E-recruitment practice

Title Page

MSc INTERNATONAL BUSINESS ECONOMICS
10th semester, Aalborg University

Framework of the project:
MSc Thesis

Time framework of the project:
12 March 2008 – August 2008

Project Title:
Recruiting and Retaining Generation Y – A New Workforce

Word count: 38,654

Thesis Advisor:
Jan Kristensen

Student:

_______________________________
Marcel Als Borngräber-Berthelsen, DK

Table of Contents
Executive Summary 4
1Introduction and Problem Statement 6
Methodology 20
Defining Generations X and Y 31
Generation Y: Entering the Workforce 71
Reviewing the Thesis 94
Bibliography 99
Appendix: Description of Veterans and Baby Boomers 102

Figures
Figure 2‑1 How the Three Methodological Approaches Relate to Each Other 22
Figure 2‑2 Cyclical Nature of the Knowledge Creating Methods 25
Figure 2‑3 Bloom 's Taxonomy 29
Figure 3‑4 Generations Presently in the Workforce 33
Figure 3‑5 Defining Events for Generation X 36
Figure 3‑6 Key Events Experienced by Generation Y 41
Figure 3‑7 Generational Placement for Power Distance 61
Figure 3‑8 Generational Placement for Uncertainty Avoidance 61
Figure 3‑9 Generational Placement for Individualism 62
Figure 3‑10 Generational Placement for Masculinity 63
Figure 3‑11 Inter Generational Synergy 69
Figure 4‑12 Creating a model for Recruiting and Retaining Generation Y 71
Figure 4‑13 Maslow 's Motivational Pyramid 79
Figure 4‑14 Retaining Generation Y 85
Figure 4‑15 Working with Generation Y 90
Figure 4‑16 Organisational Optimisation Process towards Generation Y 92
Figure 7‑17 Defining Events Exclusive to Veterans 103
Figure 7‑18 Defining Events for the Baby Boomers 107

Tables
Table 1‑1 Thesis Structure 17
Table 3‑2 Age Distribution of Final Year UK University Students 51
Table 3‑3 Finalist 's Experiences During University 52
Table 3‑4 Personal Skills & Attributes that Finalists Developed during University 53
Table 3‑5 Graduate Vacancies at AGR Employers in 2008 56
Table 4‑6 Finalists who used Graduate Recruitment Websites during their job search 74

Recruiting and Retaining Generation Y – A New Workforce
Marcel Als Borngräber-Berthelsen
August 2008
Executive Summary
This Thesis presents a hypothesis stating that Generation Y will change the workforce deployed in companies, challenging applied leaderships styles, management and the approach to Human Resource Management from both, the employee as well as the employer´s perspective. Based on analysis and comparison to currently available data this hypothesis will be either substantiated or refuted.
An understanding of whom and what Generation Y is, and how companies best can engage them to meet the requirements of both the company and the employee, is developed. By developing and applying a model, created and based on a critical and analytical evaluation of characteristics of Generation Y and well known theories, this understanding is supported.
While the outgoing generation of Baby Boomers and the workforce of Generation X have shaped the working environment of today, the emerging Generation Y will contribute to shaping the workforce over years to come. Due to its size, compared to the smaller Generation X and the gradual retirement of Baby Boomers, Generation Y has the potential of having a large influence on the working environment.
The Thesis provides an understanding of who Generations X and Y are and what characterises these generations. Based on a historical perspective, the key events occurring in their lifetime, shaping their view of the world, are analysed. Eight characteristics of Yers are looked at in detail including views on Work-Life Balance and Company Loyalty. To ensure the characteristics identified are representative of Generation Y they are verified by two surveys conducted in the United Kingdom in 2008 by High Fliers for the Times and the Association of Graduate Recruiters. Along with a similar description of Generation X the two generations are compared, identifying where they are similar and where they are different. This comparison provides the potential of achieving inter-generational synergy.
Characteristics such as being technologically literate, highly socially conscious and having little loyalty towards an employer have a direct bearing upon how best to engage this generation. Furthermore, these characteristics are also having a profound impact on how to attract, recruit and retain this workforce in years to come, seen from an employers perspective. Given the extent of the topic, it was decided to limit the Thesis to reflecting only the three named critical elements: attraction, recruitment and retention of the Generation Y, analysed by using the theories by Hofstede, Maslow and McGregor, as sssues companies need to be aware of. Additionally, companies need to understand how the characteristics of Generation Y influence these critical elements before employers can introduce changes to their present practices.
To support the understanding of not only these characteristics but also demands emerging thereof and the implications to a company, a high level model was developed to help guide companies when dealing with Generation Y. This model is made up of three sections, Attracting Yers, Recruiting Yers and Retaining Yers, with each section detailing particular characteristics companies need to be aware of.

1 Introduction and Problem Statement
This Thesis will be looking at Generation Y and the underlying understanding of what motivates this generation and how this relates to the working environment. Understanding the group of people who are presently and in coming years will be joining the workforce is important, to understand what their needs and demands are and thus efficiently integrate them into the current workforce. The overall aim of this Thesis is to generate an understanding and means for managers to work with people from Generation Y, which is supported by existing understanding and empirical research.
1.1 Why Understand Generation Y?
Generation Y represents the people presently joining the workforce and those joining over the coming decade. In the US, depending on the dates used, Generation Y is set to make up almost one third of the entire population (Zemke, Raines and Filiczak 129). By this their influence in the workplace is also likely to be corresponding. Furthermore, companies are presently desperately trying to find talent, also known as the War for Talent. Partially this is due to continue organic growth of companies, but it is also to replace the part of the workforce that is in the retiring process. Understanding how to work with Yers at this early stage is an opportunity to make the transition smoother and easier for all involved preparing for when the main part of the generation joins in a few years. It is a chance to determine what does and does not work and understand why.
1.1.1 The Search for Talent
Companies are finding it increasingly difficult to find, hire and retain talent. The aim of companies is predominantly to grow profits and in this process the right workforce, in number and with the necessary competencies and skills, is required. At the same time retirement takes place requiring employees to be replaced in the workforce. When the Baby Boomers joined they were the largest group in the then existing workforce. Today, they are beginning to reach retirement age while still being one of the largest workforce segments, leaving a vacuum that must be filled. Minorities, such as female employees, no longer exist to the same degree as 50 years ago. Over the past century the workforce has expanded to include female professionals, ethnic and religious minorities. Being actively engaged in the workforce they no longer represent a potential new source of labour. Consequently, the only group truly able to meet any new labour needs is Generation Y.
The search for talent is apparent in today’s labour market involving not only the media at a high level, but also using other approaches, including engaging with universities, holding recruitment fairs or using other means of gaining attention; all being at the expense of the employer.
The Financial Times published a Special Report on “Working in the Oil and Gas Industry” which included several articles relating not only to the labour force in general but specifically highlighting the need to recruit university students (n.a., Working in the Oil and Gas Industry). One example raised in these articles was the need for engineers. According to a report by Cambridge Energy Research Associates “…there are not enough engineers to meet the demands of current projects, and a shortfall of between 10 and 15 per cent is likely by 2010” (McNulty). This means there will be a high demand for those who qualify as engineers over the next few years and for engineering companies it will become critical to understand how to attract and retain them.
It is not only engineers that are, or soon will be, in high demand. A Booz Allen Hamilton report “…found that 50 per cent of professional exploration and production staff were aged between 40-50, and just 15 per cent were aged between their early 20s to mid-30s” (Crooks 8). This demonstrates how the Baby Boomers represent a large proportion of the labour segment that will soon be retiring. The late Xers and early Yers represent a small segment compared to the Baby Boomers and will at present not be able to replace the Baby Boomers when they retire. This, once more, emphasises how critical it is for companies to understand how to attract today’s employees and retaining them. In the case of Generation Y, the most used methodology by employers is through recruitment fairs or directly from university.
Universities on the other hand, not only offer careers fairs, but have companies come to give presentations about what they do and the opportunities they offer. Companies also come to universities to host business games to give an idea of what working with them could be like; they sponsor faculty chairs, offer internships which, if successful, lead to job offers.
All this is done to gain an advantage over competitors in the search for talent. As Yers are only just joining the workforce many are interested in hearing about such company offerings while still at university or joining Internship Programmes. As they graduate Yers also show a keen interest in joining Graduate Programs, where no prior experience is required, as their first foothold in a company.
1.1.2 Graduate Recruiting
In 2007 Shell recruited as many as 1,000 graduates around the world (Shell). Danfoss has a program with Aalborg University taking in 3-4 students from the MSc International Business Economics degree every year for a period of 6-12 months as interns. These are all students who are studying or have recently graduated from a Bachelors or Masters Degree. Danfoss and Shell are just examples of how many major companies have graduate schemes or cooperate with universities to attract talent at an early stage.
These students are not required to have any prior working experience, merely that they posses the grades, competencies and skills sets required by a company. The graduates or interns are not taken from a specific field of study or only offered particular types of jobs. It is not only for Accounting that “…recruiting and retaining these individuals remains a highly competitive process” but for most industries and fields at present (Yeaton 68). Options available vary between companies but graduates today are able to find entry level options in various fields with a given company, be it in Human Resources, Accounting or Finance within the company or Sales & Marketing, Engineering or Consulting with the company’s clients.
The above demonstrates two important points. Firstly, a very large number of graduates are recruited every year straight out of university for the particular competencies and skills they possess and are able to contribute. This represents a very large investment by a company into attracting candidates they will have to train and develop to be able to execute a specific job and the functions it encompasses. Secondly, graduates have many options available. For example, if a graduate has studied engineering, they are not restricted to only engineering firms but consultancies and investment banks are also interested in them. Consequently, companies compete against each other not only in the same industry but also with other industries for the same candidates.
Therefore, it is essential to be able to understand how to attract graduates at an early stage. In the past it was sufficient to attract graduates, today this is no longer true. Upon joining a company, graduates may no longer stay for more than a few years before moving to another company. The classical employment time cycle has changed over the past 50 years with less permanent employment offered and fixed-term contracts being mostly used today.
1.1.3 Communication and its Importance
This is another important element to be considered with Generation Y, their approach to and understanding of work. When approaching 25-30 year olds of one company, Gravett and Throckmorton got the following response “He just gives us the rah-rah cheerleader bit. Just tell us our goals and get out of our way. I’m in this for me, not the so-called team” (12). Is this really the overall approach of the people presently joining the workforce? Conversely, the Manager had the following reply for Gravett and Throckmorton: “The kids have no sense of tradition or respect. They have no work ethic” (12). Is this true or is it rather a question of miscommunication, misperception and misunderstanding? Also to be remembered is the fact that sometimes an employee becomes the manager of someone old enough to be their parent or even grandparent. Communication and understanding thereby become key elements to successfully getting a job done, based on understanding the differences between generations. This will be addressed by not only directly comparing Generation X to Y later in this chapter, but also evaluating the generations according to Hofstede’s cultural values.
Another factor to consider is that “[r]esearchers predict that in 2006 two experienced workers will leave the workforce for every inexperienced worker who enters” (Martin and Tulgan xvi). To minimise the impact of the tacit experience and knowledge that is lost through retirement, a strong relationship and clear line of communication between those entering the workforce, those presently working, and those leaving the workforce is essential.
This document aims to identify how best to attract, recruit and retain members of Generation Y, providing suggestions to the problems highlighted above. It also intends to understand how to improve interaction between generations to thus provide greater efficiency in communication and in job performance between organisational levels and between generational shifts.
1.2 Problem Statement
The aim of this Thesis is to create an approach which will guide companies when dealing with Generation Y. The first step is to identify who and what characterises Generation Y, laying a foundation to:
“Determining the requirements of Generation Y when entering the workforce and their influence upon the current approach of employers towards attracting, recruiting and retaining these employees.”
The purpose is to ensure a positive interaction between Generation Y and their employer. There are two steps involved in the Problem Statement. The first is to understand who Generation Y is. Unless there is a clear understanding of their characteristics it will be difficult to compare and contrast them with other generations in the workforce, especially Generation X, and how companies’ approach towards this generation will differ. The second is to identify how to approach Yers, determine what to offer them and how best to interact with them.
1.2.1 Issues to be Addressed from the Problem Statement
Once a definition for Generation Y has been developed, the next step is to identify the best way to attract, recruit and retain them. This includes answering questions such as:
What is the best way to attract key talent?
What are the factors graduates look for in companies?
What actions can a company take to engage graduates?
Attracting represents the first stage. This involves understanding the mediums graduates are most likely to use to inform themselves about career opportunities when they start looking for jobs.
This is followed by Recruitment. When the graduate has decided to apply, the company must ensure the review process is as efficient as possible to minimise the risk of losing key talent. Not only is the candidate reviewed but the employer is as well, this being a two-way evaluation.
Once a graduate has been recruited, two issues evolve. The first is, having identified the graduates recruited as key talent for a company how does the company convince them to stay for more than the short term? Does it involve attractive pay packages or is it a question of creative freedom or greater Work-Life Balance? Conversely the position of the company must also be considered. Will the costs of maintaining graduates outweigh the benefits?
The second is Communication. One of the key components throughout the process from recruiting to managing Generation Y is communication and this links to retention. Are Yers aware of the type of company they are joining and what it means to be part of a given company? Are Yers aware of similarities and differences between themselves and other generations in the workforce? If clear communication channels can be created between Generation Y and the other generations, friction can be reduced and efficiency can be improved.
This will be summarised in a figure which will provide a high level understanding of how to attract, recruit, and retain Generation Y.
1.2.2 Expected Needs
When determining what support Yers will need to achieve optimal performance it is important to anticipate some of their needs and where these needs and demands fit into the overall corporate culture. One of the key strengths of Generation Y is their understanding of technology and how to use it. However, they need to be aware that some of their colleagues may not share the same understanding or enthusiasm they do. This will also be true in reverse in that colleagues of Yers will understand how an industry works while Yers will often be new to a working environment. They will need to learn what it means to operate in a certain industry and what behaviour is expected. I.e. one of the anticipated needs of Generation Y’s will be to have someone to help guide them when they start work.
However, it will not only be when this generation enters their working role that they will need guidance. They will need to learn about work, being in a specific company and an industry in general. Yers will also need feedback about their performance at work so they know their performance meets the expected standards and what they can improve upon. It is therefore essential to understand that Yers will not only need help when starting work but also on a continuous basis.
Attention must be given to Work-Life Balance, as this has become increasingly important over the past decade and it follows that this is something Yers will consider rather important.
Not only Yers are presenting needs and demands, also employers are faced with new emerging needs and demands related to working with Yers specifically. The old management approaches may no longer work and will need to be either modified or totally changed. Employers will need to learn how to interact with this new generation to ensure they are able to meet the needs and demands of the company regarding work efficiency and quality. Management is required to understand how to interact with Yers, knowing what Yers look for in work, and what their boundaries are.
It is worthwhile noting, with business becoming increasingly global, companies no longer compete with other companies in a similar geographic area having similar challenges and constraints. Today company also has to remain competitive with companies from rising economies such as China, India and Brazil. To be able to do so companies have to continue or even increase the same service at a lower price, translating into a need for increased efficiency and productivity by its current workforce. Generation Y appears to offer these traits. However, both parties will need to learn how best to interact with each other to achieve Generational and Industrial Synergy that would be required to remain competitive in a Global Economy.
1.3 Thesis Parameters and Structure
Before looking at the Thesis’s Methodology, its limitations will be outlined. This helps provide the structure of what will be looked at and clarify terms before considering how the topic will be approached. This section will also identify why certain things will be looked at in this document and explain why others are not discussed, providing a parameter for the Thesis. This will then be encapsulated in the Thesis structure, outlining the main sections of the document with their contents and interrelations.
1.3.1 Limitations
The aim of the Thesis is to offer an objective view of Generation Y; who they are and what they are looking for in work. To achieve this, books and journal articles will be used to create a foundational understanding. The next step is to verify the understanding obtained by using statistics from questionnaires completed by Generation Y and companies who have graduate recruitment programs. At this point traditional theories will be introduced to help understand Generation Y based on the earlier description.
This Thesis will not create a survey of its own but rather use information already available. Another aspect of the document is to determine how best to work with Generation Y in the workplace, partially linked to their priorities, but also the interaction between generations in the workforce. This will here be limited to looking at the interaction between Generation X and Y.
1.3.1.1 Statistical Limitations
The reason for not creating a purpose built survey is based on time restrictions and replication. It would be possible to create a survey and work through the replies. However, this is a very time intensive process and would require a large part of this Thesis to deal with the process of creating the survey, identifying what, how and whom to ask. It would also require sections devoted to analysing the results, representing them and explaining their meaning. Although a customised questionnaire would help provide answers for very specific questions related to the Thesis, most of the information is already available from other sources. A customised questionnaire will therefore not be created for this Thesis, instead using 2 questionnaires conducted in the UK in 2007-2008 conducted by High Fliers for the Times and trendence Institute for the Association of Graduate Recruiters (AGR).
These surveys addressed some of the issues this Thesis addresses, such as identifying characteristics and trends of Generation Y, and will allow the points raised in the books and journals used in this Thesis to be cross verified. The AGR report will provide an understanding of what companies presently face when recruiting graduates and some of the challenges therein. The High Fliers report will contribute a view of some of the characteristics of present graduates in the UK. These two reports thus provide a view from both the company’s perspective as well as those of the graduates. Consequently, although no original statistical data will be collected, the data presently available from independent organisations provides the necessary information for the purpose of this document.
1.3.1.2 Breadth Limitations
In addition to the limitations on statistical data gathering, the Thesis will narrow its focus regarding which generations and topics regarding Generation Y will be covered as outlined below.
1.3.1.2.1 Generational Limitations
Presently there are four generations represented in the workforce; Veterans (born before 1945), Baby Boomers (born 1945-1962), Generation X (born 1963-1980), and Generation Y (born 1981-1998). Each generation has its own particular characteristics which shaped and influenced it with whole books available describing each generation. The focus of this Thesis is Generation Y. Consequently Generation Y will be looked at in much greater detail than any of the other generations. In addition, Generation Y will be compared to Generation X, comparing similarities and differences. To allow this, a shorter description of Generation X will also be provided in the body of the Thesis.
As many current managers will be from the Veteran and Baby Boomer generations a section describing these two generations has also been added. However, as these generations are not the focus of the document and no direct comparisons will be made, this information is contained in the Appendix.
1.3.1.2.2 Generation Y Limitations
The starting approach for this Thesis has been to look at the information already available on the subject. Theories and data written on Generation Y more than a few years old will have been written before they had even joined the workforce. Consequently, this understanding must now be reassessed to determine whether it is still accurate and relevant.
Although this verification is part of the Analytical Process, it is important to be aware that the information may also be outdated which makes this assessment necessary. Another reason is that many of the articles written on Generation Y are not written by Generation Y and may thus by its very nature be biased.
When discussing Generation Y, the topic does not only refer to how this generation operates in a work environment. On the contrary, it covers every aspect and detail of this generation’s day-to-day life, be it social, political, professional, educational or personal. This Thesis is not looking to make a sociological analysis of Generation Y, but will be limited to looking at Generation Y from a work/employment perspective. The intention of the Thesis is not to provide a comprehensive description of all aspects of Generation Y. Instead it will provide a summary of the information necessary to obtain an understanding of the key characteristics of this generation, pertaining to how these characteristics shape their work ethic and approach towards work. The Thesis will be looking at key characteristics of the workplace such as communication, respect, performance and flexibility.
1.3.1.2.3 Geographic Limitations
The description and developed model will not be globally representative. The original understanding comes from United States (US) sources, while the statistical confirmation thereof comes from UK sources. This gives a Western bias in describing Generation Y. The findings may also be applicable to Australia, New Zealand and Western Europe, due to relative cultural similarity.
Although major events e.g. economic booms or downturns, cause ripple effects across the world due to globalisation this does not necessarily translate into shared cultural values and norms. Consequently the understanding and model are unlikely to be applicable to e.g. Brazil, China or India where there are relatively large cultural differences to the US and Western Europe. To ensure accuracy and consistency this Thesis will therefore concentrate on understanding Generation Y from a United States and Western European perspective.
1.3.2 Terms
Throughout this Thesis the terms “Thesis” and “document” will refer to this document unless otherwise stated.
Generation Y has been given various names, including Yers, Generation Why, Millenials, Nexters and Echo Boomers. Some of these terms may be used interchangingly throughout the document but will always refer to this same generation. Traditionalists and Veterans are names for the oldest generation presently in the workforce, a full description of which can be found in the Appendix.
The word, shift, will at times be used when discussing the move from one generation to another because a Generation does not suddenly come to an end at a fixed date. The dates that are given are meant as indicators of points when people are likely to begin to show characteristics of a given generation and act as guides. Especially during transition years there will be individuals who may associate more strongly with the previous or coming generation than with what “should” be their own.
When referring to Bloom’s Taxonomy, unless otherwise stated, this refers to the entire process of moving through the successive levels of understanding in Bloom’s Taxonomy Pyramid rather than an individual layer.
The characteristics of Generation Y, as described in chapter 3, are verified by the results of two UK surveys. These statistics include salary and sign on bonuses. All figures are provided in UK Pound Sterling as given in the questionnaire. Due to exchange rate fluctuations the GBP rate for this Thesis is set at 935.061DKR/GBP and the USD rate is 500.917DKR/USD (n.a., XE.com). The values used are from 14 August 2008 to ensure they provide a current value. All numbers in this Thesis will follow the American numbering system where commas (,) will separate hundreds from thousands i.e. 1,000kg. The period will be used to mark decimal values e.g. 23.4kg.
Throughout the Thesis reference will be made to previous or coming parts. When doing this two different terms will be used. The term Chapter relates to the five main sections of the Thesis as highlighted in the Project Structure. Section will relate to a subpart of a Chapter. For example, Introduction and Project Statement is a Chapter while Terms is a section of this Chapter.
All sources used for this Thesis will be referenced using the MLA format. When providing the source of a quotation or of information, the reference will be provided at the end of the respective sentence. The format will provide the source in brackets, first giving the author’s last name and then the page number. Where there is no author the title or name of the source is provided instead of the author’s last name.
1.3.3 Thesis Structure
This Thesis not only aims to understand who and what Generation Y is, but more importantly how to apply this knowledge in a professional environment to attract, recruit and retain Yers. The Thesis will use Bloom’s Taxonomy, to be discussed in the Methodology, to work its way from describing and understanding Generation Y to applying this knowledge and evaluating its strengths and weaknesses. This process will shape the structure of the Thesis. In Table 1 -1 Thesis Structurea graphical representation of the Thesis’ structure is provided with an explanation of each section.
Chapter 1, the Introduction and Problem Statement, presents the topic of Generation Y. It explains what value the research will have and identify the key issues that will be covered. It is here the Problem Statement will be detailed and a context provided for it. The Introduction also identifies the parameters of the Thesis, determining what the Thesis will and will not cover, e.g. statistical limitations, and provides the Thesis Structure.
Chapter 2, Methodology, will explain how the research will be conducted according to the Deductive and Analytical Approaches and why other approaches were not used. It will also explain Bloom’s Taxonomy approach towards data and how it is interpreted and applied. First Bloom’s Taxonomy will be explained from a theoretical perspective, followed by detailing how this approach will be applied to the structure of this document.

Table 1‑1 Thesis Structure

Chapter 3 will deal with Generation X and Y, defining them and attempting to understand them. This stage represents the first steps of Bloom’s Taxonomy in describing and understanding the data. This will then be built upon in accordance with Bloom’s Taxonomy. Analysing Generation Y will address the understanding of how the different parts of the insight into Generation Y fit together, challenging and confirming this understanding. Here the statistical data will be introduced to verify that the understanding of Generation Y is correct, essential for the next section to be consistent.
Chapter 4, Generation Y: Entering the Workforce, builds further upon Bloom’s Taxonomy. Here especially, the Thesis moves away from a descriptive format, towards applying and working with the knowledge from the previous sections. The aim of this Chapter is to create a tool or understanding which companies can use when dealing with Generation Y based on the previous Chapter’s data and understanding.
Chapter 5, Reviewing the Thesis, represents the apex of Bloom’s Taxonomy Pyramid by evaluating the information of the previous Chapter but also evaluating the conclusion drawn from the Synthesis section. This will demonstrate whether or not this Chapter achieved the document’s objective. It will also look at whether the conclusion is consistent, logical, reflects the topics addressed and provides the results intended. Finally it will provide an overall conclusion for the Thesis.
For this reason the final Chapter links to each of the previous Chapters as can be seen by the arrows in Table 1 -1 Thesis Structure. These links demonstrate how this Chapter evaluates that the objectives of the Problem Statement as given in the Introduction have been met. It will ensure the process explained in the Methodology was followed. Finally, the evaluation will confirm whether Generation Y was first described, understood and finally, the consistency of the data applied to the original intention. The secondary arrows on the right of the Thesis Structure lead back to the final Chapter representing the results of the evaluation being represented in the final Chapter of the Thesis.
1.4 Chapter Conclusion
This chapter introduced Generation Y and demonstrated the importance of recruiting Generation Y, due to organic company growth as well as the immanent retirement of the Baby Boomers, presently the largest segment of the labour market and the work force in companies. Thereafter the Problem Statement was presented, providing the aim for the Thesis, to understand who Generation Y is, and how best to engage them to meet both their demands and the needs of the company employing them.
Following the introduction, due to the breadth of the topic, the Thesis’ limitations were provided. These included the decision not to create a questionnaire to obtain empirical data for this Thesis but rather using questionnaires from the UK that already provide this information. Also that the main body of the Thesis would concentrate on describing Generation Y in detail, Generation X in lesser detail while providing descriptions of the remaining generations in the Appendix. The limitations provided parameters for the Thesis, keeping the focus on work environment relevant issues and away from sociological factors. The Project Structure outlines the topics covered in the five chapters:
1. Introduction & Problem Statement
2. Methodology
3. Describing Generations X and Y
4. Analysing generation Y
5. Conclusion
The following section, Methodology, outlines how the research process takes place.
Methodology
The methodology demonstrates the approach research for this Thesis. It aims to identify at which stage theory & data will be introduced and how it is used. This includes evaluating the relevance of the Actors, Analytical, and Systems Approaches as well as Abductive, Deductive and Inductive reasoning.
The aim is to demonstrate a research process in accordance with Bloom’s Taxonomy, working from an outer layer of information which describes, through intermediate layers which apply and synthesise the knowledge, to a core which evaluates all the previous layers. The outer layers determine the research approach while the core demonstrates how the data is applied and verifies the Thesis has achieved its aim.
1.5 The Three Methodological Approaches
There are three main Methodological Approaches towards understanding data. These are the Actors Approach, Analytical Approach, and Systems Approach.
1.5.1 Actor’s Approach
According to Arbnor and Bjerke, the Actors Approach “…is not interested in explanations; rather, it is interested in understanding social wholes” (52). This places it on the right side of Figure 2 -1 How the Three Methodological Approaches Relate to Each Other, with Understanding Knowledge and Hermeneutics1. The information that is gathered in the Actors Approach is not objective as it is based upon subjective data such as an individual’s opinion. Furthermore, the Actors Approach “[a]ssumes that reality is a social construction” (Arbnor and Bjerke 54).
However, the Actors Approach appreciates the fact that “…concepts within social reality are ambiguous and continuously reinterpreted” (Arbnor and Bjerke 157). Furthermore, it follows a belief that “…systemic characteristics are not relevant to understanding businesses and organisations” (Arbnor and Bjerke 52). This Thesis will be looking at finding common characteristics for large populations, which would be almost impossible if characteristics of every individual had to be considered and would furthermore continuously need to be reinterpreted.
1.5.2 Systems Approach
The Systems Approach is different from the Actor Approach in that it does not look at the world from the individuals’ perspective but rather as a whole, similar to the Analytical Approach. However, the System Approach believes that the whole is not equal to the sum of its parts, which the Actors approach does believe (Arbnor and Bjerke 54). This places the Systems Approach towards the middle of Figure 2-1, demonstrating the elements it shares with both the Analytical and Actors Approaches.
The belief in the Systems Approach is that the differing elements can create synergy when working together because “…not only the parts but also their relations are essential, as the latter will lead to plus or minus effects…” (Arbnor and Bjerke 51). It represents a combination of Explanatory Knowledge with Understanding Knowledge. It argues that the facts alone are not enough to explain a result, but that an understanding of the facts is also necessary to be able to demonstrate the full value of the facts. Furthermore it maintains that the interaction between the elements creates synergies providing improved results rather than when looking at things from an individual’s outlook and perspective.
1.5.3 Analytical Approach
The Analytical Approach places to the left of Figure 2-1, under Explanatory Knowledge. Arbnor and Bjerke note that “[t]he Analytical Approach can be expressed simply as an extension of natural science methods to the social sciences…It began with what is called positivism”(96). The Analytical Approach is looked at as a science because all social sciences essentially meet the expectations that:
An objective of a science is to establish various general relations among phenomena in objective reality,
The test of veracity of relations lies ultimately on data,
These data are collected in the objective reality
(Arbnor and Bjerke 102)
It is also considered as a science “… because the natural and social sciences are seen as having similar purposes, if not the same results” (Arbnor and Bjerke 102). This is one of the main distinguishing points between the Analytical and Systems & Actors Approaches. The Analytical Approach is looked at as a science where all results are based on procedures and data “prove” the results and accordingly is objective. The Systems Approach looks at synergy effects which can be somewhat more difficult to measure as objectively as a science would require. This would become even more difficult for the Actors Approach where the original data is largely based on subjective interpretation and understanding.
However, the Analytical Approach is not a perfect science. As it deals with people, the factors that affect the outcomes can not as easily, if at all, be manipulated as in a lab with natural science experiments. Arbnor and Bjerke highlight that for the Analytical Approach the most important factor is to find explanations, not results (103). The argument they give to support this is that “…to explain means to answer the question `Why?´” (Arbnor and Bjerke 104). They also go on to highlight that these explanations “…should not only be directly supported empirically, but also indirectly follow as a natural consequence of existing theory (be deducted)” (Arbnor and Bjerke 104).
The meaning of deduction is addressed below along with those for induction and abduction in 231.6 Methods of Creating Knowledge. Thereafter the merits of the different approaches for this Thesis will be evaluated and a particular approach chosen based on the understanding above.

Figure 2‑1 How the Three Methodological Approaches Relate to Each Other Explanatory Knowledge Understanding Knowledge (Explanatics) (Hermeneutics) The Analytical Approach

The Systems Approach

The Actors Approach

Positivism Functionalism System Theory Pragmatism Constructivism Phenomenology

(Arbnor and Bjerke 44,46)
This Thesis will mostly be using the Analytical Approach taking the present understanding of who Generation Y is from Journal articles and books on the topic and verifying it with empirical data from surveys conducted in the UK. There will however also be elements of Systems Approach where the Thesis will try to determine whether synergy between Generations X and Y may be possible. This combination of Approaches means that the Thesis would be positioned between Functionalism and System Theory in Figure 2 -1 How the Three Methodological Approaches Relate to Each Other, though leaning towards the Analytical side.
1.6 Methods of Creating Knowledge
Three of the main ways of creating knowledge that have been considered are Abduction, Deduction and Induction each of which represents a different interaction between theory and data.
1.6.1 Three Knowledge Creating Methods
Deduction Deduction is “…a method of creating knowledge whereby researchers/consultants/investigators infer single cases from general laws; that is a logical analysis of what general theory says about a specific event…” (Arbnor and Bjerke 93). Deduction is thus a process of moving from theory to data. Upon having identified the theory to be worked with and understanding it, it is applied to a set of data to be verified.
Induction Induction is a process of creating knowledge where “…researchers …conclude general laws from individual cases, that is, construct theories using factual knowledge” (Arbnor and Bjerke 92). Induction represents an approach where first the data is collected and evaluated to then be linked to theories afterwards. This means finding the theory that best fits the data. It is a strong approach to ensure that prior theory does not contaminate research results by setting parameters.
Abduction Abduction is different from the two other approaches mentioned in that it does not go from data to theory or vice versa once. Abduction takes the data that is available and then goes to the theory to identify fit and make comparisons. The process will then return to the theory again. This move between theory and data is repeated several times over until the two correspond correctly.
For a graphical representation of Deduction (Red), Induction (Orange) and Abduction (Green), please see Figure 2 -2 Cyclical Nature of the Knowledge Creating Methods, which is based on a figure from Arbnor and Bjerke (92). Arbnor and Bjerke’s original figure did not contain Abduction and has therefore been slightly modified, with the green line with arrows in both directions representing the move forth and back between theory and fact.
Figure 2‑2 Cyclical Nature of the Knowledge Creating Methods

(Arbnor and Bjerke 92)
1.6.2 Evaluating the Knowledge Creating Methods
Existing information and material such as newspaper and journal articles will create a basis to gain an idea of whom and what Generation Y is. Thereafter the understanding that has been obtained on this basis will be challenged by and compared to statistical data to be verified.
There is already a wealth of information available about the various generations currently forming the labour market and workforce and increasingly also about Generation Y. It is possible that an original idea could be created using an Inductive approach towards Generation Y. However, there is also a strong possibility that the conclusion would support already existing knowledge due to the numerous and varied articles on Generation Y that have already been written. The aim of this document is to ascertain whether previous theories have been accurate in their understanding rather than finding a theory that fits the data. This process starts with previous theories rather than ending with present theories. Supporting this approach the theories must first be understood to know what to test and how to test it. Consequently the path is from theory to data. For this reason Induction can not be used here.
Abduction would provide a stronger argument for the conclusion due to its repeated move between theory and data ensuring greater accuracy. The repeated move between the two would resolve the problem Induction faced. Although the data available allows for verification, its specific nature and high level of numeric data would provide limited new understanding or interpretations by continued move between data and theory. Abduction will therefore not be used as little new insight would be gained by repeated interpretation.
The Thesis’ aim is to verify or determine if present theory is accurate. As little new insight would be gained from Abduction the one move from theory to data should be sufficient for the purpose of this Thesis. Consequently, although it arguably does not ensure the same accuracy as Abduction or the same objectivity as Induction, Deduction will be used for this Thesis as it is the most efficient to provide the required conclusions.
1.7 Evaluating the Methodological Approaches
Each of the three approaches has its own respective strengths and weaknesses which would affect this document.
Although an understanding using the Actors Approach could make a positive contribution, ambiguity and continuous reinterpretation would not provide the fixed parameters necessary to create Generations separate from each other. The Actors Approach could possibly provide the most accurate definitions based on interpretation, but the notion of a Generation based on parameters would become meaningless. Although the Generations may not be perfectly representative of their populations, there are sufficient universal elements to give members of a Generation common characteristics on a high level.
The Systems Approach may provide some additional useful insight as it takes a holistic view and may provide a clearer understanding of how to achieve synergy by combining the strengths of the different generations. However, this Thesis is not looking to only identify means of creating synergy, but understanding who and what Generation Y is. Looking at intergenerational synergy represents only a small part of the process.
The Analytical Approach would look at the topic from an objective perspective supporting all conclusions with data. As mentioned earlier, this Thesis aims to use statistical results from surveys conducted in the UK to support or contradict the trends identified in current literature. This approach by its use of data to reach conclusions, leans itself towards the Analytical Approach. However, this document will also contain elements of the Systems Approaches where they are able to make a positive contribution to understanding the positions of the different generations such as intergenerational synergy.
The Analytical Approach will be the main approach used. Referring back to the end of section 1.5.3 Analytical Approach the explanations will be supported empirically. Furthermore, conclusions and explanations will follow as a natural consequence of existing theory. This approach, when using the definitions from earlier of Knowledge Creating Methods, also translates into a Deductive Approach.
1.8 Bloom’s Taxonomy
Benjamin S. Bloom developed a set of classifications to evaluate levels of knowledge. These differing levels represented how well a person not only understood knowledge, but was able to use it and even be self-critical. For this reason Bloom’s Taxonomy is applied to this Thesis, it will ensure that the knowledge is understood and that the Thesis is critical of itself.
1.8.1 Levels of Knowledge
Benjamin Bloom created a hierarchy of the understanding and use of knowledge. This hierarchy was composed of six different levels with the first being Knowledge. Bloom identifies it as “…the knowledge level of learning achieved by rote memory of simple rules, facts, terminologies, sequences, and principles” (Karns, Burton and Martin 18). It represents a level where a person will know something based on facts but not necessarily understanding why.
The Second Level, Comprehension, which is defined by Bloom as “…the translation of one level of abstraction to another” adds the why (Karns, Burton and Martin 18). Comprehension represents the ability of a person to take the knowledge described in Level One and being able to put it in their own words. The person will, for example, not only know that an apple will fall to the ground, but understand why (gravity).
The Third Level is Application where a person “…must be able to apply a principle to some new problem” (Karns, Burton and Martin 18). It differs from the second level in that not only does a person understand an idea but is also able to work with it. Continuing with the apple example from above, Newton demonstrated he understood why the apple fell and was then able to apply this knowledge and create a law for gravity which was also applicable to objects other than the apple.
Analysis, is the fourth level, where a person is able to “…breakdown a communication into its constituent elements, finding assumptions, identifying causal relationships, and distinguishing facts from opinions” (Karns, Burton and Martin 18). This is different from Level Three in that it not only applies an idea to a new problem but a person must be able to take it and break the communication down and understand how different parts function and how they relate to other parts. Darwin demonstrated this method of thinking when creating his Theory of Evolution. He was able to separate the notion of God creating all as was commonly believed at that time and instead isolate the different types of species, such as Finches, from the different Galapagos Islands. This allowed him to understand how the different elements, combined, demonstrated evolution. Synthesis is the Fifth Level of Bloom’s Taxonomy. This level represents a point where a person can “…synthesize knowledge and develop a hypothesis or theory of his or her own” (Karns, Burton and Martin 19). Where in Level Four a person understood how different parts functioned and related, Level Five takes the knowledge and understanding of the previous levels and is able to use this to create an original idea. Continuing with the example of Darwin, by understanding the differences between the evolutions of the same species to their environments on different islands, he was able to create his theory of evolution and apply it on a much larger scale than then Galapagos.
Bloom’s final level of Taxonomy is Evaluation. A person must here be able “…to detect fallacious arguments and to evaluate theories based on internal consistency and external standards” (Karns, Burton and Martin 19). A person must not only be able to create a theory, but to take a theory and evaluate it to ensure it is consistent, addresses the issue and provides the results it is intended to. It demonstrates the ability of a person to not only understand, apply and develop ideas, but more importantly to be self-critical and in this ensure as high a quality as possible.
Each of these levels of knowledge evolves from one to another but does not exclude one from the other. Each level builds on the knowledge of the previous level. This can best be seen in Figure 2 -3 Bloom 's Taxonomy Pyramid below, where each level of knowledge leads to a higher level with Evaluation at the top of the pyramid.

Figure 2‑3 Bloom 's Taxonomy

Based on: (Damberg)
1.8.2 Applying Bloom’s Taxonomy Pyramid
This Thesis aims to use the Levels of Knowledge Bloom describes when approaching data. The first step is to gain an understanding of who Generation Y is. This section will, consequently, be focused on descriptive elements. These first steps correspond to the first steps of Bloom’s Taxonomy in trying to first know who Generation Y are understand the background for this. The understanding will be attained by providing a summary of the key events Yers will have experienced while growing up and how this may have affected them.
Having established who Generation Y is and what has shaped them, the descriptive section will be followed by using the Application Approach i.e. what does this information mean with regard to other generations, specifically Generation X, and how Generation Y approach work? A similar description of who the other generations are and what factors may have helped shape their views has been included in the Appendix, providing background for this comparison. This understanding will be applied to the current labour market situation where companies are trying to recruit talent from among Generation Y but only have limited success, face high competition, and have difficulty retaining Yers once they have been recruited.
Companies want to know what Recruitment and Retention Methodology does work, not what might work as they represent a high cost factor for a company. Therefore the Analysis Approach will be key in identifying the difference between fact and opinion to thus be able to provide a clear definition of how to interact with Generation Y building on the knowledge of the Application level.
The overall aim is to bring the previous elements together, thereby providing an overarching understanding for a company of who Generation Y is, what they look for in the work environment, and consequently how best to approach them to be able to attract talent and retain them in the long run. This represents Bloom’s fifth level, Synthesis, taking all the elements and understanding from the preceding levels and using the gained knowledge and results to create a model for companies to use in conjunction with Generation Y, their recruitment and retention.
The final step will be to take the understanding and model created and evaluate it to ensure that there are no contradictory points within the approach, no misleading arguments and most importantly to ensure that it provides the answer required, who Generation Y is, how to attract and then retain them. This also represents the final step according to Bloom’s Taxonomy Pyramid.
1.9 The Research and Writing Process
As mentioned earlier, the document will be reflecting and applying the Deductive Approach by first using present Theory as a foundation to then move towards Data rather than first collecting Data and then linking it to Theory. Next surveys form the UK will be used to compare, differentiate and verify the theories presented in contemporary books and journals on the issue of Generation Y. The final step will be to collate the information that has been gathered and confirmed
As can be seen from Figure 2-1, elements of the Analytical Approach are used in the research. The emphasis of this document is not on facts, of how many there are in Generation Y, but on understanding how Generation Y acts. However, to demonstrate the growing role of Generation Y in the labour market, statistics will be used. This data will serve as supporting evidence for the argument as to why it is important to ensure a positive interaction between Generation Y and the other generations and reflecting today’s workforce. Also here the lower tiers of Bloom’s Taxonomy Pyramid are reflected, representing description and understanding of the information.
Following the Introduction of the survey data, the comparing and differentiating between actual data and theory will serve as a comparative factor for the creation of a contemporary understanding of Generation Y. This information can then be applied to the working environment, to identify how best to work with Yers based on the newly created understanding of who they are and what their priorities are. Bloom’s Pyramid and the Analytical Approach ensure that explanations and conclusions are based on a logical progression and empirical data. It also represents the move towards forecast following deduction as seen in Figure 2 -2 Cyclical Nature of the Knowledge Creating Methods.
As the Project Structure showed, the final Chapter of this document will re-evaluate the conclusions drawn to ensure that are no contradictions, oversights or fallacies. This represents the application of the apex of Bloom’s Taxonomy Pyramid, Evaluation, and will further ensure the objective scientific accuracy the Analytical Approach prescribes.
1.10 Chapter Conclusion
This Chapter aimed to identify which methodological approach would be the most relevant for this Thesis. Having discussed the advantages and disadvantages of the varying methods, Deduction was found to be the most closely aligned to the Research Process and answering the Problem Statement. Using Deduction and empirical data, the Analytical Approach was found to be the most relevant in interpreting the data.
Having decided to move from data to theory and how to understand the information, Bloom’s Taxonomy was introduced to act as a guide for the structure of the Thesis and the stages of working with the information available. This begins with a descriptive section in the next Chapter, followed by a section using this information in Chapter 4, and concluded with an evaluation of Chapter 4 and a review of whether the Project Statement Objectives have been met in the final chapter.
Defining Generations X and Y
The question of why it is important to understand Generation Y was approached earlier. However, is it important to provide a specific name to each 15-20 year range or even define such a range? And if so, what are these generations? These are some of the questions that will be answered in this Chapter, aiming to provide an understanding of who Generations X and Y are. This understanding will be verified with survey data conducted with university students and graduate recruiters in the UK in 2007-2008. Being mostly a descriptive section, this Chapter represents the lower tiers of Bloom’s Taxonomy Pyramid provided in the previous Chapter.
1.11 Is there a need to Brand each new Generation?
Shortly the fact that there is no cut-off date, at which point people are in one generation or another, will be discussed in greater depth. At this point it is important to understand that even if someone is born in 1950, this does not automatically mean that they will act like a ‘typical’ Baby Boomer. However, generational branding is helpful because although “[i]ndividuals within any generation have different traits, …the shared experiences of its members impact certain attitudes and perspectives across the group” (Yeaton 69).
It is these shared attitudes and perspectives that allow generations to be created. They do not cover all individuals’ characteristics; however they do provide an idea of what a large group of people may have in common from a given period of time. Such common experiences will with great likelihood affect people in a similar manner. For example, the September 11 World Trade Centre attacks made danger at home a reality for many Americans in a way little else had since Pearl Harbour. This then spread to Europe with the Madrid and London bombings, again creating a feeling of fear. Despite these feelings, when the US wanted to invade Iraq there was a strong movement against such action with protest including many students across Europe and the USA. These protests were based on a common feeling of what rights there were to, in this case invade Iraq, especially when evidence was not supportive. This may not be representative of a purely generational action but demonstrates how a large group of people who witness a common event can have a similar view on an issue and take action together.
As mentioned though, not everyone within a generation band will feel they belong to a given generation or demonstrate their characteristics. It is especially during transition years between generations a person could have characteristics leaning towards one or the other generation or elements of both. This is because time is fluid; hence no cut-off points where a person belongs to either one generation or another can be explicitly placed. A Baby Boomer can easily be comfortable with technology or Yers independent and technology averse. Each individual has his or her own personality. Generational banding merely provides a high level way of understanding large groups of people.
The reason for naming a generation is to provide guidance for a group of people born within a given period of time that tend to share various experiences that have shaped their view of the world and their approach towards life at a high level. As long as people are aware that being born in a particular year does not automatically mean one has a set of given characteristics, generational names help to provide a broad-base understanding of a large group of people. Thus it is beneficial to assign generations to periods of years.
These generational brandings allow people to know how, in general, to approach members of other generations, knowing what is disrespectful and what acceptable behaviour is. Understanding differences between age groups provides many of the same benefits of understanding differences between cultures as the principles are very similar. This will be explored further in Chapter 4 where it will be linked to Hofstede’s cultural dimensions.
1.12 Generations in the Workforce
The oldest generation presently still in the workforce is the Veterans. The Veterans comprise those individuals who were born up until the end of WWII, many of which will have experienced World War II, either actively or as children. The Veterans were followed by the Baby Boomers who became the largest generation to enter the workforce, the ripples of which are still being felt now as they are beginning to leave the workforce. The Baby Boomers were followed by Generation X, who grew up with working parents and witnessing mass layoffs, shattering the image of a job for life. The final generation presently in the workforce is Generation Y, the focus of this Thesis. Yers were witness to the rise of the age of Technology with the personal computer, cell phones and Internet allowing global mobility, unlimited access to information and a new form of Business. The figure below provides a visual timeline of the different generations and their year bands.
Figure 3‑4 Generations Presently in the Workforce

Almost every article and book sets its own range of years for each generation. The bands of years are usually similar e.g. Veterans born before World War II ends. What differs are the cut-off points between the generations. As was mentioned above, there are no firm dates at which a person is either from one generation or another and therefore the particular year when a person is either an Xer or Yer are not the critical points here. Critical is that the generation as a whole captures the defining moments shaping the generation e.g. the Vietnam War, end of the Cold War, or Bill Clinton’s “New Economy”.
As already mentioned, the dates and definitions do not apply to all born in the given time spans. There will be those who are born in the mid 1940’s who will feel more comfortable with approaches typically associated with Generation Y. Equally there will be some born in the late 1980’s who feel more comfortable with the work approach of the Veterans. When considering the definitions provided for Generations X and Y below and the Veterans and Baby Boomers in the Appendix, it is important to be aware that they are generalisations meant to be representative and to provide guidance, and not be fixed.
The years given for generational bands have been chosen by choosing a period of time which would roughly cover a generation, for this Thesis 17 years. There bands remain true to the notion of when the generations were born as given in books and journal articles with the difference being plus/minus a year for the bands between sources. The years also aim to capture periods of time where the people contained in this period are likely to demonstrate characteristics that on a whole will be similar.
In the main body of this Thesis only Generations X and Y are covered in depth as they are the focus of this document’s comparison. However, as each generation has different characteristics that were shaped for varying reasons, a similar evaluation to Generation X’s and Y’s has been added in the Appendix for the Veterans and Baby Boomers. This helps to provide context of who they are and why they may have developed with their respective priorities and values.
1.13 Generation X
The third generation in the workforce is also the smallest generation segment (Gravett and Throckmorton 41). Although there are fewer Veterans in the workforce, as a generation it was larger than Generation X. The Xers were preceded by the Baby Boomers and followed by Generation Y, both of which have very large populations. To give a comparison, for the US some figures state there are as many as 76 million Baby Boomers versus 51 million Xers (Zemke, Raines and Filiczak 94). For the purposes of this Thesis, Generation X represents those who were born in the period 1963-1980.
1.13.1 Who Generation X Is
Xers were raised in a very different manner from the Baby Boomers and witnessed very different phenomena. The parents of Generation X”… had the highest divorce and abortion rates, highest number of dual-income families, and most permissive parenting habits …” (Martin and Tulgan 39). There was also an issue of security which encompassed several different aspects; financial security, job security, peace, or child safety. This generation did experience positive developments with the introduction of the personal computer by Apple and Tandy in 1976 which represented the start of a revolution in how school and professional work would be done in the future (Zemke, Raines and Filiczak 95).
Some of the events experienced by Xers would have an impact on the world at large and, in turn, how they would look upon it. The oil crisis of 1973 demonstrated the reliance a significant part of the European and US economies had on oil and how little control they had over this resource (n.a., Energy Information Administration: Official Energy Statistics from the United States Government). Some of the wars Generation X experienced were thus more of an economic nature than the type previous generations had witnessed. The other type of war that this generation grew up with, especially in Europe, was terrorism. During the 1970’s the actions of ETA in Spain, the IRA in Ireland, and the Red Army in Germany and Italy ensured there was no security in these parts of Europe. Older Xers may also remember the terrorist attacks at the Olympic Games in Munich in 1972.
This generation witnessed some of the greatest political shifts to take place since World War II. In 1989 the fall of the Berlin Wall heralded the end of the Cold War. Europe was no longer seen as divided between East and West, Socialism and the Open Market. Margaret Thatcher changed the shape of the UK economy by privatising many sections of UK industry including utilities and rail. Due to sharp economic downturns there were also high levels of unemployment during the early years of the Xers. This was to change by the time the first Xers were ready to join the workforce. Xers were of even greater interest to companies due to the skills they had that few from the earlier generations possessed, most significant of which was computer literacy.
The group representing Generation X also started to become more diverse. The efforts of the civil rights movements of the early and mid 20th century were beginning to come to fruition. Women and African American minorities were slowly gaining ground and rights in the workplace. This was reflected in Angela Davis, a peace activist, and Michael Jackson, both from an African American background. Other areas were also developing, influencing not only Generation X but becoming widely accepted at the start of Generation Y.
The African American community embraced Hip Hop, with stars including Tupac Shakur and Notorious B.I.G., in the mid and late 1980’s while others took to Grunge and Hard Rock with groups such as Nirvana. Others again, engaged in soap shows like Dynasty and musicals like Saturday Night Fever. Xers grew up being independent from a young age while both parents were working. The culture of a generation is a product of its population and consequently reflects the generation. Although great emphasis was placed on just having fun, many cultural elements, from music to TV programs, dealt with social issues and the feelings of the youth.
In addition to social awareness an environmental awareness was beginning to take shape at this time. After several major oil spills including the Amoco Cadiz in Europe and Exxon Valdez in Alaska the consequences were being seen on TV on both continents. The World Wildlife Fund (WWF), later the World Wide Fund for Nature, was established at the same time as Generation X began to take shape, in 1961. By the early 1980’s the WWF began to gain momentum with its millionth member joining (n.a., WWF International: History). Generation X understood that the world the Baby Boomers had started working in had changed significantly; economically, environmentally, and with regard to energy, security and peace (see Figure 3 -5 Defining Events for Generation X, for key historical events).
Figure 3‑5 Defining Events for Generation X

(Overy 313,340-342,350)
1.13.2 The Characteristics of Generation X
While the Baby Boomers joined the workforce at a time when an employee stayed with a company until retirement, Xers had witnessed first hand that this would no longer hold true for them. They joined the workforce fully aware that there was no longer any job security having witnessed their parents being made redundant. When joining there was also no longer the attitude of working ones way up the organisational hierarchy but rather a desire to be recognised for the work done.
Unlike Generation Y, Xers have not necessarily grown up with easy availability of computers at home. This does not however mean their approach to technology is the same as commonly found with Baby Boomers and Veterans. Xers grew with the technology boom and some of the more successful DotComs today were started by Xers e.g. Google. As technology grew, so too did Generation X’s understanding and use of it. The main difference between Generations X and Y in technology is that Yers always had it available, grew up using technology and took it and its use for granted. Generation X still remember using typewriters, but also grew with technology and helped shape it creating a different type of relationship with, and respect for it, while still being technology literate. In a work environment this means that Xers are equally likely to use the Internet to answer a question as approach a colleague (Wendover 26).
Baby Boomers were known to work very long hours and dedicate themselves to their jobs. This may partly be because they viewed their work as a calling. This is far less the case for Generation X who, having witnessed mass lay offs and the effects on social life of long working hours, see their relationship with an employer from a more contractual basis (Wendover 26). With regard to actually applying themselves to work, Generation X also differs from the previous generation. Xers tend to be more independent, self-motivated and self-sufficient (Yu and Miller 36). The reason is likely to lie largely in the fact that they grew up alone, almost neglected by their parents partially due to increasing divorce rates and women increasingly joining the workforce (Zemke, Raines and Filiczak 98). On this basis they are different not only from the Baby Boomers but from Generation Y as well, who experienced Helicopter Parenting. Furthermore, Xers expect work satisfaction and not just to work hard.
The points above also herald a change in what a generation values. Baby Boomers valued hard work and performance. This not only changes with Generation X but lays the foundation for the change in work’s importance for Generation Y. Furthermore, financial incentive is no longer the most important motivation for Generation X (Yu and Miller 37). Financial incentive is still important but sometimes they also just want recognition for the work they do (Levin).
Xers seek out training in their jobs. Having witnessed the layoffs of their parents they have understood that they must hedge themselves against economic downturns and one of the best ways to do so is to create as strong a CV as possible. Xers will thus attend training not only for the benefit of the company but to strengthen their position of keeping their job i.e. Xers are relatively loyal to their profession not their employer (Yu and Miller 36). This varies slightly from Generation Y who also pursue training to build their CV, but with a slightly different motive as will be discussed in the section comparing the two generations.
Another similarity to Generation Y, with a subtle difference, is the importance of Work-Life Balance. Generation X put great value on their free time, spending it with friends and family, taking a rather different approach from the Baby Boomers. Working long hours or weekends is not something they do with great enthusiasm, which represented an immense shift in attitude from the Baby Boomers (Zemke, Raines and Filiczak 99). One of the complaints of Xers was that their parents did not spend enough time with them and many chose not to repeat this approach with their own families (Zemke, Raines and Filiczak 132). Political decisions and labour laws reflect this shift by e.g. introducing long maternity leave and paternity leave.
Wendover argues the key difference in work approach and career advancement between Generation X and the Baby Boomers is in their philosophy. “While Baby Boomers worked long hours in hopes that their sacrifices would be noticed over time, Xers expect their sacrifices to be noticed and expect clear guidance as to what those sacrifices should be” (Wendover 27). As the shift between Generations X and Y’s approach to Work-Life Balance is less drastic than the previous shift, this may be a potential way to ease the transition of managing Xers to managing Yers as well as ease relations between these generations.
Another area demonstrating similarity between Generations X and Y revolves around the meaning of the work they do and what motivates them. Part of the reason Xers do not work long hours or are happy to switch jobs is because of family (Armstrong). Unlike the Baby Boomers family has a much higher priority and corporate loyalty comes second, as mentioned above. Consequently a Xer will be willing to change companies for a higher pay check as this will help to better provide for their families and cover increasing home and tuition expenses. For those who do not have family commitments the meaning of the work they do bears great value.
Especially here, similarities between the younger generations become evident. Xers want to do work which has meaning rather than just sitting behind a desk for a multinational corporation. They will therefore volunteer to do social work in their free time such as working in soup kitchens (Armstrong). Some companies have recognised this trend and are socially proactive at a corporate level supporting and in some cases even encouraging social responsibility by their employees. One such company is Polo Ralph Lauren where “…employees share their time and talent as volunteers with non-profit community-based organizations” (n.a., Polo Ralph Lauren Foundation - Polo Volunteers). This may be an idea worth considering for companies to retain talent and balance required work with desired work, especially for Generation Y who highly value the opportunity to do charity work, as discussed in the following section.
1.14 Generation Y
The focus of this Thesis is on the group of people born in the years 1981-1998, known as Generation Y. Generation Y is mostly seen to start during the late 1970’s to early 1980’s and end in the mid- to late 1990’s. This generation has been given various names such as Nexters, Millenials, Echo Boomers, or Generation Why Not. From these two points alone it becomes clear there is no one definition accepted by all for this generation.
Regardless of when the Yers started or stopped being born, they are commonly seen as being a generation rivalling the Baby Boomers in size and importance. For instance, Katzanek notes that between 1980 and 1995 (his parameters for Generation Y), 80 million people were born making the Yers a larger generation than the Baby Boomers (Katzanek). They have only just started joining the workforce with the full weight of the generation to be felt over the coming 5-10 years. By creating an understanding of who this generation is and what its main characteristics are, companies will be better prepared and able to engage them proactively from the start.
The following sections will outline a definition of who Generation Y is and what their background is, being used as the basic understanding to be checked and applied in accordance to Bloom’s Taxonomy and the Thesis Structure provided earlier.
1.15 Who Generation Y Is
The fourth generation presently entering the labour market and workforce is in many ways the first generation to truly have grown up in a computer based society. Although computers may not have been common in the early 1980’s, this generation will very likely always been aware of them and used them either at school and/or at home. They will have started by playing simple games on it such as Pac Man and as technology evolved their understanding and use of computers will have evolved hand-in-hand. As technology was a large factor in shaping this generation it will be returned to shortly.
There were other significant events that took place while this generation grew up. The end of the Cold War gained momentum with the fall of the Berlin Wall in 1989, German re-unification and the end of the Soviet Union and thereby the end of Communism. The European Union continued to expand and grew closer with the Maastricht Treaty (n.a., Special Report on EU Enlargement: In the Nick of Time). The Schengen Agreement allowed for travel without passport check at borders while the introduction in 2002 of the Euro removed the need to convert currencies within the Euro zone.
In 1994 Canada, Mexico and the United States created the North American Free Trade Agreement (NAFTA) (n.a., Government of Canada Official Website). The following year the General Agreement on Tariffs and Trade (GATT) evolved into the World Trade Organisation (WTO) (n.a., World Trade Organisation: What is the WTO?). These treaties, agreements, and organisations changed the economic relationships of countries on a global level making them more integrated, reinforcing the notion of globalisation.
Other events include the invasion of Kuwait in 1990 and later the war with Iraq led by George Bush senior (Overy 322-323). But a truly defining moment in this generation will have been 11 September 2001. It was a terrorist attack in a manner before unimaginable. However, sad as the event was, it was the actions taken based on this premise that defined it. George W. Bush began by invading Afghanistan in search of Osama bin Laden and expelled the Taliban. He then went on to invade Iraq without UN support on an argument of Weapons of Mass Destruction.
A fear of further terrorist attacks gave President George W. Bush sufficient support to make these moves. However, the consequence was a dramatic fall in public support within the US and weakened relations with traditional allies in Europe, as neither bin Laden nor WMD were found in either case. This has meant that the present generation in the US has not had as inspirational leaders as Roosevelt or Kennedy to look up to and have instead looked for role models elsewhere.
In Europe, large scale terrorist attacks took place in Madrid, Spain in 2004 and London, England in 2005, again making all aware of how vulnerable everyone was to a terrorist attack (see Figure 3 -6 Key Events Experienced by Generation Y). Europe was also shown that it did not have guaranteed peace on the continent with the 1999 Kosovo crisis and the resulting changes in the Balkans.
Figure 3‑6 Key Events Experienced by Generation Y

These political issues shaped the view of the world and potentially changed this view for the younger generations especially. The economic changes, such as Euro and EU expansion, affected everyday life too. With open borders in Europe due to Schengen and a common currency, people no longer encountered the same difficulty in moving. The Erasmus University Program has encouraged students from across Europe to visit foreign universities while studying. When looking at air travel statistics, travel for 2007 grew 11% internationally to more than 760 million international passengers (n.a., International Air Transport Association: 2007 Total Passenger Results). All of these factors have contributed to opening up the world to all.
At the same time, although not as great a concern for older generations, commodity scarcity and the environment are issues very relevant to the younger generations. Generations X and Y are aware of some of the luxuries they enjoy from oil based products, such as relatively cheap transportation by land, air and sea, and the role oil plays in the economy. They are, however also aware that having reached Peak Oil2, oil will not vanish immediately, but it will become increasingly scarce and consequently increasingly expensive with a continued rising demand (Authers) (n.a., Shell Energy Scenarios to 2050).
Along with oil, technology is one of the defining factors of this generation. As mentioned earlier, with the rapidly increasing availability of personal computers, their use was equally swiftly adopted, particularly by the young for personal use. Generation Y will have grown up using computers to play games, surf the Internet, complete school and university work, download music and videos, and interact with people across the world instantaneously. The workforce embraced the Internet using it globally to conduct business without “losing” time.
Computers are not the only electronic gadgets Generation Y have benefited from. With the fall in costs and increased availability, the use of cell phones spread to a point where many households presently have more than one. As with the Internet, this has facilitated communication in any place at any time. There was also the introduction of the Discman in the mid- to late 1980’s making it easy to listen to CDs on the go rather than cassettes (n.a., Sony Celebrates Walkman(R) 20th Anniversary ). This was followed by the Mini Disc and later the iPod which was launched by Apple in 2001 (n.a., Apple Presents iPod). Other developments included cameras changing from using film to becoming digital, music being downloaded from the Internet legally, and being able to access the Internet from a cell phone, all aspects converging towards a digitally based environment with new developments almost monthly.
This has meant that Generation Y has mostly had communication, entertainment, and information readily available first through gadgets and later from the Internet. No generation before has had as much technology, and technology enabled items, available from their youth so readily as Generation Y. Yers have grown up knowing the different technologies and pushing their use, consequently making them more comfortable with technology than many members of the other generations. This ease with the use of technology is one of the defining characteristics of Generation Y and how they work.
1.16 The Characteristics of Generation Y
In the following section some of the characteristics of Generation Y will be described in more detail to gain an understanding of what their approach towards the work environment is and how they work in it. It is important to remember that the below is based on the members of Generation Y who have already joined the workforce at this point and those in university. It may therefore not be a precise representation of this Generation but will demonstrate trends that have been identified. This will provide guidance for how to deal with those presently in the labour market, forming the workforce and anticipating how to interact with future Yers.
Generation X would have begun joining the workforce in the early to mid 1980’s. Upon joining they knew there was no job security having witnessed the corporate cut backs of their parents’ generation. While this is also true for Generation Y, their approach towards it is different. Generation X entered the job market with apprehension, Generation Y on the other hand take a lack of job security for granted. Throughout their life they have witnessed corporate cut backs and realise corporations seldom demonstrate loyalty towards employees.
1.16.1 Loyalty towards a Company
Conversely, the situation Generation X experienced, as mentioned above, translates into a similar approach towards corporations by Generation Y. Yers feel little loyalty towards corporations and will often only stay for as long as they feel they are benefitting from working where they are. Yers as a group do “…not share the belief, common among baby boomers, that a corner office, or impressive job title equals success” (Hastings). Therefore, when a better offer is made to them elsewhere they have few objections to changing company.
It is a very different approach towards work than the previous generations took where loyalty to the company was assumed with Veterans. Baby Boomers would work their way up in a company in contrast to Generation Y, where moving up the corporate hierarchy is not key. Instead enjoying the work is more important, if it means going up or across a company or even changing company.
In addition to this, Yers enter the workplace with very high expectations. When they start working they do not want to work their way up the corporate ladder or start by doing tedious jobs. Generation Y wants to start with interesting work on the first day and if they are not happy there is a strong possibility they will leave for another company. They also expect relatively high salaries when they start working, unwilling to first work and earn it thereby potentially challenging corporate budgets.
This, however, is not necessarily due to an inflated perception of their own value. Rather it is brought about by ever increasing university debts that need to be repaid and rising costs of homes and housing. Armstrong noted that the average bachelor level student graduated with $25,000 in loans and a further $5,000 in credit card debt in the US. With tuition fees being increased annually, this debt load will continue to rise throughout Generation Y and likely into the next generation as well. It is thus not only a desire for a large pay check but also a very real need for one that forms these expectations.
Since Yers proactively look for training, career development opportunities and do jobs they consider interesting, they are constantly developing and strengthening their skills set. This means they also become increasingly attractive for competitors. As Tom Musbach from Yahoo notes, “Companies must constantly be in recruiting mode with current employees” (Hastings). This is not only true for companies who need employees. Even companies who may have no present recruitment needs cannot become complacent. If a Yer is not satisfied with their job they will find a new one.
1.16.2 Questioning How Things Are Done
While organisations such as the WWF, Greenpeace, and Save the Children were started before this Generation was born, they have played a large part in shaping its view on various issues. It is not only an environmental and social conscience that this Generation has developed but also one regarding company support of such issues.
While growing up this generation did not need to worry about the Cold War, consequently its attention was redirected to other issues. The Kyoto Protocol was adopted in 1997 and served not only to highlight the problem of CO2 emissions but also the start of proactively trying to resolve the problem (n.a., Kyoto Protocol). This generation also witnessed the effect public condemnation can have on a company. For example, after it emerged that Nike was producing its shoes and clothes in sweatshops in the 1990’s it had to implement a checking system on their suppliers to ensure these practices did not continue (Bernstein). These issues have taught Yers to question current practices, they support social justice and have understood that the planet’s resources and the planet itself have to be taken care of.
Subsequently because Yers have developed a strong questioning approach due to their sense of social justice and moral significance they have carried this approach over to the work environment. This approach develops into a “…constant questioning of ‘Why?’ Why is this important? Why do we need to know this information? Why do we perform these functions?” (Yeaton 69). This can be seen by a company to be very challenging but if harnessed properly these questions could also produce answers that e.g. lead to greater process efficiency for a company. Yers want to know what their role in a company is and why this role is important to a company.
1.16.3 Born Digital
As was mentioned earlier, this is the first generation that did not develop and grow with technology but was born with it already there. The oldest members of this generation will remember playing on computers which only had orange and black screen colours. However, technology developed at an unprecedented scale from the mid 1980’s where even 5 years would fundamentally change technology. Yers grew up with technology, knowing what the latest gadget was, how it was used to its full potential, and pushing the expectation of the following product generation. They were able to achieve a comfort with technology many from other generations found hard to keep pace with.
As a result Yers take computers and other devices for granted “…and computer games are not only pastimes, but learning tools as well” (Yeaton 69). Generation Y has for the past several years also had access to the Internet 24/7 all year, creating a large presence in e.g. chat rooms, blogs and “Second Life”. As other generations become more comfortable with the Internet the demographics have shifted somewhat, however, Generation Y was often at forefront on the Web, adopting and promoting the use of blogs, instant messaging, and downloading music to name a few. They know where to find any information that is required on the Web and if it is not there assume it does not exist.
At present approximately 87% of US teens use the Internet (Gravett and Throckmorton 108). When looking for a job they will therefore often refer to the Internet first to find companies and jobs they are interested in and information about them. Yers will go through the company’s webpage to learn what they can about the company and will complete an application on their homepage if interested. This has led some companies to no longer accept resumes or applications that are not submitted on their webpage. It is not only Yers overall comfort with technology that makes them an important asset for a company to have, but their inherent understanding of computers and the Internet. This understanding can be transferred from Yers to other employees of a company helping make Yers feel valued while helping other employees strengthen their understanding of the Internet.
1.16.4 Families and Helicopter Parents
Generation X grew up experiencing their parents getting divorced and their moms beginning to work full time. Knowing this was not the case earlier required some adjusting to by the Xers. Yers on the other hand are growing up not knowing any different. A two-income household is a non-issue for Yers. Furthermore, the US Census Bureau projected that by 2010 fewer than 30% of American children would live in homes with two parents (Zemke, Raines and Filiczak 135). Despite this and with birth control readily available, Yers are children who are wanted. Thus, although the nuclear family has changed shape for Yers, they do not feel abandoned as the Xers felt. In fact, some even claim that the family not only survived but now thrives (Howe and Strauss 123). This becomes particularly apparent when considering the notion of Helicopter Parents.
Yers differ from other generations in that their parents were and sometimes still are actively involved in their lives and careers. This marked increase in commitment is also very time consuming for a parent. Hence it begins to relate back to especially Generation X who have begun to shift away from prioritising work as the Baby Boomers did to prioritising family. By Xers spending more time on their families the following generations will consequently also experience an increased presence by their parents. Members of the earlier generations feel that while growing up, the children of this generation were placed on pedestals (Katzanek). If this were the case, it would be a similar treatment that the Baby Boomers received from their parents after WWII.
The phenomenon of Helicopter Parents refers to how the parents of Generation Y appear to be hovering over them at all times, always watching, helping and guiding. An example where this is evident is when students are looking at universities and courses. Regina Morin, Director of Admissions at Columbia College, notes that; “Ten years ago, orientation and choosing classes was not an issue. Parents knew that was for the students…Now we have to go out of the way to request that the parents don’t participate when students have time with an adviser to choose classes” (Mahshie). Parents have become much more involved with the lives and choices of their children, as was noted with Generation X.
As a consequence of a greater presence of their parents, many Yers may not be as independent as many previous generations were. They will require more guidance by a manager, demonstrating how something is done as well as possibly explaining why. Yers were also provided with constant guidance regarding what is good for them and what is not. This naturally also leads to their actions and performance being evaluated and commented on. In turn this has led to an almost continuous flow of feedback for Yers in most aspects of their lives.
1.16.5 Feedback and Work Ethic
A need for feedback by Generation Y has been noticed by managers as Yers have joined the workforce over the past few years. Reesa Staten, senior vice president at Robert Half International, notes that “The research depicts a pragmatic, future-oriented generation that holds many of the same values as their predecessors…Yet, certain distinctive qualities, such as a desire for frequent feedback from their managers, are unique to this generation” (Hastings). How has this need arisen if prior generations did not require it?
Discussed earlier, Yers grew up with technology, which has made various aspects of life faster and more efficient (e.g. emailing or instant messaging instead of writing a letter). It has also allowed children to grow up playing computer games of increasing complexity as technology develops. These computer games have accustomed Yers to receiving immediate feedback on their choices and actions (Yeaton 69). Furthermore, from pre-school to completion of school, every year Yers have received grades evaluating their performance, sometimes as frequently as every quarter. At university they will have received grades for every semester as well as grades for midterm exams, presentations and projects. They have experienced constant feedback on performance at each step of their education and for each assignment completed. This means that they have come to expect the same in the workplace, wanting to know whether what they did was good or not, and they want to know today, not next year.
The providing of grades, certain GPA’s achieving placement on honour’s lists and graduation with distinction, has promoted a Merit Society. This means that Yers do not respect someone else simply because of their position or because they are older. “They value intelligence and genuine contributions to the organization. They prize innovative thinking and ingenuity” (Yeaton 69-70). This expectation may partially have come from how they grew up, constantly seeing new products being introduced (cell phones, the Internet) and then continuous improvements made to these products (colour screens for computers, VHS developing into DVD). Feedback, merit based achievement and respect are large factors in Yers work life and will contribute to shaping how companies will interact with this generation to retain it.
1.16.6 Work-Life Balance
When discussing Work-Life Balance and Generation Y, there are two aspects to consider, work demands and volunteerism. Work demands covers several areas of importance to Yers in the working environment and the support they receive from a company. Volunteerism refers to company support of charitable work and helping worthy causes.
Similar to Generation X, Generation Y will not work long hours but actively seek a good Work-Life Balance. Salary is no longer the only factor motivating Yers, but also attractive benefits packages and work flexibility (Yeaton 70). Yers do not mind working odd hours as long as they are able to work from home, get the time back at another time or have the flexibility to do it in their own way.
“This generation is seeking something beyond an all-consuming career; they want time to build and maintain personal relationships” (Yeaton 70). Work-Life Balance does not only refer to support from a company to complete further studies or allow for flexible working hours. As many will not have started families yet they want to spend time with friends instead. This want is reflective of Yers’ overall approach to work, they work to live, not vice versa as was true for Baby Boomers.
In addition to work for the company, Yers have a great interest in supporting social and environmental causes. As with Generation X, Yers want to make a contribution to society outside of work, and is already noticeable while they attend university. Saint Louis University’s Madrid Campus, for example, arranges for students who would like to help out at a local Soup Kitchen once a week. In a poll by Deloitte as many as 70% of young employees, believe that a company should use volunteerism as a development tool (Shepherd).
Although many will volunteer for altruistic reasons, this is sometimes also combined for personal development. The same Deloitte poll found that 76% of young workers believed volunteering helped hone their leadership skills, while 75% said it allowed them to develop skills they can use at work (Shepherd). Assuming their beliefs are accurate, this would mean that companies could stand to benefit from encouraging employees to link development with volunteering. Companies may want to consider volunteer schemes if for no other reason than that Deloitte found that 62% of Yers would prefer to work for companies offering such schemes.
1.16.7 Tolerance
Susan Mitchell, from American Demographics, highlights that this Generation will be the first to truly challenge traditional racial categories (Zemke, Raines and Filiczak 137). Is this true and what does this mean?
The 2008 US Presidential Election Campaign has proven the willingness of people to consider candidates of differing backgrounds with Barak Obama the first African-American presidential candidate while Hilary Clinton for a long time also was a serious contender to be the first female president. The importance of this is that Yers do not judge a person on anything other than performance, as mentioned earlier. Yers do not look at a person but at a person’s performance and treat a person on this basis.
There is, however, a downside to the trend of only judging others on the work they do rather than on a demographic or other basis the other generations will notice. Yers will not respect their colleagues and other employees merely due to tenure or title. Yers respect performance and will respect a person regardless of rank or background based on their performance, not based on their title. In turn they expect the same treatment, wanting their performance to be recognised. This is in marked contrast to Baby Boomers who would work their way through the ranks and expect their rank and tenure to be respected. All generations need to be aware of such differences to avoid unnecessary conflict. This will be looked at again in Chapter 4, when discussing Hofstede’s cultural dimensions.
1.16.8 Collaboration
In the Appendix the Baby Boomers are described as being highly individualistic in their work approach. Yers tend to be the opposite and work well in teams. This starts already at school where children are encouraged to work in groups. In the US, schools try to bring “….kids together rather than splitting them apart” by introducing `Collaborative Learning´ (Howe and Strauss 155). Gravett and Throckmorton have found that “…young teens today care for one another and build communities in their classrooms and neighbourhoods” (109). Again, the strong social relations of Generation Y become evident.
When reaching university, students are often encouraged, at times required, to work in groups for course work. In Aalborg University’s MSc of International Business Economics, students are required to work in groups of 3-5 for the degree’s first project. In US universities, such as Saint Louis University, Missouri, students are also required to participate in group assignments which can comprise as much 30% of a course’s final grade for a student. This means that not only is group based work encouraged but that their collaboration and its output is evaluated, and is again providing feedback to Yers on their performance.
The factors discussed in the previous subsections will be important to bear in mind in the following Chapters as they demonstrate the views and characteristics of Generation Y and how they arose. Combined they shape a high level personality for Generation Y which will help to understand them and in turn to identify how best to attract them to companies, interact with them and retain them. First, though, these points will be compared to two UK surveys to ensure they are correct.
1.17 Statistical Observations
To ascertain that the characteristics provided earlier about Generation Y are accurate, they will here be compared to the results of surveys conducted in the UK in 2007 and 2008. This ensures the research process remains true to the Analytical Approach, where conclusions are supported by empirical data by going from theory (above) to data (the statistics below) according to the Deductive Approach. Furthermore, the data will look at the issue from two perspectives, those of the Yers and those of the employers. This will help to provide a more holistic picture. Hereafter, the conclusions based on the data will be used to create a model for how a company best can approach Yers.
1.17.1 Student Survey
The student perspective survey is the UK Graduate Careers Survey 2008: Volume One Graduate Recruitment Research, which was produced by High Fliers of London. The survey was “…based on face-to-face interviews with 15,381 final year students from the `Class of 2008´ studying at 30 leading universities in the UK, carried out in February 2008” (High Fliers Research Limited 5). Originally introduced in 1995, it is an annual survey conducted for the Times.
The survey is made up of two sections, The Class of 2008 and Job Hunting During 2007-2008. These two sections include issues such as Demographics, Experience, & Skills, and Graduate Recruitment Websites. As the survey is 132 pages, this Thesis will only cover some of the results that are directly relevant to the Thesis, excluding topics such as `preferred city to work in upon graduating´. Some of the factors the students consider very important when deciding where to work include Quality of Training and Development Programmes (56%), Content of work (62%), Work-Life Balance (48%), and Overall reputation of the company (45%) (High Fliers Research Limited 58). These areas and others will be looked at in greater detail below.
Earlier the age range was provided for Generation Y (1981-1998) where it showed that the oldest Yers presently would be 27. The age distribution according to the survey showed that 2% were older than 25 (High Fliers Research Limited 15). This means that only a small fraction of graduate degrees might be pursued by members other than Generation Y in 2008. For the workplace this means that presently almost all university graduates are of Generation Y. Consequently, when companies are at Recruitment Fairs or giving presentations at universities, they must adapt their approach to this particular age segment. For the complete age distribution, please see Table 3 -2 Age Distribution of Final Year UK University Students below.
Table 3‑2 Age Distribution of Final Year UK University Students

(High Fliers Research Limited 15)
The table above demonstrates the age distribution of the students presently graduating from UK universities, more than 98% of which constitute Generation Y. This means that the answers of the rest of the questionnaire can be used for verifying the Generation Y characteristics as the answers have been provided by Yers. The following table covers experiences final year students had during their enrolment at university. Some of these questions relate directly to the characteristics of Generation Y as identified in the previous section.
Table 3‑3 Finalist 's Experiences During University

(High Fliers Research Limited 21)
Of the Finalists interviewed, less than 20% had spent three months living in a foreign country (16%), organised student trips (13%) or took part in a political campaign (10%). 25% of students had run a student society or gone travelling or backpacking for more than a month overseas. All of these activities demonstrate an ability to act independently, organisational skills and the ability to manage situations and people. These areas are the ones to which the fewest finalists replied yes, supporting the earlier statements that Yers are less independent than other generations. This does not mean Yers do not have it in them, but rather that they chose to pursue activities that did not require such skills to be developed. This represents a serious distinction from Generation X.
The response rates for charity work (36%) and society membership (57%) were significantly higher with more than a third and more than half, respectively, responding positively. These were both characteristics highlighted earlier as being of high importance to Yers. With one third of finalists responding positively to charity work there is strong support that the tendency identified earlier is accurate. Also, of all Finalists, 8% intend to take voluntary or part time work upon graduating. For this reason companies may want to consider highlighting the charity work they support and how employees can help if they want. With almost 60% being members of a club or society, there is a trend for Generation Y to be socially active. This reinforces the notion that Yers value a positive Work-Life Balance, being able to spend time with friends and pursuing activities they enjoy.
Table 3‑4 Personal Skills & Attributes that Finalists Developed during University

(High Fliers Research Limited 21)
The strong social ability also translates into improved ability to work in teams. 37% felt they had developed their ability to work well within a team (see Table 3 -4 Personal Skills & Attributes that Finalists Developed during University). Time Management on the other hand only received an 18% positive response rate. Earlier Generation Y were said to be able to complete the same work in less time than members of other generations would need. It may be true that they can complete work more quickly, but not that they know how best to manage the time to do this. This may in part be due to a lack of experience which they will learn when they start their working life.
Personal confidence scored 25%, which again is a relatively low value. This means that Yers need guidance and are less likely able to act independently than the Xers were. Companies need to be aware of this when recruiting Yers to ensure they are prepared, perhaps even able to support Yers. This puts higher demands and pressure on the employer by possibly increasing expenses as more time needs to be given to the development of these employees.
The lowest scoring area was Business Knowledge & Awareness with 11%. The more understanding a student has about the jobs they are applying for the higher the chances are that they are applying for something they are interested in. For companies this translates into reduced retention risk as there will be fewer who join to try a job, potentially representing a cost-saving factor.
Another way of reducing a company’s costs while still getting students to try working in a particular industry is through internships and work-experience programs. 74% had completed casual vacation work, compared to just 20% of Finalists that had completed an internship, and 15% who had completed 2 or more internships (High Fliers Research Limited 25).
Another issue raised about Generation Y was their high salary expectancy. One of the reasons given earlier was that they expected a high salary to be able to pay off university debts. According to the survey, Finalist’s Average Immediate Debts was £2,900 and Finalist’s Average Total Debt was £11,600 (High Fliers Research Limited 26). These debts do not include mortgages for a home or loans for a car, which come later. Only 17% expect to graduate with no debt compared to 25% expecting to graduate with debt between £7,501-£10,000 and 12% with debt greater than £15,000.
The above compares to an average salary expectation of £22,700 from the students interviewed (High Fliers Research Limited 56). This amount varies geographically with the highest expectations being in London and the lowest in Belfast. After tax, rent, transport, and utilities are covered, the ability to repay these debts becomes limited. Companies need to be aware that it is for this reason salary is a large motivator when looking for job opportunities.
At present 40% of graduates expect to send 1-2 applications while the overall average being 5.6 applications per Finalist (High Fliers Research Limited). This means that candidates do not expect to spend a great amount of time applying for jobs. Making an application form as user friendly and quick to complete as possible therefore becomes important to ensure one’s own company is among the few applied to. Should they not find a job in a relatively short time, a large number will either take a temporary job (37%) or return home to live with their parents (28%) (High Fliers Research Limited 41). With a quarter intending to return home if unsuccessful, this reinforces the strong connection between Yers and their parents and the continued support they receive from them.
There are several areas UK Finalists consider important in their first job after university. The greatest importance was given to “Being challenged and stretched on a day-to-day basis” where 55% said it was very important compared to 6% giving no importance (High Fliers Research Limited 54). This supports the argument that Yers want to constantly be challenged and try new things rather than work their way up and repeat the same job. Having genuine responsibility from the fist day was also important to the students where only 9% did not consider it important (High Fliers Research Limited 54).
What Yers did not consider important was being paid a starting bonus which only 11% consider very important compared to 57% who found it not to be important (High Fliers Research Limited 54). Companies who pay starting bonuses may instead want to consider whether this money could be used elsewhere such as helping with rapid promotion where applicable or career development.
According to the survey Work-Life Balance was important to Generation Y. 73% of the Finalists felt it was either important or very important to not work evenings or weekends and 57% to work flexible hours or from home (High Fliers Research Limited 54). Yers do not want to work beyond the required hours and there is an interest in flexible working hours and location, confirming the Work-Life Balance desires from the previous Section.
Earlier Yers were said to want Work-Life Balance, not because of family commitments, but to spend time with friends and pursue their interests. In the long run this is likely to change to more closely resemble Xers as Yers also begin to have families. The survey indicates that 58% of Yers expect to be married by the age of 30 and 35% expecting to have children (High Fliers Research Limited 60). These commitments will require time. Thus, although they presently want a good Work-Life Balance for social reasons this may change over the next decade. Companies should therefore not scrap their current benefits combination. Instead companies may want to ensure that the benefits layout becomes flexible enough to meet the needs of the young and evolve as their needs change.
What will be of real concern to companies is how long the graduates they recruit remain with them. In the characteristics section Yers were found to have little company loyalty. According to the survey a small proportion (5%) expect to remain for less than a year, but only 17% expect to remain for more than five years (High Fliers Research Limited 60). The remaining 78% are dealt equally between expecting 1-2 year and 3-4 year terms. The average expectancy for remaining with a company is 34 months (High Fliers Research Limited 62). The figures may not be entirely accurate as they represent expectations, but they do provide an indication and reinforce the argument that Yers do not believe they will remain with the same employer for long periods of time as was done in the past.
1.17.2 Employer Survey
The survey demonstrating the employer perspective is covered by the AGR Graduate Recruitment Survey 2008, Winter Review. The survey was conducted by trendence for the Association of Graduate Recruiters (AGR). It covered four topics; Graduate Vacancies, Graduate Salaries, Graduate Recruitment Marketing and Hot Topics in Graduate Recruitment. As in the previous survey, only the topics directly relevant for this Thesis will be discussed here.
One of the main issues regarding Generation Y is supply of labour with Yers anticipated to rival the Baby Boomers in size and influence. The survey was conducted in the UK and the figures here support the expected importance of Generation Y. Of the companies covered by the survey, most had between 1-50 graduate vacancies as can be seen in Table 3 -5 Graduate Vacancies at AGR Employers in 2008. There are fewer companies in the ranges above 200 vacancies however their demand is considerably higher. The fact that almost 10% have `251-500´ and `More than 500´ vacancies shows how great the demand for graduates presently is.
Table 3‑5 Graduate Vacancies at AGR Employers in 2008

(Association of Graduate Recruiters 13)
Initially the oldest Yers were found to have reached an age of 27. The AGR survey found that of all graduates recruited, 78.1% were up to 24 years old (17). They also found that 25-34 year olds accounted for 20.2% of graduates recruited and 1.7% older than 34 (17). That means that more than 80% of graduates will be Yers confirming the magnitude of Generation Y at universities now and reinforcing the figures found in the previous survey.
In 2007, 43.5% of the companies in the AGR survey had a recruitment shortfall (Association of Graduate Recruiters 15). Additionally, 67.1% expect to have recruitment challenges in 2008 (Association of Graduate Recruiters 15). The economic downturn which has taken place since the survey was conducted will reduce the numbers for this year; however, this will be a temporary fall. Although there is a strong demand for candidates, the reason that there are recruiting problems is not due to insufficient candidates but rather too few candidates with the skills (55.9%) and qualifications (43.4%) they need (Association of Graduate Recruiters 16). This means that the supply of Yers is there, but that they do not always have the necessary competencies, skills and qualifications. Those with the necessary skills are in high demand, but this is true of other generations as well. Thus the Yers strength identified earlier may have been misleading. Yers, by size, are a large generation and will gain some strength from this, yet their weakness may be the lack of competencies, skills and qualifications.
As already discussed, a good salary is of high importance to Yers. From the employer’s perspective it looks slightly different as salary expenses increase on an annual basis. The AGR found that the median3 salary of £23,500 in 2007 had increased to £24,000 in 2008 (Association of Graduate Recruiters 20). This compares to an average expectation £22,700 by students. It can be assumed that not only have companies understood the importance of the salary but have also acted on this.
Salary is not the only part of a graduate’s benefits package. Some companies, especially in professional services areas such as accountancy, require specialized qualifications. The qualification expenses are in some cases covered by the company in addition to study materials and days off to study and attend exams. These represent an investment for a company and can add 50% to the value of the overall benefits package for a graduate4. Of the AGR companies, 86.5% offer Training for professional qualifications and 58.2% offer study leave or sponsorship (Association of Graduate Recruiters 24). Not only do Yers seek further training and development, but in the UK the majority of AGR companies offer these opportunities as well as more than half of them offering time to study, thereby actively supporting this tendency.
It can be anticipated that due to the problem mentioned earlier companies are not finding sufficient candidates with the skills they require. The survey shows that there has been an increase in the number of universities AGR companies targeted for recruitment efforts. In 2007 the companies visited a mean 19.2 universities in the UK, with this figure expected to increase to 21.3 in 2008 (Association of Graduate Recruiters 30). This will ensure that the personal interaction between company and student will spread. Although Yers are highly technologically literate, this personal interaction can still be a deciding factor when deciding which company to apply to.
1.17.3 What do the numbers tell?
The High Fliers survey identified several areas that verified the characteristics about Generation Y stated earlier. The Yers were found to value doing charity work however relatively few had pursued activities that would have challenged their independence, e.g. international backpacking for longer periods or studying abroad. Strong social interaction for Yers was confirmed by high participation levels in societies and groups. High levels of debt were common for Yers, averaging £11,000 which explained why this generation have high salary expectations.
This has led to an average starting salary expectation of £22,700 which was below the average starting salary paid by companies in both 2007 (£23,500) and 2008 (£24,000). With this it can be anticipated that companies have shown that they have understood the need students have and acted upon this. This is also true when addressing the development of professional qualifications, which are offered by the majority of companies, again meeting one of the priorities for Yers. Once more companies demonstrated their commitment to engaging Yers, with 85% offering the opportunity to pursue professional qualifications. Yers also wanted to be continuously challenged but did not want to work long hours or weekends which only a minority were willing to do confirming the importance of Work-Life Balance.
One of the most important conclusions of the student based survey was how long finalists expected to remain with a company. Only a minority of 5% expected to leave during the first year, but this contrasted to only 17% expecting to remain for more than five years (High Fliers Research Limited 60). That means that 83% of students expect to remain with their first company for less than five years, with an average tenure of 34 months (High Fliers Research Limited 62). This confirms that retention is a true cause for concern for companies as well as that Yers have little company loyalty and with this put a new perspective on a company’s corporate culture and identity. This is especially worrisome for companies as it is during the first years that companies invest and provide most of the training for qualifications, enhance skills and invest in development programs for graduates.
1.18 Comparing Generation Y to Generation X
As has briefly been highlighted in the sections describing Generations X and Y, there are several areas where similarities can be found. These similarities will make it easier to prepare managers for a possible transition in managing approach. However, there are also differences between the generations that managers need to be aware of. To illustrate this better for companies, Douglas McGregor’s Theory on X and Y (not to be confused with Generations X and Y), and Geert Hofstede’s Value Dimensions will serve as a tool.
1.18.1 Geert Hofstede’s Value Dimensions
Some of the same elements as Hofstede uses as value dimensions can be translated to differences between generations. Geert Hofstede uses power distance, uncertainty avoidance, individualism and masculinity (Deresky 113). According to Helen Deresky “Values are a society’s ideas about what is good or bad, right or wrong…[and values]…determine how individuals will probably respond in any given circumstance”(113).
The application of Hofstede’s value dimensions here represents an unorthodox use. As the use of Hofstede here is not linked to culture it could be questioned whether the model even is applicable for a generational comparison. It is not a perfect fit as culture and generations are not the same. However, Hofstede is used here because it is still able to provide a strong fundamental understanding on four of the key areas of Hofstede’s value dimensions. In turn this provides further guidance in understanding the different generations, especially with regard to how they compare and differ from each other.
The aim here is not to identify the right and wrong, but it is to help anticipate how individuals may respond. For this reason the definition of values will be left as Deresky has outlined maintaining the consistency allowing the second part to be used. To allow for a better comparison of the two generations and application of Hofstede’s model, the four elements of the model are briefly described below:
1. Power Distance demonstrates a country’s acceptance of unequal power distribution in society and aligns closely with a Yer characteristic (Hofstede). A high power orientation means employees accept a strict company hierarchy and do as the boss tells without questioning. Countries with this approach include Japan and Saudi Arabia. Low power distance represents a less formal hierarchy where employees and managers consider each other as colleagues instead of boss and employee. This approach is typical of e.g. Scandinavian countries.

2. Uncertainty Avoidance represents a population’s feeling of threat of ambiguous situations (Hofstede). This can, for example, be represented by how comprehensive laws are, how closely the laws are adhered to and a by a strong sense on nationalism. Japan would belong to high uncertainty avoidance with their culture of strict procedures. At the other end of the spectrum countries including India can be found where fewer written rules are used (Deresky 114).

3. Individualism refers to whether countries generally tend to look at an individual’s good or at the greater good of society (Hofstede). Democracy is a representative element of individualistic societies, where the voice of each individual is heard and achievement is recognised. The US and UK are among some of the leading countries of Individualism. The collectivist countries look not only to their own needs but those outside of the atomic family as well. Such countries include China and to a lesser extent Mexico.

4. Masculinity is the final value and describes country approaches towards assertiveness, materialism and a lack of concern for others (Hofstede). High Masculinity values are found in Japan and Germany while Switzerland and New Zealand tend to have low Masculinity values. Each of the four values Hofstede provides offers an understanding of how countries in general orientate themselves and allows for a comparison between countries. These same dimensions will now be applied to Generations X and Y, for which descriptions have been provided earlier. This will not only allow the two generations to be compared but also to get an understanding on a higher level of the generational values and in turn how best to approach Generation Y. Finally the Baby Boomers will be placed according to their values to provide a view of how values may have changed over the past decades.
There is a fifth value dimension, Long-Term Orientation. Although it could be linked to make a Generational comparison, the case for this is not as strong as for the other four value dimensions and is therefore not presented here.
1.18.2 Relating Generation Y to Hofstede
With reference to the above described cultural dimensions, each will be looked at separately and reflect upon the placement of Generation Y compared to Generation X and Baby Boomers. Baby Boomers have been added here to help provide further depth and understanding for Generation Y’s placement relative to previous generations.
1.18.2.1 Power Distance
Generation X was found to consider their relations with employers as contractual and had no loyalty towards the company but rather to themselves. In addition, where Baby Boomers laid great weight upon titles and associated respect, this was diluted with Generation X. Generation Y no longer respects status or titles but rather performance. This means that where Baby Boomers would have had a high Power Distance, Generation X would have placed towards the middle, with Generation Y closer to low Power Distance (see Figure 3-4).
Figure 3‑7 Generational Placement for Power Distance High Orientation Toward Authority Low Baby Boomer Generation X Generation Y
This would mean that Yers are likely to be resistant to traditional hierarchical (pyramid shaped) corporate structures. They may be open to matrix structures as this will allow them to participate in differing areas but would most likely prefer relatively flat corporate structures. Companies have started realising the changes needed and introduced topics such as Lean Management and Matrix Organisational Structure. As Yers progress in their careers, corporate structures are likely to continue to evolve, to now also reflect Yer preferences.
1.18.2.2 Uncertainty Avoidance
Uncertainty avoidance refers to ambiguous situations and can be linked to whether a generation can act independently. Generation Y, with Helicopter parents, and the Baby Boomers being spoilt post war (see Appendix), had a relatively low need to become independent. With time Baby Boomers will have learnt to become more independent. Generation X on the other hand grew up independent with two working parents and high divorce rates, meaning they would have a relatively lower need for stability (see Figure 3-5).
Figure 3‑8 Generational Placement for Uncertainty Avoidance High Desire for Stability Low Generation Y Baby Boomers Generation X
This translates into a high need for rules and guidance for Generation Y, especially compared to Generation X. At the same time Yers were shown to want the flexibility to complete work in their own way if they found it to be more efficient. This does not mean there should be no rules but rather the rules may need some flexibility while still providing the guidance they were meant to.
Also, being new to the workplace, someone from the company e.g. through a buddy program, should take the time to explain why certain rules and procedures exist as the Yer notion that the company is resistant to change will not always be true. Regardless, it is evident that compared to Generation X, Yers will need far greater support and guidance, something with which Baby Boomers may be familiar and thus be able to support.
1.18.2.3 Individualism
Individualism, here, does not refer to an individual’s ability to be independent but rather if one prioritises the nuclear family and oneself or larger groups of society. Baby Boomers put themselves first, becoming workaholics and had as a main goal personal achievement. Where Generation X not only was independent, it also came to learn that because of this independence they took care of themselves first and concentrated on providing for their nuclear families what they had not had themselves. This is in strong contrast to Generation Y which was shown to both seek out active involvement in clubs and societies at university as well as being actively engaged in charity work. Both factors support a much greater collectivist approach than found with the previous generations.
Figure 3‑9 Generational Placement for Individualism Individualism Collectivism Baby Boomers Generation X Generation Y
Many companies have adopted open plan work spaces where only senior managers have offices of their own if even that much. This would be a work area that should move towards Yer preferences where there is a more social atmosphere than when everyone sits in a separated cubicle. With senior management mostly being Xers and Baby Boomers at the moment, this will also allow them to maintain their status by having their own offices. Although ambitious, Generation Y is not only interested in promotion but more so in widening their skills range and the work they do.
1.18.2.4 Masculinity
Generation X and Baby Boomers will be closer to having high Masculinity values than Generation Y will. Baby Boomers are quite materialistic, which has also contributed to the very large debt load they presently have. Although Generation X has concern for their families and friends, this does not extend to the company. Xers desire quality of life, avoiding the sacrifices their parents made for work, tending towards Relational. Yers are materialistic much as other generations are (placing great value on technological gimmicks e.g. iPod, cell phone) and place a high priority on personal well-being, but also do have a concern for others demonstrated by their strong push for charity work.
Where relationships in the past, especially for Baby Boomers, were based upon networking and what could be gained from association, Yers take a slightly different approach. Yers do network for personal gain but not exclusively for this reason. Relationships are important to them as they are socially active and desire a strong quality of life. Therefore, they strongly lean toward Relational (feminine values) although held back slightly by materialistic tendencies.
Figure 3‑10 Generational Placement for Masculinity
Assertive/Materialistic Relational Baby Boomers Generation X Generation Y
From the perspective of employment, these values influence the types of benefits that will appeal to the generations. Where a large bonus may have been sufficient to motivate a Baby Boomer, this may longer hold true with Xers and is even less likely with Yers. Offering time off for personal use or to use on working for a charity may hold greater appeal for both Xers and Yers as this supports the values they consider important. Other than benefits it also supports companies providing mentor relationships. Relationships are important both to Xers and Yers. By combining an experienced Xer with a Yer, Xers will not feel they are being ignored but that the company recognises their skill by entrusting them with getting others started. Yers will feel they are receiving the support and direction they need when starting.
Other than in Uncertainty Avoidance, Yers were the opposite of Baby Boomers with Generation X lying towards the middle or tending towards Yers’ preferred values. This illustrates that there is a certain level of similarity between Xers and Yers, which should allow for an easier transition for managers, especially if these are Xers themselves. But these differences must be remembered so the areas of potential conflict can be addressed before they become a problem.
1.18.3 McGregor’s Leadership Styles: X or Y
Another critical element to look at is leadership styles, as addressed by Douglas McGregor in his X and Y Theory. Being either X or Y, the theory may be somewhat restrictive and simplified, but provides a high level understanding of how the management approach towards Generation Y may differ from earlier generations.
McGregor’s theory is based on the principle that every manager “…makes implicit assumptions about employee motivation” (Strauss). Theories X and Y take two contrasting views of employees and work motivation. Theory X argues that employees are by their very nature “…lazy, dislike responsibility, are resistant to change, and so `must be persuaded, rewarded, punished, controlled´” (Strauss). Theory Y argues the opposite, that “`[t]he motivation, the potential for development, the capacity for assuming responsibility, the readiness to direct behaviour toward organizational goals are all present in people´” (Strauss).
This means that according to Theory X the management approach towards employees needs to be autocratic and directive (Strauss). This resembles a traditional hierarchical company structure with a strict understanding of each employee’s position and role in a company. Theory Y, in contrast, allows for a more decentralised approach and participative management (Strauss). This understanding of motivation also allows for a different approach towards work, Management by Objective (MBO). Rather than setting deadlines by which time a job should be done, setting the job that needs to be done and allowing the employee to complete it in the time it takes.
1.18.4 Applying McGregor to Generations X and Y
Based on the above analysis and evaluation of Generations X and Y differing leadership styles are anticipated to apply to the different generations. Baby Boomers followed a strict sense of company hierarchy leaning towards a Theory X management approach while Xers being more independent and seeking out development move towards a Theory Y approach. This is consistent with the management styles used during the mid-20th century where company structures often were pyramidal in shape reflecting a strict hierarchy. The traditional structure evolved with the introduction of alternative company structures such as Matrix.
Generation Y, although not as independent as Xers, take personal development very seriously and start off wanting to have larger roles which include responsibility. Placing Yers in a traditional X Theory managerial environment would only serve to de-motivate them and consequently increase turnover. Instead companies need to understand that Yers are highly motivated to work, often merely needing to understand why a certain task is done in a certain way. The real problem with Yers is keeping them engaged in their work as they constantly want to try something new and develop personally. This eagerness for personal development is beneficial to the company as well, but only as long as the employee remains with them. Generation Y do not represent a perfect match with Theory Y. However this Theory does highlight key managerial elements companies would benefit from being aware of when dealing Yers. Rather than having a strict company hierarchy, making the employees feel a part of the company, allowing employees to develop and grow and encouraging them to help, improve company processes and change to an MBO approach rather than setting deadlines. At the same time, companies should not forget there are other generations in the workforce with other preferences.
One way to build the needed understanding among the older generations, as e.g. Generation X for the needs of the new Generation, is to directly integrate and involve all employees of all generations in the changes by among others, mutual mentoring. Not to forget, communication serves as a vital tool for a smooth transition from leadership styles practiced in the past but no longer suitable for the emerging needs of the company and all employees within.
1.18.5 Similarities between Generations X and Y
The similarities that will be covered are meant to demonstrate areas where Generations X and Y appear to be similar in their views and characteristics, but not necessarily identical.
One of the areas the two generations share a similar attitude is towards Work-Life Balance. Neither Generation wants to work more than the hours contractually required. Generation Y are willing to work odd hours, but want the time made up to them. They want to use this time to spend with friends and family. Generation X is less flexible in working odd hours and prefers to finish at the end of the working day and go home. They too, however, value their time and want to spend it with friends, and being older than Yers, spend it with their own families. Both generations want to be compensated for extra hours spent at work, be it financial or free time.
Both generations actively pursue learning and training (L&T) opportunities, however, they seek it for different reasons. Generation X seeks L&T to improve their skills and in turn improve their chances of keeping their jobs. Yers, pursue L&T not to keep their job but to develop and enhance their CV and thus make it easier for them to change jobs when they want. The difference in approach is based on the difference in growing up between the generations, as mentioned in the previous sections and detailed below. Despite the different motivations, L&T is a common area of interest companies can engage at relatively low costs.
Generation X grew with technology while Generation Y always had it available, making both generations very comfortable with technology and its use. For Generation Y this will allow greater flexibility in working as they can telecommute. Xers may also appreciate this opportunity if they have young children or a baby, thus increasing the working flexibility for both generations. It will also allow for greater use of technology in the workplace as generations become increasingly comfortable with its use. In contrast, it also means that they have grown to be highly dependant upon technology.
1.18.6 Differences of Generations X and Y
When growing up, Xers were raised by parents who often were divorced. Knowing this was different from the Baby Boomers, as well as watching their moms join the workforce, meant Xers often grew up with significantly less attention and care than both the Baby Boomers before them and the Yers after them. Yers were lavished upon in a manner similar to the Baby Boomers. This has meant that Xers entered the workforce being independent and able to take care of themselves. Yers, in contrast, joining the workforce believing theirs was the world, doing the work they feel like doing, not what they must do. It also means Yers are not as independent as Xers are.
Xers were born into the oil crises of the 1970’s and witnessed the depression of the late 1980’s. They saw the effect this had on the economy, with thousands of people losing their jobs, including their parents. This is in strong contrast to Yers who grew up with the New Economy of the Clinton presidencies and the end of the Cold War. It was first when the Dot.Com bubble burst at the end of the 1990’s and the 9/11 attacks took place that Yers were shown a different reality. This has meant that the Xers joined the workforce knowing their jobs were no longer for life and were learning how to adjust to this new reality. Yers join never having known any different and take it for granted that they will not be staying with the same company for long. These approaches have also shaped their approaches to what they hope to achieve from learning, as mentioned in the previous section.
1.18.7 Multi Generational Synergy
There are differences and similarities between all generations, some of which were shown above. The value of these issues does not lies not only in knowing what they are but also how they may be used to create inter-generational synergy. By pairing the weaknesses of e.g. Yers with the strengths of Xers, companies would be able to ensure greater continuity and efficiency. This approach deviates from the Thesis overall Analytical Approach. Instead, the Systems Approach contributes a way to identify how to take the various aspects of Generations X and Y and create synergy.
1.18.7.1 Areas of Generational Synergy Potential
It was noted Xers, in general, want to work fixed hours and leave when the workday is finished. Yers also only want to complete the contracted hours, however, are flexible with where and when work is done as long as the number of hours are respected. By combining these two and becoming flexible, a company could ensure they have employees available to work throughout the working day as well as having employees available to work late (or early) hours to finish work or communicate with other time zones if necessary. The desires of both generations would thus be met while also helping the company strengthen its efficiency and offering.
One of the main threats of hiring Yers is their willingness to change jobs with little hesitation. Xers, in contrast, fear for their jobs and hope to keep them. Instead of attempting to convince Yers to remain with a company in the long term, perhaps companies should embrace the opportunity the flexibility of Yers provide when combined with Xers steadfastness. Xers could form the backbone of the company while companies could start with considering Yers on more of a short term basis.
This need not exclude keeping Yers in the long term but ensures companies would be ready should Yers leave. As Yers seek out training opportunities, they will develop a broad range of skills. Companies can then hire Yers as temporary staff or consultants to complete a particular job. Should they then wish to stay, the company could find a position for them. Training could be offered to provide skills that may be lacking for a particular job, representing only a minor investment by the company. As there would be fewer regular contract employees, Xers would also be reassured that their positions are in less danger of being cut. Companies would thus be able to retain a steady workforce with Xers while bringing in Yers to complete jobs where particular skills are needed. By selecting from this group of the labour market the company can recruit future potential for the company on a needs basis, thus engaging the desires of both generations at the company.
Both generations are comfortable with the use of technology. This has the potential to change the way work is done, not only from the office in a traditional sense, but from home or any other location. Email and teleconferencing changed how communication in the workplace took place. Xers and Yers have the potential of pushing the use further with the use of e.g. interactive digital workplaces. This change will take place with time, however, should Xers and Yers work together on developing the use of technology, it would become mainstream more quickly and meet the needs of both generations. The technology would also have the potential of helping companies cut costs and improve efficiency while also improving interaction between Generations X and Y.
1.18.7.2 Mentoring
Creating synergy by combining the strengths of one generation to support a weakness of another generation is not a theoretical ideal. Mentoring is an example of such a partnership, where a more experienced employee helps guide a less experienced employee. Stereotypically this would be an older employee guiding a younger. Mentoring is an opportunity to let Yers demonstrate their knowledge of technology while helping others, as well as providing Yers with the guidance, support and training they seek. However, the same can be true in reverse with Reverse Mentoring.
In 1999 while Jack Welch was the CEO of General Electric he realised there was a difference in understanding of technology between junior employees and senior executives. He set out to remedy this by introducing reverse mentoring (Kitchen). This helped the executives become aware of what they did not know, remedy this and make junior employees feel valued. The key to mentoring at present is that understanding is not age related but experience based. This again relates back to Yers respecting colleagues for understanding and performance, not age.
What younger employees should be aware of, though, is that although they may become mentors for older colleagues, this does not mean they need not learn in turn. Ideally, mentoring should not exclusively be from old to young or vice versa, but mutual. While younger employees can help with technology related issues, senior employees can help refine communication skills and demonstrate why in person relationships also are important (Kitchen).
1.18.7.3 Combining Generational Difference and Similarities
There are in sum, three main areas of potential synergy between Generations X and Y; Work-Life Balance, Training and Technology. To give a visual representation, the three areas are represented in Figure 3 -11 Inter Generational Synergy, demonstrating that they all can contribute to Generational Synergy. The figure does not require a company to engage in synergy in each area but rather that each of the areas can contributes towards synergy from which a company could benefit. The arrows moving towards Synergy represent the means of achieving it, which can be done via Mentoring as recently demonstrated.
Figure 3‑11 Inter Generational Synergy

At present there is a downside to this approach, the lack of experience by Yers. To have the particular competencies, experience and skills needed to become as flexible as required for the approach suggested above, Yers will first need to have been in the workforce for a few years. Thus, although a possible long-term solution, it is not an option for the short-term.
Furthermore, companies would still need to make the initial investments that would provide Yers with the skills necessary, having no guarantee that they themselves would benefit from this investment. With an average expectation of remaining with the (first) company for 34 months, as found earlier, any company benefit from large investments would be limited. A possible resolution of this issue would be to increase salaries slightly and provide guidance but leaving the investment in Human Capital and professional qualifications with the Yers. Alternatively, companies could require employees to repay some or all qualification cost incurred if the employee leaves within a set period of time as some companies already do.
1.19 Chapter Conclusion
This chapter began with providing descriptions of what the main characteristics of Generations X and Y are. The main conclusions for Generation X (1963-1980) include growing up during economic downturns and divorced parents. This meant they were independent from an early age and had few delusions about job security, actively trying to build their skills set. Generation Y (1981-1998) on the other hand, grew up wanted by their parents and given great care, a phenomenon known as “Helicopter Parenting,” making them less independent than Xers.
Both Generations were found to be technologically savvy with the difference being Xers grew with technology while Yers always had it available and take it for granted. Both Generations also highly value Work-Life Balance with Xers wanting to leave at the end of the day and Yers being more flexible in when they work, but not in how long they work. The characteristics identified for Yers were then verified by statistics from two surveys from the UK in 2008. The High Fliers survey confirmed the Yer characteristics from the point of view of Yers themselves. The AGR survey further reinforced the characteristics for Generation Y with one exception. Despite the very large Yer population, graduate recruiters found it challenging to find sufficient Yers with the necessary skills and qualifications.
Having confirmed the characteristics, to understand how Baby Boomers, and more importantly Xer and Yer values aligned to each other they were placed according to Hofstede’s value dimensions; Power Distance, Uncertainty Avoidance, Individualism, and Masculinity. Baby Boomers had a high Power Distance, Xers tended towards the middle, with Yers tending to low Power Distance. Different for Uncertainty Avoidance, both Baby Boomers and Yers tended towards high with Xers tending towards low due to their independence. Due to Yers strong social connection they tended to be more collectivist than the other generations where Baby Boomers were highly individualistic and Xers partially individualistic. Finally Generations X and Y both tended towards Relational/Feminine values rather than the Materialistic/Male values Baby Boomers identified with.
Introducing elements of the Systems Approach, some similarities and differences between both generations were presented to identify means of creating inter generational synergy, making a strength of the differences rather than a weakness. To engage the Xers’ need for job security it was proposed they could become a company’s backbone while appealing to Yers’ desire for frequent change by taking them on, on a project basis as Temps or Consultants, which could evolve into long term employment if both parties are happy.
Generation Y: Entering the Workforce
The first levels of Bloom’s Taxonomy relate to providing a description, which was done in the Chapter covering who and what Generations X and Y are. This Chapter aims to use the details presented on the different generations in the previous Chapter to understand how better to recruit, retain and manage Generation Y. This process proceeds in accordance with Bloom’s Taxonomy, by using the knowledge described and applying it to attracting, recruiting and then retaining Generation Y.
Figure 4‑12 Creating a model for Recruiting and Retaining Generation Y

Attracting refers to the process of making people aware of a company and the job opportunities they provide. The Thesis is looking at recruiting and retaining Generation Y, consequently attracting will not be looked at in great depth. Recruiting details what the recruitment process looks like and how best to adjust it for Generation Y in specific, based on the description of the Yers given previously. Retaining Generation Y will consider how best to meet the needs and wants of Yers without customising the company to Yers. With the manager being one the focal points for an employee, the manager also becomes a crucial link in retaining employees. The chapter will conclude by drawing the various elements and understandings together to create a model for companies to use when dealing with Generation Y.
1.20 Awareness of Generation Y
Earlier Generation Y was defined as the people born between 1981 and 1998. This means that in 2008, Yers will range between being 10 and 27 years old. Assuming the average student graduates from university at the age of 22, there will be Yers with as much as five years of work experience presently in the labour market while the youngest Yers still are in primary school. It also means that of the 17 years that make up the Generation Y band, less than a third have yet joined the labour market as full time employees. Furthermore, Martin and Tulgan site MonsterTrak figures which show that “…72 percent of employers plan to hire 2006 college grads and 37 percent expect to recruit more entry-level candidates than in 2005” (57).
It is important that managers already now come to terms with shifting their understanding to know how to deal with Yers as well as Xers. The labour market will be more forgiving now to mistakes made where Yers still only represent a minority of the total labour market. However, once the full impact of the Yers begins to be felt over the coming 5 years companies will no longer be able to afford making mistakes. Some of the main characteristics, given earlier, that have been noticed about Yers and confirmed by surveys will help guide managers to reduce possible mistakes.
By learning how best to interact and approach Yers now, companies will be better prepared and more competitive in the labour market to meet the peak of Generation Y intake. Recruiting Generation Y is, however, only the first step. As mentioned earlier, Yers continuously market themselves so companies have to learn to become constant recruiters, to replace those who will leave and to be better able to retain those already recruited.
1.21 Attracting Generation Y
Recruiting Generation Y will differ from recruiting many other generations for one significant reason, technology. With 87% of teens using the Internet, 89% using email, the medium used to approach this group will have to be adjusted accordingly (Gravett and Throckmorton 108). This does not just refer to how job notices are publicised but also how people are made aware of companies and the opportunities offered.
Before applying to a company, people mostly first want to know which company they feel would be a good fit. In the past, people would often have applied to companies in an industry for which they had been educated and with which they were familiar. The normal advertising mediums up until the 1990’s were radio, TV, and publications. The Internet has fundamentally changed the information medium.
With the introduction of the Internet information became readily available from companies as well as third-party sources, including information critical of companies. Applicants now look to company websites not only to get information about the company and what it offers, but also to apply for jobs. The company website thus becomes a crucial part of attracting and recruiting employees. The website must therefore clearly detail who the company is, what it does, and what it offers employees. The website must provide people with the information they need to decide whether or not to apply to a particular company.
This does not, however, mean that companies only need to concentrate on their own website. In the past, companies placed advertisements in newspapers and magazines and need to continue to do so. At the same time, companies also have to consider placing advertisements on the newspapers’s websites because they too have moved online. Companies still need to follow their traditional approach of making people aware of them; in addition companies now need to add Internet advertising as an additional option. It is not a question of replacing all that used to be done with the Internet but rather using the Internet as an additional and effective means of PR to enhance awareness and meet expectations.
1.22 Recruiting Generation Y
Similar to attracting Generation Y, when recruiting them, the Internet will play an increasingly large role. First the present process will be discussed to then show how it could be changed to better approach Generation Y specifically.
One of the crucial steps in the recruitment process is the Assessment Day, when both parties meet each other for the first time. It is however not the only important step. One of the key characteristics identified for Generation Y was their being technologically literate. This is an issue that companies must be aware of even during the recruitment process.
Companies still attend University Recruitment Fairs, do presentations and present business games, for example, Shell offers the Gourami Business Challenge. Such programs will continue to be important to promote companies as it gives both the company and students the chance to meet each other and get to know each other. This was also confirmed by the High Fliers survey where 24% felt employer presentations gave a real understanding of working with an organisation and 47% found it gave a good insight into employers & their graduate opportunities (High Fliers Research Limited 123). 71% thus felt presentations provided them with information they could use. However, companies must also accept that with the youth being keen Internet users, online job profiles and applications are equally important.
Furthermore, students are aware that the recruitment process takes time. They are not, however, willing to wait for too long, especially if they are given offers elsewhere. According to the High Fliers survey, 21% of applicants expect the process to take less than a month compared to 23% expecting it to take more 3 months, 4 months or longer (42). 54% of the students expected the process to be completed between six to eight weeks (High Fliers Research Limited 42). That means that if a Yer is offered a job, anticipating a relatively short assessment process they are less likely to wait long for other offers. This makes it important for the process to take as little time as possible.
1.22.1.1 Company Website
Since 2000, the percent of Finalists that have used Graduate Recruitment Websites has remained above 70% every year, rising as high as 78% in 2003 as can be seen in Table 4 -6 Finalists who used Graduate Recruitment Websites during their job search below (High Fliers Research Limited 86). Assuming the average student graduates aged 21, and with the oldest Yers presently being 27, that would mean that the first Yers will on average have graduated six years ago in 20025. Where website use was less than 35% in 1998, as the Internet gained pre-eminence and Yers started graduating the use of the Internet in job hunting has more than doubled. Furthermore, on average Finalists visit 7.6 websites when looking for jobs (High Fliers Research Limited 87). These figures confirm the importance for a company to have a website for graduates in particular.
Table 4‑6 Finalists who used Graduate Recruitment Websites during their job search

(High Fliers Research Limited 86)
Many companies may have moved their application process online but this may not be sufficient in and of itself. The site must furthermore be user-friendly and provide the information about a position the applicants require. The Student Survey from earlier highlights this where 99% of Finalists considered it very or quite important to have a description of the graduate jobs offered on the website (High Fliers Research Limited 88). Details of graduate training and development (98%), Introduction to the organisation (98%), and Guidance on the application & selection process (97%) were also considered important (High Fliers Research Limited 88). These are all topics that a company’s website would be well advised to cover.
Of lesser importance are issues such as Case studies of recent graduates, details of local campus events, and Recent news about the organisation. News they will be able to find on news websites while campus event information will be provided by the University Career Service. Company websites need to concentrate on providing graduates with the information they are looking for and information they can not get elsewhere. Finalists are also looking to get a feel for a company and thus get an idea of what working for them would be like, not only what the job entails.
As a result the first crucial issue is that the webpage not only has an application form but also the information a student would typically be looking for. Furthermore, this information has to be accessible. For example, putting all the information in one long document on one page would defeat its purpose as few would take the time to read the entire document to answer one question. Recruitment pages need to be easy to use with a logical and intuitive layout.
1.22.1.2 The Application Process
The application form is the next step at which a company is evaluated by an applicant. Companies need to create an understanding for who the applicant is, what their strengths and weaknesses are, and what their personality is like. To achieve this, questions about e.g. education or competency based questions are used. For companies it is important they are completed, but are at the same time very time consuming for applicants to complete. Companies do not want applicants to abandon applications and must therefore consider ways of helping the applicants complete this process more easily. This can for example be done by letting answers be saved and completed at a later time or by pre-designed drop-down menus.
Similar to the website itself, the application should not all be on one page. By breaking the application up into sections for example, the process becomes more manageable. This will furthermore help guide the applicants through the process remembering that Yers often need some guidance.
Not to be forgotten, it is not only Generation Y being evaluated, but just as importantly, evaluating. Furthermore, Guidance on the application & selection process was found to be important to almost all Finalists in the High Fliers survey. If the candidate knows what the selection process looks like they will be better able to prepare and will also ensure the evaluation process becomes more efficient.
Allowing digital application will aim to attract the applications of the best possible candidates for a company’s particular needs. At the same time it will greatly increase the number of applications a company will receive as many more people will be aware of the options a company offers and be able to apply for these positions with equal ease, even from other countries. More people will be able to apply, yet at the same time companies need to process their applications in a timely manner to minimise the risk of applicants accepting offers elsewhere. This requires that the company invests in their HR department, especially graduate recruitment, to ensure that the necessary expertise is available and the right tools are in place.
1.22.1.3 The Evaluation Process
The first step is processing the applications. Some systems are available which will identify star candidates based on how certain questions were answered in the application form. But many will still need to be evaluated based on a set of criteria reflecting required competencies, skills and education. This first step sifts the candidates apart who do and do not meet the minimum requirements for a position as prescribed on the website.
The second step in the Recruitment process is e.g. conducting a telephone interview with candidates. This is the first actual interaction between the candidate and the employer. It gives the company a chance to get a better idea of who the candidate is, what his/her strengths and weaknesses are, while giving the candidate a chance to demonstrate why they would be a good fit. Telephone interviews will often follow a process of checking a candidate’s educational background and getting an understanding of how candidates work based on competency examples.
When inviting candidates to tests, interviews or Assessment Days, the company will often cover the travel expenses within limits. By having telephone interviews first, companies can siphon off the candidates they feel show the right potential and invite these to in person meetings, reducing recruitment costs for a company. Assessment Days, on the other hand, are the most valuable step in the Recruitment Process. They give a company the chance to see how a candidate acts in different situations where the right answer can not be rehearsed in advance.
Assessment Days will often include a group assignment to determine how a candidate acts in a team. Tests can be given to determine a candidate’s mathematical and numerical reasoning abilities as well as sometimes appraising problem solving skills. Finally, there are also in person interviews which will allow the interview to expand on answers from the telephone interview or explore new topics. It is a company’s chance to get a thorough introduction to a candidate. At the same time it gives a candidate an insight into a company. Hewlett-Packard gives candidates an introduction to the company, what it does, and what the roles cover as the first thing on an Assessment Day as do IBM. Later in the day candidates meet current employees of similar age and can ask them any questions they would like about the company and what it is like working there.
One of the reasons companies do this is because they are aware that the candidate’s experience on this day will also influence whether or not they accept a position should it be offered to them. It demonstrates that despite Generation Y’s looking to rival the Baby Boomers in size, those who have the necessary competencies and skills are in such demand that companies can no longer dictate terms and have the candidate be happy they even got a job. Companies also recognise that candidates often will have more than one option available and will choose the one they feel the most comfortable with.
1.23 Retaining Generation Y
Recruiting Generation Y is only the first part of the Employee Cycle. Equally important is retaining the people a company hires. For every person who leaves a new one would have to be recruited. As the recruitment process can be both time consuming and costly firms need to ensure employees remain, especially in the case of graduate programs, where companies invest in training and development. When an employee leaves these investments are lost to a company.
This is especially true with Generation Y who, as identified, earlier are not as loyal to firms as they are to themselves. To reduce Yer turnover companies need to identify how best to engage Generation Y’s particular needs, without showing preferential treatment to Ys, as compared to the other generations in the workforce, and without having to spend more on them.
1.23.1 Abraham Maslow’s Motivational Pyramid
Maslow’s Motivational Pyramid is based on a theory of motivation. The pyramid represents a “…hierarchy of needs, ascending from the basic biological needs to the more complex psychological motivations that become important only after the basic needs have been satisfied” (Smith, Nolen-Hoeksema and Fredrickson 478). This Thesis is not evaluating Generations X and Y from a sociological or psychological perspective. However, as the theory looks at motivational factors, the same concepts can be applied to retaining employees.
Using the Maslow Motivational Pyramid layout provided by ten Have et al there are five levels divided into three sections. The lowest section “Physical” is made up of Physiological needs and Certainty which cover basic needs such as food, shelter and safety (see Figure 4 -13 Maslow 's Motivational Pyramid). In the middle there is “Social” made up of Social Acceptance and Appreciation. These deal with love, affection, status and success. The highest level, “Personal” is represented by Self-Actualisation, (ten Have, ten Have and Stevens 136).
Differences between Generations X and Y become evident in Certainty and Social Acceptance. Evaluating Generations X and Y according to Maslow will help identify how best to Attract and Retain employees, especially Yers, as their needs are slightly different from the other generations. A shift can be seen in the ‘personal’ needs, no longer just being Self-actualisation but now also including Appreciation, both being of higher importance to Generation Y than for other generations. They are form an integral part of Yers social acceptance.
Figure 4‑13 Maslow 's Motivational Pyramid

(ten Have, ten Have and Stevens 136)
Ten Have et al identified two elements that help attract and retain employees. These are:
The Binding Portfolio – All the elements within a company that can help to bind and motivate people
The Motivation Mix – The specific combination of elements that characterise a certain type of employee
(ten Have, ten Have and Stevens 135-136)
The Motivation Mix represents a group of individuals who have the same characteristics and share motivational factors. The Binding Portfolio identifies the elements that, if offered to the Motivation Mix, would motivate the people and ensure they remain with a company for longer.
1.23.2 Applying Maslow to Generation Y
The basic needs of all the generations will be similar; they all need shelter, food and safety. It is first towards the middle Maslow’s Motivational Pyramid differentiates between the generations needs emerging i.e. where Motivation mixes can be established. For specific companies various Motivation Mixes could be created, however to gain a general, high level understanding consistent with the Thesis the Motivation Mixes here are divided according to generation.
Baby Boomers were relatively selfish, placing a high value on status e.g. job titles, salary etc, and lesser value on family (being workaholics), social activities and friends (mostly based on networking). This started to change with Generation X who placed much less importance on work and far greater on friends and especially family. The factors that would motivate Xers versus Baby Boomers at work started to differ. The same is reflected when comparing Xers and Yers.
Yers place less importance on fixed working hours or environments, wanting flex time, home office & telecommuting and the ability to decide when and how to complete a job. They concentrate more on Work-Life Balance, friends and social & environmental related activities.
Both Xers and Yers seek the chance for personal development which revolves around the “Personal” level of Maslow’s Motivational Pyramid. Similarities also exist in their desire not to achieve status, not to be confused with success, but rather to have strong relationships with friends and family, the “Social” strata of the Pyramid. By offering things such as a flex-hour working scheme, home office & telecommuting, and/or training and development opportunities to its employees, companies can in return ask them to remain with them for a given period of time.
Alternatively, a fancy job title and status would have been sufficient for Baby Boomers, this is less true for Generation X and even less so for Y. As stated, Work-Life Balance plays an increasing role. If companies want to retain Yers they need to understand that greater time for personal use serves as a motivator. Companies will not be able to expect more work commitment from Yers merely because they have been given a new job title. These are examples for a Binding Portfolio, understanding what motivates the different generations and trying to meet these. Especially helpful for companies is the fact that Xers and Yers share several motivational elements potentially making transitions less dramatic.
1.23.3 Training
As mentioned earlier, training and development are of great interest to Yers and was confirmed by the survey results. Part of the reason they seek training is because it provides them with skills that will make finding a new job easier. However, for employees to reach full performance potential for a company they require training. Training thus serves the needs of both employee and company while also increasing the risk of turnover.
In the past training was done in-person and using books and courses. These training methods are still used but they are time consuming and are rigid. Rigid here refers to the need to complete a particular course at a given time due to e.g. facilitator availability. In the past training often took place in this way out of a lack of alternative options. Now training can take place without needing to be in the same room together. Teleconferencing, for example, allows participants to join a training program of 1-2 hours without having to leave their office while still enjoying most of the benefits from in person training.
The most flexible approach available is virtual training. This approach contains all training materials on a digital media be it DVD, intranet, or Internet. It allows training to take place anywhere as long as a computer is available and possibly an Internet connection. It also allows an employee to complete the training when they have the time to do so or need knowledge on a particular subject. It provides Generation Y with the option to complete extensive training in a medium with which they are comfortable and when they have the time to do so. Simultaneously, companies are able to provide similar quality training at a reduced cost, thus minimising potential costs of losing graduates.
For graduates in particular there can be professional qualifications that need to be completed to be able to perform a specific job, sometimes even required by law. The AGR survey demonstrated that the majority of companies already offer such training. This represents a large investment by the company while also exposing it to losing this investment. As suggested earlier, to minimise company cost and risk, Yers could receive a higher salary and then cover training costs themselves or require that all or part of the costs be repaid if leaving a company within a given period of time. What will remain true regardless of the generations in the workforce is that employees and employers will require this training to be completed to ensure the job is done properly and meet regulatory approval.
1.23.4 Company Guidance
Earlier the term Helicopter Parents was introduced referring to how Yers always have their parents around and guiding them. It was also noted that Yers have received continuous feedback on their performance throughout school. This has created a need for guidance and feedback which will be brought to their workplace as well. The High Fliers survey also confirmed that Yers often are unable to act independtly and have low self esteem. If they feel they are receiving this support from a company the likelihood for them to stay will increase. How should this be done?
When graduates start, providing them with a Buddy or someone who will help get them started with the company could prove beneficial. Such a person would be able to answer questions, settle the new joiner down, introduce them to people, and ensure they get a good start. This would be in addition to a company induction (an introduction to the company as a whole). It would demonstrate commitment on the part of the company towards its young joiners.
Furthermore, in large companies where there is an annual graduate intake, a separate induction for graduates specifically could also prove valuable. The induction can then be tailored to the particular information graduates would need when starting, e.g. communication skills, technical skills, or specific skills such as basic investment principles for an investment bank. It would also allow graduates to network with each other, again something Yers value.
Once the Yers have settled in, companies need to ensure they receive the continuous feedback they seek. The feedback process does not need to be an official meeting between manager and employee, it can merely be a cup of coffee or quick chat which will let the Yer know what is going well and where improvements can be made and possibly how. Providing them with a Mentor would also provide them with a professional “parent”, whom they can turn to for guidance and to ask questions of. The company would also benefit from performance improving more quickly than would be the case with once a year performance evaluations.
1.23.5 Benefits and Compensation
Many companies provide employee benefits of which pension schemes and bonus schemes are common elements, confirmed by the AGR survey. The benefits package can be used as a further way to attract graduates and young professionals if their needs are correctly identified.
Benefits packages have evolved and can now include day care services for parents with young children or maternity and paternity leave. Although these offers are attractive to Xers who are beginning to settle down and start families, Yers will not necessarily consider these offerings attractive yet. Yers look for other things that let them pursue their interests and needs. Although childcare and maternity leave are standard elements to the package, the company may want to offer alternative options and highlight these at this stage.
When joining companies Yers have large debts from completing their Bachelor Degrees and possibly Masters Degrees, averaging £11,000 as found earlier. One option is to replace the childcare option with educational debt repayment help. For those who wish to pursue a further degree, support could be offered. Some companies encourage or even require graduates to complete professional qualifications when joining and support them in doing so. This support can be financial, to help cover the costs, and time off work to allow for sufficient study time. For the company not to lose their investment here they should consider including stipulations that employees repay part or all of the expense if they do not remain with a company for a given period of time.
One of the Yer characteristics identified earlier was working pace; doing the work in the time it takes them rather than fixed hours that may not be needed. They were also found to be flexible in when and where they work. This can be a potential boon to a company and could be combined with the Yer benefits package. Companies could introduce flexible working hours, allowing Yers to work from home, for example at prearranged times. Such options may also be of interest to Xers with young children.
Discount and vouchers have also been offered as parts of compensation packages. This can e.g. be vouchers to local stores. Vouchers and company discount can be of interest to all employees in the workforce. In this case, the key is to identify which offers would be of interest to Yers. Knowing Yers have an affinity for electronics gadgets, corporate discounts for e.g. Apple’s online store, might be attractive. Best would be to offer a set of vouchers from which employees can choose what best suits their needs. This would also avoid other generations feeling that the benefits package has been changed to accommodate Yers’ needs but not their own.
Rewards for performance can be slightly different for graduate joiners. As mentioned, some graduates are required to complete qualifications. Graduates can be rewarded when they complete stages of this qualification with e.g. pay increases, days off, or one-off monetary rewards. Something similar can be done upon qualification instead, or, as well.
Alternatively, instead of or in addition to offering e.g. days off, a buy and sell system can be used. This provides employees with the option to increase the number of days of holiday if they need or want more. They can also reduce the number of days if they do not need them and receive monetary compensation instead. Buying other benefits such as insurance, dental coverage, or store vouchers could also be offered. They have the additional advantage that in some countries, by purchasing these before tax, the relative cost for these services is reduced and the relative value of salary after tax increases.
Regardless of which options and benefits are offered to Yers, key will be that the package remains flexible. Not only are there other generations in the workforce but the needs and wants of Yers will change with time as well. Of the Finalists in the High Fliers study, 58% expected to be married by the age of 30 with a further 35% expecting to have children (High Fliers Research Limited 60). At this time benefits such as maternity and paternity leave and options including childcare and eldercare will become of increasing interest. Flexibility will furthermore ensure that Xers and Baby Boomers do not feel neglected and that future joiners of later generations can choose what they need or want.
1.23.6 Volunteer Work
Again as both current articles and the High Fliers survey found, volunteer and charity work is of great importance to Yers. A company can support these efforts by allowing employees to take a certain amount of time off to work as a volunteer. To ensure that such work does not contradict a company’s policies, the company can choose to support certain charities and allow employees to spend a certain amount of time per month with the charity. Some companies even require charitable work. Such efforts will support work both Generations X and Y believe in while also reflecting positively on the company.
Allowing employees to spend time doing volunteer work will have two direct benefits for a company. The first benefit is in providing Yers and possibly even some Xers with an option they would value. The second benefit is to the image of the company, demonstrating its commitment to e.g. social or environmental causes. However, as the actions taken by employees reflect on the company, the company should consider identifying charities or causes supported at a corporate level that reflect its identity.
1.23.7 Combining Elements
The four previous sections covered some of the key issues for retaining Generation Y at work. Training was earlier found to be something not only Yers, but Xers also look for in work. As providing training is an expense to a company, they have to try to find ways of providing the same training at a lower cost. eLearning was one of the solutions proposed which has the additional benefit of being flexible and a medium with which Generation Y is comfortable with.
However, training alone is not sufficient. Training often provides the tools but Yers will also need guidance on how to use these tools and someone to turn to for advice. Companies need to provide guidance to Yers, especially early on, to ensure they feel they are getting the support they need. If they get a positive start the chances for them to remain longer will improve.
Salary is important to Yers e.g. to help pay back student loans, but a strong benefits package would also be interesting to them. By adjusting some of the benefits to meet some of those needs, retention could improve. The final section, Volunteer Work, makes a two-fold contribution. First, it improves the company’s image to society. Second, Volunteering allows Yers to do work they feel is meaningful in addition to their job. By combining parts of each section, a company would engage Yers’ needs, which is likely to improve retention (see Figure 4 -14 Retaining Generation Y).
Figure 4‑14 Retaining Generation Y

The four sections making up Retaining Generation Y are not suggestions for how to retain Generation Y. Suggestions were given for how to accomplish each section, the sections themselves are needed to ensure optimal retention. Despite this, companies have to be aware that retention may become a damage control tool if Yers’ willingness to job hop, as identified in the High Fliers survey earlier, proves true over coming years. In this case companies can not abandon attempts at improving retention but will also increasingly have to look at recruiting talent on a running basis.
1.23.8 Managing Generation Y
This section will be looking at using the knowledge presented in who and what Generations X and Y are. This knowledge will be assimilated to better understand how to manage Generation Y specifically. Moreover, using the similarities and differences of Generations X and Y, it is meant to ensure there is minimal transition difficulty for managers overseeing Yers from managing other generations.
As most Yers presently still are in the lower echelons of company hierarchy it will mostly be managers of these levels that need to be considered for day-to-day supervision. The senior managers will deal with strategy related issues and providing approval for budget issues regarding Yers. What will remain true for all is that before considering how to go about dealing with differences between generations, managers have to be aware that there are differences.
Generation Y managers will know who their teams are and what age groups they belong to as they interact on a regular basis. Knowing who they are it will be easier for these managers to ensure that they receive the particular attention and support they may need. This is especially true for the manager who is more likely to know the individual. However, as has been mentioned earlier, generalisation is used here to be able to provide guidelines, bearing in mind that there are exceptions and variations on an individual level.
One of the greatest elements of management is communication. The effects of miscommunication can vary from misunderstanding or misinterpreting to feeling personally affronted and deals with many of the same issues as cultural communication covers. Managers need to be aware of the differences between generations, as highlighted in chapter 3.8.
1.23.9 Work Approach
When describing Generation Y, one issue was that Yers do not want to have to complete work in a given number of hours but in the time it would take them to complete the work. Although at present work is still dictated by working hours and possible overtime, Yers might try to reintroduce management by objective (Zemke, Raines and Filiczak 100). Rather than setting hours during which work would be done, the reverse would take place where the work needing to be done would be defined. This may include setting a deadline, but the actual coordination and completion of the project would remain with the employee.
The benefits of this approach are that the job will be completed as required for the company while also allowing for the flexibility that Yers look for. Furthermore, this resonates with Xers, who also want to avoid overtime and be home for their families. The following passage could apply to either generation “As long as I get my work done, what does it matter how and when I get it done?” (Zemke, Raines and Filiczak 100).
There is also little or no loyalty to companies by either Generation X or Y. This is in part a consequence of companies showing no loyalty to employees in economic downturns, starting in the 1980’s. Employees have been given few reasons to be loyal to companies rather than themselves and their families. Subsequently companies must decide whether to commit themselves to their employees or embrace a new working order consisting of fewer fixed contracts and more project based contracts, which can be converted to fixed contracts if both parties are interested.
Finally, Yers want to start with work they consider interesting, they do not want to work their way up as the Baby Boomers did. Companies will always have work that needs to be done that will not be considered interesting by all. To reduce the tediousness of this work, it can be mixed with more interesting work creating a balance. In addition, as mentioned earlier, Yers may need to be explained why a given job is done and why it is important to do it in a certain way. This will not ensure they enjoy the work but will help them understand why it is important that it is done.
1.24 Creating the Model for Generation Y
Having achieved an understanding of who Generation Y is and what their characteristics are, this information was used to identify the issues companies need to be aware of and steps they should consider following. The final step for this Thesis is to combine these elements which will bring together the key steps companies need to follow to improve interacting with, recruiting and retaining Generation Y.
1.24.1 Step 1: Attracting
As mentioned at the beginning of the chapter, attracting was not to be the focus of this Thesis and is also true here. What is key for a company to be aware of is Generation Y’s high use of the Internet on a regular basis including social networking sites such as Facebook and MySpace. These sites are part of people’s personal sphere. Consequently approaching people directly here must be done with tact but can prove a rewarding way to spread knowledge about a company.
Adjusting marketing approaches to reflect the increased use of technology and Internet is important but does not mean traditional marketing approaches should be neglected. Advertising at University Recruitment Fairs and offering presentations at universities will continue to be important, as has also been high lighted by the results of the High Fliers survey. For example, in the UK one of the leading sources of information on graduate positions is provided by the Times (who had commissioned the High Fliers survey). They rank the best graduate offerings and provide information on each of the companies listed on the Internet and in hardcopy. This is an example of combining traditional marketing with the Internet.
1.24.2 Step 2: Recruiting
The traditional recruitment process involved sending hardcopy application forms to employers found in e.g. locally available newspapers. With growing use and availability of the Internet applications for graduates have become electronic and many multinational companies no longer accept physical applications. It has become essential to no longer only have a webpage about the company as a whole for customers and clients containing general information, history and products. Websites must now also have a careers page listing the positions available as well as details about the positions, the application process and the evaluation process.
The career section is meant for all job applicants for a company, not only Generation Y. This allows candidates of all ages and backgrounds to have the same access and information. However, as graduates have limited experience in the application process and represent a large part of the applicant population, a separate section for them may be recommendable, offering the guidance and information they need. Although Yers are comfortable with technology, the actual interviews will continue to be conducted as in the past.
Technology offers many advantages but it can not interact in the same way as an interviewer can with a candidate. Assessment days especially must continue to take place in person as it is here both parties meet each other in person, often for the first time, and can truly get a feel for each other and for fit. What differs between graduate recruitment and regular recruitment is that graduates will often have limited if any experience. Competency questions will relate to university or internship experiences and performance measured by school results.
Assuming the candidate is successful with the interviews, he/she still has to accept the position. With limited candidates having the knowledge and skills companies look for, there is a great danger that even if successful, they may accept a position elsewhere. Often the fact they applied demonstrates an interest in a company but it is during the recruitment process the company is sold. The pay package is important due to their debt load, but not the only motivating factor.
When attending assessment days, companies have a real opportunity to demonstrate what it is like working there, what the people are like, and which charitable activities they engage in. This can be done by providing a presentation to start the assessment which provides general useful information, meeting present graduate employees to get their views on working at the company, and meeting senior managers who can provide a perspective of what options there are.
1.24.3 Step 3: Retaining
Making Yers aware of a company and recruiting them can be considered as a relatively simple process when compared to retaining them. The first two steps are mostly comprised of what Yers will see and know of the company from the outside, without truly knowing what it is like working for them unless they have completed an internship with them or a competitor. Retention relates to how they are managed, kept engaged and listened to while working. This includes what leadership and management style is applied within the company in general, and by their supervisor specifically. Participatory management styles will more actively engage Yers than Authoritarian management styles would.
Yers need support due to how they were raised (Helicopter Parenting). This can be in the form of a mentor for the long-term and a Buddy to get them started during their first weeks. It can also be in the form of regular feedback from a manager to help them be aware of what they do well and what can be improved, and offering them the help to improve. This does not need to be from a senior employee but can even come from other Yers through graduate groups or study groups. This continues the social feel from university and facing similar problems, it allows graduates to help and support each other, thereby also encouraging teamwork.
Support relates to the second element, Training and Development. Xers used training to ensure they had the skills needed and with this ensure they were more likely to keep their jobs and be interesting to other companies. In addition to strengthening their CV’s, Yers also seek to learn more for themselves. Time is another element of similarity between Generations X and Y. Xers want to leave at the end of the working day while Yers want to complete their work in the time it takes them and not in the time prescribed. This can be done by allowing for flexible working hours, working from home (which would also appeal to Xers) or Managing by Objective (MBO).
What remains crucial with Yers is that they feel they are listened to, keep being challenged, work on interesting assignments and receive the support they need. For a company, these will not only be changes from which Yers would benefit, but other generations would also gain, especially Generation X with several similar desires such as learning and work flexibility. The company may also benefit from having Xers work regular hours while also having the option of work being completed at other hours by Yers.
1.24.4 Combining the Elements
Above three steps were discussed; Attracting, Recruiting and Retraining. They were related to Generation Y; however some of steps remain true for other generations. What differs are some of the elements of each step which have been customised to Generation Y in particular. With the increasing popularity of the Internet, some of these steps will be relevant not only to Generation Y but also to Xers, and possibly Baby Boomers. For Yers specifically there are key areas companies need to be aware of in each step (see Figure 4 -15 Working with Generation Y).

Figure 4‑15 Working with Generation Y

For Attracting companies need to be aware that in addition to traditional Physical Marketing such as newspaper ads, Electronic Marketing (EM) is playing an increasingly important role.
Recruiting today must be based on technology and the Internet. In Person Interviews and Winning Candidates Over have not changed as significantly as the Application Process itself. Many major multinational companies now rely on their websites for applications from graduates. Yers almost take it for granted that a company has a website today, providing detailed information about the company and possible career prospective.
Retention is nowadays the most critical element for a company. Even though there may be a tendency to employ Yers as Temps or Consultants, thereby reducing the impact of high turnover; companies will also need a core employee group to remain with them. To retain Yers it is essential for companies be aware of all critical elements characterizing this generation. Training and Development, similar to Xers, remains important. MBO will allow Yers to obtain the Work-Life Balance they want while at the same time ensuring companies have a labour pool available to work at odd hours. To achieve this, companies will have to introduce a flex-time scheme and/or home office & telecommuting.
Using the elements highlighted in Figure 4-4, a company can identify the elements it is already practicing, not practicing and the relative importance thereof, as reflected in Figure 4-5. Each number in Figure 4-5 relates back to the equivalent numbered item for the respective process in Figure 4-4.
Figure 4-5 has been separated into three sections; Attracting, Recruiting and Retaining, to remain consistent with Figure 4-4. The centre of the figure is coloured red to demonstrate these elements are of the highest importance for companies to consider. The second layer in green represents elements of medium importance with the blue elements as the lowest importance elements of the process, not to be confused with un-important. For example, the 2 in the green field for Recruiting represents “In Person Interviews” from Figure 4-4.
Figure 4‑16 Organisational Optimisation Process towards Generation Y

Above the importance of each element was described. Figure 4-5 does not aim to demonstrate the importance of each element. Rather it aims to provide companies with a high level means of:
1. Identifying what they are already doing and elements they may have overlooked or not been aware of,
2. Understanding the relative importance of these elements and thus,
3. Being able to determine future strategic direction.
By completing Figure 4-5 a company will have an idea of whether it is completing all crucial steps when dealing with Generation Y. If not, the figure will help provide the company with guidance as to what they are missing and, with the descriptions from the earlier sections of this Chapter, how best to go about resolving these issues.
1.25 Chapter Conclusion
This chapter took the descriptions of Generations X and Y from Chapter 3 and showed what the effect of these characteristics had in the workplace. This was done in three steps, addressing the three elements of Attracting, Recruiting and Retaining Generation Y.
Attracting discussed some of the approaches that would appeal to Yers the most. It is the most important element when creating a strong graduate oriented section on the company website, while continuing with traditional marketing approaches such as university presence and hard copy advertising.
Secondly Recruiting was introduced, highlighting some of the most important issues in this process. Again here the website was crucial as a large proportion of applications from graduates presently are accepted online, in some cases exclusively. This requires a well laid out and informative website for the company, including an online application form.
Following the application for a vacancy, telephone interviews and/or assessment days take place. These steps are among the most important for the company during recruitment, not only because candidates must be correctly evaluated, but because the candidates also evaluate the company.
These two steps can prove to be turning points for a candidate when choosing which offer to accept. It is therefore vital that companies answer any questions candidates have, provide an opportunity to meet other graduates or people from the company, and have a positive experience.
Having recruited candidates with the right competencies, skills and qualifications, Retention becomes increasingly important. Other important factors included that Yers receive the support they need from the company when they start their working lives as well as throughout their employment. This includes training and development opportunities to demonstrate the company’s commitment to them. Finally, Management By Objective can serve as a management tool allowing Yers to work at a pace they are comfortable with and allowing for Work-Life Balance.
These three steps were combined to create a model which shows what the overall process for Generation Y looks like, highlighting the crucial areas under each step of Attracting, Recruiting, and Retaining. The model presents a quick overview of selected key elements and how they interlink. This was followed by another model allowing companies to identify steps they may not have been considering or taking, and the relative importance of these steps. Being aware of these missing steps, combined with the earlier sections of this Chapter companies would be able to understand what changes are necessary to Attract, Recruit and Retain Generation Y.
Reviewing the Thesis
The Thesis set out to achieve the following:
“Determining the requirements of Generation Y when entering the workforce and their influence upon the current approach of employers towards attracting, recruiting and retaining these employees.”
This final Chapter will demonstrate that the Thesis met the objective of the Problem Statement. This is done in three steps:
1. Check and ensure that the model from Chapter 4 achieves its goal and ensure there are no contradictions based on the information provided in Chapters 3 and 4.
2. Check that the model and the conclusions drawn meet the objective of the Problem Statement and provide the answers required. These steps represent the final tier of Bloom’s Taxonomy Pyramid, checking and ensuring that the results achieved their aims and are consistent with the information.
3. Present a conclusion for the Thesis that determines the requirements of Generation Y when entering the workforce and influencing the current approach of employers towards attracting, recruiting and retaining these employees. At this point the hypothesis will be confirmed or refuted.
1.26 Evaluating the Model
Figure 4-5, aimed to provide a general approach for companies to apply to present and future Generation Y employees. This includes attracting, recruiting, and finally retaining them. Does the model achieve this objective?
Figure 4-4 highlights the three main processes companies engage in with employees; attracting, recruiting and retaining them. The key issues companies need to be aware of for each process are slightly different for Generation Y than for previous generations due to e.g. technology. This is most evident for the final process, retaining. Here especially Yers differ from the other generations in that they need support, desire training and development as well as value Work-Life Balance.
Nevertheless, issues highlighted in Figure 4-4 represent generalisations of what is important to Yers. Consequently the issues may not be relevant in all industries or applicable to all individuals from Generation Y. This, however, was not the aim of Figure 4-4. It is meant to provide guidance on issues companies would benefit from being aware of rather than being a set process for companies to follow. The figure therefore meets its objective of identifying high level core issues. These issues were based on the characteristics of Generation Y identified in Chapters 3 and 4. The figure therefore does not contradict the understanding of Generation Y.
The elements of Figure 4-4 were brought together in Figure 4-5. This model highlights the relative importance of the three main issues for each process and allows the company to identify what issues it has not addressed. Combined with the descriptive elements of Chapter 4, the company can identify the elements for a particular issue that are of importance to Generation Y and that need to be addressed from a company perspective. When these issues are addressed by companies they will lead to a successful integration of Yers as well as meeting the needs of the company. These core issues can also ensure Yers achieve optimal performance as they cover Yers values, motivational factors and behaviour.
Therefore the model does meet its objective of helping companies understand what the key issues are in Attracting, Recruiting and Retaining Generation Y and allows them to determine where they specifically are located without contradicting itself.
1.27 Relating Results to Problem Statement
In Chapter 3, Generation Y was described in detail, emphasising what its characteristics were, what motivates them and what is important to them. This covered factors such as Work-Life Balance, company commitment, feedback & guidance and digital ability. These factors described Generation Y as well as highlighting what they do and do not look for in companies. Thereby, the first part of the Problem Statement was met.
This information was then applied in Chapter 4, demonstrating how the different elements from Chapter 3 affected the particular processes of Attracting Generation Y (4.2), Recruiting Generation Y (4.3) and Retaining Generation Y (4.4). Each process highlighted the core issues companies need to be aware of when dealing with Generation Y specifically. Thus, the requirements by Generation Y in the Attracting, Recruiting and Retaining Processes were identified.
By having identified who Generation Y is, what they look for in companies and what this means for each process of Attracting, Recruiting and Retaining the aims of the Problem Statement were met.
1.28 Conclusion
For this Thesis, Generation Y was set to be individuals born from 1981-1998. The first step of the Problem Statement was to identify who Generation Y is. The comparison of this generation to the immediate prior generation, Generations X, provided a better understanding of Yers. The characteristics for Yers were found to be:
Low company loyalty
Questioning
Being technologically fluent
Needing support and feedback
Work-Life Balance
Tolerant and diverse
Collaborative
These characteristics were confirmed by two surveys conducted in the UK; one by the Association of Graduate Recruiters and the other by High Fliers commissioned by the Times. To gain an understanding of how Yers compared to other generations they were placed according to Hofstede’s value dimensions. This meant that the values of the generations were directly compared and demonstrated that, although not the same, Generations X and Y shared similar values.
Some common characteristics were, for example, both generations valued training & development and a good Work-Life Balance. Such common traits make it easier for companies to engage and manage their employees because they need not customise their approach for these different groups of employees. It also meant that there was an opportunity for Generational Synergy.
Synergy could potentially be achieved by adjusting mentoring relationships to also include Reverse Mentoring or, preferably, Mutual Mentoring. Synergy could also be attained by combining the desires of the different generations, for example by combining Xers’ desire for working traditional 9-5 jobs with Yers’ willingness to work odd hours as long as the total does not exceed the contractual hours. The re-introduction of Managing by Objective (MBO) for Yers, in accordance with McGregor’s Theory Y, can serve as a tool here. This provides Xers with the classical fixed working hours and Yers with flexible working hours, thereby ensuring the company has a labour pool available for regular hours as well as time outside of traditional office hours.
Using the description of Generation Y, the effect their characteristics would have on companies and the workplace were identified. The gained knowledge and the results were combined in a model (Figure 4-4) highlighting three steps in the working cycle of an employee: Attracting, Recruiting and Retaining. Each step contained details of some of the high level crucial issues companies must consider when dealing with Generation Y. For Attracting and Recruiting, technology was the main factor that differed from past practices where advertising and applying for jobs, especially, has experienced a large shift onto the Internet.
It was in Attracting and Recruiting Yers’ technological interest was the most evident. For Retaining technology played a more supportive role by allowing e.g. telecommuting. The core issues for Retention were Work-Life Balance, Company Support for the employee, Training & Development, Feedback and Interesting work. These issues, when addressed, not only improve retention of these employees, but equally importantly Generation Y’s performance.
Using Figure 4-4 as a basis, the three elements of each process were arranged according to relative importance in Figure 4-5. This model allows companies to not only identify what they key issues are, but more importantly to place themselves in the model and thereby identify potential gaps in their own processes. The description from Chapter 4 assists in addressing these gaps.
The Thesis aimed to identify who Generation Y is and what their characteristics are to allow companies to engage them more actively and for the benefit of both parties. The two previous sections of this Chapter evaluated the model and reviewed the Problem Statement. The model was shown to have met its objective; to provide a high level tool for the three main processes of the employment cycle companies engage in.
This Thesis has highlighted the need for companies to deal with the changes in attracting, recruiting and retaining the modern workforce due to the different priorities, competencies, skills and attitudes of Generation Y. Consequently, companies need to proactively consider new approaches in leadership and management styles which lead to improved performance and retention of Yers, benefiting both Generation Y and the employer. Thereby, the hypothesis on Generation Y is confirmed. Yers will change the workforce deployed in companies and will challenge applied leadership and management styles.
This Thesis has looked at Generation Y from a 2008 perspective. However, as more Yers join the workforce and as they mature their characteristics, values and priorities will change. This Thesis has provided guidance for issues companies need to be aware of now, yet these issues will evolve as Generation Y changes. Not to forget, Generation Y is not the only generation in the workforce. At present Baby Boomers and Xers are still active and after Yers stop joining the workforce a new generation will start joining with a new set of characteristics and values.
New questions will arise that need to be answered some of which may include the following:
What new issues will arise when Yers are 35 instead of 25?
Who will replace Y as the next “new” generation?
Will there be a radical difference between the next generation or will they share values like Xers and Yers did?
Companies must play a proactive role in working with employees to understand them, not reactive. To maintain a strong workforce in the present and future companies must look at and understand both the small picture (the generation: Baby Boomers, Generation X, Generation Y) and at the large picture (Generational Evolution and Progression).

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Appendix: Description of Veterans and Baby Boomers
In the main body of the Thesis the descriptions of Generations X and Y were provided Yers being the focus of the Thesis and Xers being compared to Yers. There are, however, two further generations represented in the workforce, the Veterans and the Baby Boomers. As they at times have been mentioned in the main body of the Thesis their descriptions have been included here for further detail.
1.29 Veterans
Generation Y is not the only generation to be given various names. The oldest generation in the workforce is the Veteran Generation. They are also known as Traditionalists, Matures, Radio Babies Silent, or Schwarzkopf Generation (Martin and Tulgan xxv) (Gravett and Throckmorton 34) (Howe and Strauss). The starting date for this generation, as with Generation Y, is different between authors. In general it refers to those born towards the end of the Second World War. For this document Veterans will be considered as people born before 1945. After 1945 many countries had peace and a new approach towards life was possible and as such serves as a good point to shift into the next generation.
1.29.1 Who the Veterans Are
Some of the oldest members of this generation will remember and possibly have fought in World War II. Families in Europe experienced fear of enemy approach or bombing and had food and other supplies rationed. With the end of World War II the Cold War began to evolve. Despite there being no direct armed conflict, for many countries there was still a clear enemy, Communism or the West respectively. In addition, their parents will have experienced World War I and the Great Depression in the US or the European Depressions. In interviews Gravett and Throckmorton conducted, they were told that the three factors that most shaped the belief of members of this group were:
Parent’s views
Values held in their community
Views of respected political leaders (36)
Their parents will have passed on the lessons they learnt such as “…stretch[ing] a buck nine ways to Sunday” (Gravett and Throckmorton 33). This is not to say that people today do not know how to make the best use of their money, but there is not the same need. Today economies are consumer driven and this is encouraged through easy availability of credit on almost all items. Veterans will also remember days when TV was black and white and the big event the first TV set was for a family or the first car. They were able to appreciate many things that today are taken for granted. Below a list is provided of some of the defining events Veterans were witnesses to and can remember that later generations will only know from history classes (see Figure 7 -17 Defining Events Exclusive to Veterans).
Figure 7‑17 Defining Events Exclusive to Veterans

(Overy 288-302, 332-334)
Given the transition date to the Baby Boomers, the last of the Veterans in the workforce today will be approaching their mid 60’s. Consequently many will either have achieved the legal retirement age or soon qualify. This means the last of the Veterans are currently leaving the workforce and with them, as much as 40-50 years of experience will leave. Some of their knowledge will be left behind in tacit knowledge such as manuals, books, or passed on to successors. However a large amount of knowledge will still be lost as well.
Many of these Veterans will have worked their way up the company hierarchy and in turn helped shape the structure of their companies. This means that now towards the “traditional end” of their careers, they are occupying many senior positions in companies. With their leaving, succeeding generations will start to shape companies according to their views and priorities as they become the new leaders. Some of the values that the Veterans have adhered to include civic pride, loyalty and respect for authority (Zemke, Raines and Filiczak 18).
However a newly emerging factor that now also should be considered is the fact that many of those approaching retirement no longer wish to retire, at least not fully. They would like to continue contributing to a company but in a more relaxed relationship with e.g. flexible working hours or as consultants.
1.29.2 Characteristics of Veterans
There are characteristics that span different generations. In some generations these are more prevalent than others or may be slightly different. For the Veterans some of the core values include Dedication/Sacrifice, Hard Work, Conformity, Law and Order, Respect and Authority, Patience, Delayed Reward, Duty before Pleasure, Adherence to Rules, and Honour (Zemke, Raines and Filiczak 30).
As mentioned above, this is the generation which participated in a World War and experienced the consequences of the Great Depression in the US or the depressions in Europe. They were raised understanding the value of money and making sacrifices in service of their country. This created an approach of work and duty coming before pleasure to ensure pleasure was possible at all. The larger part of this workforce which had been in the army would later transfer their experience to the private sector. This translated into rigid, pyramid shaped, hierarchies based on respect and authority.
Two other characteristics are Loyalty and Commitment (Martin and Tulgan 5). This generation still experienced a phase in the workplace where an employee would stay with a company, if not for the entirety of their career, for a large part of it. They were not the workaholics the following generation would become. This was still a time when the man was the main breadwinner for the family and the wife would stay home or work as a secretary or nurse. The nuclear family was important here with both a mother and father present. The children of this period were doted on where their parents tried to give them what they had not been able to experience during the war and depression years. This in turn affected the look upon life these children would later have when joining the workforce as a generation of their own, the Baby-boomers, discussed in the following section.
The final factor to consider about this generation is that although they have reached retirement age, many are not actually fully retired. Life expectancy today is higher than it was when the Veterans were young. Additionally, some Veterans can not afford to retire today. Finally, some do not know what to do with the time they suddenly have available. This is not true for all but appears to be a growing trend. (Zemke, Raines and Filiczak 60-62).
Being able to afford retirement and keeping busy are two of the main trends identified in present literature. However, Peter Mitchell OBE, a gentleman who retired in the late 1990’s and has been working as a consultant since, provided another reason for why he continued working, he staid informed and still had some influence (Mitchell OBE).
1.30 Baby Boomers
The Baby Boomers are the second generation represented in the present workforce and comprise those born between 1945 and 1962. Unlike the Veterans this means that the majority of the Baby Boomers have not yet retired but are beginning to reach the age at which they have the opportunity to do so.
1.30.1 Who the Baby Boomers Are
As with the Veterans they may also have parents who experienced the Great Depression and World War II, they will however not have witnessed these events. In the US they grew up in a time of relief that the war was over and during a wave of expansion. In Western Europe countries were rebuilding after the War and had created the European Coal and Steel Community between Belgium, France, Germany, Luxembourg and Italy, laying the foundations for what would become the European Union.
These children were the centres of attention at home where moms still staid at home in many families with a working dad. Part of the reason for this was because they represented what their parents had fought for during the War and embodied their hopes for the future. In the US more than 60 million children were born as part of this generation and today represent 41.5% of the workforce (Martin and Tulgan 21,26). Although 4 generations are presently in the workforce, when Baby Boomers represent 41.5%, the choices they make affect the whole labour market.
The Baby Boomers also experienced the increasing influence of Civil Rights leaders Martin Luther King Jnr. in the US and Mahatma Gandhi in India. Popular culture was a phenomenon that was gaining momentum with Elvis Presley returning from military duty and the Beatles gaining popularity in Europe and the US. Music was diversifying with Jimmie Hendrix, Pink Floyd, Bob Dylan and the Rolling Stones. This represented a shift where the youth were becoming more openly rebellious of their parents. This was also a period of time where people were going to witness several shocks. During Kennedy’s presidency war almost broke out between the US and the Soviet Union due to Soviet missiles in Cuba. This was averted only to be followed by the assassination of Kennedy. But the most defining moment for this generation may well be the Vietnam War.
The Vietnam War will have started in the early childhood of many Baby Boomers and will have shaped how they look at the world. Young people were conscripted into the army, sometimes against their will. Many soldiers would return home, wounded, and shunned by society. Mostly these will soldiers would have been the youngest Veterans and the oldest Baby Boomers. But for the majority of the Baby Boomers it represented a changing point in how they would approach the world. For the soldiers who survived Vietnam, they often did not “…come home as heroes but instead were reviled at worst and dismissed at best” (Gravett and Throckmorton 38). These events, although often centred on the US, also affected European beliefs.
Members of the Baby Boomer generation would have started joining the workforce in the late 1960’s, early 1970’s. To begin with they may have had the same approach towards work that their parent’s generation did, that you join a company and stay loyal to them and in return they will support you (Martin and Tulgan 24-25). There was a strong sense of job security and they worked very hard, expecting to be recognised for their work in return. With the economic downturns of the 1970’s Baby Boomers quickly came to realise the labour market had changed.
There were also positive developments from which the Baby Boomers profited. Television became something families increasingly were able to buy. Cars became more widespread and passenger air travel began to become available. Students were also increasingly attending college and university.

Figure 7‑18 Defining Events for the Baby Boomers

(Overy 302-308, 328-331)
1.30.2 Characteristics of Baby Boomers
Baby Boomers have at times been characterised by other generations “…as ambitious, greedy, materialistic, aging flower children who channelled their energies into “making love, not war” before selling out in the 1980s” (Gravett and Throckmorton 38). In contrast, as was mentioned earlier, Baby Boomers have a tendency of looking at themselves as the star of the show and this was very much an approach they brought with them to the workplace.
Group work was done in this generation but only in-as-far as it served the purpose of promoting the individual. There was also a strong distrust of authority (Martin and Tulgan 21). This may have stemmed from the approach to and outcome of the Vietnam War but it translated into the workplace. Those at senior levels in government and the private sector were of the same generation having worked their way up and were consequently treated with the same scepticism.
On the other side, Baby Boomers were optimists, looking “…at the world in terms of its infinite possibilities, something to be shaped and played with, aggressively, not passively as a spectator might” (Zemke, Raines and Filiczak 67). It was with this generation that the term workaholic was developed in the 1970’s (Zemke, Raines and Filiczak 85). They were extremely hard working and as they rose through the corporate hierarchy they increasingly incorporated their work ethics and approaches into the workplace.
One issue the Baby Boomers have in common with the Veterans is that they have higher life expectancies than were expected when they first joined the workforce. The consequence of this is that although the Veterans were able to retire with their pensions covered by a larger labour force following their own, the Baby Boomers have no such security. Generation X, which followed the Baby Boomers, is a smaller generation than the Baby Boomers and can not cover the expenses of Medical Care and Pensions for Baby Boomers. Furthermore, as life expectancy rises, so does the duration required to make pension payments, making it yet more expensive for governments and companies to cover pensions.
The Baby Boomers also have a different approach towards money, and more importantly, towards credit than the Veterans do. Having experienced the consequences of depressions and a World War the Veterans took grate care with how their finances were spent and made “a buck split nine ways”. The Baby Boomers on the other hand were spoilt by their parents and did not learn the hard lessons their parents did. This later translated into the approach they had towards taking out credit to buy a home or a car. The availability of credit allowed the Baby Boomers to indulge themselves in ways the Veterans would not have done and has meant that many now have large mortgages or other debts that need to be paid.
At the same time the Baby Boomers are beginning to approach retirement when they will receive their pension rather than a full pay check. A Securian report highlighted that for 23% “Debt at Retirement was at least as much as savings/investments” (n.a., Debt: the Blind Spot on America’s Road to Retirement 4). This represents a quarter of those the survey covered, with 12% stating debt was much more than savings/investments. In addition to this, 32% of non-retiree Boomers replied that they expected Mortgage Debt and 26% expect Other Debt (n.a., Debt: the Blind Spot on America’s Road to Retirement 7). Most worrying is perhaps the approach towards debt (excluding mortgages), where 21% of respondents consider it “a normal part of having the lifestyle you want” (n.a., Debt: the Blind Spot on America’s Road to Retirement 8).
As a result Baby Boomers have no pension security to look forward to when they reach retirement and few savings to rely upon. This may lead to many Baby Boomers deciding to remain in the labour market as they may not be able to afford retire. Consequently the Baby Boomers are “…reinventing retirement as a hodgepodge of part-timing, flex-timing, temp working, job sharing, telecommuting, freelancing, consulting, and entrepreneuring” (Martin and Tulgan 31).
Although this would make a large amount of experience and tacit knowledge available to a company for a greater period of time and reduce their pension expenses, the downside is that there would be far less workplace mobility options for the subsequent Generations X and Y. If strong employees from Generations X or Y feel that they have exhausted their options with a given company because the senior positions are held by Baby Boomers with no intention of retiring for a while, they will look for new jobs elsewhere providing them with the opportunities they seek. Although companies keep the experience of the Baby Boomers it may come at the expense of losing the key talent to succeed the Baby Boomers.
It was during the Baby Boomer period that contraceptives began to be readily available which meant that people began to actively be able to decide whether or not they wanted children (Gravett and Throckmorton 37). Consequently people began to put off having children until later in life and concentrating on their careers first. This may partly have contributed to the lower birth rates of Generation X during the 1960’s and 1970’s. Additionally, Baby Boomers were also the first generation to truly accept divorce, “If the marriage wasn’t working out, they dumped it and looked for another” (Zemke, Raines and Filiczak 67). For the children that this generation did bear, there was not necessarily a mother and father family at home as the Baby Boomers themselves had had. This in turn would affect the outlook these children had on life and work and is discussed in the section on Generation X in the body of the Thesis.
Another issue, mentioned earlier, is that there are no cut-off points at which a person is placed in either one generation or another. Furthermore, within generations there are differences as well. The Baby Boomers of the mid 1940’s a slightly different from those of the late 1950’s. Tendencies to have similar views to the preceding or following generation respectively become apparent. For the Baby Boomers born towards the end of this generation “Leaving work at work and tending to interests outside their careers have become essential to their lifestyle” (Martin and Tulgan 29).
When considering a generation, be it how to approach, interact, or manage them, it is sometimes necessary to generalise while also being aware that within generations, differences exists, as well as individuals who associate more strongly with other generations than with their own. For the Baby Boomers born towards the early 1960’s some of the characteristics of Generation X begin to become apparent.

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