Managing Three Generations of Employees

UNDERSTANDING GENERATIONAL DIVERSITY

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Baby Boomers Born between 1946 and 1964

Currently occupy senior mgmt. positions

Generation X Born between 1965 and 1980

Currently occupy middle mgmt. positions

Generation Y Born after 1980

Currently occupy entry level positions

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Workplace Characteristics

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Inter Generational Tension?

•

Location and Timing of work

• Office vs. Mobile Working • Office timings vs. Task timings •

Communication among team members

• Time Lag • Mode of Communication •

Nature of Collaborative Input

• Definition of “Expert” •

Finding information or learning new things

• Source of Learning © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Is the Asian context different from the Global context? (Gen Y as an example)

93% of Indians wish to have an overseas exposure

Source: Talent Smoothie 2008 survey © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Is the Asian context different from the Global context? (Gen Y as an example)

Source: Talent Smoothie 2008 survey © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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MANAGING GENERATIONAL DIVERSITY

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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What does this mean for Employers?

Change communication strategies One size won’t fit all. Develop a different recruitment strategy for each generation Sell Opportunities not Careers Retention strategies need to be different for each generation in the workforce

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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All generations want to …

•

Belong

•

Be valued and respected

•

Have trustworthy leaders

•

Make meaningful contributions

•

Have resources and skills that would help them excel

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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What can employers do?

Emphasis on understanding of the diversity in workplaces Create workplace choices, allow the workplace to shape itself around the work being done as long as customers needs are met Make mentoring a constant (reverse mentoring) Make your leadership style based on the situation and people involved

86% say that generations learn from each other 82% say that there is better quality due to variety of generational perspectives

Depend less on positional power and more on personal influence Take your time when matching individuals to a team or a team or individual to an assignment. Do not discriminate based on age.

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Focus on COMMUNICATION

Take the time to communicate with your employees and use the right medium Do not rely on one medium only

Direct • Monthly focus groups • Quarterly sessions “Kascades’ • People Management Leaders E- based communication • Monthly newsletters • Screen Savers • Webcasts One to one communication and Feedback © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Focus on DEVELOPMENT

• Focus on continued learning • Adopt a blended learning strategy • Learning through mentoring • Train Leaders/Managers

INVEST IN THEM!!!!

How do you value the following development opportunities

E-Learning Job rotation Further academic trg Face to face training Mentors 67% 62% 86% 85% 91% 91% 92% 94% 97% 96%

“Training and development is the most highly valued employee benefit. The number choosing training and development as their first choice of benefit is three times higher than those who chose cash bonuses.” Source: PwC 2008 survey on ‘Managing tomorrow’s people’

0% 20% 40% 60% 80% 100% Global Asia © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Focus on RECRUITMENT STRATEGIES

Tailor your recruitment messages to the generation, but always tell the truth Build personalization, choice, and control into all aspects of our recruitment Sell Opportunities and not a career

“Corporate social responsibility (CSR) is very important to younger generations with 88% stating that they seek employers with social responsibility values that reflect their own” Source: PwC 2008 survey on ‘Managing tomorrow’s people’

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Focus on RECRUITMENT STRATEGIES

Use the right medium Sources of Information when looking for a job (Generation Y)

Brochures National Press Campus PPT Internships Career Fairs Referrals Company Website 0% 10% 20% Source: Talent Smoothie 2008 survey 30% 40% 50% 60% 70% 80% © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Most-valued rewards Baby Boomers Generation X Generation Y

• Retirement planning assistance • Training • Acceptable time offs, including sabbaticals • Skill development • Continuous feedback • Flexible work arrangements and positive work environment • Learning and development opportunities • Credible and positive role models • Work/life balance © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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To summarise You Must

• Assign Mentors • Communicate • Offer different modes of learning • Constant Feedback • Job Rotations / Variety of Work • Align Organizational Goals with interests of employees • Ask for new ideas and listen • Provide infrastructure for collaboration

Do Not

• Micromanage • Isolate with similar age groups (provide interaction with senior members, esp. Boomers) • Use the same management sytle with all generations • Delegate without making the connection to the bigger picture © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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The challenge will continue…..

Get prepared for Generation M

“Future generations will continue to be significantly different and firms and institutions who adapt fastest will capture the highest quality employees.”

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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Sources used in preparation of this presentation

• • • • • • • • • • • • • • • • • • • • Penelope Trunk (2006)

Brazen Careerist

“Teamwork is a great way to sidestep office hierarchy” Penelope Trunk (2008)

Brazen Careerist

“Are you a Gen Y Magnet” Penelope Trunk (2009)

Brazen Careerist

“How to lead in the New Millennium” Gary Hamel (2009)

The Wall Street Journal

“The Facebook Generation vs. the Fortune 500” Gary Hamel (2009)

The Wall Street Journal

“Empowering Natural Leaders in ‘Facebook Generation’ Ways” Tulgan & Martin (2008)

Rainmaker Thinking Inc .

“Managing the Generation Mix™ ” Tammy Erickson (2008)

Harvard Business Review Ideacast

“Managing Generation Y” Tammy Erickson (2009)

Harvard Business Review

“The Four Biggest Reasons for Intergenerational Conflict” Tammy Erickson (2009)

Harvard Business Review

“Guide to Managing Ys” Tammy Erickson (2009)

Harvard Business Review

“Global Generations: Focus on India” Navi Radjou (2008)

Harvard Business Review

“Wanted – Entrepreneurs who can ignite 550 Million Minds” Cristina Simón (2008)

Universia Knowledge @ Wharton

– “Generation Y and the Labor Market: Models for HR Management” Alan Whalley (2008)

Mercer

“Why CEOs Need to Understand Generation Y ” Andres Tapia (2008)

Hewitt Associates

“The Millennials” Twenge & Campbell (2008)

Journal of Managerial Psychology

workplace” “Generational differences in psychological traits and their impact on the Terjesen, Vinnicombe & Freeman (2007)

Career Development International

likelihood to apply and sex differences” “Attracting Generation Y graduates: Organizational attributes, TalentSmoothie (2008) ‘Global Tell is how it is’ Summary Research Report, Asia PricewaterhouseCoopers (2007) “Managing Tomorrow’s People – The future of work to 2020” PricewaterhouseCoopers (2009) “Managing Tomorrow’s People – Millennials at work: Perspectives from a new generation” Worldone Research (2009) “LexisNexis Technology Gap Survey” © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Presenter’s contact details Niloufer Irani KPMG +91 22 39835528 [email protected]

www.in.kpmg.com

© 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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An aging world – 2025

Percent of Population Age 60+: Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Source: U.S. Census Bureau © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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