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Is Generation Y Up To the Task?
The oldest members of Gen Y are recent college graduates, just beginning to enter the workforce. Having been pushed since birth to constantly go the extra mile -- whether in school, sports, or other activities -- Gen Y is characterized as a highly-driven generation. They were also raised with open access to the Internet -- a tool that opened their eyes to the world around them, and made them more tolerant of diversity and more aware of world affairs. All of these characteristics have led many researchers to predict that the tech-savvy, innovative, and motivated Gen Y workforce will shake up the landscape of modern-day business just as much, if not more, than their boomer parents have.
Then why are employers noticing that this rising Gen Y workforce is in a constant state of flux, changing jobs -- and even entire career paths -- at the slightest dissatisfaction? It would be easy to say, "Those young people are spoiled!" or "Who do they think they are, with this na?ve sense of entitlement?!" But it's more than that. A major characteristic of this generation is that above all else, Gen Y is focused on achieving personal fulfillment in all aspects of their lives -- especially at the workplace.
Gen Y thrives in a working environment that fosters open communication, positive reinforcement, appreciation for their input, and professional development in the form of mentorship and growth potential. They also expect their careers to be portable. Having done much of their college coursework on a laptop in a student lounge or the local coffeehouse, why should they be tied to a desk all day -- or even worse, a cubicle -- as long as the work gets done?
Rather than dismissing the needs of this rising workforce as "ridiculous" or "arrogant," employers need to recognize that unless they create a working environment that resonates with Gen Y, they will lose their most valuable young employees, or lose out on recruiting them in the first place.
Thinking Creatively About Specialty Benefits
Long gone are the days when you could keep employees around with promises of a 5% annual raise, a corner office, and a prestigious title. Because a large majority of Gen Y looks at freelancing and entrepreneurship as easily obtainable fall-back options, big business needs to remind Gen Y that there is much to gain from working for the corporate sector: namely, a steady income with growth potential and benefits that provide ample work/life balance.
In the case of benefits, it is no surprise that yesterday's benefit offerings are no longer enough. Sure, the great health coverage and retirement plans appealed to boomers' traditional family values and work ethic; but to address Gen Y's need for personal fulfillment, corporations will need to start offering the full "umbrella" of specialty benefits. These include mental health management, lifestyle balance, and physical health.
Work/life balance benefits resonate so well with this up-and-coming generation because they grew up with parents, teachers, and mentors who encouraged them with phrases like, "do what you want to do," or "find the thing that really makes you happy." While some were lucky enough to major in college in a field that aligned with an internal passion, a large majority found the most joy in spending time with new friends and discovering independence. When the time came to weigh career options, for many it became less about, "Do I feel passionate about my work?" and more about "What career will allow me to pursue passions outside of the workplace, and provide me with the greatest opportunity to enjoy my life?" Aside from just offering a salary that affords a certain quality of life, the best way for companies to answer that question is with excellent specialty benefit offerings.
While specialty benefits like employee assistance programs (EAPs) and work/life balance programs are not new to the benefit scene, they are ever-evolving and becoming increasingly popular as corporations are looking to stay competitive and successful in the 21st century. Today, these offerings include greater job flexibility, assistance with child and elder care services, financial and legal advice, and continuing education at any level -- not to mention pet care, identity theft, and bereavement services. With specialty benefits like these, companies will appeal to the busy employee -- from Gen Y to boomer -- who would otherwise be forced to use company time looking for resources to address general lifestyle issues.
Tori Barr, vice president of corporate relations for an international specialty benefits firm, explains how specialty benefits appeal to the Gen Y "plug 'n play" approach to getting help: "Gen Y is much more open to using resources than previous generations. They like the idea of being able to shoot an e-mail to us and get an immediate response, individually tailored to their specific needs. It's like Nintendo. They're used to getting a reward for playing the game."
Something Extra: Concierge Service
A great expansion on standard specialty benefit offerings that appeals to the "lifestyle first" priority of Gen Y is what we call "concierge" service. While Gen Y is a dedicated workforce, willing to put in the hours each day to get the job done, they also want to look forward to their personal time. For many of these employees, nights and weekends become the only time to tackle that long list of personal "to do's." Concierge services offer each employee a virtual assistant for anything, from help with moving and car maintenance and repair services, to finding a unique birthday gift for a friend, or getting the best tickets for the hot show or concert in town. If there is enough demand, companies can also consider making certain concierge services available on-site, such as car wash, dry cleaning, and banking.
Erin Judy, a global sales vice president for a specialty benefits firm, affirms the increasing popularity of concierge services. "While our EAP services are ranked eighth largest in the nation, work/life benefits make up more than 25% of my company's revenue," she says. "I expect concierge services to account for about 10% of revenue by 2008." Each individual service may seem like a minor employee incentive, but the collective offering of concierge services speaks volumes to the rising Gen Y workforce, which is trying to maximize every minute of personal time.
Employers also can tap into the healthy-living values of Gen Y by offering a comprehensive wellness program. Today's best wellness programs offer a broad spectrum of services, including personal trainers, exercise coaches, attention to prevention, disease management, the Cell Phone Diet, assistance in quitting smoking and other bad health habits, and numerous other offerings. These programs not only enhance the physical well-being of all employees, but also serve as a great tool to combat the steady rise in health insurance premiums -- a win-win for both employer and employee.
Time to Revamp Plans
Specialty benefit offerings are clearly one of the best incentives employers can use to attract and retain the Gen Y workforce. Not saddled with the rules and regulations that accompany health insurance and workers' comp plans, vendors have created a vast array of new specialty benefit offerings and channels to market and engage the younger generation of workers and their families. Now is the time to revamp yesterday's benefit plan. The corporation best prepared to meet the coming talent famine will demonstrate its ability to reach the Gen Y population while balancing the needs of its Gen X and boomer employees. This is the edge that may make the difference between success and failure as corporate America enters this brave new world.
Best-selling author Ann D. Clark, Ph.D., is an accomplished motivational speaker, lecturer, and commentator. Founder and CEO of ACI Specialty Benefits, a global provider of employee assistance programs, work-life, concierge, and wellness services, Dr. Clark was named one of San Diego's "Women Who Mean Business" by the San Diego Business Journal and received the "Bravo" award for excellence from the National Association of Women Business Owners.
