The Three Essentials of Engaging Millenials
Date:
Jun 19, 2013
Millenials, or Gen Y, are a hot topic among wealth advisors these days and for good reason. As the industry ages, firms’ long-term success depends on being able to attract and retain the next generation of advisors. According to the Pew Research Center, the generation born between 1982 and 1993 numbers 77 million. That’s larger than the baby boomers and three times the size of Generation X. According to the Bureau of Labor Statistics, they will comprise 75 percent of the workforce by 2025 and will eclipse the boomers within the next few years. But they are not only wealth advisors’ future employees but their future clients and attracting advisors capable of relating to this growing demographic is a huge business advantage.
So the big question is what does it take to reach and engage Gen Y? Dan Schawbel of Millennial Branding discussed this subject at our recent Wealth Advisor Forum. Dan runs a Gen Y research and consulting firm that specializes in personal and corporate branding. His presentation touched on three key qualities of this generation that I think provides some insight into how to engage them.
- Communication. Much of the discussion about Gen Y and communication deals with how they communicate. It is true that millenials grew up around technology and are partial to electronic forms of communication like texting and social networking, but that is only part of the story. According to Schawbel, millenials require more frequent communication than other generations. As employees, they crave feedback. They want to know how they are performing and what they need to do to advance in their careers. Scheduling regular discussions to go over progress against goals and career path can go a long way toward engaging them.
- Collaboration. According to Schawbel: “[Millenials] have different collaboration tools at their disposal and want to work in teams to accomplish goals. They don't want cubicles and instead want to have tables where they can discuss solutions to problems together. They don't like corporate hierarchies and want everyone to be working together instead of dealing with corporate politics.”
Gen-Y employees want a seat at the table. They expect a voice in the decision making process. Some firms have had success meeting these expectations with more open workspaces and flat organizational structures.
- Culture. Gen Y puts a premium on doing meaningful work. For example, Schawbel cited a 2011 Deloitte study that found millenials had higher levels of engagement and job satisfaction at companies that offered opportunities to volunteer and give back to their communities. He further argued the importance of employer branding and communicating your organization’s values. Millenials want to know that their employer stands for something more than just the bottom line, so it is important to communicate how your organization makes the lives of your clients better.
It may take some time for senior management to adjust to Gen Y, but considering their sheer numbers, these changes are necessary. Indeed, as Schawbel puts it, “It’s coming; you might as well get on board.”