There is significant conjecture----the literature really sets this period between 1978 through 1995---but the technology has changed SO much in the last 3-5 years what latter years of this generation has been exposed to is dramatically different and hence a different view and cultural referents.
They place high value on developing good interpersonal skills and in "getting along." This is a generation that is polite, believes in manners, adheres to strict moral code, and believes in civic action.
Average student loan debt has surpassed 20,000!
Unfortunately, while the realize they MUST invest, they aren’t really sure about how to do that. Portfolio allocation is not something they necessarily understand----here is where financial advisors can tailor their services to educating young investors by hosting workshops or providing this information on their websites----timelines/event horizon calendars will be used by this group.
The want to know everything up front as far as what is expected and what criteria will be used to evaluate their performance. They are the most likely to want to ask questions like, "Will this be on the test?"
In 2000, Comal had roughly 69.5 thousand Anglos, by 2010, it is expected to reach 113.7 thousand. There were approximately 741 Blacks, and by 2010 there is a projected population of a little over 3000. Hispanics, in 2000, were approximately 17.6 thousand but by 2010, this number is expected to top 30.5 thousand. There were approximately 360 Asians and that number is anticipated to reach almost 1100. In total, Comal County population, which totaled 78,021 in 2000; will top 119,700 by the end of this year.
New Braunfels population in 2000 was 36,494 and is projected to see a 18.5% increase (to 44,826) in population by the end of 2010
As you can see from the previous slide, there is a dearth of population
Why are they SO different?<br /> This generation has attended colleges that are changing and are teaching differently:<br />Learning Cohorts<br />Hybrid courses<br />Problem Based Learning<br />More group-based collaborative learning experiences<br /> In the workplace and the marketplace these present interesting challenges!<br />
Hewitt Associate’s observation:<br />“The work experience is not an individualistic experience for Generation Y. It is really more of a community experience for many of these young talents.”<br />Gen Y savvy companies are working to build on that sense of community in a number of different informal or formal ways, including sending groups of people through mentoring or training classes together.”<br />
Who are these people?<br />Born between 1978-1990*, this year they range in age from 20-32 years old.<br /> There are two subsets: Gen Y and Gen Y Version 2.0.<br />Roughly 70 million comprising over 20% of the population <br />More diverse<br />
Gen Y and Gen buY<br />Gen Y are older (20+) and were the first to grow up with internet and computers in the home<br />Gen Y 2.0 is also called Gen buY. This group reflects the under 20-somethings. They not only have all the characteristics of the first version, but even more so---Technology has changed rapidly during their lives---cell phones are now smart phones, Itunes<br />
As a generation…..<br />Gen Y is 1.3 million more than the Baby Boom<br />Gen Y is three times larger then Gen X<br />Gen Y currently makes up about 20% of the work force, by 2014, it is expected they will comprise over 40%<br />Gen Y is connected---family, life, community, the world! <br />Social Networking is HUGE! Not all sites are created equal though----(LinkedIn versus FDCareer.com)<br />
Cohort Characteristics<br />This generation is more ethnically diverse than any past generation<br />Pretty impatient<br />They demand ‘planning’ and need structure<br />Lack interpersonal skills but value ‘getting along’<br />While not overtly anti-authoritarian, they excel in egalitarian environments<br />
Cohort Characteristics<br />Massive spending power<br />Gen X technology is passé<br />Multitasking is “genetically encoded”<br />Entitlement attitude<br />Generation Y combines the can-do attitude of Veterans, the teamwork ethic of Boomers and the technological savvy of Generation X. <br />
They<br />More than 350 million active users <br />50% of our active users log on to Facebook in any given day <br />More than 3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week<br />More than 700,000 local businesses have active pages on Facebook<br />
They <br />YouTube is the SECOND MOST TRAVELED SITE on the net!<br />Bloggers mention this site on average every 20 minutes<br />Bought by Google$1.65 billion<br />Tutorial<br />Etrade has become WILDLY popular. Conversely, you could just create a contest and get a kitschy adcreated for you!<br />
Be Careful about assumptions….<br />When considering using social networking to market, be mindful about your expectations and what consulting firms can promise to do for your business if hired!<br /> When asked about their reasons for joining a brand or fan group on a social network, the top 5 reasons included<br />“get news or product updates” (67 percent), <br />“view promotions” (64 percent), <br />“view or download music or videos”(41 percent), <br />“submit opinions” (36 percent),<br />“connect with other customers” (33 percent)<br />Pace University’s Lubin School of Business’ Interactive and Direct marketing (IDM) Lab Survey exploring Generation Y behaviors within social networks, 3/3/2009<br />
Money<br />Today's Generation Y teenagers have grown up with a greater degree of affluence than any generation before them.<br /> Gen Y has $150 billion in direct purchasing power today, more than their parents ever had at their age, and about $500 billion indirect purchasing power<br />Many of these young people are, and will be, living in broken and blended families, having extra sets of grandparents who are happy to add to kids' pocket money.<br />
However…the other side of the coin shows us<br />Gen Y is facing incredible debt burden, both individually and as a cohort in the nation<br />Rising heath care, housing and education costs are posing significant challenges to those chasing the American Dream<br />Aside from their student loan debt, the median credit-card debt of low- and middle-income people aged 18 to 34 is $8,200.<br />The disconnect between their perception of the future and the reality---it is what it is.<br />
Health Care Costs<br /> According to a new report released by Pew Research Center, a third (33%) of those younger than age 30 say they are not covered by health insurance. That compares with 19% of those in Generation X, and smaller percentages of baby boomers (12 %)<br />
Survey says…<br />EHealthInsurance conducted a survey of college students and found<br />63% of students prefer health insurance portability, preferring to find a health insurance plan on their own and keep it regardless of where they work.<br />37% would prefer to change health insurance plans every time they change jobs <br />85% of those surveyed were counting on their future employers to provide them with health insurance<br />68% of them would rather take a job they liked without healthcare benefits than accept a position they didn’t like with a great healthcare package<br />
Housing Costs<br />In 1990, The National Bureau on Economic Research published: The Baby Boom, The Baby Bust, and the Housing Market, predicting that housing costs would decline “substantially over the next two decades.”<br />Real housing costs in terms of average is much higher than median but the median prices have increased almost 75%just in their lifetime!<br />Caveat: Job mobility qualifiers are a major factor for obtaining mortgages!<br />
Median Real Housing 1965-2005<br />73% increase in 20 years<br />
Education Costs<br />College costs continue to rise at a rate well above inflation. Last year, it rose an average of 6.5%<br />
Time<br />Self sufficient, responsible, and mature<br />Family time is important<br />Gen Yers will forego extra money for time off.<br />Gen Yers can be very productive but need flexibility<br />Gen Yers don’t ‘delineate’ personal time from professional time<br />
Influence<br />Parents give their Gen Y opinions considerable weight in making major purchases. <br />IF Gen buY teens like it the parents will buy it!<br />Gen Y/buY is going to be a powerful force in the auto industry. According to Deloitte Consulting, this year, they should account for one in four vehicle sales---AND they hate to haggle. ( GUNN)<br />
Gen Y is financially literate!<br />According to William Strauss, coauthor of the book entitled Millennials Rising: The Next Great Generation, prior to the 1990s, stock ownership among those younger than 20 was essentially zero.<br />In a survey conducted by Scottrade, Gen Y has embraced technology to manage finances!<br />Interestingly, they haven’t really begun investing and don’t have the same type of debt burden faced by Gen X (housing) or Boomers (retirement)<br />
Financial Advisors: Here’s a suggestion<br />At no other time in history have America's children been more interested in money. <br />Consequently, an increasing number of mutual fund companies, financial planners', and other investment firms are starting to tailor their products and services toward youth. <br />Interestingly, Gen Y haven’t really begun investing and don’t have the same type of debt burden faced by Gen X (housing) or Boomers (retirement)<br />The youngest investor doesn't need a car or business attire to conduct business with E*Trade or Scottrade once his or her parents have opened the account.<br />
Gen Y is Marketing Savvy<br />Generation Y is not favorably impressed with an "in your face, hard-sell" approach to advertising. <br />Generation Y members are not pushovers for slick ads. They use the Internet to find information about products and to make better-informed decisions about consumption<br />Making that lifestyle connection and generating customer loyalty among the members of Generation Y is critical. <br />YOU TUBE!<br />
Cost versus Value<br />Generation Y members are concerned about getting "good deals" and are willing to go out of their way to get them<br />Rather than being concerned about how much an item costs, these youths are more concerned about the total cash outlay. <br />Generation Y also wants choices, choices, choices!<br />
Economic and Ethnic diversity<br />This generation is the most ethnically diverse with respect to the family units in which they were reared.<br />Significant numbers from single-parent households<br />Significant numbers who are 2nd generation Americans<br />Eighty-one percent of 18- to 25-year-olds surveyed in a Pew Research Center poll released last month said “getting rich” is their generation's most important or second-most-important life goal; 51% said the same about being famous. <br />
For Merchants….<br />Mooney, co-author of the book The Ten Demandments: Rules to Live By in the Age of the Demanding Customer, studied 14- to 24-year-olds — the subset of Gen Y with the most money — and found a strong need for "instant gratification and immediacy.“<br />What this means is that merchants must:<br />Be available 24/7<br />Listen<br />Be creative<br />
What these things mean for your businesses…..<br />In Hiring:<br />Consider your technological capabilities<br />Consider your expectations<br />Be SPECIFIC<br />Be FLEXIBLE<br />
In Marketing:<br />They READ---lots. It has got to be genuine though! AVOID FLUFF!<br />This generation is less brand-loyal than past ones—make it relative to them! Wi-Fi and Stainless steel!<br />In 24 hours they can destroy what took your marketing department weeks or months to put together.<br />
Like Pooh Says:<br /> You can't stay in your corner of the <br /> forest waiting for others to come to<br /> you. <br /> You've got to go to them<br /> sometimes….<br />
When in Rome…whether recruiting or marketing<br />Consider those activities Gen Y participates in:<br />Outdoor events<br />Skate parks<br />Coffee houses & open-air concerts<br />Cultural events and festivals<br />Events that are associated with ‘social’ awareness<br />Habitat for Humanity builds<br />“Clean-ups”<br />Social Networking Sites!<br />
As Employers…Ignorance is not bliss<br />A survey of more than 2,500 employers and managers by CareerBuilder.com has identified stark generational differences between Generation Y and their managers.<br />Almost 50% of managers said there was a big gap in communication styles<br />25% said Gen Y had different frames of reference<br />Nearly nine out of 10 of the hiring managers and HR professionals polled said some or most Generation Y workers felt "entitled" to demand greater compensation, benefits and promotion than older generations<br />Job-hopping is quite acceptable<br />
As employees…..<br />Nearly three quarters said Generation Y workers expected to be paid more<br />6 out of 10 potential employees demanded flexible work schedules<br />More than half said they expected to be promoted within a year<br />Almost half said they expected more vacation or personal time away<br />Almost half of Generation Y workers expected to have access to state-of-the-art technology.<br />
No mean feat to manage….<br />Build opportunities for leadership for them <br />Generation Y desire to take on significantly increasing levels of responsibility - they will respond positively if they are made responsible for significant pieces of work---Keep in mind that ‘gaming’ mentality!<br />Provide them with autonomy - do not micro manage them - they will come and ask for help and feedback from managers and other employees if they can not do something<br />
The path can be difficult<br />Consider new benefits and compensation strategies <br />Do not respond well to command and control management styles ("do this or else"). <br />Remove/minimize company politics if possible<br />Hierarchy is almost meaningless<br />Small goals with tight deadlines <br />Work is a sociable and fun activity<br />Pandora, Farmville and “helicopter parents”<br />
Gen Y’s Employees….<br />Need to be validated: valued and engaged<br />Need to have open communication and feedback<br />Value diversity and globalization<br />Require flexible, informal, decentralized work environments<br />Like team atmospheres<br />Prefer evaluations measuring results, not time spent on the job<br />Follow leaders based on credibility<br />Are not necessarily afraid of losing their job<br />Like to learn with hands-on opportunities<br />Will openly talk about career paths and options<br />Desire the workplace to be fun<br />
Attracting Gen Y <br /> “This generation prefers information conveyed in a very dynamic way. We use a mix of technology in our recruiting,” including face-to-face meetings, e-mails, videos, brochures, and multimedia presentations” <br /> Sharon Pugh, Staffing Manager at Eastman Chemical<br />
Texas’ Population<br />Population is growing rapidly<br />Almost 13% since Census 2000<br />The Hispanic population is the fastest growing ethnic group nationally, mirroring the rate for the state at roughly 4%<br />
Growth rates<br />Median age in Comal county as of 2000 was 36.2, and according to the ACS estimates or 2006-08, the median age had declined to 31.5 (±1.1%) the median age in Texas was 33.2. <br />By 2006, the state’s median age declined to 33.1, and in 2008, declined another 1/10 of 1% to 33, giving Texas the 2nd youngest population in the nation.<br /> Roughly 25% of Comal county’s population is between 14-29 years old<br />
New Braunfels’ Economy<br />The median household income (in 2008 inflation-adjusted dollars) was $56,079<br />Median family income (in 2008 inflation-adjusted dollars) $63,554 <br />Per capita income (in 2008 inflation-adjusted dollars) $25,488<br />
Morley Safer mused….<br /> “They’ve grown up with everyone on the team as a winner, with inspired birthday parties and planned events, with parents who offer them middle-class privilege and opportunity at every camp, every academy, and every “Take Your Kid to Work” experience…” <br />http://www.sling.com/video/show/226322/18/The-Age-Of-The-Millenials<br />
For further reading: <br />“Talent Shift: A New Generation of Professionals Means a New Profession in the Making” Deborah Morrison, Advertising & Society Review 10:1, 2009<br />“Youth Is Wasted on the Generation Y Investor.” NY Times, 3/19/2006<br />Y-Size Your Business: How Gen Y Employees Can Save You Money and Grow Your Business by Jason Ryan Dorsey<br />Not Everyone Gets A Trophy: How to Manage Generation Y by Bruce Tulgin<br />Y in the Workplace: Managing the “Me First” Generation by Nicole Lipking and April Perrymore<br />Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together to Achieve More by Linda Gravet and Robin Throckmorton<br />
& even further reading <br />The Ten Demandments: Rules to Live By in the Age of the Demanding Customer, by Laura Mooney & Laura Bergheim<br />An America Challenged, Steve Murdock<br />Analysis: College students need lessons in failure.USA TODAY, 11/5/2009<br />