to keep the employee in the company for some years. Others have introduced financing inducements such as mortgages and loans for employees. As employees scale the career ladder some companies especially in the west offer equity in the company. Referred to as golden handcuffs, employees are given stock options with the caveat that they lose them unless they stay in the company for a specified number of years.

Q U A R T E R 3 - 201 1

A U G / S E P T / O C T

C A L E N D A R O F A C T I V I T I E S

T O P A R T I C I P A T E C O N T A C T

S E C R E T A R I A T EVENT GRADUATION

MSRA ADVANCED & BASIC TRAINING GRADUATION

DATE SEPTEMBER: DATE TO BE CONFIRMED VENUE SOUTHERN SUN HOTEL

EVENT ADVANCED TRAINING

MSRA ADVANCED TRAINING

DATE OCTOBER- MARCH 2012 (DATES TO BE CONFIRMED) VENUE SYNOVATE TRAINING ROOM TIMING 1.45PM

EVENT CELEBRITY TALK

MSRA CELEBRITY TALK

DATE OCTOBER: DATE TO BE CONFIRMED VENUE SOUTHERN SUN HOTEL

IPSOS EA & Infotrak Research & Consulting: our newest members in the Association. Welcome on board!

Newsletter 21

WINNING TEAMS WINNING PLAYERS

Winners TNSrms EA

Ltd Brandin Otieno

(TNSrms EA Ltd) Best Player

1st Runners

Up

Consumer Options Ltd

Peter Musa Muga

(Research Solutions

Ltd)

2nd Best

Player

2nd Runners

Up

Research

Solutions Loy Ochola

(Consumer Options Ltd)

3rd Best

Player Nicholas Odhiambo (Nielsen EA Ltd)

As part of rewarding the Individual Membership category, MSRA provides opportunities where members can interact and unwind whilst having fun. These include, bowling tournaments that are organized twice every year. Participants (divided into teams representing their respective companies), not only get the chance to have fun, but also showcase their zeal, zest and competitive edge in the sport that is bowling. This year’s 1st round of the tournament was held on the 7th of July 2011 and was well attended with over 100 participants representing the various agencies in the Association. Winners of the day were identified as shown below. Congratulations to all of you and keep up the spirit! Although the competition is getting stiffer, the objective of the game still remains; to have a blast every time. The 2nd round on November 4th is beckoning. We hope to see you soon.

by Consumer Insight

FFoorr tthhee YYoouutthh ooff EEaasstt AAffrriiccaa,, MMuullllaa iiss tthhee cceennttrree ooff tthhee uunniivveerrssee

And this overwhelming obsession with material success manifests itself in many wholly unexpected ways. For instance, they list education as one of the most important things in life. But sadly, this love of education has nothing to do with the possibility of breeding future academicians, researchers and original thinkers: it is for the simple reason that the youth believe education is the surest way to become professionals, famous people and leaders – all perceived as avenues to achieving material success. So, “Education + Career = Comfortable Life” seems to summarise the way they see it. Funnily enough, “work” scores the lowest amongst the “most important things in life.” “Wealth above all else,” says wa Maina. “Money, money, money, is their mantra. Sadly, this will greatly affect the future job markets and change the way we do business,” he opines. The youths’ obsession with riches is for, some reason, most pronounced in Uganda, followed by Kenya and Tanzania in that order. Among other interesting revelations of Holla 2011 include the youth’s preferences in radio and television; their favourite stations and personalities; shopping habits; hopes and dreams; heroes and villains; what gives them happiness; favourite pastimes; mobile phone usage and ownership; what they would like to be when they grow up and why; and many, many other interesting details and half-known facts.

35%

19%

62%

35%

8%

23%

13%

11%

24%

10%

11%

21%

9%

12%

15%

Kenya

Tanzania

Uganda

Co

un

try

To be rich To be a professional To have a family To be famous To be a leader

40%

38%

40%

24%

23%

20%

8%

17%

21%

11%

16%

15%

16%

13%

9%

07 - 12 year

13 - 19 yrs

20 - 24yrs

Age

Consumer Options Limited, a growing market research company in Kenya and a member of MSRA, officially launched one of its home grown tools: ENGAGE. ENGAGE is an ethnography product that allows companies to immerse themselves into their consumer’s lives in order to understand their world and real situations which in turn will translate into innovations, ideas and opportunities to grow business The successful launch was held at a Breakfast event organized at Intercontinental Hotel on Friday 15th July, 2011 with the Chief Guest as Chris Kirubi, Chairman of HACO TIGERBRANDS (EA) Ltd. Also gracing the occasion was Patricia Ithau, CEO L’Oreal; Margret Mwaura; Brand Builder, Unilever; Peter Nduati, CEO Resolution Health; among many other top dogs in the Marketing, FMCG and Media world. The launch was MC’d by Eric Omondi, who managed to keep an up beat environment and ensured that the guests were laughing off their seats. ENGAGE received a positive response from those in attendance. Margret Mwaura of Unilever endorsed the product highlighting three issues that are pertinent for companies doing ENGAGE: to leave all pre-conceived mindsets out the door, to listen to the consumers and to observe their environment. Chris Kirubi, the chief guest, further encouraged Consumer Options and all attendees to not only concentrate on the East African market but to also look beyond into untapped markets noting that Kenya is capable of conquering Africa. He further emphasized the importance of local innovation as a way of getting a stamp print in the world map. Overall, the ENGAGE launch opened the corporate world to a new dimension of research and the directors of the company urged the guests to continuously immerse themselves in their consumers’ lives in order to better understand them.

If you would like to comment on the contents of this newsletter or contribute an article, please contact:

Anne Wanyingi on Tel: +254 8024830, Email: anne@msra.or.ke/ info@msra.or.ke. Visit website: www.msra.or.ke

This article is condensed from Holla, Consumer Insight’s biennial youth study that documents the changing trends of the youth of EA. For more information contact Julius Mumo: jmumo@ciafrica.com

A nine year old recently told researchers from Consumer Insight that what he would like, what he would really, really like is to have a lot of mulla, which is youthspeak for cash money. And what, pray, would he do with the heaps of cash, the researchers persisted, expecting the child to start talking about candy, lots of toys or sand castles on the beach or little friends to play with, but were both disappointed and astonished when the child responded. “A mansion,” he said. What? “A mansion for my family to live in and many cars for us to ride in as we go shopping for things,” he clarified with feeling. “And lots of fine clothes too,” he added. “All across East Africa, the story is the same,” says Ndirangu wa Maina, MD of Consumer Insight, the research company that recently launched the 2011 edition of Holla, a biennial youth study that comprehensively documents the changing trends of the youth in East Africa. “The youth just want it all. They want to be rich. They want you to, in other words, “show them the money.”

mailto:anne@msra.or.ke/mailto:info@msra.or.kehttp://www.msra.or.ke/mailto:jmumo@ciafrica.com