Workforce Management Featured Article

How Millennials Are Already Changing Workforce Management

Millennials, those between the ages of 18 and 34, maybe be disproportionately out of work right now. But don’t let that fool you—they are a force that can, will and is changing workforce management even if some of their influence is wrongly attributed to Internet culture.

The Millennial generation took it on the chin with the recession--due largely to its age--and unemployment for some of the younger members of the cohort is as high as 16 percent, more than twice the national average. But despite those bleak numbers, 36 percent of the American workforce currently is made up of Millennials—and that percentage will rise to 75 percent of the workforce by 2025, according to workforce expert Dan Schawbel in a recent Forbes article.

With that kind of representation, businesses need to understand how Millennials differ from other generations when it comes to work habits and perceptions. The Internet revolution and the economic downturn might be masking some of the effects of the Millennial generation, but it is clear that they are transforming business and workforce management--and will continue to do so in the coming decade.

It is therefore necessary for businesses to understand the Millennial generation if their workforce management programs are going to be a success. Right now it is useful, later it will be essential.

One of the most important aspects that businesses need to keep in mind when it comes to managing a workforce with Millennials is that meaningful work matters. Money and titles still are important, but the younger generation is not as much worried about survival and material success. Having meaningful work is important, according to Schawbel, with 30 percent saying it is vitally important while only 12 percent of managers indicated the same.

Transparency and collaboration are vital, too, for Millennials. Opaque business processes and arbitrary decisions will not suffice for these workers, who want to be included and distrust decisions made in the dark. Schawbel wrote that 74 percent of Millennials prefer to collaborate in small groups. When it comes to workforce management, this means role clarity and clear decision trees are essential.

Which goes to a couple other traits of the generation: They care less about corporate hierarchy and education, instead valuing results. Education matters less for this group than what a person actually has done in the work domain, and a boss is only as powerful and commanding as his or her ability to lead effectively and demonstrate effectiveness. So businesses need to understand that “arbitrary” does not go over well with this cohort.

Some might thing this makes the generation harder to manage, but really all it means is that workforce management programs cannot take shortcuts. There must be buy-in from employees of this generation.

Image via Shutterstock.

Neither does annual performance reviews go over well. Just as real-time analytics can mean constant performance adjustments, so too do Millennials want constant feedback on their work so they can keep adjusting in their job. It is easy to see this outcome from how easy information now flows as a result of the Internet.

Internet-based communication and mobility also has led this generation to understand the value of telecommuting. Schawbel cites research that shows that 87 percent of Millennials believe video had a significant impact on business results, and videoconferencing is just as viable and often preferable to in-person meetings. Research by Schawbel found that 92 percent of Millennials already work remotely, and 87 percent want to work to their own clock instead of a 9-to-5 fixed schedule. With it expected that 42 percent of the workforce will be working from home within the next decade, it is clear that Millennials will lead the charge. This highlights that any workforce management program ready for the future must be able to handle remote workers.

So businesses need to recognize that the Millennial generation is big and definitely will bring changes to how employees are managed. Businesses need to be ready for this shift. Those that embrace the group will find themselves both more nimble and better able to manage their employees.