Business Adviser

Insight into Next Generation

By Natasha Kanji
Manager,
KPMG Enterprise/Toronto

By Sam Lee
Manager,
KPMG Enterprise/Toronto

Over the years, business leaders, managers, HR practitioners, and workers have developed much interest in discussing and defining the characteristics of the generations. Beyond the office, we continue to hear about this topic through the media, studies and books. A multigenerational workforce comprised of different groups can present both challenges and opportunities to employers as they work to understand and manage generational perceptions in the workplace to translate them into strategies to maximize workforce performance. Various studies have defined the generations slightly differently, but for the purposes of this article we will use the following categorization: Generation X (born 1965-1979), Generation Y (born 1980-2000) and Generation Z (2001-present).

What are some key characteristics of Generation Y and implications for private company and small business employers?
In terms of work, Gen Y’s are characterized as capable of multi-tasking quickly, are results oriented and have a preference for doing meaningful work that is both challenging and fulfilling that makes an impact to their workplace and society. They can be loyal and give 110 percent to an organization, but they are not planning to stay for 10 years. Generation Y is accustomed to a direct and timely communication style and value frequent encouragement and recognition for their efforts. Above all, technology has shaped how Gen Ys learn and process information. They have grown up in a decidedly different electronic world and the internet has offered them greater access to information and virtual communication than ever before.

So what does this all mean for a private company and small business employer?
While there might be great challenges to managing this workforce, there are decidedly great opportunities as well.  Gen Ys are driven by what they work on, where they work and who they work with. This is good news for startups and small businesses that can’t offer the highest salaries to compete with big brand name corporations, but can offer flexibility, a funky workspace and sense of ownership. Small to medium sized businesses hold a special appeal for Gen-Ys, as they appreciate flexibility and nimbleness that an entrepreneurial company can offer as well as space where they can have the freedom to succeed or fail. In the owner-managed business world, the opportunity for immediate impact is very attractive, in contrast to a corporation; there is greater visibility and access to work side-by-side with senior executives of the company and “rub elbows” with the decision-makers.  Flexibility also appeals to the need for work life balance for this cohort. The busiest generation ever isn’t going to give up its activities just because of jobs and a rigid schedule is a sure-fire way to lose your Gen-Y employees invested in various charities and outside activities.

Employers of private businesses should offer an environment where they can act as mentors or coaches rather than managers. Employers can bring out the best in their workers by teaching them about the company and explaining how their work will lead to specific results. These workers want to be assigned to projects they can learn and grow from. Gen Ys are full of ideas and they want to feel like they matter and thus this type of environment works well for this generation where listening and being heard matters. Gen Ys want to feel that they are valuable contributors and as such are generally motivated by working on projects where they can see the results of their efforts. Gen Y also values feedback. Supervisors who set performance objectives, and evaluate performance through quarterly performance checks on an ongoing basis give a sense of really investing time and effort into giving feedback that employees can act on. Often public recognition for a job well done is more effective than a pay raise and no recognition. Proper encouragement can lead to engaged employees who are motivated to show their best work.

In this highly competitive business environment, business owners around the world recognize that a key differentiator is their people. Generation Y represents a large portion of the employee base in the workplace today. A key factor to maximizing the potential of this workforce is by understanding their different motivators and developing approaches, programs, and practices that will allow your business to realize the benefits that each generation brings to the table preparing for the next.

Business Adviser is published by KPMG Enterprise™ specifically for owners and executives of private companies. KPMG Enterprise is devoted exclusively to helping business owners and entrepreneurs build thriving enterprises. For further information about how KPMG Enterprise can help private companies, visit www.kpmg.ca/enterprise.