A major survey of more than 4,000 graduates and accompanying report released today by PwC, reveals the priorities of the population that will form 50% of the workforce by 2020.
- Training and development and flexible working hours seen as the top two perks
- 72% say they have made some sort of compromise to get into work
- Over 40% prefer electronic communication over face to face or verbal communication
- Majority haven’t thought about how to fund their retirement, but only 4% expect to work beyond retirement age
Training and development and work/life balance are the most popular benefits, way ahead of cash bonuses, to ‘millennials’, the group of graduates born between 1980 and 2000, according to a new PwC survey and report launched today.
22% of survey respondents said that training and development was the ‘benefit’ they valued most from an employer, followed by 19% rating flexible working, while cash bonuses ranked in third place (14%). Only 4% said they would prefer no benefits and higher wages.
These findings are taken from the report ‘Millennials at work, reshaping the workplace,’ which is based on analysis of the attitudes of over 4,000 graduates across 75 countries. The report aims to provide insight into the minds of new graduates from around the world entering the workforce for the first time.
Jon Andrews, partner, PwC said:
“Millennials want more than ‘just a job’. They expect rapid progression, a varied and interesting career, and constant feedback. What they want might shift as they move through different stages of life and their commitments change, but this group is characterised by their ambition and optimism as they look at more than money when there’s an offer on the table. There are significant implications for employers as they need to adapt to ensure they remain attractive to this new workforce.”
Loyalty-lite?
However, the report suggests that millennials are adapting as a result of the current economic downturn in many parts of the world, when compared to a similar report in 2008.
Millennials are practical about the tough economic conditions. 72% said they had made some sort of compromise (for example, salary, location, benefits, choice of industry) to get into work – which should herald a warning for employers that voluntary turnover is almost certain to increase once economic conditions improve.
A quarter of respondents also expect to have six or more employers in their working life with only 18% said they planned to stay in their current role long term.
52% say that the main attraction to an employer is career progression. This comes ahead of competitive salaries at 44%.
Jon Andrews, partner, PwC said:
“Employers need to work harder to understand this generation and appeal to their needs to make sure they keep them when market conditions improve. However, employers may also need to accept though that a rate of ‘millenial churn’ is inevitable and build this into planning.”
A techno-generation avoiding face to face time?
PwC’s report suggests that technology dominates every aspect of millennials lives, and 41% say they prefer to communicate electronically at work than face to face or over the telephone.
The use of their own technology is routine at work and three-quarters say that access to technology they like to use makes them more effective at work.
The relationship with technology can be a catalyst for conflict. 40% said of millennials said they felt their use of technology was not always understood.
Jon Andrews, partner, PwC said:
“Employers are already changing their IT policies to appeal to millennials, for example, making smartphones available as an employee benefit or encouraging business-focused used of social media. It may be difficult to accept but this generation may teach employers more about technology and its use that any formal learning programmes. For organisations, capturing this technology insight may be critical to their future success in the market place.”
Optimists
Millennials in the UK are less optimistic than their global peers about how they’ll fare financially compared to their parents generation. Globally, 67% expect to be better off than their parents’ generation while in the UK, 51% expect to be better off financially.
55% of UK respondents said they hadn’t thought about how they would fund their retirement, but only 4% think they will continue work beyond retirement age.
Jon Andrews, partner, PwC said:
“In their early years of work millennials aren’t thinking about retirement plans but this is a double-edged sword. On one hand insufficient early planning for retirement has created a time bomb for the UK, on the other with the state retirement age for this generation projected to rise to 70, they have plenty of time to prepare.
Intergenerational conflict
Millennials are comfortable working with older generations and value mentors, but there are signs of tensions. 38% of millennials say that older senior management do not relate to younger workers and 34% say their personal drive was intimidating to older generations.
Jon Andrews, partner, PwC:
“Managing the very different views and needs of a diverse workforce that may cover a range of generations, from baby boomers to millennials – is a challenge.
“This is going to get more interesting for managers too, as workers work longer we’ll see 70 year olds working alongside 25 year olds.
“Employers need to work on bringing generations together around a common goal– managing a multi-generational workforce demands strong leadership, recognition of different styles and a transparent performance management system that clearly demonstrate how performance is rewarded.”
A major survey of more than 4,000 graduates and accompanying report reveals the priorities of the population that will form 50% of the workforce by 2020.
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