1. 1. Retaining the Millennials Kathryn Van Arsdale Columbia University Capstone 2014
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Kathryn Van Arsdale - Capstone 2014 2 Table of Contents GlossaryofTerms.................................................................................................................................4 Chapter1TheMillennialsAreComing.......................................................................................6 1.1Background................................................................................................................................................6 1.2IssuesandGoals.......................................................................................................................................8 1.2.1Millennialsexpectbusinessestocare.........................................................................................................8 1.2.2Millennialswanttobeleaders.......................................................................................................................9 1.2.3Millennialswanttobeinnovative.................................................................................................................9 1.3ConflictMap.............................................................................................................................................10 1.4Actors.........................................................................................................................................................11 1.4.1PrimaryActors...................................................................................................................................................11 1.4.2SecondaryActor................................................................................................................................................12 1.5Structures.................................................................................................................................................13 1.5.1SocialFabricorCulturalStructures..........................................................................................................13 1.5.2EconomicFactors..............................................................................................................................................15 1.6Dynamics..................................................................................................................................................16 1.7LiteratureReview..................................................................................................................................16 1.7.1FrenchandRavensPowerTheory...........................................................................................................16 1.7.2MortonDeutsch'sCrudeLaw......................................................................................................................19 1.7.3McClellandsAcquiredNeedsTheory:.....................................................................................................19 1.7.4DualConcernModel.........................................................................................................................................21 1.8MovingForwardwithDataCollectionandAnalysis..................................................................22 Chapter2Data.................................................................................................................................23 2.1Methodology............................................................................................................................................23 2.2DataCollection........................................................................................................................................24 2.2.1Sample...................................................................................................................................................................24 2.2.2Procedure.............................................................................................................................................................25 2.2.3ElectronicSurveyData...................................................................................................................................26 2.3DataAnalysis...........................................................................................................................................29 2.3.1Procedure.............................................................................................................................................................29 2.3.2PersonalExperience........................................................................................................................................29 2.3.3InterviewInsights.............................................................................................................................................30 2.4DataInterpretation...............................................................................................................................40 2.4.1CommonThemes..............................................................................................................................................40 2.4.2TheoreticalUnderpinnings...........................................................................................................................41 2.5BridgetoInterventionStrategies.....................................................................................................43 Chapter3ResolutionStrategies................................................................................................44 3.1ResolutionStrategies............................................................................................................................44 3.1.1Businessmustretainknowledgeandminimizeproductivityloss..............................................44 3.1.2InterventionviaTheEmployeeEngagementProcess......................................................................46 3.1.3Businessmustminimizerecruitmentandtrainingcosts................................................................48 3.1.4SundryCostsofEmployeeTurnover........................................................................................................49 3.1.5InterventiontoenhancecompanycultureusingTheWorldCaf...............................................51 3.1.6Businessmusthaveapipelineoftalenttofillleadershipgaps....................................................52 3.1.7InterventionthroughtheadaptablemethodcalledLeadershipDojo........................................55 3.2SuggestedIdeas......................................................................................................................................56 3.2.1Upwardandonward........................................................................................................................................56
3. 3. Kathryn Van Arsdale - Capstone 2014 3 3.2.2CampusCubical..................................................................................................................................................58 3.2.3DontdictateNegotiateandWinTogether........................................................................................59 Chapter4NetworkingandSustainability..............................................................................62 4.1Introduction.............................................................................................................................................62 4.2TheNetwork............................................................................................................................................64 4.3TheInterventionsandtheChallengestoSustainability...........................................................66 4.3.1SustainabilityofChangeinTraditionalCorporations.......................................................................66 4.3.2Thephenomenologicalbasisofsustainabilityofchange................................................................67 4.3.3Strengthsandweaknessesofthesuggestedinterventionalstyles.............................................68 4.4StrategiesforSustainability...............................................................................................................70 Chapter5Conclusions..................................................................................................................75 5.1TheMillennialsarentleaving...........................................................................................................75 References............................................................................................................................................77
4. 4. Kathryn Van Arsdale - Capstone 2014 4 Glossary of Terms Board of Directors: A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. They have a significant amount of power in shaping the strategies of the company, through controlling finances Chief Executive Officer (CEO): A CEO is generally the most senior corporate officer (executive) or administrator in charge of managing an organization. An individual appointed as a CEO of a corporation, company, nonprofit, or government agency typically reports to the board of directors. Company Culture: is the behavior of humans within an organization and the meaning that people attach to those behaviors. Culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. Corporate Social Responsibility (CSR): is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms. Executive Management Team: is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation. They hold specific executive powers conferred onto them with and by authority of the board of directors and/or the shareholders. Hierarchical Organization: A hierarchical organization follows the layout of a pyramid. Every employee in the organization, except one, usually the CEO, is subordinate to someone else within the organization. The layout consists of multiple entities that descend into the base of staff level employees, who sit at the bottom of the pyramid. Homophily: is the tendency of individuals to associate and bond with similar others. There are two types of homophily, status and value. Status Homophily is similarity is based on informal, formal, or ascribed status. Value Homophily is similarity based on values, attitudes, and beliefs. Human Resources Management (HRM, or simply HR): is a function in organizations designed to maximize employee performance in service of their employers strategic objectives. Millennials: The newest generation to join the workforce was born between 1980 and 2005. Other names for this generation include Millennial, Echo-Boomers, Net Gen, and Generation Y. Phenomenological research: This type of research describes the lived experiences of one or more persons; it explores what a concept or phenomenon means to a person, how it affects them as they live their lives. Structural Holes: Networks are made up of clusters of nodes that are connected, where there is no connection, or a break in connectivity, it is called a structural hole. In the context of networks,
5. 5. Kathryn Van Arsdale - Capstone 2014 5 social capital exists where people have an advantage because of their location in a network and their ability to bridge these structural holes. Upward mobility: the capacity or facility for rising to a higher social or economic position. Work-life balance: is a concept including proper prioritizing between "work" (career and ambition) and "lifestyle" (health, pleasure, leisure, family and spiritual development.
6. 6. Kathryn Van Arsdale - Capstone 2014 6 Chapter 1 The Millennials Are Coming g 1.1 Background The Millennials are coming to the workforce. They are confident, well educated, and highly skilled in all matters having to with technology or social media (Sujansky & Ferri-Reed, 2009, p. 3). Todays young adults, born after 1980, are generally known as Generation Y or the Millennial Generation. They are the best-educated generation in American history and, like the baby boomers, just about the largest. Millennials are moving into the workforce in vast numbers, and each organization is faced with the need to retain the Millennials that it has spent time, effort and money training. This is happening when the previous generations are retiring. The US Bureau of Labor Statistics predicts a slowdown in the pace of labor-force growth and productivity in 2016, as some of the 70 million-plus Baby Boomers retire (Sujansky & Ferri- Reed, 2009, p. 3). In the postindustrial, info-centered working world of today, social and physical separations are no longer powerful barriers to generational mixing (Zemke, Raines, & Filipczack, 2013, p. 11). Of course, different generations have been grouped together in the workforce since the beginning of time. In simpler times, however, technological changes were slower and the specialized skill- sets of the generations were not radically different. In the modern world, technology changes drastically in time-scales of a decade, and generations have grown up with skills and attitudes that are very different. These differences are exacerbated by the social and economic pressures inherent in the fragmented, global, and highly technological world.
7. 7. Kathryn Van Arsdale - Capstone 2014 7 The workforce as it currently operates, has adapted itself to baby boomers, who tended to stay in their jobs for an extended span of time, and who consequently developed a loyalty towards their firms and their professions. This predilection of the boomers ensured that business had very little voluntary turnover, and allowed for cohesiveness, as existing employees shared are their knowledge with incoming employees. The millennial employees, however, are expected to leave their first job within two years of joining. This saddles the business organization with the high costs associated with training new employees. In this culture, Millennials are driven to job- hopping, both owing to a lack engagement in their job, and owing to their ennui arising from a dearth of challenges. Businesses are scrambling to adapt their polices, practices and procedures to retain these valuable individuals, with specialized skills (Taman, 2014). Traditionally structured organizations, which have changed very little over generations, have had to adapt. They have had to shape themselves to accommodate the values of this new generation of workers, the Millennials, who are seeking corporate social responsibility (CSR), enhanced work/life balance, distributed work, and attention to health/wellness. (Haworth , 2013). This thesis will explore the conflicts that Millennials experience in working within the traditional workplace, and how target companies can be successful in restructuring their workplaces to engage, delight, and retain millennial talent. Only by such restructuring can most businesses survive and thrive. The lenses of communication, engagement, and power dynamics, will be employed to shed light on the conflicts and to help point the way to the resolution of such conflicts.
8. 8. Kathryn Van Arsdale - Capstone 2014 8 ` 1.2 Issues and Goals Millennials have a non-traditional attitude towards the work ethic, towards their role in the workplace, and towards authority and the chain of command. They are at ease with acquiring new technological skills, and adept at obtaining information quickly, via their vast social networks. They are eager to help solve problems and improve processes; they are confused, miffed, and begin to complain and sulk, when not consulted in situations where they have some expertise. They see themselves as Global Citizens, and demand that their involvement in the business organization promotes global welfare. This seemingly altruistic attitude is linked with their belief that the problems of the world can be alleviated through the proper application of information technology. These beliefs have to be accommodated by companies if they wish to have a happy and successful workplace that can attract and retain this new breed of talent. 1.2.1 Millennials expect businesses to care. Issue: Millennials want to work for companies they believe are doing good for the world, either by presenting the market with a stellar products that enrich customers lives, or by implementing Corporate Social Responsibility (CSR) practices. CSR is operating a business in a manner that takes into account the social and environmental impact of the business by integrating responsible practices into daily business operations, and monitoring and evaluating such practices.
9. 9. Kathryn Van Arsdale - Capstone 2014 9 Goal: To better understand the core practices that matter in retaining millennial talents, in order to explore the possibility of identifying a set of such practices, which can be offered to firms that are struggling to preclude the development of a toxic, generationally divided workplace. 1.2.2 Millennials want to be leaders. Issue: Millennials want to make sure they receive the credit for a job well done. They want to be rapidly promoted, and put in to positions that grant them control over their workload. They want to be trained to be leaders, and they want a seat at the table where decisions are made, so they can be sure to give their input and ask questions. Goal: To identify ways by which businesses can address barriers between cohorts, and to explore how work can be better assigned and reviewed. To see how Millennials can receive feedback for their work, and have access in the organization, so their need to be heard is met. 1.2.3 Millennials want to be innovative. Issue: Millennials want to work for organizations that support innovation, but complain that their employers do not foster creative thinking. They believe the biggest barriers to innovation are stagnant management attitudes, obsolete operational structures and procedures, lack of employee skills, and a critical lack of diversity. Goal: Outline strategies and tactics that will inform Millennials about the innovations being implemented in an evolving company.
10. 10. Kathryn Van Arsdale - Capstone 2014 10 , 1.3 Conflict Map Millennial'Employees CEO Board'of'Directors Human' Resources' Management Corporation Autonomy' Purpose' Health' Benefits' Perks Technology Visibility' Mastery' Collaboration Creativity' Employment' Intervention Intervention Direct+Comm Indirect+Comm Millennial+Desire Company+Levers Econmic+Need Primary'Actors KEY Secondary'Actors Social'Fabric Econmic'Factors Tomorrow's' talent' clashes'with'today's' workplace:' #RetainingTheMillennials + Upward' Mobility'
11. 11. Kathryn Van Arsdale - Capstone 2014 11 f 1.4 Actors The actors in the conflict are those who are central to the conflict and to the decision making around the intervention. For this specific conflict, the quest is for best practices to be employed when trying to engage and retain millennial talent for a corporate workforce. The primary actors are directly involved, and they are directly experiencing the conflict, whereas the secondary actors are on the periphery of the conflict, not directly involved, but still part of the conflict ecosystem. 1.4.1 Primary Actors MillennialThe newest generation to join the workforce, born between 1980 and 2005. Other names for this generation include, Echo-Boomers, Net Gen, and Generation Y. Their lives have been shaped by events such as the Oklahoma City bombing, the Waco Branch Davidian Massacre, school violence, the digital age, Enron and other corporate scandals, reality TV, the 9/11 terrorist attack, the War on Terror, and Web-based social-networking. Approximately 76 million of this generation are now entering the workforce (Al-Asfour & Lettau, 2014). Human Resource ManagementThe Human Resources (HR) function tends to be an integral part of the overall company function, and a hub for strategically aligning the right talent to solve emerging business challenges. The gatekeepers of culture, this function seeks to recruit and retain necessary talent for the organization, while managing risk and making sure that the employees have a voice that is heard and represented to the CEO. Human Resources normally report directly to the CEO of the company.
12. 12. Kathryn Van Arsdale - Capstone 2014 12 Chief Executive Officer (CEO)A CEO is generally the most senior corporate officer or administrator in charge of an organization. An individual appointed as a CEO of a corporation, company, nonprofit, or government agency, typically reports to the Board of Directors. CorporationA legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities of an individual; a corporation can enter into contracts, lend and borrow money, sue and be sued, hire employees, own assets and pay taxes. Most importantly, it incorporates limited liability. Shareholders can enjoy the profits, through dividends and appreciation of stock, but are not personally liable for the company's debts. 1.4.2 Secondary Actor Board of DirectorsA board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. They have a significant amount of power in shaping the strategies of the company, through the action of controlling finances.
13. 13. Kathryn Van Arsdale - Capstone 2014 13 W 1.5 Structures The structures in a conflict represent institutions and systems in place that can be used as levers in the conflict, most often these structures are i) economic factors, ii) social fabric and systems, iii) security presence and enforcement and iv) political factors. Cultural structures enter the picture by noting the way Millennials want to work, the hierarchical structure of the firm, the power distance experienced, the work life balance, creativity, how the individual is being employed, and benefits accrued from such employment. 1.5.1 Social Fabric or Cultural Structures VisibilityThis represents how visible an employees work will be to those in places of power, be it the head of the department, or the CEO. Millennials want to make sure they are able to present their own work, and take credit for their contributions. They want to deal directly with persons who have decision-making power in and organization (Haworth , 2013). AutonomyMillennials want to make sure that they have control over their work. They want to understand what the problem is, and then want adequate room to creatively approach problem solving, without needless oversight or prescriptive measures (Pink, 2009, p. 83) (Haworth , 2013).
14. 14. Kathryn Van Arsdale - Capstone 2014 14 PerksThese are the extra incentives and rewards that are offered to employees. Millennials are attracted to companies that prioritize health and wellness by offering free gym memberships, or yoga classes at lunch. This can be so simple a matter as organizing a charitable run for coworkers, with branded T-shirts to show that the company cares (Sujansky & Ferri-Reed, 2009, p. 20). MasteryMillennials are life-long learners, and try to continually fine-tune their skillset. They are focused heavily on changing technologies, inventing new methods of solving old problems, and developing their leadership philosophies and styles (Pink, 2009, p. 107) (Meister & Jeanne C, 2010, p. 180). PurposeMillennials generally want to have a larger purpose underpinning their work, to pull quotidian tasks into focus and give them meaning. They strive to align themselves with organizations that have a good ethos (Pink, 2009) (Sujansky & Ferri-Reed, 2009, p. 83). CollaborationMillennials want highly collaborative work environments, where they get to work with someone of complementary or superior skills (Meister & Jeanne C, 2010, p. 76). TechnologyMillennials grew up when the technological advances were rapid. They find it imperative to have the tools needed to automate mundane tasks, and want to be informed and skillful at using technological solutions to solve business problems (Taman, 2014).
15. 15. Kathryn Van Arsdale - Capstone 2014 15 CreativityMillennials want to have the freedom to be creative in their work. They want the ability to think of new ways of looking at challenging situations, and they want to be able to test their theories without feeling inhibit or micromanaged back into the status quo (Taman, 2014). Upward MobilityUpward mobility is the ease with which employees can enter at one level and move up to positions with greater responsibility and compensationit is a strong factor in retention of employees. Millennials want to be recognized, and rapidly promoted when their contributions have been vital to business success (Sujansky & Ferri-Reed, 2009, p. 141). 1.5.2 Economic Factors EmploymentThis represents the act of being employed, to receive a certain amount of work for a certain wage. Millennials want to exercise their skills in the corporate world, and businesses desperately need to attract and retain them, to benefit from their special skills (Haworth , 2013). Benefits Similar to perks this is the non-wage compensation provided to employees around health matters, and normally covers things such as medical, dental, vision, paid time off, and life insurance. Millennial employees want to make sure that a company is helping them maintain their health by providing affordable or even free health benefits (Haworth , 2013).
16. 16. Kathryn Van Arsdale - Capstone 2014 16 M 1.6 Dynamics Dynamics is the connective tissue between actors and the structures; they are represented on the map by the connecting solid and dotted lines. The arrows show which way a need, desire, or communications flows. A key dynamic is represented by the green line, connecting the corporation to the millennial employee, indicating the corporations need for millennial talent to survive in market of today. Another key dynamic is the dotted blue connecting line between HR and Millennials, since that department is on the front lines of recruitment and employee retention. Equally important is the actions and attitudes of the CEO, who constitutes the approval point for sustainable change. The CEO is crucial in introducing and stabilizing change. e 1.7 Literature Review This literature review will include a survey of some critical work in power dynamics, emotional intelligence, and conflict and cooperation. All of these theories have been applied to leadership and organizational conflicts, and should create a sharp lens through which to examine how businesses can profitably transform their organizations to meet the needs of the millennial talent entering the workforce, with unique skills, attitudes, and expectations (Haworth , 2013). 1.7.1 French and Ravens Power Theory Social psychologists, John French and Bertram Raven, outlined a theory that pigeonholed power into five distinct and separate forms; later this was expanded by Raven into include six forms
17. 17. Kathryn Van Arsdale - Capstone 2014 17 which are i) Coercive power, ii) Reward power, iii) Legitimate power, iv) Referent power, v) Expert power and vi) Informational power (Raven, 2008). Coercive power is the power to use force, the ability to punish others, or to pose as a threat. This power uses fear as a motivator. An example would be the power of a manager who threatens an employees job security by cutting his pay or removing him from his job. While coercive power might be effective in the short term, it engenders negative feelings, and generally does not bode well for the long-term relationship between the employee and the company (Raven, 2008). Reward power is used to drive results with rewards, accolades, and recognition to drive good behavior and improve performance. When a manager promotes a hardworking individual, increases his pay, or puts him up for employee-of-the-month, he is using reward power to motivate outcomes. Often reward power can enhance the relationship between the employee and the company (Raven, 2008). Legitimate power is often positional power and official power. This is the power of having a higher rank in the hierarchy. Someone with legitimate power (i.e. the CEO) will be able to control resources, reward, or even punish his subordinates. When a new business division is spun off, a CEO generally has the power to promote one of his employees into an open job. This power flows from position within the firm (Raven, 2008). Referent power can also be called personal power or charismatic power. This power is may be innate to a persons character, and it is the power by which great leaders attract followers. It is underlies the magnetism and gusto that the leader displays. Leaders that display this power are
18. 18. Kathryn Van Arsdale - Capstone 2014 18 very diverse, such as John F Kennedy, Martin Luther King, and Mahatma Gandhi. In the corporate world, a leader with command and presence can engender inordinate enthusiasm in the employees, who then manage to get an extraordinary amount of work done, and make it look simple. Such leaders have overwhelming support from their employees (Raven, 2008). Expert power is also known as the power of knowledgeit arises from having knowledge that others need, but do not possess. Persons such as doctors, lawyers, and accountants, and airline pilots fall in to this category. In the world of electronics, those rare persons who design microchips, and can visualize the 3-dimensional interconnects, are often called wizards or the Magi, since their achievements are almost magical to the outsider. In a business, managing risk is critical and the legal team will be consulted, for their expert power, before rolling out a new product or service. They presumably have the expertise and foresight to keep the company apprised of the risk exposure, if it went ahead with its plans (Raven, 2008). Informational power is a form of personal or collective power that is based on controlling information needed by others in order to reach an important goal. Timely and relevant information delivered on demand can be the most influential way to acquire power. In the corporate structure, administrative assistant to the CEO or the COO, can have access to confidential information, and can acquire inordinate informational power. They have to be carefully chosen, since loose lips can easily cause a crash in the stock price. (Raven, 2008).
19. 19. Kathryn Van Arsdale - Capstone 2014 19 The power dynamics within traditional corporations, especially the types of powers historically reserved for those at the top, may have to be altered if the culture is to made more appealing to Millennials. 1.7.2 Morton Deutsch's Crude Law The characteristic processes and effects elicited by a given type of social relationship also tend to elicit that type of social relationship(Johnson & Johnson, 2005). This law dictates that a relationship that is open, friendly, and cooperative, will breed cooperative win-win outcomes, whereas a relationship that is competitive in nature, will often breed win-lose outcomes, and result in distributive bargaining. In the instance of millennial retention, this could come into play with recruitment negotiations. If a millennial prospect believes that a corporation will be flexible, they too will possibly become reflexively more flexible. This is often seen when looking at a total package of an offer, opposed to just the financial aspects (Haworth , 2013). 1.7.3 McClellands Acquired Needs Theory: These needs are found to varying degrees in all workers and managers, and this mix of motivational needs characterizes a person's or manager's style and behavior, both in terms of being motivated, and in the management and motivation others (McClelland & Burnham, 1976) (Harrell & Stahl, 1981). nPow nAch nAff
20. 20. Kathryn Van Arsdale - Capstone 2014 20 Achievement motivation (nAch)The nAch person is achievement motivated and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job. Such a person displays a strong need for feedback and a need for a sense of accomplishment (Harrell & Stahl, 1981). Authority/Power motivation (nPow)The nPow person is authority motivated. This driver produces a need to be influential, effective, and to make an impact. They need to lead and have their ideas prevail. They need increasing personal status and prestige (Harrell & Stahl, 1981). Affiliation motivation (nAff)The nAff person is affiliation motivated, and has a need for friendly relationships, and interaction with other people. The affiliation driver produces a need to be liked and held in popular regard. These people are team players (Harrell & Stahl, 1981). McClelland's research found that those in top management positions had a high need for power and a low need for affiliation. His research also found that people with a high need for achievement will do best when given projects at which they can succeed through their own efforts. Although individuals with a strong need for achievement can be successful lower-level managers, they are usually weeded out before reaching top management positions. He also found that people with a high need for affiliation are not good top managers but are generally happy, and successful in non-leadership roles (McClelland & Burnham, 1976). If an underlying need of business is to develop the Millennials into tomorrows leaders, this theory is helps inform us of what needs to be done, to ensure that Millennials can lead others.
21. 21. Kathryn Van Arsdale - Capstone 2014 21 1.7.4 Dual Concern Model The Dual Concerns model measures i) concern for self and ii) concern for others in a conflict situation. It assumes that ones assertiveness and your empathies can predict ones orientation in a conflict (Lewicki, Barry, & Saunders, 2011, p. 22) (Deutsch, Coleman, & Marcus, 2006, p. 348). AvoidanceWhen self-concern is low and for concern for the other is low, one tends to avoid the conflict. One makes jokes to avoid disagreement, or flatly refuses to acknowledge that problem exists. If the conflict situation is dire, and it is ignored or brushed aside, it can become a latent conflict (Deutsch, Coleman, & Marcus, 2006, p. 723) and fester in the background. If the conflict is a minor, or a transient confusion, avoidance can be advantageous (Lewicki, Barry, & Saunders, 2011, p. 23). AccommodationWhen self-concern is low and concern for the other is high, one tends to yield or accommodate. The accommodating party relinquishes control and does whatever is needed to appease the other. This quenches conflicts in the short-term, but leads to blatant imbalances of power, and can degrade a relationship over longer epochs (Lewicki, Barry, & Saunders, 2011, p. 23).
22. 22. Kathryn Van Arsdale - Capstone 2014 22 CompetitionWhen self-concern is high and concern for the other is low, one tend to dominate or compete. This orientation moves to a win or lose predicament for all involve (Lewicki, Barry, & Saunders, 2011, p. 23). CompromiseWhen self-concern is intermediate and concern for the other is intermediate, one tends to compromise. The parties work together to find a compromise solution acceptable to both sides. Compromise enhances the relationship and encourages a positive approach (Lewicki, Barry, & Saunders, 2011, p. 24). Collaborate When self-concern is high and concern for the other is also high, one tends to collaborate. Then, it is possible to find a win-win solution. When defenses are laid down, and both sides of a conflict are empathic yet assertive, innovation and creativity flood in to facilitate new ways to solve problems (Lewicki, Barry, & Saunders, 2011, p. 24). s 1.8 Moving Forward with Data Collection and Analysis We shall use the background information, our conflict map, and our literature review to help us formulate the questions in which we will ask our group to better understand the phenomenon of how Millennials stay engaged at work, or conversely, what makes Millennials want to leave their company and seek a new challenge.
23. 23. Kathryn Van Arsdale - Capstone 2014 23 Chapter 2 Data 7 2.1 Methodology In this qualitative investigation into the interaction between the Millennials and corporate bodies that employ them, we have chosen to use the methodology known as phenomenology. Phenomenological research describes the lived experiences of one or more persons; it explores what a concept or phenomenon means to a person, how it affects them as they live their lives. Similar to other forms of qualitative research, this method tries to expose the depth of experience lived, and is in contrast to routine quantitative research, which purports to reveal general patterns, from a seemingly objective standpoint, through the analysis of numerical data (Creswell, 2007, p. 59). In order to get to the heart of the matter, affecting sentient human beings, phenomenology insists that the researcher must try to get to the essence of what they experience. This research requires interviews to be done with people who have experienced a shared phenomenon, such as having survived the atomic destruction of Hiroshima, or having given birth to twins. In phenomenological investigations, the participants are surveyed, interviewed, and their responses are coded; then the investigator looks for common themes. In those themes the investigator starts to develop an understanding of what they experienced and the how they experienced it. In phenomenological research there are two different approaches, hermeneutical and transcendental. The term hermeneutics, in philosophy, is the art and theory of interpreting
24. 24. Kathryn Van Arsdale - Capstone 2014 24 linguistic and non-linguistic entities. The hermeneutical approach emphasizes examining through the lens of the researchers interpretations, the lived experiences of the participants. The transcendental approach focuses less on the interpretations and more on the actual lived experiences (Creswell, 2007, p. 57). Our study will veer towards transcendental methodology; we shall do that by sending out a survey questionnaire to a rather large group, of about 80 persons, and then evaluating a subset of these individuals in more detail by engaging them in an in-depth interview. The interviewees will almost self-select themselves by being willing to be interviewed, and by being reachable at convenient times. The transcripts will be coded and searched for recurrent themes. 8 2.2 Data Collection An electronic survey was sent out, via email and social media, which possibly reached hundreds of persons. There were approximately one hundred responses and 80 persons, who between the ages of 18 to 34 years, were selected. The survey was left open for 3 weeks. A subset of 12 persons was chosen for detailed, in-depth interviews, which were conducted by telephone, over the period of a week, after all the survey responses were in. 2.2.1 Sample A sample of 9 women and 3 men participated in this phenomenological study. Participants were chosen to be between 18 and 34 years old who had had working experience.
25. 25. Kathryn Van Arsdale - Capstone 2014 25 # Names Age Gender Sector Typeofemployment 1 JamieS 26 Female Private Strategy 2 KenK 29 Male Private ProjectManagement 3 BridgetK 32 Female Private MediaPlanning 5 KaitlinK 25 Female Private Strategy 6 CourtneyS 29 Female Private Stylist 7 KelleyK 30 Female Non-Profit OfficeManagement 8 JaclynT 25 Female Private HumanResources 9 JennaB 32 Female Private Retail 10 NikiM 32 Female Private Finance 11 MikeM 27 Male Private Technology 12 T.J.S 27 Male Private Administration 2.2.2 Procedure The interviews used a semi-structured format, which consisted of 7 questions. Each interview took 15 to 25 minutes, and the information was recorded by hand. The interview began by eliciting demographic information such as name, age, sector, and type of employment. Than the following questions were posed: 1. What is the average amount of time you plan to stay at each job? What drives that number? 2. What factors most influence your decision to accept a job and why? 3. What would make you stay at a job? Why? 4. When negotiating a new job offer what factors will you be flexible with and why? 5. Did you have to make compromises when accepting your current job? If so, what were they? 6. What are the factors that make you want to leave a company you worked for and why? 7. Is their anything I did not cover that you want to speak about in relation to employment? The questions asked in the phone interviews paralleled those that were posed in the electronic survey, which had prepopulated answers, with the respondents having to answer in a multiple- choice format, or ranking their preferences. The web-based program called Qualtrics was used
26. 26. Kathryn Van Arsdale - Capstone 2014 26 and made answering the survey pleasant and easy, although some felt that the survey was overly long. The responses are presented below. 2.2.3 Electronic Survey Data 1. What is the average amount of time you plan to stay at each company you work for?
27. 27. Kathryn Van Arsdale - Capstone 2014 27 2. Which of the following factors most influenced your decision to accept your current job? 3. Please rank what would make you want to stay at a job? 4. When you are going to negotiate a new job offer, about which aspects will you be more flexible?
28. 28. Kathryn Van Arsdale - Capstone 2014 28 5. Did you have to make any of the following compromises when you accepted your most recent job? 6. Please rank what would make you want to leave a company you worked for? Indicate the statements that apply
29. 29. Kathryn Van Arsdale - Capstone 2014 29 6 2.3 Data Analysis To understand the common themes that emerged from the data, a method was used which was introduced by Mousakas and Stevic-Colaizzi-Kenn, and later modified by John Creswell (2007, p.59). 2.3.1 Procedure Step 1: Clarifying my connection or lack of connection to the experience being investigated. Step 2: Reviewing interview notes, highlighting the statements that stood out from the background noise, to compel insight into how the participants experienced the phenomenon. This is referred to as horizontalization (Creswell, 2007, p. 61). If significant statements were discovered, across participants, they were grouped into common themes and regarded as clusters of meaning. Step 3: The themes and clusters of meaning that emerged were written out as descriptions of what participants experienced. This is known as textural descriptions (Creswell, 2007, p. 60). In addition, data collected were used to write out imaginative variations or structural description; this specifically illustrated how the context of the setting influenced the participants experience. 2.3.2 Personal Experience I was born in 1980, which is on the cusp of when the millennial generation started. As a child in the 1980s and early 1990s, I clearly remember the long slow days of summer when we arranged
30. 30. Kathryn Van Arsdale - Capstone 2014 30 a complex obstacle course in our backyard, and gathered competitors to run over its intricacies and dangers. Suddenly, around 1995, all of these outdoor actives came to a halt, with the birth of something called America Online. This computer program was the precursor of the Internet and the World Wide Web. It assigned you a user name, gave you the ability to view websites and chat with other users, and to send and receive email. Summers were never again the same. Learning to handle this astonishing advance in technology set me apart in my home. I was, for years, the person who understood the Internet. It is why I consider myself a Millennial. Currently, I am an HR Manager supporting a group working on web products and technology. The group is comprised of everyone from software developers to social media experts. When recruiting for open positions, I am constantly outlying individuals, who are computer literate, and who regard the Internet as their backyard, or playground. Most of the persons who meet my requirements, and who I pass on to the hiring managers, are Millennials. While I investigate this brave new generation, and ponder how best to retain them in the workforce, I have to resolutely keep in mind that I have a decided bias towards Millennials, owing to my age, and my professional focus. 2.3.3 Interview Insights Length of stay in a jobHere emerged a recurrent theme. Many persons asserted they had not wanted to leave their previous jobs, but had left because they had become bored. They had been competent, and had mastered their workload within weeks or months. Previous generations would have then decided that the hard work had been done, and now was the time to coast for several years, earning incremental promotions and putting away some money and paying off the
31. 31. Kathryn Van Arsdale - Capstone 2014 31 mortgage (Haworth , 2013). The Millennials, however, at this stage, seem to feel that there were no more worlds to conquer. That made them restless. Even those who had wanted to stay on had decided that it would reflect poorly upon them if they stayedthey had bought into the world- view of their cohort that staying at a job longer than 2 years meant that you were a loser. I would rather stay in my current job for as long as possible, but the reality is I am most likely going to leave this job in the summer, because they will not give me enough time off to go backpacking in Europe - Kaitlin K I am hoping to stay for 5 years, because I want to be able to get to know everyone and make an impact, but I am not sure that is possible since I already feel like I have mastered my job; I can do everything that they want me to do, and it is starting to feel monotonous. Jenna B I am pretty sure that I wont be able to stay at any one company for more then 3 years, even thought I am in my fourth year for my current job. I am just waiting to complete a large scale project, and then I am going to resign. Once you feel like you have mastered the larger part of your job, you start to feel stagnant, and no one wants to feel that way. - Mike M So I have been at my current firm for 3 years, and while I myself want to stay, all my friends are telling me I should leave, because if I stay on, I wont look like a go getter. I will look complacent and not serious about my work and career; no one wants to hire someone who isnt on top, or in front of the next thing when it comes to fashion. - Courtney S
32. 32. Kathryn Van Arsdale - Capstone 2014 32 In the online survey, 51% of millennial participants said they would like to work 3 or more years at a company. Collectively, both the survey and the interviews revealed that, given the right circumstances, Millennials would be interested in staying at their jobs for much longer than they did currently. Enticing them into staying longer would require a company to provide them ever evolving challenges, so that there was always some new skill to learn and master. The company would have to construct an ever-ascending stairway to Millennial Heaven! Decisions behind accepting a jobThere was a common theme in their answers. They were seeking an opportunity for growth. This was repeated several times, and in various ways, by most of the participants. And in every single instance, when it was mentioned, it was stated directly and abruptly, as if it were truly a part of that persons identity. People, secondarily, spoke about the importance of company culture. They wanted to feel good when they entered their place of work; they wanted an environment that motivated them to succeed. What is really important for me is opportunity for growth. I am afraid to hit walls, or be under poor management that will suppress me. I try and figure out if its likely that I will get promoted quicklywithout directly talking about promotion in the interview. I think talking about promotion turns people off. - Kaitlin K Opportunity for growth is the most important factor. I want to know what am I going to get out of this place in the next couple years. I also look to see if the company itself is growing, which will allow for internal growth, I dont want to get stuck at a place without movement. Niki M
33. 33. Kathryn Van Arsdale - Capstone 2014 33 The culture of the place may make me want to stay. If I am having fun, and I like the people around me, its hard to think about leaving. Sometimes I think that staying on could actually hinder my career, and hold me back. I have to be more aware of my career, I guess.- Kelley K I want the ability to grow and try new things even if they are outside of my job title or my department. If I am not learning new things, I tend to get bored, and once that happens, I hate going to work. When I get into that mood its hard to stay motivated. - Jamie S The electronic survey confirmed what the interviews revealed. The most common answer given was opportunity for growth, second to salary, and being given the right role with in the organization. During my interview my participants told me they believed that even if they started on slightly inadequate salaries, they felt that could change that, by proving their worth and productivity, to their employers. Many said that having the right role would help them to succeed, and they would then surely be given more responsibilities, with an increased salary. While people spoke about salary in the interviews, it seemed to be a secondary concern, and additionally, in the electronic survey, it came in as a secondary consideration. People wanted to be paid appropriately, at the prevailing scales, but they were far more eager for the chance to get into desired organizations, where salary growth would come from hard work and dedication. What was likely to keep them in their jobs?Here, two themes emerged. Some were sad to think about leaving a job, while others were desperate for new adventure. This question triggered a range of answers. People spoke about their attachment to their firms work, and to their co-
34. 34. Kathryn Van Arsdale - Capstone 2014 34 workers. They liked the fact that they were allowed to apply their ability, to be creative and innovative. They also spoke about whether their job fit into their life. Part of wanting to stay is that I am comfortable, I know everyones first name, and people high- five me when I walk in the door. The people are actually all really interesting. Ken K I need to be challenged, and I need my personal life. When I am working on something I am completely and utterly in the zone. However, I need to have time to maintain a life. If I work all night, dont expect me in the office, next day, at 9 AM, thats just taking advantage. Kaitlin K If I care about what my company is trying to accomplish, I want to stay, I want to be part of that journey. I want to work in places that I believe in, places that have a positive impact on the world, and that is why I took my job. Jamie S If I like the people and I am getting exciting projects, it motivates me to stay on! Kelley K If my work is making an impact, if my ideas are incorporated into what we are doing, and if I am getting paid to do that, I am pretty likely to stay Niki M I am really protective over my personal time, so that is a big driver for me. This might sound strange, but I look at what I am making per hour, considering all the unpaid overtime. If a job requires me to work 60 hours a week, I look at my salary very differently then if it requires me to
35. 35. Kathryn Van Arsdale - Capstone 2014 35 work 40 hours. I work to live, and I have other hobbies and side projects, at some point it doesnt make sense to keep a job because your per-hour rate is so low. Mike M In the survey, people most often chose the work/life balance as their first priority, and their second choice was usually upward mobility/decision making. This was also echoed in the words from the interviews conducted. People spoke at length about their reluctance to leave because the environment had become familiar. Flexibility in negotiating a new job offerPeople had trouble coming up with answers, about their flexibility. They usually recalled how they had been flexible in the past, and stated those reasons. The themes were mostly about flexibility around benefits, which was probably an artifact of their youth, since they did not use their health benefits frequently, and had not seriously contemplated retirement. They also said they would be flexible around salary, up to a point. People often excused themselves for admitting that they would be flexible. There seemed to feel pangs of guilt, as if they were doing something out of line by being flexible. When pursued further, they indicated that they had been told all their lives to stand up for themselves and to not compromise. Millennials mentioned they felt pressure from their peer group, and from their parents, to hold out for larger salaries. To not do so was to be a pushover. I would say benefits, not because I dont value benefits but because I am pretty healthy and I dont really use my benefits so they are not super important right now. When I have a family, I am sure that will change T.J. S
36. 36. Kathryn Van Arsdale - Capstone 2014 36 I dont want to sound naive but I would say salary. While I have a certain idea of what I want, I dont have a magic number; its really about the opportunity for growth. I want to get my foot in the door of a great company, and the salary will work itself out as I am promoted. Jaclyn T I want a good salary, but looking back, I have had to compromise on my salary for every job I have ever taken. Jenna B I would say benefits and maybe overall compensation. I might want to reach a certain range of pay, but I dont really care how I get to that area because pay is more like security for me. If I get less salary, but they have a 401k match, I take that into consideration. - Kaitlin K I would have to say salary. I really want a good working environment and a job I love. I know I am going to do a good job, and the salary will increase, so I dont worry about that too much in the beginning. Ken K It was clear from the survey that people are not going to press the issue of career progression when faced with a new job offer. It was uncouth to discuss matters such as promotions, when finalizing a job offer. Interviewees were also eager for jobs that took them to other countries, but they would be flexible around international opportunities within the prospective company. Compromises that they needed to make in accepting their current jobThis question slightly flummoxed most interviewees, since they had answered this question in attempting to
37. 37. Kathryn Van Arsdale - Capstone 2014 37 answer the previous question. However, it was important to understand how they had come to their decisions, the tricky situation of where they had had to accept a job, or keep on looking. I had to accept less vacation days. My last job had unlimited which was great, but this firm only had 2 weeks. However, I just had a child, and they said they would let me work from home, so I felt it better fit my lifestyle. Before having a child, that would not have swayed me Bridget K My commute is really long now, and I also have less vacation days. At the time I thought this would help me get into the area I wanted to work, I am hoping that my next job has a better vacation policy and I will make sure my commute is never this long again. Kaitlin K I had to take a lower salary than I wanted, but I am hoping to get promoted. Kelley K I had to take less salary than I wanted, while it was still more than I was making, it was not close to what I wanted. However, I was ready to make a move, so I just took it. Jaclyn T I used to freelance, when I accepted a full-time job, I had to give up a ton of flexibility in my schedule. I used to be able to travel a lot, and my vacation is only 3 weeks a year now, so that impacted my lifestyle. Courtney S I had a lot more flexibility in my schedule before I took this job. My last manager cared more about the work, and less about the face-time or hours in the office. I also didnt get the exact salary I was hoping for. It was still a good salary, but it wasnt what I wanted. Ken K
38. 38. Kathryn Van Arsdale - Capstone 2014 38 The survey closely reflected the opinions heard in the interviews. The top 3 compromises that people had to make were i) work outside of the hours they were expecting, ii) they had found advancement limited, and iii) they took a lower salary than desired. Millennials seemed to be more accustomed to meeting project deadlines, and much less so in participating in the ebb and flow of work in an office. They got bored without the right type of work, and overwhelmed when the work required long hours. It seemed unfair to be required to be at the office when they had met their deadlines. Why could they not go and backpack in Nepal, or climb the Half-Dome? Factors that would make them leave a companyHere, many persons spoke about being bored, unchallenged, or unmotivated. Some people mentioned that it was difficult to get a significant salary increase if they stayed on at the same job, but that seemed to be a secondary concern. When millennial interviewees spoke about leaving a company, they seemed to take it very seriously. It was not something they wanted to doit was more something they had to do, in order to advance, not stagnate, and be judged a loser. When I hit a wall, when I feel stale, and when I feel like my skills are degrading Jenna B When growth is not in sight, when no one is talking about a career plan, or when my project work becomes boring. Jaclyn T When I feel bored, when I start to lack passion for my job. If I have a lack of respect for the management, or when it starts to feel like too much of a routine. Jamie S
39. 39. Kathryn Van Arsdale - Capstone 2014 39 When my hours worked start to creep over that fine line and really interfere with my personal life. I dont mind helping when needed, but I want a work/life balance. Mike M When the management is poor, it affect the culturethen it is impossible to stay. Niki M When you feel like a hired hand, when you are bored, and you are just trying to get everything done, so you can leave the building. At that point I start to look for other jobs. Ken K When I want a larger challenge, or I want more salary, and I know that I wont be able to get it at my current place, I am pretty much faced with the reality that I need to leave. Kaitlin K People were leaving a company because, firstly, they wanted to experience more growth, and secondly because they wanted more money. When the Millennials were asked about what was behind this idea of growth, invariably they would go off in one of two disparate directions. Some saw growth through the lens of achievement; they need the right title and enhanced standing, and had to feel the momentum of progression, which they could then report to the world via their social media outlets. Others thought of growth as doing something intellectually challenging, and wanted to keep expanding their skillset, lest they became the dull chisel in the toolkit. When they had mastered something, they felt compelled to move on to new challenges. Both of types felt that increased salary would follow from growth, almost as if it were a law of nature.
40. 40. Kathryn Van Arsdale - Capstone 2014 40 D 2.4 Data Interpretation From both the interviews and electronic survey data, a picture emerges as to what is likely to motivate Millennials to stay with an organization. 2.4.1 Common Themes Push and the pull of the right amount and type of work is something important to the millennial generation. The workload balance seems critical. Millennials spoke about being overworked, and under-challenged. When at least a good part of the task was mastered, they wanted to give the task to someone else, as they were moved on to undertake additional and greater responsibilities. They perceived doing work as akin to being in school; they wanted to graduate from doing one thing, to doing the next thing. If the organization were set up to allow this to happen, at the proper rate, they would be happy in their quest for continual evolution, and stay. If the work was overwhelming in terms of time demanded, the Millennials felt like they were sacrificing their personal time, and judged that it was time to look for a new position. Millennials hold time spent with family and friends, as sacred. While they do not mind working late on occasion to finish something critical, they do not want work to dominate their existence. That new opportunities should arise at work is a notion that permeates the worldview of the Millennial. New opportunity can be learning a new skill, or it can be the taking on a more important role at work. This is a target phrase that they frequently repeated. They felt opportunities would arise from handling project work, which would make them more visible; projects were the way out of fixed routines, and means of growing their skillsets.
41. 41. Kathryn Van Arsdale - Capstone 2014 41 Company culture is very important to Millennials. They said they would only accept positions in companies that reflected their values. Endorsing healthy living, they would not want to work in the tobacco industry, or even in companies that manufactured processed packaged food. If they were obsessed with the elegance of the Apple operating system, they would be uncomfortable working for Microsoft, even if they had the requisite skillset. They wanted to work with a team of others who had advanced skillsto prove themselves and be promoted to more interesting positions. In addition, they want to be sure they had time away from the office, since their lives were full of hobbies, vacations, travel, and activities with friends. 2.4.2 Theoretical Underpinnings When reflecting on the results of the survey through the lens of McClelland's Needs Theory, it is clear that millennial cohort exhibits a high need for affiliation, with a secondary need for achievement. In McClellands research he explains that our needs drive our motivations. Those with a high need for affiliation desire relationship based cooperation, mutual understanding and appreciation (Raven, 2008). People, who are motivated by the need for achievement, have an urge to excel against the standards already set forth, and struggle to obtain success. There is a third category, and it is persons who have a need for power, who want to influence the behavior of others, and who, by exhibiting control over others, better control outcomes. Millennials, in general, seem to exhibit very little of this need for power. People with a high need for affiliation, because they want to be liked, can give up their objectivity and their decision-making powerwhich, in turn, can make for poor leadership. Whereas people who have a desire for power, are often quick to make decisions and influence and mobilize a workforce towards a common goal. As Millennials move into leadership
42. 42. Kathryn Van Arsdale - Capstone 2014 42 positions, they may find it difficult to manage groups of people who have diverse and different ideas on what needs to be done. This could inhibit their success in a hierarchical structure, such as within a traditional corporation (Raven, 2008). Secondary to the need for affiliation, some of the Millennials have a high need for achievement. They were driven to reach new levels in their organization, simply to tick off those boxes, and they hoped to find that their salaries grew with their responsibilities. Individuals who fit the achievement model are more likely to be overachieving and overbearing (Raven, 2008). These types of people often prefer to work alone. An individual's location within McClelland's groupings is not set in stoneit can change with experience and with training (Harrell & Stahl, 1981). Using the framework of the dual concern framework, the data gathered from interviews reveals that that Millennials have a high degree of concern for themselves, and rather high degrees of concern for their coworkers, which will make it very easy for them to compromise and even collaborate on projects, but they seem to be inhibited in discussing their concerns with their managers and senior coworkers. When they felt that they were hitting a wall, or when they came to the end of a project, rather than expressing concerns about their future to those who could help trouble shoot the problem, they simply started to look for other jobs. Millennials did not negotiate as much within the workplace, as they did outside the workplace. They said that they tried to adhere to policies and procedures in the workplace, but when they became frustrated, they simply left. One woman interviewed had left because she was unhappy
43. 43. Kathryn Van Arsdale - Capstone 2014 43 with her work schedule. She had had a child, and wanted to stay at home on Fridays, but had not imagined that she could ask to work from home. No one else did, she reported. Millennials are uncomfortable negotiating in the workplace, unless the culture is exceedingly open and flexible. This is congruent with Morton Deutschs Crude Law, which states that open, friendly, and cooperative approach will breed mutual gains (Johnson & Johnson, 2005). The Millennials in an open, friendly, and cooperatively oriented company culture may negotiate changes, and stay, rather than abruptly leave for another job. N 2.5 Bridge to Intervention Strategies It is apparent that that Millennials actually wanted to stay employed with organizations as long as they did not feel bored, stifled, or unrewarded. This is critical information, as businesses try to retain millennial talent, and attempt to train them to take leadership positions. In order to address this concern business will need to take a look at changing their cultures to engage Millennials and train them into being the type of leaders that can thrive in a fast-paced and rapidly changing technological world. By better understanding that both businesses and Millennials want to foster long-term employment, collaborative efforts can be made to obtain the desired outcome.
44. 44. Kathryn Van Arsdale - Capstone 2014 44 Chapter 3 Resolution Strategies 9 3.1 Resolution Strategies From background reading and long immersion in the corporate world, three important needs can be identified that impinge on the troubled relationship between Millennials and the corporate structures in which they work. It is imperative to reduce excess employee turnover in business, since the loss of a trained employees has attendant losses, since i) specialized knowledge and productivity are lost, ii) there are delays while recruitment fills the position, and the new person has to be trained in both technical matters and in the companys culture and business philosophy (Tziner & Birati, 1996), and iii) departing persons can create leadership gaps, since seldom are there persons in line to fill the empty positions. All this adds to the cost of doing business. 3.1.1 Business must retain knowledge and minimize productivity loss. When an employee leaves an organization, a disturbance that ripples through the organization (Tziner & Birati, 1996). The impact can vary. It can be small, as when a customer service representative, at a call-center, leaves. Such a person deals with isolated issues, one call at a time, and is generally tasked with giving out scripted replies. It is easy to swiftly hire and retrain a replacement. The impact can be very great if a specialist leaves, such as a server-side programmer, who has coded most of the companys inventory database, and who has not adequately commented the code developed. Uncommented code, or the use of an obscure variant of the coding language, can render the departure of the programmer catastrophic, even threatening the viability of the corporation. It will be time consuming and costly to find a
45. 45. Kathryn Van Arsdale - Capstone 2014 45 replacement, to continue with the updating and maintaining of something that is obscure, full of idiosyncratic algorithms, and which is inadequately documented. Traditionally, the human resources department has been entrusted the responsibility of dealing with employee turnover, and they have dealt with it by recruiting new employees, or by training existing employees to assume the vacated roles. The workload of the departed is redistributed amongst existing employees, while HR searches for a suitable replacement. When this is not possible because of a skill-gap, or inordinate time pressure, businesses will bring in a consultant to do the work, even if that involves paying a premium. There are always additional costs and delays, since even expert consultants will still require some form of training to acclimatize them, even temporarily, to the company work style. While a firm may have basic guidelines published that address the processes and procedures around a task, in many firms the guidelines are rudimentary and have to be fleshed out with the informal knowledge shared by workers who are assigned to the task. In the IT end of the business, this informal knowledge is jokingly called the Oral Tradition. There are, indeed, firms that have little documentation, and all of the working knowledge is acquired from learning on the job, from others (Meister & Jeanne C, 2010, p. 157). It is then impossible for new employees to be quickly trained, since they will need to meet and interact with various people in the company before they have a good understanding of workflows and dependencies. A byproduct of working off an informal undocumented system is that part of the presumably steep learning curve encountered by the new employee will inevitably involve a number of failed attempts. Failure is expected as one learns, but if it occurs around what should be straightforward
46. 46. Kathryn Van Arsdale - Capstone 2014 46 matters, owing to improper documentation and lack of printed guidelines, it can rapidly degrade the motivation and confidence of a new employee (Espinoza, Ukleja, & Rusch, 2010, p. 134). If a single department has several persons leave at the same time, there can be extensive confusion unless precise and detailed guidelines are not already in place. If, as is not uncommon, the guidelines and procedures are present only in the brains of the employees, it may become impossible to try to teach the new hires vital aspects of the existing processes. The firm will have to rebuild all of its processes and procedures after they put a new staff in place. This can be detrimental to the organization, since mistakes will arise, and if not immediately caught, will begin to hinder and annoy customers and clients. It is time consuming, which makes it costly. In the past, voluntary turnover, while it happened from time to time, was not a systematic problem for most firms, as employees generally stayed at one company for most of their careers. There were always people within the company who could train the new employees. This has changed, with Millennials in the workforce tending to leave a business before completing 2 years of service (Schawbel, 2011). Since the Millennial cohort is slowly saturating the workforce, business have to develop strategies and tactics by which keep them employed, or face the disruptive ripple effects of their frequent departures. 3.1.2 Intervention via The Employee Engagement Process Having employees who want to stay with a company and train other employees, speaks directly to employee engagement (Pink, 2009, p. 8). Moreover, the survey and interviews have revealed that employees seldom want to leave jobs.
47. 47. Kathryn Van Arsdale - Capstone 2014 47 Increased employee engagement is the goal of an improving method called The Employee Engagement Process, which uses the McCormick Employee Engagement Inventory (MEEI)a 7-point scale that links the areas of investigation with the desired state of the individual. This process aims to shift a traditional management culture to a more collaborative and team oriented culture (Holman, Davane, & Cady, 2007, p. 508). Scale Desired State Communications Feels informed Customer Relationships Sense of customer ownership Job/Role Role clarity and confidence How I do my job Personal imitative Goals and outcomes Goal Confidence Work Climate Open and trusting culture Leadership A leader-full organization This process is distinct from traditional surveys seeking to better understand employees points of view, in that it does so by shifting the process to make the employees the focal drivers of change. It is a process that is transparent, collaborative, employee driven, and action oriented. This process takes survey results, and has groups (employees and managers) do planning around steps to changing the way they work. It highlights that there is no them who are going to change the atmospherics of the workplace, and promotes the argument that the needed changes have to come from within the system itself (Holman, Davane, & Cady, 2007, p. 509).
48. 48. Kathryn Van Arsdale - Capstone 2014 48 This intervention starts conversations between people who may not ordinarily have met in any other wayby opening up a forum that is blind to department, rank, and function. Millennials are inordinately curious, and are very interested in understanding how the organization functions, what the various departments are doing, and how they can expand their involvement into diverse areas as they develop new skills. The Employee Engagement Process allows them a view from high above, and helps them to make those connections necessary for new opportunities. One danger is that this type of meeting can be taken over by employees with negative attitudes, potentially poisoning highly functioning departments or cohorts. Another drawback is that properly implementing this form of intervention can be costly. 3.1.3 Business must minimize recruitment and training costs. Voluntary turnover has a negative impact on employee morale, productivity, and company revenue. Studies estimate that losing a salaried employee can cost as much as 1.5 to 3 times their annual salary, particularly for a high-earner, a specialist, or an executive level employee (Schawbel, 2011). Hiring a new employee has diverse costs, and organizations have to recognize and evaluate all of these costs. First, there are advertising costs, or the outside recruiter fee. Second, time has to be spent identifying resumes that look promising, and choosing a subset of applicants for interviews (Tziner & Birati, 1996). Calling candidates in for interviews is a cumbersome and thankless task. Third, hours of screening by the human resources management team will be needed for a preliminary assessment, followed by the best candidates being sent to the hiring manager. Since organizations are trying to be cross-functional and collaborative, managers in associated
49. 49. Kathryn Van Arsdale - Capstone 2014 49 departments have to meet the candidates, and chip in with their comments and evaluations. The candidates themselves are encouraged to talk to this extended set of persons, and to self-assess whether they are going to fit in with the company culture (Meister & Jeanne C, 2010, p. 95). Clearly, the hiring process demands the expenditure of time and resources. Candidates who have been selected, and have accepted the job-offer, need to be on-boarded. They need to be told about the details of their benefits, setup with equipment, and training. Meetings will then get them introduced into the working environment. This often requires them to shadow their manager extensively. While they are in training they are simultaneously making others less productive, since training the new hires takes these others away from their normal duties. The difficulties encountered by the new employees have to be assuaged, and their managers have to systematically, and patiently answer all their questions (Rock, 2009, p. 47). 3.1.4 Sundry Costs of Employee Turnover The lemming-effectSeveral factors that argue strongly in favor of retaining employees. In a unit that is experiencing high turnover, other employees often reason that they should also simply leave. Customized Computer systemsThe workforces of today use a variety of different computer based systems that can work out of the box, or can be customized or configured. Workplaces with customized or configured software solutions often need to invest a great deal in training employees to best use the systems. Training is imperative for anyone using these customized
50. 50. Kathryn Van Arsdale - Capstone 2014 50 software solutions, and there is no way to recoup that investment in time and money, when a person leaves (Tziner & Birati, 1996). Informal NetworksLong-term employees have built up extensive networks throughout the organization, and have themselves become skillful at troubleshooting diverse problems. They help persons within their informal networks, and when faced with intractable difficulties, know whom to approach for help. These employees also know the unspoken norms of the organization and are less likely to make costly mistakes (Tziner & Birati, 1996). Millennials avow that they want to work in workplaces that have an open environment, and typically such workplaces encourage employees to speak up, so questions can be answered quickly and the learning curves can be shortened or even eliminated. It has been found that Millennials are often quick to recommend family and friends for open positions that are posted in companies, and can be instrumental in helping to alert their social networks about open jobs (Vitale, 2013). This can help reduce or eliminate recruitment costs, since Millennials who are expert in certain specialized matters, such as server-side programing, often associate with like- minded experts. Company culture is extremely important to Millennials, and if they like their workplace, their mark of approval will encourage others like them to seek employment in that company (Sujansky & Ferri-Reed, 2009, p. 37).
51. 51. Kathryn Van Arsdale - Capstone 2014 51 3.1.5 Intervention to enhance company culture using The World Caf. The adaptable method called The World Caf seeks to foster conditions for the emergence of a collective intelligence by engaging people in a dynamic strategic conversation around things that matter to them, inside or outside of work (Holman, Davane, & Cady, 2007, p. 179). At its heart, The World Caf is a conversational process. It leads to a design session, in which all of the designs collectively form the fabric of understanding, which ultimately emerges as the collective intelligence of the group. In a World Caf event, large groups are broken sub-groups of 4 persons, seated at easels holding blank flip-charts. Each sub-group discusses a given topic, and ideas are drawn onto a large sheet of paper. Each table is focused on a related topic, and the participants rotate, so they can have conversations that add to the collective pictures that form around a topic. The World Caf facilitates conversations and cements collective ideas with visual representations. The pictures drawn become a group work of thought, as they are built upon and reinforced by team after team. An onlooker, standing back, can then get a clear view of what the entire group feels about the topics that are being discussed. This method focuses on the idea that real change comes from informal conversations. It is the intimacy of having small groups share and question those around them, that provides a sense of momentum, only to be enhanced by the final reveal, which captures the entire picture (Holman, Davane, & Cady, 2007, p. 180). The World Caf process fosters a sense of collaboration during the group work, and people start to relate, and potentially make connections that will enable them to start feeling empowered, and escape feeling stuck. World Caf can be planned and setup quickly, but adequate time has to allowed for the emergence and gelling of ideas, in the actual meeting, and therefore can prove
52. 52. Kathryn Van Arsdale - Capstone 2014 52 expensive. In a group that is highly participative, patient and open, it is a process that will devolve into a memorable occasion of creative enjoyment and fun. If the group is comprised of inflexible curmudgeons, who are unwilling to listen and are combative, the process can become unproductive, and the intimacy of sharing can be lost. Sessions have to be attended by the senior leadership, so participants know that they are being backed-up by senior managers, who are taking the exercise seriously. The World Caf appeals to Millennials, since it ensures that multiple persons are heard, and that ideas become artifacts that can be reviewed again and again (Holman, Davane, & Cady, 2007, p. 179). 3.1.6 Business must have a pipeline of talent to fill leadership gaps. Businesses usually have a set succession plan for top leadership positions. When a leader leaves the firm, or is promoted, they want to quickly backfill that pilotable spot with someone ready familiar with the culture, the clients, and the employees. Bringing in someone from the outside creates great advantages, but also great stresses as a leaders actions are exceedingly visible, and missteps of the leader can come at a great cost (Espinoza, Ukleja, & Rusch, 2010, p. 39). In the modern business landscape, companies need continual great leadership to stay in front of the ever-burgeoning waves of change. They need the expertise that the Millennials exhibit, in working with advanced technologies, and in using the Internet and social media to spread brand awareness, which endears the company to present and prospective customers. Millennials in companies, doing specialty jobs, are ready to take the helm, but paradoxically, as a generation, are largely untrained as managers (Tziner & Birati, 1996). When they are not being trained to manage, they get bored, and seek new employment, hoping an outside firm will give them a role
53. 53. Kathryn Van Arsdale - Capstone 2014 53 with greater standing and decision making power (Espinoza, Ukleja, & Rusch, 2010, p. 24). The survey and interviews showed that Millennials are eager to stay with companies that do provide leadership training, companies that want to help them acquire skills of which they themselves may be oblivious. To fill the leadership skill gap, companies need to focus on five key areas. Teaching persons to lead othersgreat leaders are very self-aware; they know their strengths and are acutely tuned-in to opportunities for development. They hire people who compliment their skillsets, in order to build well-rounded and diverse teams. Millennials have often worked in groups, and understand what it is to be a good teammate, but have not often had the hands-on experience of leading a team, or of having to make unpopular decisions (Sujansky & Ferri-Reed, 2009, p. 149). Engendering understanding of long-term strategic planninglong-term planning is a key skill for executive leadership, and it demands the ability to look at all possible crises and opportunities that could arise in a business, over an extended range of time. If a new product results in a sudden, high demand, how is the company going to find the staff to manage the demand? If business returns are dwindling, how can the organization be right-sized to return it to profitability? If the business experiences an earthquake, what is the recovery plan and recovery schedule? If an opportunity opens up in China, what are the steps that need be taken to enter that country exploit the opening? Great leaders are proactive, and they continually think ahead. Millennials are so used to instant feedback, that they are comfortable with reacting to new information, but it is unclear whether they have the control and abandon needed to envisage and prepare for a range of theoretical possibilities (Sujansky & Ferri-Reed, 2009, p. 104).
54. 54. Kathryn Van Arsdale - Capstone 2014 54 Inspiring commitmentmanagers give employees a clear vision of how they fit into the companys overall mission, complimenting them for productive behavior, and acting to reinforce such behaviors publically, builds strong teams. Inspiring diverse people is all about using different strokes for different folks. Some people want to be thanked in front of their peers at a large gathering, while others are just happier with an email of thanks. Millennials are quick to share credit, but sometimes can find it difficult to put the spotlight directly on someone else, as they can often feel the need to be at the center of attention (Sujansky & Ferri-Reed, 2009, p. 78). Managing through changeskilled leaders have to develop effective strategies for steering an organization through a time of change. Managers generally need to be perceived as confident and diligent in their attempts to navigate treacherous waters. This delicate balancing act may require a stoicism that is beyond the reach of a new leader in the face of an unexpected calamity. Millennials are very good at being reactive, but the reverse of that coin is that they can also be highly emotional, and volatile. Emotional displays can exacerbate a situation that needs a steady hand at the wheel, and a thousand-yard stare (Lipkin & Perrymore, 2009, p. 175). Decisivenessleaders need to make decisions quickly and efficiently, and everyone cannot be pleased with the direction chosen. Leaders need to acquire the knack of making decisions, acknowledging the critics, while engendering enthusiasm in the majority to accomplish a task as a team. Their confidence has to sweep along those who are less than willing. They have to have what the Army calls command presence. While it is difficult to accomplish an unpopular feat, an inspirational leader can call his team together and still make it happen. Millennials have grown up in an environment where their individuality has been encouraged, and are generally
55. 55. Kathryn Van Arsdale - Capstone 2014 55 willing to give others the room to argue, make their own decisions, and lead their own lives. They give others freedom in order to support an environment in which they themselves are free to act as they please, often on whim. Consequently, they are often indecisive when making difficult decisions, and loathe to compel obedience. However, they have the saving grace of being quick to react, and they are willing to back-track and change course, in order to a have a chance of correcting a mistake (Sujansky & Ferri-Reed, 2009, p. 21). 3.1.7 Intervention through the adaptable method called Leadership Dojo Millennials want to have upward mobility; they want to be trained and mentored for top leadership spots in the organization, but many of their behaviors are not congruent with the requirements of great leadership. They have to be self-aware enough to understand these skills have to be acquired, and be willing to undertake the sustained activity of acquiring the skills, until acting in the new mode becomes automatic and natural. Leadership Dojo is leadership training based on the mind, body, and spirit. Differing from leadership trainings that provide long lectures or presentations, this training is one that is connected with bodily sensation. Similar to martial arts training, people actually do movements together and even touch one another on the wrist to start a disruptive process that changes attitudes. The idea behind the method is to get fully engaged in the change and not just have the intellectual takeaways or notes. Getting up and moving with people, automatically starts building trust and generating positive moods. This interactive training, allows people to become more aware of what is important to them, and hopefully allows them to incorporate that into their professional lives (Holman, Davane, & Cady, 2007, p. 240).
56. 56. Kathryn Van Arsdale - Capstone 2014 56 What can inhibit Leadership Dojo is a participant who is unable to move, or is too inhibited to move freely, because of cultural or religious beliefs. This training, if approached positively, can have lasting effects, because it engages the entire perceptual system, not just the rational mind. It should be effective with the millennial cohort because they want to be emotionally involved, and believe in the possibility of perceiving the gestalt of the project at hand. C 3.2 Suggested Ideas My specific focus of retaining Millennials in business was chosen because it is a real conflict encountered in each of the jobs that I have had in US corporations. It has been possible to hire Millennials to