Tag: GenX

  • Making way for Gen Y in the executive suite

    Making way for Gen Y in the executive suite

    One of the great challenges in today’s workplace is how organisations will manage Generation Y entering the boardroom.

    Lazy, unfocused and high maintenance are some of the descriptions used by boomers when talking about younger workers, but how much truth is there really in that and how do organisations plan for this generation to take leadership positions?

    As part of the recent Sydney EMC Forum, I had a chance to discuss the challenges of managing Gen Ys with social researcher Micheal McQueen and EMC Australia Managing Director Alister Dias.

    Like many tech companies, EMC has a younger workforce with around 25% of staff being GenY and Diaz sees global thinking and a fresh, bright approach as some of the advantages younger people bring to the workplace.

    “We want to see this grow,” says Diaz. “There’s two reasons for this; one is that energy level, quick learning and adaption to the new world but the other is the shortage of general talent in the market.”

    That shortage is an early part of the global race for talent, with Diaz seeing the priority for EMC and other tech companies to develop home grown skills rather than importing skilled workers.

    Offering a career

    For Diaz’s, one of the great challenges in this race for talent is retaining skilled and motivated Gen Y and Gen X through offering more diverse career options.

    Career progression is one of the big problems facing both GenY and X workers as, in McQueen’s view, the baby boomers have no intention of going anywhere as many define themselves by their work so they don’t plan to retire.

    “For Baby Boomers their work ethic is their identity,” says McQueen. “Stepping back from a leadership position, or any position in general is a big deal.”

    Not working huge hours which is a key difference between baby boomers and their GenY kids and grandkids who don’t wear long hours as a badge of honour.

    Language barriers

    An area that concerns McQueen is a lack of vocabulary as text and social media messaging has eroded the teenagers vocabulary with average 14 year old today only knowing 10,000 words as opposed to 25,000 in 1950.

    “It started off as text speak and it’s gone beyond that now,” says McQueen. “If you have a Gen Y person operating with older workers there’s often a disconnect there.”

    The effects of electronic gaming and communications also has created a climate where today’s teenagers have less empathy than those of twenty years ago — McQueen cites a University of Michigan study — this has consequences in fields as disparate as sales, technical support and nursing.

    Organisations are going to have to learn to deal with these differences.  “In our own organisation we talk about the need to adapt to Gen Y,” says EMC’s Diaz. “Personally I think we have to meet them half-way.”

    “We’ve found it difficult to get talent. You really have to do your homework on it.”

    Part of EMC’s problem in finding skilled Gen Y workers has been the collapse in university IT course enrolments along with the broader turning away from STEM — Science, Technology, Engineering and Mathmetics — related degrees.

    Diaz is quite positive on this and sees the pendulum swinging back towards more technical degrees and diplomas with more younger people taking on STEM subjects. At present though enrolment statistics aren’t bearing this out.

    Finding those skilled workers is going to be one of the great challenges for business in planning for the rise of GenY workers, one of the greater tasks though might be getting the baby boomers out of the corner office.

    Image of a younger worker courtesy of ZoofyTheJi through sxc.hu

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  • Dealing with the digital investor

    Dealing with the digital investor

    Telstra’s Digital Investor report released earlier this week looked at the generational changes for the financial planning industry and the effects of technology on delivering advice and services.

    At the core of the report is the projection that by 2030, 70 per cent of Australia’s financial assets will be held by the digitally savvy Generations X and Y and the advice industry is doing little to cater for this group”s media and reading habits.

    This is barely surprising, financial planners are one of these fields subject to arcane rules and regulations which make practitioners extremely conservative about innovation or changing work habits, even when the new tools don’t breach any laws.

    One of the nagging questions though with the report is the underlying assumptions on wealth generation over the next twenty years. Will it really follow the same pattern as we’ve seen for the last few decades?

    As the Stanford Graduate School of Management notes in its dissection of the Forbes richest 400 Americans, the path to wealth is changing.

    “Three of the 10 wealthiest people in the United States – Bill Gates, Larry Ellison, and Michael Bloomberg – built their fortunes on information technology that barely existed in the 1980s,” says the author Joshua Rauth.

    It may well be that the financial planning industry’s core assumptions, of a large, stable middle class workforce steadily squirreling away a nest egg is going to be challenged in an economy undergoing massive change.

    Another generational aspect in the Digital Investor report is the handing down of family owned enterprises. The paper quotes social analyst Mark McCrindle saying “Succession planning is already a key issue (for SMEs) – yet by 2020 40% (145, 786) of today’s managers in family and small businesses will have reached retirement age. We are heading towards the biggest leadership succession ever.”

    As this blog has described before, many of the current generation of small business owners will never pass their operation on. Their barber shops, car dealerships and factories will retire or die with the proprietor as Gen X and Y entrepreneurs can’t afford to buy the business and the owner can’t afford to retire.

    The investment climate of the next quarter century will be very different from the last fifty years as will the business models and the paths to wealth. It’s something that shouldn’t be understated when considering how Generation X and Y will manage their finances.

    Despite the weaknesses, the Telstra Digital Investor report is an interesting insight into how one industry is failing to identify and act upon the fundamental changes that are happening in its marketplace.

    The financial planning industry isn’t the only sector challenged though and that makes the report good reading for any business trying to understand how marketplaces are changing.

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