Gen Y, Which Will Rule the Global Workforce Tomorrow, Takes Lumps Today

Today's economic mess is a watershed for workers in every age bracket. But for Millennials (aka, Gen Y) - those born from about 1980 to 2000 - this crisis is more than a time of joblessness. It coincides with their coming of age, setting the blueprint not only for individual lives and careers but for a new era in the global workplace.

Right now, recession-driven unemployment numbers don't look good for young job hunters around the world. Jobless rates have skyrocketed to as high as 24% for the youngest in Australia's job market, and they're up to 12% for that age group in the U.S. In Colorado alone, current unemployment rates for young people have increased by 66%.

These numbers might be driven, in part, by employers who are reportedly hiring more seasoned workers to cut training and development costs for new entrants to the workforce. Gen Y's slow response in crafting strategies to overcome a poor job market might be another contributing factor (Harris, 2009; Tahmincioglu, 2009).

As a result, fast-tracking career plans for most young people appear to be thrown into reverse. Instead of engaging in job hopping, many are simply trying to hang on to what they have. A 2009 survey from Experience Inc., which is an organization focused on Generation Y recruitment, found 67% of 1,650 young respondents saying that, in the interest of increasing their job security, they plan to hold onto their current job by extending their work hours (33%) and taking on more job responsibilities, including helping their fellow workers (30%).

In fact, as many as 44% ranked job security above career-advancement issues, and 35% are not counting on as many career openings as in the past ("Gen Y Insights," 2009). In addition, younger workers responding to a Randstad online poll were more likely than older respondents to say they would do something to impress their bosses: take on additional work and responsibilities, work overtime and stay late or come early to show extra face time, for example (Laff, 2008).

Reaction to the plight of young people launching careers in the middle of a recession has varied. Some older workers exasperated with Gen Y's perceived impatience, sense of entitlement and unorthodox work styles have expressed a bit of "serves-them-right" schadenfreude. Organizations may also be relieved to see improved retention for new young hires, even as they employ more older workers as a short-term fix for retaining knowledge. But forward-looking planners, who emphasize the potential of Millennials - their ability to multitask, master tech-driven projects and organize for efficiency - are concerned about delayed skill, leadership and career development for this generation.

Some experts suggest that employers should actively hire and train young workers now in anticipation of ballooning talent and skills demands when the recession ends. They argue that passing over younger candidates and excluding them from training and career tracks could leave organizations severely short-handed, as waves of older workers are bound to leave during an economic upswing. Considering the current economic volatility, hiring students and recent graduates for short-term and part-time assignments, they say, is a less risky, more cost-effective way to maintain essential operations while building teams that will have enough experience to handle a rebounding economy ("Get Your Workforce," 2008).

This strategy would dovetail with Millennial enthusiasm for growth and development, says expert Tamara Erickson (2008), who asserts that many objections to Gen Y behavior in the workplace are misguided. Their push for constant feedback, for example, is more about development and growth than neediness, she says. Rather than resisting, criticizing and devaluing Gen Y behaviors, many recommend using Gen Y efficiency skills to optimize organizational change (Healy, 2009). Others point out that multitasking is "second nature" to Gen Y, so allowing young workers to mix work time with occasional personal texting and Internet surfing is actually good for productivity ("Status Update," 2009).

While young people continue to express optimism about their career prospects, coaching expert Marshall Goldsmith (2008) counsels them not to take a sabbatical from career-building during the downturn. On the contrary, he says, they should strive to become "tougher," by continuously honing and upgrading their skills while developing the entrepreneurial mindset needed to compete in a global marketplace. During a recession, successful entrepreneurs rely on innovation, flexibility and efficiency - talents and skills that Goldsmith says will be increasingly necessary for young job seekers who want to compete globally (Gergen & Vanourek, 2008). Globalization, he points out, has created a new set of rules in which more and more highly trained international candidates will be competing for the best jobs.

Generation Y is the first truly global generation, says Erickson (2009), and it comprises a third of the world's population. Connected by advancing technology, young people on every continent share common values and a similar sense of what the future holds. Just 5% of more than 4,000 recent graduates from 44 countries responding to a PricewaterhouseCoopers survey said they expect the government to look after them in 30 to 40 years. More than half said they expect to rely on personal savings and investments (Schofield, 2009). If they are right, Millennials will be major workplace players very soon. Organizations that develop strategies for effectively accepting and integrating them into their workforce now will be a step ahead of the game.

Documents used in the preparation of this TrendWatcher include the following:

• Erickson, T. (2008, November 25). The double meaning of "feedback." Harvard Business Publishing. Retrieved from blogs.harvardbusiness.org
• Erickson, T. (2009, February 18). Wise words about work for Generation Y. The Globe and Mail. Retrieved from globeandmail.com
• Gen Y insights: Gen Y bullish with attitudes on the economy, education and careers. (2009). Experience, Inc. Retrieved from http://www.i4cp.com/4bEMby
• Gergen, C., & Vanourek, G. (2008, August 26). Why entrepreneurs love a downturn. Harvard Business Publishing. Retrieved from blogs.harvardbusiness.org
• Get your workforce "right" in a volatile world. (2008). White paper. Brill Street + Company. Retrieved from brillstreet.com
• Goldsmith, M. (2008, October 27). In tough times, young workers need to toughen up. Harvard Business Publishing. Retrieved from discussionleader.hbsp.com
• Harris, P. (2009, March 14). Generation Y enjoys a last hurrah before recession hits. Guardian News and Media. Retrieved from guardian.uk.co.com
• Healy, M. (2009, February 22). Generation Y wants it now. Globe and Mail. Retrieved from theglobeandmail.com
• Laff, M. (2008, December). Gen Y proves loyalty in economic downturn. T+D, 18.
• Schofield, W. (2009, February 1). Generation M. The Moscow Times.com. Retrieved from themoscowtimes.com
• Status update: Why ask Gen Y? (2009). White paper. Brill Street + Company. Retrieved April 20, 2009, from brillstreet.com
• Tahmincioglu, E. (2009, January 16). Under 30? Looking for a Job? You're not alone. MSNBC.com