Perhaps one of the more lasting ways that Millennials will shape our culture is the way that they think about their lives, career and work.
Where Boomers thought of career in terms of one or two employers and a series of jobs with increasing responsibility and pay, Millennials think of their career as something more personal and proactive.
Employer reputation and work environment matter greatly to Millennials because it shapes their personal brand. They are focused more on the skills and mentoring they will receive than managerial responsibilities and career progression. As a result, they show an unwillingness to ‘settle’ for something less, even in this tough economic times. The New York Times controversially reported the case of Scott Nicholson, a 24-year old 2008 college grad who turned down a $40,000 a year insurance job that he felt would be a ‘dead end’ (“American Dream is Elusive for a New Generation“, July 6, 2010)
As far back as 2007, this new way of thinking was well described in an piece for NASA on the new Gen Y worker. After outlining the basic characteristics of Millennials’ upbringing and outlook, the author, a Microsoft consultant, reaches this conclusion: organizations need to adapt to Millennials new views rather than try to reorient them to ours.
These characteristics create new challenges for managers. Because of the magnitude of the shift from baby boomers to millennials, it is unlikely that organizations will successfully reorient the millennials to what has come to be considered a traditional work ethic; rather, the workplace will need to adapt to the attitudes and needs of this generation….Millennials consider their knowledge and skill more as a source of employment mobility than of career growth. Many see their knowledge as personal and portable, not organizational and collective. When it is communal, it is very communal, openly shared across their networks without regard to boundaries….
Top-down or command-and-control methods will prove less effective for the next generation, but millennials can be brought together for a mission they consider meaningful. Defining the mission, and remaining flexible enough to refine and redefine it, will create an environment in which leaders will emerge. Millennials with effective skills that include leadership abilities will emerge as leaders in projects despite aversion to a long-term commitment to management as a career.
About the same time, my research firm, Brand Amplitude conducted proprietary research among young professionals about their work lives and careers and reached similar conclusions. Here’s an excerpt from the report:
“Relationships and corporate cultures are especially important to Millennials. They want want to feel cared for as individuals — not just employees. In short, they want mentors, coaches and teammates – not just bosses. “The whole concept of ‘reporting’ to people is very parents’ generation… [we] are more team focused.” Participants expressed more loyalty to the people they work with than to their company. As one brand manager put it, “I feel connected to the people I work with, not necessarily the company.” Another said, “People make everything worth doing.””
A common perception about Millennials is that they aren’t very loyal. Yet when we probed about workplace loyalty, we heard many say they would like to be loyal, but only to companies that ‘earn’ their loyalty. Millennials feel their parents’ generation was loyal to a fault. Millennials believe they have more options, so they insist they will only stick with a company that earns their devotion. “My company doesn’t realize that their most qualified people can and will leave for a better work environment.”
Today, there are many consultants and speakers who specialize in helping firms attract and retain Millennial workers, manage multiple generational workforces and train employees to respect generational differences. No doubt this is necessary and helpful. Yet, how much of the disconnect could be resolved if companies took the advice of the Microsoft consultant and look at work the way Millennials do, as a means to shaping their personal brand?
Gen Y wants to manage their career proactively, in the same way a brand manager approaches a product, by determining the desired identity and carefully selecting associations and experiences that will allow them to reach their goals.
That goal increasingly means a ‘slash’ career or succession that combines different skills and abilities rather than becoming singularly focused on mastering just one thing. The metric is different, too. It’s not just about the money, it’s about meaning and pleasure and the intangible of ’brand value’.
I have written about Rebecca Denison before in this blog, a young Gen Y marketer and member of our Super Consumer community. Rebecca helps companies measure their brands for Edelman in Chicago. Today she turns the tables and talks about how to measure a ‘personal brand’. Rather than rely on the usual metrics of Twitter followers, blog subscribers, or page views, Denison suggests these more “meaningful” goals and measures of personal brand strength.
Goal: Connect and build relationships with other PR professionals and those interested in measurement. Metrics:
- Number of folks added to my “Measurement” list on Twitter
- Number of LinkedIn connections made with others interested in measurements
- Number of conversations per week about measurements
Goal: Find more ways to build friendships in Chicago. Metrics:
- Number of friends added to my “Close Friends” list on Twitter.
- Number of clubs and organizations discovered.
- Number of people I know I can count on in a pinch.
Goal: Become a measurement resource for others. Metrics:
- Number of recommendations received on Twitter.
- Number of guest blog posts written about measurement.
- Number of times per week I’m asked for advice about measurement.
The Millennial vote pushed Obama into the White House almost two years ago, helped by a remarkable alignment of values (optimism, change, yes we can), savvy online fundraising and Millennial-targeted marketing. Young voters went for Obama 2:1 over McCain in an election that appeared to signal a generation-long political realignment.
Twenty-three million young adults voted in 2008. Today there are even more Millennial voters, but early indications suggest the Gen Y vote will not be as unified as in 2008.
- NYT data through July 2010 (left) shows Gen Y is not as keen on either the Democrats or Obama as they once were. Just 50% of those born after 1981 approve of the President, down from nearly 3/4′s in early 2009.
- Pew Research data through April 2010 shows that the bounce Obama gave the Dem’s in terms of Millennial party affiliation (again defined as those born post-1981) has reverted to pre-election levels.
I tend to doubt Millennials will move to the polls in November to express their unhappiness, as they tend not to be a generation given to loud complaining or extremes. But there is evidence that, like many older Americans, they are unhappy with the economy, and worried about their ability to afford the current government spending spree.
CNN reported today that young investors are becoming much more conservative than they were 10 years ago. In fact, young investors today are more conservative than any other generation. Just 22% of investors under age 35 say they are willing to ‘take a substantial risk’ with their investments, down from 30% in 2001 and the lowest of any age group. Normally this is a group that is most willing to take risk as they have time to recover should something go really wrong. The data suggest they think things have already gone really wrong and aren’t optimistic about near term recovery.
The WSJ reported last week that non-college educated Millennials are especially stressed, both financially and socially. In an article titled “The Generation That Can’t Move Up” (9.3.10), the Journal uses compelling statistics paint a bleak picture of working class young adults who are increasingly constrained in their life choices, delaying marriage, having more children while co-habitating due to a lack of confidence about their ability to maintain steady work, and dropping out of religious traditions faster than their college educated peers. The article, written by a sociology professor and the director of an research institute on marriage, concludes this way:
“What happens, then, when the job-market conditions that once allowed most high-school educated American to connect tot he rest of society through hard work, marriage and religious participation no longer exist? Will working-class young adults begin to devalue marriage and religion, or will they fiercely hold onto these ideals because their values are all that they have left? Will their social disengagement leave them vulnerable to political appeals based on anger and fear?”
Statistics like these suggest that the Democrats have some work to do if they want to maintain their edge among young voters. Obama and his advisors would do well to investigate how to re-engage young voters with messages that resonate with Gen Y issues.
At the same time, Republicans have an opportunity, but to capitalize on the disillusionment, but it will require more than running against the status quo. They must articulate what they are for and how it will benefit young Americans directly.
Attack ads, which are likely to be a standard tactic this Fall for both parties, are unlikely to do anything than drive further apathy and distrust among Millennials. In fact, Millennials are distrustful of extremes. Research by Millennial-research firm, Civic Sciences, revealed they tend to shy away from even the polar ends of rating scales. And they don’t like it when advertisers bash their competition, so why would they find negative political ads compelling?
As the Obama campaign proved two years ago, Millennials will respond to positive approaches and new ideas.
A report by the research group, AmericanProgress.org, details the results of a survey on Millennial attitudes toward government. They conclude:
Despite their relatively positive outlook [toward government], though, Millennials do share their elders’ concerns that the federal government is often poorly managed and spends money inefficiently, the survey found. Young adults are particularly receptive to a reform agenda that would strip wasteful spending and focus on improvements in the delivery of government services. Millennials will reward politicians who adhere to these principles with their votes.
Sometimes it's hard to tell what is the product from the marketing.
Today’s post is not about Millennials, it’s about the impact they are having on marketing.
According to a survey of marketers by Pivot, the sponsor of Pivotcon, Millennials (defined as 18-34 year olds) are the primary or secondary audience for 75% of marketers. That’s huge. What’s more marketers recognize that Millennials have unique characteristics that need to inform their marketing.
- 70% of marketers consider them to have a shorter attention span
- 67% consider them to have different motivations than previous generations
- 59% consider them to be less accepting and more questioning of marketing messages in general
Millennials and social media are having a profound affect on the way marketers think about marketing. Their indifference to traditional paid communications and promotions is forcing a re-evaluation of our approach to marketing’s very role and function – how to best serve customers.
“Marketing offers a powerful perspective on how to sense, serve and satisfy the needs of others.” – Philip Kotler
Effectively meeting the challenge of social media requires more than incorporating a few new ideas here and there, or hiring a digital agency. It’s not about finding a better ‘campaign’ or more relevant positioning. It requires a radical shift in perspective.
Re-reading Bob Gilbreath’s book, “The Next Evolution of Marketing” this week provided me with an ‘A ha!’ moment: Marketing is the product or service.
What if we stop thinking about the product as something to be ‘marketed’ and started thinking of marketing itself as the product or service? Instead of creating products and services and then creating ways to market them, what if we think about marketing as the thing to be created? The alternative – thinking about marketing as something separate and performed by separate teams – misses the point that it is the marketing that adds the meaning, not the product.
Are the thousands of free app’s marketers are creating a service? Of course they are, even if consumers don’t pay for them. Is the entertainment value provided by the Old Spice team of value even if someone never buys the body wash? Is Ben and Jerry’s effort to “Help the Honeybees” a product, a service, a marketing program or all of the above?
This reframe has profound implications for how we staff, organize and manage the marketing function.
There’s a lot more to creating an ongoing service than to creating an ad campaign or web site. This insight helps explain why internal marketing teams and specialist agencies (like PR and applications developers) are more likely to be charged with developing social media programs than traditional ad agencies. If you think about it, the process of creating marketing programs has more in common with product development than the traditional ‘creative processes. For example:
- Creating experiential, social media or cause marketing programs taps the same skills that marketers use to create a line extension or new service.
- The skills required to manage marketing programs today, especially social media programs, are closer to what a brand manager does than what an account exec, PR manager or ‘creative’ person does.
- Constant innovation is required because marketing programs have lifecycles, just like products do; programs are launched, nurtured, and when they show signs of maturing, a decision must be made whether to reinvigorate or retire the program.
When you think about the skill sets involved in creating a constant stream of relevant content, it really is more of a process than a project. Once started, it doesn’t have an end point, which is why companies are rightly taking it slow and testing the waters before jumping in. They don’t want to start something they can’t sustain. It requires internal resources, not just hiring an agency.
The shift to earned media from paid means quality of content is now a key differentiator. According to David C. Edelman of Edelman Communications, brands need to think of themselves as ‘publishers’ of ‘content and applications that help consumers buy and bond with the brand’. (“Publish or Perish”, Forbes, 8.4.10)
In short, meaningful content and ‘add-on’ services are the product. We need to start thinking of them that way.
“I want to say one word to you, just one word. Are you listening?”
“Yes, I am”
“Plastics.”
In just :58 this scene summarized the angst of a generation. But what if Ben had actually used this insight? Plastics indeed were the future, and it didn’t take a crystal ball to see it.
By now, we all know the rationale:
- Millennials are a bigger cohort than the Boomers. They have massive aggregated spending power that will grow and grow over time.
- Millennials have disproportionate cultural influence, what they like, we all like sooner or later.
- Millennials think differently. They want different things and that means they will spend differently.
My question is, how do we take advantage of these insights right now?
- What are the future needs your business can be planning for today?
- What businesses are worth investing in now?
- What skills will your company need tomorrow?
- If you are a Millennial yourself, which industries will offer the greatest growth opportunities?
I am concerned that many companies are not doing enough to answer these questions. Seeing the future is difficult. Extrapolating current trends is not.
One company that decided to embrace the Millennial future 6 years ago is Chicago caterer, Tom Walter of Tasty Catering. According to Walter, ‘fighting fire with fire’ was one of the wisest decisions he’s made. Here is how he described the situation and results to BNET (“Handing Over My Company to Millennials Helped It Grow” 8.31.10).
Six years ago we did something radical (for us): We decided to skip a generation and hand the reins over to the youngest employees in the office, the Millennials. And we’ve never looked back. Last year, at a time when much of the catering industry was struggling, we turned a profit from annual revenue of $5.3 million. We have better name recognition, better internal communication and we’ve developed a much stronger corporate culture — all because we looked to the next generation.
Boomers don’t make corporate catering decisions anymore — their administrative assistants do, who are more often than not Millennials. Once we figured out that the demographics of our core customers had changed, we did what any self-respecting business owners would do — we went out and found the expertise that we were lacking.
This course may not be for everyone, but Walters is clearly on to something. If the future belongs to Millennials, including them in decisions now can provide a competitive edge. Another, more direct approach, is to invest directly in Millennial talent that’s already in the family. According to this article, “Investing in the Family”, many parents are providing their Gen Y offspring with the backing required to start their own businesses.
If you haven’t taken time to answer these questions, I urge you not to wait. The future has a way of coming faster than we expect.
Millennials have a way of driving older folks crazy. Just this month, two prestigious publications, have featured articles intended to point out what’s wrong with kids today. Both articles have spurred a lot of discussion and debate.
“What Is It About Twenty-Somethings? Why Are So Many People in Their Twenties Taking So Long to Grow Up?” (NYT, 8.18.10)
“Two Common Mistakes of Millennials at Work” (Harvard Business Review, 8.30.10)
These are just two articles of many, but the fact that they are from no less than the New York Times and Harvard Business Review is rather shocking. Something important is amiss here.
Gen X’ers and Baby Boomers find this generation puzzling, and rather than strive to understand the differences, instead are inclined to view them negatively. It’s as if they were visiting a foreign country, and instead of trying to understand the culture, they respond with, ‘Eww, look at them, can you believe it??!’
I’ve written before that Millennials meet the definition of a subculture. Data and experience both show that Millennials look at many things — work, food, religion, politics, fashion and more — differently. And that is likely to turn out to be a good thing rather than a bad one. After all, we need some new ideas!
Rather than rehash ground I’ve covered before, I’d like to feature an alternative view by Gen Y’er, Tyler Mahoney, a Duke University Divinity School Graduate Student, and Co-founder of Churchrater.com. Monday he wrote a post for the Huffington Post titled “How to Manage Me. Millennials and Communication” (8.30.10). Mahoney’s main point is that the gap between the ‘children of Google’ and others is more cultural than technological, and is possibly larger than in the past. The issue of work life balance is just one example he uses to illustrate the gap.
Managing is a two-way relationship. People my age also need to understand our bosses’ worldviews. Peter Brinkerhoff, nonprofit consultant and author of Generations: The Challenge of a Lifetime for Your Nonprofit, says finding an appropriate work/life balance and flextime are two of the main points of tension the millennial generation faces in the workplace. “We [boomers] think of work as being a place,” he says: “If you’re not at work, you’re slacking off.” We millennials however are consistently looking for a better work/life balance than our parents- who by in large were workaholics.
If I’ve finished my work, I want to go home early, play recreational soccer, and watch the Daily Show. Brinkerhoff says this is a source of disconnection between millennials and Boomers. “We [Boomers] take our work home, but we don’t realize that you [millennials] do work at 3 p.m., 9 p.m., or 11 p.m.,” says Brinkerhoff, “You’re always wired so you always have the opportunity to work. We don’t understand your level of connectedness.”
This confusion owes to the fact that the schism between the millennial generation, Gen X, and baby boomers is much larger than in past generations. “It’s not just age difference, it’s a cultural difference,” says Brinkerhoff. I know and grew up around technology that enabled me to speak and communicate in ways my parents could not have imagined. From our smart phones to our Facebook accounts, we are living in a connected world that allows us to work on the bus, on planes with Wi-fi, and at home after dinner — and, for some of us, even during dinner. Work to us is not just one place: it’s any place where there is a CAT-5 cable, Wi-Fi, or a 3G signal
Another difference Mahoney points out is the closer relationship between parents and their Gen Y offspring. He points to the shift in the marketing approach used by U.S. military recruiting as a smart response to this important cultural change.
Gen X recruitment focused on “risk, the individual, and personal conquest,” while millennial recruitment focuses on why we’re fighting in the first place. Millennials, says (Neil) Howe, “are looking to be on team that is more than just the some of it’s parts.” We millenials are looking for meaning in what we are doing. “The drill sergeant won’t yell at millenials when they get off the bus for basic training,” says Howe, “They will thank them for their service in a time of war.” That service, provides meaning. This is most poignantly exemplified in the different military commercials used for Gen X and Gen Y. Whereas years ago Marines commercials featured a lone soldier braving adversity and squaring off against — by today’s standards — a poorly-animated lava dragon, today’s ads show young people explaining to their parents why they want to join up. This trend in inter-generational marketing, according to Howe, rests on the fact that “parents are being brought into the equation” in ways they weren’t twenty years ago.
I love this example because it is values neutral. Marketers (and managers) need to stop complaining about young people and understand how to leverage the differences as potential strengths. Think of yourself as a foreigner in a foreign land and behave accordingly. Get to know the language, customs and the reasons why they are the way they are.
It’s not better or worse, it’s just different.
