The critical care and feeding of Generation Y

Workforce, May, 2002 by Joanne Sujansky

While the recent economic downturn may have many managers thinking they are back in control of the job market, the bright young stars of Generation Y may be hiding a few nasty little secrets.

During times of economic trauma, it's easy to believe that you can stop thinking about retention. Employees aren't likely to jump ship, because there's no place to go. Actually, this notion is dead wrong. Now is precisely the time to implement innovative management techniques to retain your best employees. If you don't, you may be in for an awful surprise. Members of your staff--particularly the independent young members of Generation Y--may be plotting to split even as you read this story.

Gen-Yers were born between 1979 and 1994. They began graduating from college in 1998, and are now entering the workforce in earnest. Keeping them happy is especially important because of their workplace potential and their large numbers. Members of this burgeoning group tend to have a lot of raw energy unbridled enthusiasm, and the skills and experience of those much older. They are up for any challenge ("bring it on" may well be their motto) and have an astonishing amount of expertise in technology. Multitasking is second nature to them. They work well in team environments.

While there are about 77 million baby boomers and 44 million Generation Xers in the workforce, GenerationY will number 80 million. Their considerable volume makes retaining them a top HR priority. The oldest members of GenerationY are entering the workforce just as the oldest members of the baby-boomer generation are poised to retire. And, since members of Generation Y significantly outnumber their older siblings of Generation X, it takes only simple arithmetic to figure out that there aren't going to be enough skilled 35- to 45-year-old managers to replace baby boomers in the coming years.

Developing experienced and skilled young managers will become vital to any organization hoping to compete in the future. Given their expertise and enthusiasm, members of Generation Y will be able to meet the need, but retaining them is expected to be a real challenge. If they aren't happy at work, they won't stay.

The best approach to keeping them is to adopt a coaching style of management. The traditional "I tell/you do" school of management will not cut it. An effective coaching strategy should entail:

Developing and training people. Generation Y employees live to be trained.

Involving them in decisions. Actively solicit their ideas and contributions.

Giving them opportunities to move up. Keep in mind that one of the main reasons they are so valuable is that there will be a shortage in the management talent pool in the relatively near future.

Providing challenging and meaningful work. These young workers do not want to be bored, and they want to know how their work fits into a company's big picture.

Make sure that you balance corrective feedback with praise. Catch them doing something right, and reward them when you do. Members of Generation Y absolutely thrive on recognition.