‘People! Focus on me!'

Dad, you won't understand what I am saying, so just forget it!”

This could be the typical response of a post-1980 born belonging to Gen Y, frustrated that nobody understands her.

Do we face the same situation at our workplaces? Do we fail to understand the aspirations of the younger generation?

If yes, how are our human resource practices and systems geared to understand and respond to the changing outlook of this generation to utilise its true potential?

‘One size doesn't fit all' might sound clichéd but needs to be considered seriously when it comes to dealing with different generations.

With a varied set of stakeholders who could be categorised by age, gender, geography, nationality and education, the organisation's challenge is to establish a connect with each subset.

A calibrated and customised framework of HR practices and programmes for its unique composition of stakeholders and associates becomes an organisational necessity.

Decoding Gen Y

Recent research by the Academy of HRD, IKYA Human Capital Solutions Ltd and MTHR Global, is an empirical yet exploratory study undertaken on Indian Gen Y working in urban locations. It explores career aspirations, motivations (extrinsic and intrinsic) and values at the workplace.

The findings revealed the heterogeneity of Gen Y's career aspirations — the respondents aspired to achieve managerial competence, brand identity, and a sense of service. They are marginally motivated by extrinsic factors (i.e. tangible rewards from external sources such as salary, perks and physical conditions), and are mainly motivated by intrinsic factors (i.e. interest, satisfaction of curiosity, self-expression, or personal challenges at work). Achievement is highly valued.

Their overall career aspirations correlate positively with their intrinsic motivations and values (achievement, monetary and role orientations). Further analyses showed significant differences among the different cohorts, such as, industry, gender, location and experience for overall career aspirations, motives and values.

From the qualitative sessions, researchers inferred that on the three evaluated parameters, results varied with individual socio-cultural backgrounds. With forward movement in career and life stage, aspirations are also influenced by his or her personal and socio-cultural needs.

The report drew from literature: “Gen Y have low levels of trust and loyalty to corporate cultures, attributed to intense media scrutiny of corporations tainted with scandals” (Wolburg & Pokrywczynski, 2001); and “have witnessed several instances of organisational downsizing”(Loughlin & Barling, 2001). Consequently, “they have become sceptical; mistrustful, and apathetic towards traditional hierarchies and authority” (Martin & Tulgan, 2002). While Gen Y has been declared “the most entrepreneurial generation in history, organisations are confronted with the added weight of convincing young employees that working for a corporation has greater appeal than self-employment” (Martin, 2005).

Connecting with Gen Y

Given the above circumstances, organisations have the daunting task of making themselves attractive to this generation. Many reputed organisations adopt tailor-made people practices to encourage Gen Y and reduce the stress that they face in making themselves understood and appreciated.

Some of our suggestions would, for instance, include reviewing job roles. An organisation of a decent size should be able to study the personality of the individual and create an opening that will suit her style rather than try and fill an existing opening. Traits of the individual might help cover a range of responsibilities in an organisation without limiting his or her potential. For example, a senior Human Resources professional might be a good resource in the CEO's office, or could be a change manager during the setting up of supply chain management, or a change agent in the set up of complex ERP implementation.

Organisations need to think out-of-the-box. The buy-in from this individual will then be far more than in a situation where she is force-fitted into a box in the organisational structure.

If it is not practically possible for an organisation to create many roles at an individual level, it may be advisable to identify different clusters of jobs for certain personality styles and customise solutions accordingly.

One could categorise the talent based on demographics, work performance, discipline and potential, and work around job openings in line with the results of this categorisation.

Performance management done themselves

New-age systems such as Agile help individuals craft their own key result areas, measure them and work in dynamic and cohesive teams. Leaders emerge in an Agile system.

Organisational policies should focus on empowering this generation, trusting them and not looking at them as a young crowd that wants to make money for lesser work.

Organisations should design a broad framework for policies, with options under each policy that can be customised for categories.

For example Gen Y from a specific income group with a particular demographic background could be covered under a certain policy.

More importantly, organisations must recognise the maturity level of the talent by providing them with the ‘right to choose' and customise the benefits/practices/policies that suit them the most. Finally, they should implement people processes and policies that are ‘fast, simple and easy to use' with perceived (tangible/intangible) value-add that can be self-driven.

Gone are the days when employees had to be kept in the dark regarding policies governing employee benefits. There should be policy differentiation for junior, mid-level and senior employees — primarily out of interest of these clusters and not just on the basis of hierarchy.

Incentive schemes

Incentives would be another engine to keep them motivated. If a variable pay structure is transparent, easy to understand and compute, it will attract and help motivate them. ‘Engagement' and not ‘entertainment' is what Gen Y is looking for.

Defined career paths, a technical ladder, competency framework and assessments will help. Annual picnics, sports and parties seem to be mistaken for engagement exercises in most organisations.

This generation has bandwidth to adapt to various cultures, global timings and chaotic conditions. Hence, there is scope to utilise their services under any circumstance, but with the respect and dignity that they demand.

This generation has been brought up in fragmented cultures, by authoritative or pampering grandparents, competitive parents, in a world of abundance, and yet they have a mind of their own. Their hunger for technology and learning can also be tapped effectively by organisations. Internal job postings will be essential for job rotation and holistic growth.

Research shows this generation has an entrepreneurial spirit. Quite a few are founders of large, growing organisations in areas such as e-retail, niche IT and HR consulting. Organisations should capitalise by setting up incubators within, and promote ‘intrapreneurship'.

With youngsters taking up leadership roles early, team-building and learning and development are a must.

Research also states that ethics and authenticity is what this generation seeks. Hence, the management should be walking the talk. Loyalty and long-term service doesn't seem to be a priority for youngsters today.

Hence, retention measures that have quick cash payouts would be of help. Retirement benefits such as Provident Fund (PF) aren't considered attractive anymore.

‘Boss as a friend'

Personal warmth is what they are looking for. The best way to get rid of a good young performer would be to have a mediocre manager above her.

Organisations can also revisit their HR value proposition and focus on Gen Y. Policies and practices could then be aligned to this value proposition or promise.

Be it policies on internships, candidate experience (requirements), or ‘BYOD' (Buy Your Own Device) , there are several ways in which this promise could be met.