Employse Engagement and Millenials- Fad or Future?
There are two words which appear to be defining this decade’s focus on HR and management issues, namely “Employee Engagement”. There is no agreed definition of the term, although CIPD defines this as:
“being positively present during the performance of work by willingly contributing intellectual effort, experiencing positive emotions and meaningful connections to others”.
According to the Ivey Business Journal, millennials (typically defined as those born between 1980 and 2000) have different goals and aspirations from baby boomers (those born between 1945 and 1964). Whereas the traditional baby boomer’s main ambition may have been to climb the corporate ladder and thereby attain wealth and job security, millennials apparently value developing their skills, having a variety of challenges and a healthy work-life balance. Generation X workers (those born between the early 1960s and 1980) appear to have motivations much more aligned to those of millennials, but with a greater emphasis on security and status.
The reason this is of interest is that many workplaces still gear their incentives towards the traditional pillars of success – status, security and salary. The focus on Employee Engagement is perhaps an attempt to address the changing view on what amounts to a successful career and how workplaces are run in practice. Better addressing expectations of millenials is important, given that they are obviously the fastest growing group in employment. This is particularly important given that, as a result of the recent recession, many more people have turned to self-employment. According to recent ONS statistics, 1 in 7 workers in the UK is now self-employed and this trend towards self-employment is showing no signs of abating.
So what can employers do to stop the brain drain from employment to self-employment, particularly amongst millenials? My two-pence worth below:
1. Encourage flexibility: According to a 2014 CIPD report, 35% of employees would like to work flexibly, with 43% of employees wanting to change the start or finishing time of their working day. The law changed on 30 June 2014 to allow all employees with the requisite 26 weeks of service to request to work flexibly. Nevertheless, many employers remain sceptical about employees working from home. Provided the correct procedure is followed and the right factors are taken into account,employers will often be able to justify refusing a request if they so choose. Employers who are more open to flexible working, prepared for instance to test the proposed working arrangement during a trial period, and to put in place the necessary technology to enable flexible working, are likely to find that they have a motivated workforce who will be less likely to leave for fear of not being able to replicate their convenient working arrangements elsewhere.
2. Development of skills: Daniel Pink (a bestselling author whose books focus on business, work and management) made the point, in his Ted talk, that there are 3 key things employees of the 21st century are seeking: (i) mastery; (ii) purpose; and (iii) autonomy. When employees are given the opportunity to develop niche areas, they are more likely to feel invested in their workplaces. Open and meaningful dialogue between line managers and their reports will help employers to better support staff in this regard. The development of skills does not have to cost an employer much, if anything. Employers can and should consider secondments and volunteering opportunities, to enable employees to develop their skill-sets as well as their networks, which will often be in both parties’ interests. Given how important an issue corporate social responsibility has become, particularly to millennials, employers who are able to dovetail an employee’s personal beliefs with the work they undertake which also assists with the development of that person’s skills will usually be in a win win situation. For example, the Body Shop has attracted workers who are committed to ethical consumerism.
3. Effective feedback: This may seem counter-intuitive to some employers, but millennials will usually have been fed on a regular diet of feedback and team-work since childhood, which is very different from the baby boomer model. Consequently, annual appraisals on their own fail to satisfy their need for feedback. Employers should therefore look for regular feedback opportunities, including through team members, one-to-one sessions with line managers, and where possible special mentoring. This will also enable employers to address issues, such as poor performance, as and when they arise and often avert the need for formal action. In this brave new world peer reviews, regular discussions on performance and collaborative working will better address this need. Millenials are also particularly fond of 360 reviews although it may take time for these to take hold in traditional careers, such as law and accountancy.
4. Social investment: team work does makes the dream work! Shawn Achor, author of “The Happiness Advantage – The Seven Principles that Fuel Success and Performance at Work”, sets out in detail evidence which supports his assertion that employees who are socially invested in their workplaces perform better. Further, social investment aids with stress relief, so as a very surprising upside, members of staff who are invested in this way may also have fewer health issues. This is important, bearing in mind that sickness absences apparently costs employers in the UK approximately £29 billion per year. It is also important to bear in mind that the average cost of replacing a departed member of staff is over £30,000. Managers who take the time to build healthy relationships with staff are rewarded not only with high staff retention rates but also with healthier and better performing employees.
5. Understanding and appreciating differences: Introverts and extroverts have different preferred working patterns, as may big picture thinkers from those who enjoy getting into the detail. I am a big proponent of personality tests in the workplace, as they assist employees and managers to understand (and therefore allow them to take into account) the strengths and weaknesses of each personality type. The new school of thought is that, instead of focusing on working on an individual’s weaknesses, we should focus on building on our strengths. In my view, this is a sensible approach – why not, where possible, encourage an individual to build on what comes naturally to them and then align them to work with someone whose strength is the other person’s weakness. This is more likely to lead to the whole being greater than the sum of the parts!
In my view, the focus on Employee Engagement is here to stay, as workers become less enamoured with a traditional 9 – 5 job and are more interested in developing enriching and varied careers, even if this comes at a reduced salary. Employers need to be alive to this issue in order to retain talented members of staff. The PWC report on millenials in the workplace is interesting reading for those up for the challenge!