Talking Talent

It’s no good saying what a great place your organisation is to work if a Google search then throws up a hate website, manned by disgruntled ex employees.  It’s no good talking about commitment to corporate social responsibility if you polluting a river, or using sweatshop labour in a third world country.

Workers want to ensure they are a cultural fit and aligned to the objectives of the organisation. The person who answers the phone, conducts the first interview, the look and feel of the office and staff in the office will all say something about your firm.

It is important that the recruitment and retention processes line up and that what a worker hears and sees through the multiple touch points they have with the organisation are consistent with what they will find as an employee. This is particularly pertinent for Y Genners. They want honesty and truth in what they are told. Don’t tell them how it will be - tell them how it actually is.

Gen Y employees will relate to a compelling vision, especially if you will take the time to ask them about their values and ambitions and show how the two are aligned. I think this equally applies to other generations and it is up to us as employers to give their work meaning. It is we who must create the psychological bond between employer and employee.

We also know that Y Generation expect and require a lot of feedback, and in a more personal way than either Baby Boomers or X Gen. Y Genners have received it from parents, teachers, nannies, music teachers and sports coaches. I often tell client managers that Baby Boomers created the Y Gen monster; they crave attention and recognition and now it is our job to give them that feedback in the workplace.  And they do not like negative feedback, so be prepared to take a less robust approach than you may have with a Baby Boomer.

A word of warning, however: if you ask for suggestions or comments, be prepared to listen. Y Gen will get tired of employers who pay lip service to their ideas. Workers join organisations and leave managers and it is fair to say that we have a way to go in developing leadership and helping your managers to cope.

Australia has to face up to its demographic destiny.

The age profile of the world is changing. While children and the middle aged currently dominate the percentage of population in most countries across the world, this will dramatically change over the next twenty years.  The 50+ group will catch up with the kids by 2020 and the proportion of 17-24 year olds is in decline, as is their absolute number within the world’s population.

So while we continue to talk about a skills shortage we are actually talking about a population issue and a distribution of labour across the nation and the world.

The recent release of a survey by the Australian Industry Group highlights the impact of the skills shortages on Australian businesses. In the survey, CEOs who were interviewed talked of how it is increasingly difficult to attract and retain the skilled workers required to survive and prosper in today’s economic climate.

Furthermore, skills shortages are starting to restrict the ability of Australian firms to innovate and improve their business models and functions. And we know that technology-led innovation delivers almost all productivity gains in industries – for example over the last decade 85 per cent of all productivity gains in manufacturing and 78 per cent in the services sector came from the application of technology solutions.

I’ve just joined Julia Ross after spending two years leading the Australian Information Industry Association – the lobby group for the computer industry in Australia.  From experience, I know that every year brings new challenges for the ICT industry and those employed in it - and 2008 is no exception.

Global economies are showing signs of weakness giving rise to speculation about the sustainability of the Australian economy. The depth of the sub-prime finance within Australian financial institutions is not fully disclosed and the impact therefore is not understood. The threat of recession in the US even after injections of money through interest rate decreases, tax cuts and superannuation have proven to be inadequate to ally fears.  China remains a critical trade partner to ensuring that Australia’s growth will slow but not decline dramatically. 

Consumer confidence is weakening. The Westpac Melbourne Institute Index of Consumer Sentiment fell below 100 in February, which indicates that pessimists now outnumber optimists. As the famous song goes “don’t wish too hard for what you want ‘cos you might get it.”

And if obesity is the result of an affluent lifestyle, the skills shortage is the outcome of a robust economy and high client demand. The ICT industry in Australia, for example, is a cyclical one with peaks and troughs that largely align to the demand for client projects - particularly large government projects and to economic cycles.

Enrollments in tertiary ICT courses are half of what they were in 2001. More than that there is continuing discontent about the workplace capabilities of graduates and a disconnect between industry needs and the perception of ICT as a career among young Australians.

The industry still suffers from the view that it is nerdy and full of spotty faced youths reinforced by those quirky folk on the BBC show called the IT Group, or Douglas Copeland’s book jPod, or evidence from my daughter who is doing Commerce and IT at ANU tells me is largely true.  But is it?  You tell me.

When asked about the impact that Baby Boomers leaving the workforce would have on the US economy, Bill Clinton replied, “they are the economy.”

From the time they were born, Baby Boomers have dominated the economy and the organisations that make it up. Currently they run the majority of ASX listed companies, boards and government departments. They entered the workforce with full employment and huge demands for their services and right now, at the tail end of their careers, they are still the topic of conversation (retaining mature workers) and are in demand for their skills and experience.    

There is no doubt that some subtle and often unspoken age bias still exists in today’s public and private sector organisations. Even though there is no research that proves any limitation by age, stereotypes about the learning abilities of older people persist in our society. A recent survey by Adage (a company that specialises in finding employment for mature workers) found that managers in 124 companies believe older workers are more expensive and less productive than younger workers and have less technological ability.

This perception is a roadblock for organisations who need to work with managers to ensure that they embrace the age diversity available to them and acknowledge that it is reflective of the population and the clients that they will serve.  It is also at odds with the social representation of Baby Boomers. Do not say ‘old’ to a Baby Boomer! They do not think of themselves as pensioners now or in the future.

Indeed, they believe they invented adolescence and in many respects they are aspirational Y Genners – they buy iPods, have piercings and tattoos, indulge in extreme sports and wear the same clothes as their children. The Australian Pensioners’ Insurance Agency recently changed their name to APIA – evidence that they would be unable to attract their target demographic - over 50 year olds - if they had an uncool name.

So, what do you think?  Was Bill Clinton right?  Are Baby Boomers THE economy?

On Friday, I looked at what makes Generation Y workers tick.  If you’re a Generation Xer, do you ever feel completely left out of generational discussions?

If you do, it’s not surprising, as X Genners are the generation lost in space – between two generations that are in high demand for their skills. Only 40 per cent of X Genners said it was easy to find a job when they left school or university, while 60 per cent of Y Genners said it was.

X Genners saw their parents’ jobs downsized, rightsized and outsourced in the early 1990s and decided that loyalty did not deliver on its promise. As the first generation of latch key kids (and feeling that they received a raw deal because of it), they are also very focused on achieving balance in their work and family believing they will be better parents.  

X Genners are also caught between a generation who will not retire and give up the control of senior positions and a group of young workers who are demanding rapid promotion to senior roles.  

They could be a generation who don’t have the full opportunity to climb the corporate ladder either serially in an organisation or laterally by moving in and out of organisations and industries - a career path we will allow Y Genners to have.

Does that sound like you?

It is often said that youth is wasted on the young.

This may be true, but the future is all theirs. If Gen X left school or university wondering if they would find a job, Y Gen are in no such situation, with more jobs than candidates available at every level of employment.  The biggest dilemma for organisations across the world is how they will compete for a decreasing pool of young people who still provide the backbone of new talent for organisations. 

Technology savvy Y Genners are hardcore online browsers of opportunities, possibilities and experiences. A job is just one of countless choices they have. For this group organisational loyalty is fading, the work ethic as we know it is dead, permanent employment went out with the twentieth century and long service leave is something they simply do not understand.  Because work is not viewed as an investment in the future with an organisation, they want immediate payoffs from the workplace.

Given the variety of choice, this generation likes to keep their options open. They know that making a commitment to a specialist skills path for example closes down options that may be more exciting. Which is why 60 per cent change their university course in their first year; they do not complete apprenticeships and more of them seek generalist and most often double degrees in order to expand their job options and prolong the moment of decision making. When they take a job they are three times more likely to change in a year than baby boomers and one in four do.

This is a generation that is both exciting and frustrating. Frustrating because they flaunt what we think are entrenched behaviours. They resign by SMS and see no reason to serve out a period of notice.

However they are also the most flexible, multi-skilled and multi-tasking generation ever.  Yes, even the boys. They are at ease with technology, diversity, complexity and uncertainty. If Gen X wanted to know what you will do for them next week, Y Generation want to know what you are going to offer them right now. Baby boomers were willing to wait much longer for their organisational rewards. Y Generation, on the other hand, are commitment phobic - they will not be lured by promises of climbing ladders, paying dues and cashing out at retirement.

They want you to answer the question for them: what value can I add today? What can I learn today?  What reward will I receive today?