As we prepare for millennials taking over the workforce, we can see that changes are already in motion at established companies both big and small. Since they are not experiencing fast growth (including a high energy vibe that is like a magnet to millennials), slower growth companies will need to adapt. As the Baby Boomers continue to retire, how can these companies hire and retain the best young people to fill the gaps?
It wasn’t long ago that Yahoo was a place everyone wanted to work. While their hiring process still only allows high caliber people, the press about the company turmoil is a turnoff for many potential applicants. There are many “Best Places to Work” surveys. Glassdoor is one of the best because it encourages direct feedback from employees, which brings out the extremes (disgruntled former employees). If you haven’t checked out your company there, you should.
Older companies like PWC, P&G and GE have always been known for hiring and grooming great employees. They are also aware that they need to adapt. PWC relies on young business professionals, and they have been on the leading edge of the change. P&G is just starting to react, and will likely have difficulty hiring and retaining young professionals in the near term. GE is making significant progress on its process and image.
GE been airing TV ads (What’s the matter with Owen?) aiming to convince the young generation that there are “cool” jobs at GE. Engineer-like Owen talks about how exciting it is to work there, while the others in the room believe it is a manufacturing company. In a more recent ad, a friend runs into Owen on the street and tries to cleverly give him his resume, and there is another with singing telegrams. This is GE’s way of transitioning perception from an old stodgy company to one where young, bright engineers are trying to get in like it is a Silicon Valley startup. They even moved their headquarters from perceptively dull Connecticut to the more energetic community of Boston.
- GE is adapting its review and compensation processes to make them more millennial friendly.
- PWC has shown similar results from their internal surveys and has published this info.
- GE has moved away from the often copied best practice of annual reviews.
- GE has introduced a phone app for employees to assess both subordinates and superiors continually instead of annually.
A recent survey showed that Millennials expect to have 9 jobs in their working life, and many changes will happen in their early years. Fixed timeframe yearly reviews do not fit into that model, yet a Mercer survey showed that ~90% of the companies have a fixed date when everyone is considered for a raise. “It’s more like employees are serving tours of duty and you need to get them to re-enlist and get them re-engaged,” according to Steve Gross, a senior partner at Mercer.
To compete for bright, young, professional talent, the established companies will have to once again follow GE’s lead. Millennials are forecasted to be 50% of the workforce by 2020. This isn’t just for large companies. Small businesses can adapt to this trend quickly and compete for the best talent available as well. Many small companies have difficulty hiring, and these changes can make it much easier to get the perfect hire.