Understanding Generational Change

1
Understanding Generational Change
2
2 Questions

• What does generational change mean?
• How does it effect business management?

3
The 3 Key Generations

• Baby Boomers (1946-1964)
• Generation X (1965-1979)
• Generation Y (1980-1994)

4
Baby Boom Generation

• Grew up in age of job for life mentality
• High work ethic
• High team/group ethic
• Political and idealistic. Great political marches
  of 60s,70s and 80s.
• Still idealistic

5
Baby Boom Generation

• Grew up to parents from post war era. This was an
  unique period with unique values.
• The sixties are unlikely ever to exist again

6
Generations X and Y

• Non Political
• Self before group
• Very international
• Want to experience full spectrum of life
• Far more fluid in work and life

7
The I Generation

• Key influencers
• Leadership admiration, inspiration and trust
• High aspirational
• Work-life balance
• Cynicism towards employers
• Importance in values

8
Lifestyle

• Sport is for fitness, not for fun!
• Their adrenalin is provided through their career
  fulfillment
• Generation Y will focus on their
  self-development, more so than social activities.

9
How they prefer to communicate

• Gen Y have preference to communicate in person.
  They value personal relationships.
• Gen Y are the greatest users of text and the
  least likely to fax or communicate by letter.
• Imagery is very important for communicating.

10
The Yers Wish List

• Career progression
• International exposure
• Continued training and learning
• Rewards recognition
• A mentor
• To be known

11
This is a new age with new values and motivators
12
Irony is that baby boomers are still idealistic
at heart.

• but the young are not.

13
Leads to a question as to where will the future
leaders emerge from?
14
Networking

• The emerging generations are not networking in
  the traditional ways.
• They are not as engaged.
• Are future leaders emerging?

15
How do the Y-ers view You?

• They will rate you as to how they can gain
  further career advancement and personal
  development
• Seek structured learning/career development
• Starting salary of 20- 25k
• Many seek International experience and exposure
  to new cultures
• Those who did not want to join the industry had
  usually made up their mind before starting the
  course

16
Generation Why?

• They are in the driving seat they choose you
  (Eric Chester)

17
Key Points for Consideration

• They are bright, enthusiastic, confident and
  hard-working. They are demanding, international
• and committed to fast-paced careers.
• They want to be treated as an individual.
• They seek recognition and commitment.
• They are hungry for continued learning.
• They will challenge.
• They want variety, but not risks.
• You need to attract their attention quickly
  brand imaging and IT are key.
• Sport is for fitness, not for fun.
• They are international and expect their careers
  to be so.

18
What does this practically mean?
19
Questions

• What makes one company or unit successful and
  another not?
• Is it simply the product or location?
• How important are people to business success?
• In an era of faster employment movement, what
  inspires an employee to stay with one
  organization?

20
The market is changing..

• But how?

21
Key Statistics

• 590,000 leave the Hospitality Industry each year.
  Between 2007 and the Olympics in 2012, the
  Industry needs to recruit 4.3m new employees,
  including 400,000 managers.
• By 2010, there will 1.4m fewer workers aged
  25-35.
• In 2010, only 20 of the workforce will be white,
  able and under 45.

22
Statistics

• Largest growth employment market is women which
  will account for 80 workforce growth. 25 of
  these will be mothers and 12.5 single parents.
• Between 2006-2015, there will a 22 rise in those
  aged 45-60.

23
Statistics

• Average companys recruitment costs are
  increasing by 16 pa
• Salaries have risen by 17 since 2000.
• Cost of losing a good unit manager can be equated
  to 2-3X salary.

24
How do we positively engage the modern employee?
25
A Changing World

• A good manager will be approached 6-7 times on
  average per year.
• The Internet allows easy access to other jobs.
• 75 of new jobs are advertised via the Internet.
• A more mercenary employment culture.

26
A New Market

• Market has never been more competitive with more
  outlets.
• This is due to get worse as number of outlets set
  to increase by an estimated 6 in 2007.
• The good news is that lifestyles of the consumer
  has changed dramatically over the past ten years.
• If the economy went into recession, would the
  consumer still eat out and still buy coffee?

27
A New Market

• The employment market is multi-cultural.
• Companies are more process and systems driven.
• Are employees truly empowered?

28
What is the customer seeking?

• A great product at a reasonable cost.
• Great service.

29
Expectation on service levels is increasing and
yet people are harder to find.What do we do?
30
The Myth of Empowerment

• Companies are becoming more process driven and
  systemised.
• The process and system covers lack of skills.
• Managers are not as free or empowered..or even
  accountable.
• Are middle managers as motivated?

31
The Rise of the Entrepreneur

• Is British culture becoming more Americanised?
• It has become trendy to become an entrepreneur.
• The longest boom period has provided a security
  blanket for launch of many new businesses.
• Cynicism towards employers.

32
Rise of the Entrepreneur

• There are new rules
• Set up from college no need for experience
• Case study of lastminute.com

33
The longest boom period has made business
genius's of the mediocre
34
3 Key Factors

• The Internet
• The Internet allows easier access to market.
• And for smaller companies to compete with larger
  players on an almost level playing field.

35
Factors

• The Rise of the TV Entrepreneur as a Role Model.
• The Apprentice
• Tycoon
• Dragons Den

36
Factors

• Generational Change
• The need to make be a somebody
• There is huge pressure is be above average. Being
  normal is no longer enough.

37
Emerging generations are cosmopolitan in outlook.

• Will lead to
• Encouragement of multi cultural workforces
• A proactive diversity agenda

38
But there is a stress line.

• High aspirational who do not want lowly roles.
  How will the entrance of Eastern Europeans impact
  in 5-10 yrs?

39
How can you retain good people?

• What do employees want
• Training and development
• Competitive salary
• A positive work culture

40
A Positive Culture

• Good clear leadership
• An easy vision that employees can relate to and
  feel able to deliver.
• Provides a service that the customer wants.
• That is successful.
• Positive actions and behaviours from management.
• Work-life balance

41
Current working hours / 3 year aspiration

• General reduction in anticipated working hours
• 40-50 hrs
• Gen Y - now 26 / 3 years 64
• Gen X now 43 / 3 years 54
• BB now 40 / 3 years 47
• 50 hrs
• Gen Y now 22 / 3 years 20
• Gen X now 38 / 3 years 24
• BB now 37 / 3 years 15

42
Current employment / 3 year aspiration

• General reduction in anticipated working hours
  making certain sectors look appealing.
• Gen Y anticipated move out of Bars/restaurant
  sector 53 (current) to 42

43
Current Vs anticipated 3yr salary

• Gen Y
• 85 currently earn up to 25k
• 52 expect 25 29k within 2 years
• 20 expect 30 - 40k within 2 years
• Gen X
• 28 currently earn up to 25k
• 35 expect 25-29k
• 42 expect 35-40k

44
Additional Benefit preferences

• For Gen Y
• Ongoing development of primary importance
• Paid overtime, extra holidays and bonuses
  emerging as key requirements
• Private Healthcare emerging as of significantly
  less interest

45
Recruiting Retaining the Y-ers

• Traditional values of communication
• Motivate
• Demonstrate your knowledge
• Be a mentor
• Recognise
• Promotionall the way to the top

46
What is good leadership?
47
If people are coming to work excited.if they
are making mistakes freely..if they are having
funif they are concentrating on doing things
rather than preparing reports and going to
meetings then somewhere you have
leadersRobert Townsend
48
The talk talks and the walk talks, but the walk
talks louder then the talkFred Roach
49
Good leadership consists of motivating people to
their highest levels by offering them
opportunities, not obligationsLao Tzu
50
Archie Norman
51
The Business Prevention Squad
52
We have to remember that employees today do not
want to be average
53
How can we help people better themselves?

• ..and ensure that the customer is delighted?

54
Being average is no longer acceptable. People
want to buy and be employed only by the best.