GETTING THE
BEST OUT OF
GENERATION Y
Tips for the
Service Industry
GETTING THE BEST
OUT OF GENERATION Y
Tips For the Service Industry
WHO ARE THESE PEOPLE, ANYWAY?
Since the arrival of Generation Y in the workforce, service-industry
employers from restaurants to retail have tried to devise the secret
formula to attract, engage and retain this youngest generation. Does
Generation Y have unrealistic expectations about work? Do they
want it all too fast? Do they just need to grow up? At PeopleMatter,
we don’t think so. We believe that businesses just need to use the
right tools and techniques to get the best out of them.
POINTS TO CONSIDER
Just as the Baby Boomers have
molded the American workforce
since the 1960s, Generation
Y should reshape the working
world in the first half of the
21st century.
Service-industry employers in restaurants, convenience stores
(c-stores), and hospitality and retail businesses will be depending
on Generation Y employees for years to come. As easy as it is to talk
about “these kids today,” a more realistic strategy is to figure out
what makes these men and women tick, engage them and develop
them into employees who will stick around and make businesses
more profitable.
But before we discuss the best ways to hire and engage them, let’s
talk about who these workers are and how they are unique.
WHO IS GENERATION Y?
Generation Y goes by lots of different names—the Millennials,
the Internet Generation, Generation Next. This generation, which
was born between 1980 and 2000, is sometimes called the Echo
Boom. This title is quite apt, because it links them directly to their
parents, the Baby Boom Generation. And just as the Baby Boomers
have molded the American workforce since the 1960s, Generation Y
should reshape the working world in the first half of the 21st century.
Simply put, it’s about numbers. By 2011, the Bureau of Labor
Statistics estimates that Generation Y will make up 25 percent of
the U.S. workforce, some 40 million workers. While that’s smaller
than the 38 percent of the workforce that the Boomers occupy, there
are 78.5 million total Boomers, slightly less than the 79.8 million
Gen Y’ers.1, 2
So what do service industry employers need to know about Gen Y?
Let’s start with the positives:
• They’re optimistic
• They work well in teams
• They can multitask
• They are tech savvy
1 AARP, Managing a Multigenerational Workforce.
2 Hira, Nadira A. Attracting the 20-Something Worker. Fortune Magazine. May 15, 2007. http://money.cnn.
com/magazines/fortune/fortune_archive/2007/05/28/100033934/
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White Paper: Getting the Best Out Of Generation Y
However, this generation is also dogged by stereotypes, such as:
• They need to be coddled
• Their moms will call you to find out why they didn’t
get that raise
• They can’t focus
• They spend all day on Facebook
To make matters worse, research from big consulting firms such as
Accenture and Deloitte shows that young people today aren’t really
that interested in service industry jobs. Also, declines in education
worldwide are bringing many members of this generation into the
workforce without the skills they need to succeed.3, 4
WOULD THE REAL GENERATION Y PLEASE STAND UP?
You are probably wondering if Gen Y employees will be a boon to
your workforce or the bane of your existence. Are they positive,
multitasking team players, or are they a bunch of unmotivated
egoists who spend all day texting one another? The answer is yes.
With Generation Y, you will find the generation you want to see.
If you have a low opinion of them, maybe because you’ve been
burned by a few bad hires, your opinion may be hard to change. But
PeopleMatter would like to offer an alternative vision of Generation
Y, one where you are able to motivate this group and turbocharge
your business with engaged employees who are looking to
build careers.
POINTS TO CONSIDER
With Generation Y, you will find
the generation you want to see.
If you have a low opinion of
them, maybe because you’ve
been burned by a few bad hires,
your opinion may be hard to
change. But PeopleMatter would
like to offer an alternative vision
of Generation Y, one where you
are able to motivate this group
and turbocharge your business
with engaged employees who
are looking to build careers.
WHAT IS THE SECRET TO MOTIVATING THIS
GENERATION?
Gen Y’ers value career progression, accelerated learning and a work
culture that matches their values—relaxed, results-oriented and
wanting responsibility.5 As Eric Houseman, president and COO of
Red Robin restaurants explained, the young employees that make up
a majority of the servers, hosts and hostesses at the casual-dining
chain “are proud to wear [the company’s] values on their sleeve.
Responsibility, accountability—all of today’s workers love that;
people love that.”6
Another big factor is technology. Bill Carmichael, director of training
at Memphis, Tenn.,-based Back Yard Burgers Inc., the operator and
franchisor of more than 160 hamburger units, says Generation Y
workers require training techniques that are more relevant to their
age group.
So here are some steps for success that service-industry employers
should take when it comes to Generation Y:
3 Accenture: Shopping for Scarce Retail Talent.
4 Generation Y: Why this powerhouse generation may hold the key to your retail success: Workforce
strategies for attracting and retaining young professionals. Deloitte, 2009.
5 Deloitte. The Retail Talent Marketplace.
6 Operators Motivate Generation Y with Responsibility and Rewards. Nation’s Restaurant News.
http://findarticles.com/p/articles/mi_m3190/is_38_39/ai_n15628885/
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White Paper: Getting the Best Out Of Generation Y
• Hire the best: In today’s economy, most employers are buried
under applications and résumés—most from unqualified
applicants. Because of education shortfalls, serious skills
deficiencies exist in today’s workforce. In 2006, a Corporate
Executive Board survey showed that the average quality of
candidates had declined by 10 percent in just a two-year
period.7 Don’t let the recession lull you into a false sense of
security. It is still just as hard as ever to hire quality workers.
• Bring them onboard the right way: First impressions matter
with Generation Y. If they can have a great first day, you are
taking a big first step toward retention. And make no mistake,
turnover is expensive. For example, the average turnover rate
among fast-casual restaurants is between 110 and 125 percent.
According to a 2006 People Report, it takes $2,228 to replace an
employee, including expenses related to recruiting and training
them, taxes and other costs.8
POINTS TO CONSIDER
In 2006, a Corporate Executive
Board survey showed that the
average quality of candidates
had declined by 10 percent in
just a two-year period.
• Give them opportunities to learn: Because Generation Y is
tech-friendly, craves structure and is achievement-oriented,
workplace education opportunities are perfectly suited to their
style. If you can tie these three elements together, you can help
them feel supported as they learn how you want things done.
Do that and you’ll hit the sweet spot for engagement.
• Show them you care about their career growth: Dead-end
jobs won’t do for this generation. They need to know that they
have a career path and that you will give them a structured
environment in which to grow. And, who knows, you might
have found your next manager.
• Have a little fun: This is a relaxed, upbeat, positive-minded
generation. Loosen up and have a little fun. You’ll find that this
will help bring out the best in this group.
TECHNOLOGY TO SUPPORT TECH-SAVVY EMPLOYEES
Being able to continuously improve individual and collective skills,
knowledge and behaviors will only become more important in the
years ahead. Using technology-enabled learning and development
tools can help you get the most out of your Generation Y employees
and make your business more efficient and effective.9
HR technology is exactly where many service employers fall short.
A Deloitte survey of retailers found that more than four in 10 (41
percent) did not have the technology in place to support their
company’s talent management aspirations.10
Providing the learning and development tools that Generation Y
wants is one way to look at it. Those who think that the youngest
generation in the workforce is coddled may think this technology
is unnecessary.
7 Accenture. The Talent Powered Organization.
8 http://www.fastcasual.com/article.php?id=11501&prc=31&page=40
9 Accenture: Shopping for Scarce Retail Talent.
10 Deloitte. The Retail Talent Marketplace.
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White Paper: Getting the Best Out Of Generation Y
But consider this: Organizations that leverage HR technology using
best practice approaches have 60 percent lower costs for overall HR
labor and 50 percent lower HR administrative labor costs.11 These
tools give businesses the opportunity to reduce overall cost-to-serve
while increasing their ability to respond nimbly to feedback from the
business across the talent pipeline.12
WANT TO REACH GENERATION Y? SAY HELLO TO
TALENT MANAGEMENT SOFTWARE
In the service industry, employers are familiar and comfortable with
outsourcing third-party providers for logistics, payroll and other
back office functions. However, letting go of hiring, training and
development just doesn’t seem right. These areas seem like core
functions that should be handled directly—and they should be if you
want to reach your Gen Y workforce.
POINTS TO CONSIDER
HR software can help you
hire, develop and motivate
Generation Y employees, so
they can help you grow your
business and deliver outstanding
customer service.
HR software can help you find, engage and motivate Generation Y
employees, so they can help you grow your business and deliver
outstanding customer service. Your Gen Y workforce will be much
more likely to embrace a talent management system that caters
to its tech-savvy, connected and mobile lifestyle than an outdated,
paper-and-pen HR model.
Stay positive. You may need to change your approach to engage this
youngest generation in the workforce. However, the right attitude
and the right tools can yield benefits that will make your effort more
than worthwhile—happy, engaged young employees who are ready
to deliver superior customer service.
PeopleMatter provides a talent management solution engineered
around the values, needs and motivations of Gen Y. Our complete
product ecosystem helps you hire, schedule and engage millennial
employees who are passionate about service. Learn more about our
HR tools online at www.peoplematter.com.
11 CedarCrestone. The Value of HR Technologies. 2008.
12 Deloitte. The Retail Talent Marketplace.
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White Paper: Getting the Best Out Of Generation Y
ABOUT THE PEOPLEMATTER INSTITUTE
The PeopleMatter Institute (PMI) is the thought leadership source
for PeopleMatter, the HR industry and service-focused organizations
worldwide. PMI provides extensive research and education tools to
help businesses and individuals understand, manage and motivate
their most important asset: their people. Access the PeopleMatter
Institute on the Web at www.peoplematter.com/resources.
To learn more about how PeopleMatter’s suite of online HR tools can
help your business, visit www.peoplematter.com.
PeopleMatter
466 King Street
Charleston, SC 29403
843.300.3400
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White Paper: Getting the Best Out of Generation Y
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