Lost Generation Found

There isn’t a career damper much worse than being a young professional in a recession, much less graduate into one. You don’t have to tell us twice, this is a reality amongst our friends and peers that we experience every day.

Negative stereotypes aside, Gen Y is not growing up any slower. They’re large in numbers, and their presence in the workplace is only going to grow.  A large percentage of Gen Y is unemployed today, but in the very near future, as Boomers and Traditionalist start heading for retirement, the workforce can benefit from Gen Y’s eagerness and enthusiasm. Companies that successfully translate these attributes  into leadership and management skills are building dynamic future leaders.

Business Week cites GE’s policy on hiring during economic downturns.  GE has decided they cannot risk enduring the dried pipeline of internal talent that comes with not hiring young people.  Even if only minimum wage positions are made available, ask any newly graduated and unemployed Gen Y’er out there, minimum wage and a foot in the door is light years better than remaining unemployed.

It’s easy and tempting to lay blame. But shedding light and offering solutions companies can implement TODAY to build and safeguard their talent pipeline can enrich their investment in human capital in a new way during difficult economic times.

A dry talent pipeline can mean a few things.  First, the Baby Boomers can count on even longer delays on their retirement years.  Even the most qualified new talent will require a ramping-up period, and in many cases, its a steep learning curve. Second, last-minute scrambling can lead to sloppy decision-making and inefficiencies.  Not allowing ample time to train, assimilate and pass on important knowledge to the new young workers before the leadership torch is passed can cause an ill-equipped leadership team.  Lastly, as soon as the economy improves, many companies will face large losses of the Gen Y workers they currently employ.  Some research estimates as high as 67% of Gen Y’ers plan to search for new employment once they feel the economy has improved.  The real cost of turnover can be as high as 150%-200% of the person’s annual salary.  Many of today’s employees have turnover intentions, viewing their current position as a safe harbor job, it’s not a matter of “if” they leave, it’s a matter of “when.”  As a result, companies that should be celebrating will be scrambling (and paying) to compensate for productivity loss and to recruit replacements.

The economic crisis will most likely effect Gen Y in the long-term, whether it’s as negative as Business Week projects, we can’t be sure.  However, by not hiring Gen Y, businesses are adversely affecting the future well-being of their company.

What can you do today to ensure you retain and cultivate your future leaders?  Here are a few ideas:

1)      If you are not honest and transparent with them regarding their potential,  and what they bring to the table.  Start now.  Even top performers have a hard time believing their employers have their interests at heart, and may be tempted to seek what they perceive to be more stable employment.  A credit union employee from Portland, Oregon said, “My immediate manager tells me I do a great job, but the actions of the company speak otherwise. I definitely don’t feel my job is safe here, although I should.”

2)      If you see leadership potential, start giving them small leadership-building tasks today.  Have them shadow you on an important sales call, teach them to analyze reports they wouldn’t otherwise see, and begin to ladder leadership roles on projects or company committees.

3)      Find out what is important to them, and motivate them that way. Gen Y is typically not interested in the run of the mill corporate gifts, gift cards, or company logo emblazoned swag as incentives. Find out what makes them tick, whether it’s cash bonuses, paid time off, a better cubicle or office, and then create a method for building up to these rewards that is fun and engaging.

Read the Business Week Article Here http://bit.ly/xMmIh

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