Generational Gyrations

Entrepreneur, April, 2001 by Chris Penttila

Her boss, Sheri Phares-Moritz, 27, Concept 2000's owner, says the younger twentysomethings in her company want instant advancement, total involvement and regular bonuses. She and Hillman discuss a raise every six months. "She lets me know her worth," Phares-Moritz says with a smile. Even though the age difference isn't huge, Phares-Moritz feels light years away from her younger workers in what she's experienced in the working world. When she told her Gen Y employees that one of her first jobs in the mid-1990s had a salary of only $18,000, they were amazed. "For a whole year?" they asked.

Phares-Moritz constantly assigns official benchmarks so she's ready when Gen Yers approach her for raises. "It gives me a tool based on company policy," she says. Discussions about raises often concentrate on long-term goals and on what employees' skills are worth. "They want change right now. You try to keep them focused and tell them the money will build if they stick with it."

Rothberg says Gen Xers misinterpret Gen Y's desire for more money and responsibility early on as a signal that they want to leave. That's because the groups have different time frames for advancement. "Gen Xers want to get two to five years on a resume or they think it looks bad. Gen Yers think that if they have two to five years in one place, they're not advancing."

And Gen Y is only the tip of a very large iceberg. The Millennials-the kids of the Boomers who will be entering the work force over the next decade-are hot on the heels of Gen Y and will have even higher expectations toward work, says Bill Strauss, co-author of Millennials Rising (Vintage).

For Gen X leaders, Gen Y is just a test-run for bigger changes ahead. Raines says that as today's teens move from the soccer field to the office, Gen X entrepreneurs can expect calls from anxious Boomer parents checking in on their children's career progress. "This is already starting to happen," she says.

The challenge for thirtysomething entrepreneurs is to keep everything in perspective and to acknowledge that times have changed since they started out in the early 1990s. Chuck the dues-paying mentality, Rothberg says, and stop trying to apply yesterday's rules to today's jobs. Failing to change is counterproductive, and Rothberg has seen leaders struggle. "Some Gen X company leaders refuse to acknowledge that reality has changed," he says, "and they're having a difficult time recruiting."

MAKING IT WORK

Here are some quick tips for working with Gen Y employees:

* Explain your sense of hierarchy. Make sure your Gen Y employees understand why a hierarchy exists, and be prepared to alter your thinking. Take time to explain what kind of dues-paying is required to get employees to where they want to be in the company, and listen. Offer concrete benchmarks for advancement, and acquaint Gen Yers with business risk when discussing pay raises.

* Add responsibility. Because Generation Y wants more responsibility sooner, try to offer continuing training and mentoring. Gen Yers are enthusiastic when they feel their opinions mean something. "Gen Xers can start providing the initiative with Generation Y," Strauss says.