Oxygenz report 2010

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Oxygenz Report 2010 by Johnson Control - Global Workplace Innovation, report about Generation Y and the workplace

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Oxygenz report 2010

  1. 1. Global WorkPlace Innovation Generation Y and the Workplace Annual Report 2010
  2. 2. Contents LIST OF FIGURES...................................................5 OXYGENZ RESULTS .............................................46 Choice Of Company ...........................................48 EXECUTIVE SUMMARY...........................................7 Location.............................................................50 Travel ................................................................52 KEY FINDINGS ....................................................10 Ways Of Working................................................55 Creativity & Productivity .....................................58 INTRODUCTION .................................................13 Behind Creativity & Productivity .........................60 Facilities Management........................................62 WHAT IS OXYGENZ .............................................14 - Reception & Security ........................................62 Research question .............................................14 - Catering ..........................................................64 Environment ......................................................66 WHO ARE THESE YOUNG UPSTARTS? ...................17 Workplace ..........................................................71 - Style ................................................................71 WORLD DEMOGRAPHICS .....................................22 - Lighting ...........................................................74 - Art @ Work ......................................................75 WHO IS THE GENERATION Y IN USA ....................24 Emotional Engagement ......................................78 WHO IS THE GENERATION Y IN INDIA..................26 Workspace .........................................................80 WHO IS THE GENERATION Y IN CHINA ................28 Social Networking ..............................................84 WHO IS THE GENERATION Y IN UK ......................30 Collaboration .....................................................86 WHO IS THE GENERATION Y? ..............................32 Technology ........................................................90 Digital, Connected, Social ..................................32 How technology is transforming work ................92 Challenging .......................................................32 Scarce ................................................................33 CONCLUSION .....................................................94 Transformational ...............................................33 India ..................................................................98 China .................................................................99 DIFFERENCES EMERGE ........................................34 USA .................................................................100 Traditionals .......................................................36 UK ...................................................................101 Baby Boomers ....................................................36 Generation Y ......................................................37 WHAT ARE THE IMPLICATIONS FOR EMPLOYERS? 103 Generation X ......................................................37 METHODOLOGY .................................................38 FOOTNOTES .....................................................106 DESIGN APPROACH ............................................42 KEY SPONSORS .................................................110 BRANDOCRACY ..................................................44 PARTNERS ........................................................113 AUTHORS .........................................................114 CONTACTS ......................................................117 2 3 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  3. 3. List of Figures Figure 1: Who are the Millennials, aka Generation Y? ................................................................................... 19 Figure 2: World Population in 2009.............................................................................................................. 22 Figure 3: US – Demographic pyramid, 2009................................................................................................. 27 Figure 4: India – Demographic pyramid, 2009 ............................................................................................. 28 Figure 5: China – Demographic pyramid, 2009............................................................................................ 31 Figure 6: UK – Demographic pyramid, 2009 ................................................................................................ 32 Figure 7: Choice of Company: per age group, all countries ......................................................................... 48 Figure 8: Choice of Company for 18-25 yrs old ........................................................................................... 49 Figure 9: Choice of Company for 18-25 yrs old, key countries .................................................................... 49 Figure 10: Location of the office: per country, 18-25 years old.................................................................... 50 Figure 11: Location of the office: Generation Y vs. Generation Y ................................................................. 51 Figure 12: Mode of Transport: all ages, all countries ................................................................................... 52 Figure 13: Mode of Transport: per age group, all countries ......................................................................... 53 Figure 14: Mode of Transport: per country, 18-25 years old........................................................................ 53 Figure 15: Choice of car per age group........................................................................................................ 54 Figure 16: Pattern of Work: Generation Y 18-25 yrs old, all countries .......................................................... 55 Figure 17: Preferred Level of Mobility: Generation Y 18-25 yrs old .................................................. 56 Figure 18: Pattern of Work: Generation Y 18-25 yrs old, all countries .......................................................... 56 Figure 19: Flexible Working Pattern – preferred vs. expected: per age group, all countries ......................... 57 Figure 20: Flexible Working Pattern – preferred vs. expected: per country all countries for 18-25 yrs old... 57 Figure 21: Creativity: per age group, all countries ....................................................................................... 58 Figure 22: Productivity: Generation Y, all countries...................................................................................... 59 Figure 23: Reception Services: Generation Y 18-25 yrs old, all countries ..................................................... 62 Figure 24: Level of services across the industry sectors, the age groups, per country. ................................ 63 Figure 25: Food Facilities on site, Generation Y, all countries ...................................................................... 64 Figure 26: Social Facilities on site, Generation Y, all countries ..................................................................... 65 Figure 27: Environmental Workplace: Generation Y 18-25 yrs old, all countries .......................................... 66 Figure 28: Environmental requirements for the workplace – per age group, all countries ........................... 67 Figure 29a: Environmental requirements per industry sector, 18-25 years old, per countries ..................... 67 Figure 29b: Environmental requirements per industry sector, 18-25 years old, per industry sector ............ 68 Figure 30: Preferred style in the workplace per age group and country ....................................................... 72 Figure 31: Colours on the wall – 18-25 yrs old, all countries ....................................................................... 71 Figure 32: Style per gender - 18-25 years old .............................................................................................. 73 Figure 33: Finishes per gender – 18-25 years old ........................................................................................ 73 Figure 34: Preferred finishes in the workplace per age group and country .................................................. 74 Figure 35: Level of Lighting in the office ...................................................................................................... 75 Figure 36: Level of Art in the workplace - 18-25 yrs old, all countries.......................................................... 76 Figure 37: Preferences for Art in the workplace per industry sector, 18-25 years old, all countries ............. 77 Figure 38: Comfort with Space: all respondents – per country ..................................................................... 81 Figure 39: Level of comfort with space, sqm per person, 18-25 years old ................................................... 81 Figure 40: Individual workspace: Generation Y 18-25 yrs old, all countries ................................................. 82 Figure 41: Individual space preferred at work, 18-25 years old, per country ............................................... 82 Figure 42: Collaborative Environment: Generation Y 18-25 yrs old, all countries......................................... 86 Figure 43: Access to collaborative spaces, 18-25 years old, per country ..................................................... 87 Figure 44: Choice of collaborative space: per age group ............................................................................. 88 Figure 45: Choice of collaborative space: per industry sector, all ages ........................................................ 89 Figure 46: The Smart Workplace 2030 – Johnson Controls © 2009 ......................................................92 4 5 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  4. 4. Executive Summary The advent of the Generation Y into the workplace is bringing new changes that need to be addressed. The Generation Y is, perhaps, the most digitally sophisticated generation we have ever seen. They are looking for a sustainable environment offering a social structure within both a physical and virtual environment. The generation Y we studied, as we defined aged between 18 and 25, are techno-savvy and motivated and they are bringing with them into the workplace a load of cultural diversity, habits and behaviours inhibited in the way they act, work, communicate, exchange and relate to their environment, people and their management. This report identifies how important the workplace is in attracting, recruiting and retaining Generation Y workers between the age of 18 to 25 years old and what factors contribute to talent management. The report categorises the main factors that appeal to them and help enhance their full potential, under seven categories: Real Estate, Facilities Management, Workplace, Workspace, New Ways of Working, Information Technology and Human Resources. The results prove that: The Generation Y values sustainability. The The working environment of the Generation Y is Generation Y is flexible, mobile, collaborative a place they emotionally engage with, a space and unconventional. where they socialise in with other co workers and a space which supports their health and The Generation Y prioritises opportunities to well being. learn, work colleagues and corporate culture & value when it comes to deciding for which job The Generation Y sees the workplace as a very to apply for. important factor and values it as a place of learning and development. The Generation Y prefers workplaces in an urbanised location with access to social The Generation Y privileges access to their and commercial facilities, good public own desk rather than desk sharing or hot Infrastructure and the ability to use public desking (hoteling). transport or drive to work. We must attach a great importance to diversity in The Generation Y prioritises collaboration our workplaces and the factors that must be taken and interaction in the workplace and requires into account when considering workplaces as a particularly access to dedicated team spaces as likely strategic weapon in the battle to attract and well as ample breakout spaces. retain scarce young talent. 6 7 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  5. 5. Executive Summary Continued... When it comes to Facilities Management (FM), the The workplace must support both formal We have yet to feel the full force of this global • Sustainable: 96% want preference of Generation Y suggests that FM is and informal collaborative engagement and trend. Will Generation Y continue to be such a not only about managing buildings, but about interaction special generation, feted and wooed for their an environmentally aware supporting people. FM service delivery will need talent, if the balance of power reverts to employers workplace to go further in the future to provide high quality The workplace contributes to the level of as labour markets tighten? Is this new generation people focused services. emotional engagement of individuals with of ‘aliens’ and ‘invaders’ really ready to transform their work our workplace in mega complexes, social hubs • F lexible: 56% prefer to work While the financial benefits of flexible working are and high tech workspaces? Will employers be flexibly and chose when to work clear to business owners, work will have to be done The factors contributing to talent attraction and ready and engage to support these changes? with Generation Y to help them to trade dedicated retention are expressed via: desks and personalisation for mobility and team It remains crucially important to understand what • M obile: 79% prefer to be mobile oriented spaces. Mobile technology will be an Having the right workplace – location, access things matter most to the 18 – 25 years old. rather than static workers unavoidable support here. The data reveal a fascinating insight into this Having the right workspace – design, layout, new generation and how they are and behave The workplace can directly support and influence furniture and colours and style compared to previous one. • nconventional: 40% of the U the Generation Y through a workplace that enables individuals and teams to collaborate and engage Having the right atmosphere – meeting and Having understood these needs: Generation Y would like to take with each other, and human resources policies social spaces for interaction and ambiance Employers will find it near on impossible to their car to go to work, 20% which actively promote flexible working and deliver on all theise demands alternative ways of working: Having the right technological platform – Success will be about compromising and by public transport and 18% technology provisions, mobile devices determining the essentialsdetermining the walking! The workplace is important in attracting and essentials retaining the Generation Y • L ife Long Learning Experience: The type of workplace and its location The reasons for choosing a influences the choice of a company company are: The workspace allocation and technological 1: Opportunities for Learning provisions contribute to productivity and 2: Quality of Life creativity 3: Work Colleagues The working arrangements must be flexible and adaptable to satisfy a work life balance they demand • C ollaborative: 41% of the Generation Y prefers to have access to a team space and 32% prefers breakout spaces rather than a conventional meeting room 8 9 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  6. 6. Key findings per category Travel: Creativity and Productivity: Environment and Sustainability: Style: The UK: a nation of walkers Creativity and Productivity: It is about looking for a green deal at work Style matters and should be modern rather The US and India: The car comes first Creativity is all about having the right PEOPLE Being Green – Working Green – Living Green: than contemporary China: Public transport is a prime choice around The generation Y is an environmentally Women are more attracted to modern interior Productivity is all about having the right friendly workforce than Men TECHNOLOGY around The older generations are far greener than the Men are more attracted to minimalist interiors Location: The magic formula is: Technology + Ambiance younger generations than Women & Atmosphere + People = a creative and The Generation Y demonstrates a green Art should be present in the office, but not too China: The highest demand for rural settings productive workplace aspiration through their journey to and through much of it! The UK: Back to the City and urban settings work: office location, mean of transport, ways India: Workplaces must be located in urban of working, green policies… setting to attract the younger generations FM support services: Workspace: The 18-25 years old are the most demanding Workplace: They need to identify to and feel they own their New Ways of Working: generation workspace India has the most demanding workforce The Generation Y is an emotionally engaged The large majority still want to have their The generation Y is a flexible workforce with a Media and Finance sectors are the most workforce: own desk high level of mobility demanding industry sectors Colours should be subtle and not too intense Less than a 1/5th are happy to share a desk Young Women (18-25 years old) prefer more Women are more demanding than Men The light should be natural rather than artificial, Men are more comfortable in wider space flexibility than men calling for wide windows and openings than women The 46-55 years old are the age group Finishes should be soft and made out of natural preferring the most flexible working Social Spaces: and warm materials, rather than hard material Collaboration: The UK and the US Generation Y prefer to work far more flexibly, while China and India expect For the Generation Y, the workplace is a social The Generation Y is team focused and places a to work flexibly construction and work is social: great importance on work with and amongst a Going to work is about meeting people and team: socialising within the working community The Art & Design industry is the most eager The Generation Y is a sporty and social to collaborate and Engineering industry is the generation: there is a high demand for sport most team focused industry and social facilities on site. China has the highest demand for breakout spaces combined with the highest preference for shared and hot desks 35-44 years old have the least requirement for formal meeting rooms Dr. Marie Puybaraud Johnson Controls Director Global WorkPlace Innovation www.globalworkplaceinnovation.com 10 11 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  7. 7. Introduction The Generation Y: Like How They Work - Work How They Like? The newest and youngest members of work forces all over the world are making their presence felt, causing businesses to re-think their working practices and adapt their working environment to this breed of employees and managers. Generation Y is perceived as invading the workplace, arriving like unruly and energetic guests at a stuffy country house party and shocking the house guests who are already there. And they are bringing outsize luggage in the form of multiple digital technologies, their social networks, their tech-savvy culture, new ways of contemplating work, new managerial forms. Who is this generation of “invaders” and “transformers”? How will they or not modify our working environment? What are they expecting from their employer, their work in their workplace and their way of working? 12 13 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  8. 8. What is... OXYGENZ is a large-scale research project, which will make a significant contribution to companies’ knowledge on how they might use their real estate 5,375 respondents including: { 3,011 1,298 396 (18 - 25-year-olds) (26 - 35-year-olds) (36 - 45-year-olds) and facilities as strategic assets to attract and retain scarce talent. We must attach a great importance to The worldwide survey includes special samples from: diversity in our workplaces and the 1,217 897 660 UK: 607 256 factors that must be taken into account when considering workplace as a likely US: India: China: Germany: strategic weapon in the battle to attract and retain scarce young talent. And from various key industry Engineering 690 625 Media, Marketing Finance 736 sectors we & Communication want to study: 491 551 Information Art & Design Technology Research Question: rkplace is a research Businesses have to compete to attract, develop, deploy Generation Y and the Wo understand the and retain the services of skilled people. It is crucially project that seeks to important to understand what matters to them. In years old attach to importance the 18 to 25 particular, we need to understand what things matter . most to Generation Y and the Generation X, the their future workplace rkplace in attracting, youngest and newly entrants in the workplace. How important is the wo Generation Y This is exactly what Oxygenz seeks to find out. recruiting and retaining ors contribute to Oxygenz is an international research project, workers and what fact industry sector, gathering rich data on Generation Y’s preferences talent management per country and gender? around ways of working and workspace design. 14 15 Global WorkPlace Innovation
  9. 9. Who are these young upstarts? The newest and youngest members of work The demographic data indicate that there forces all over the world are making their are not enough of them coming in to the presence felt, causing many businesses to re- workforce. think their working practices. They are transformational – they have grown in Baby Boomers, the post-world war II generation a different world to their parents – surrounded associated with social change, are beginning to by modern technologies and a society of retire in large numbers, taking their knowledge consumerism. and experience with them. There are not enough of the new generation to replace this deficit, so They do things differently – modern ury: A rising and powerful future workforce of the 21st cent their knowledge and skills are in demand. educational curricula have brought a wave of transformation in their life. There is another major reason why the generation ld, For the first time ever, in workplaces around the wor Y is grabbing attention. Many commentators are They are challenging – this is the most claiming that Generation Y, as these young people commonly agreed threat about this generation, ther. we understand that four generations are working toge are often called, are setting off a new wave of but yet it has not been proved. social and business transformation. ent Known as Generation Y (aged 15-29), they are the curr They are techno-savvy – the 20th and 21st For the purpose of this study, we decided to study centuries have brought and will continue to entrants into global workforce and estimated at: the Generation Y aged between eighteen and bring the most terrifying and transformational twenty-five, although some people include those technological solutions to our world. 1.7 billion worldwide, born from 1980 onwards, putting the upper limit at twenty-eight. In our view, there are at least six They are agile – multi-taskers – their agility representing 25.5% of the world population reasons why we need to understand them and to do different things at the same time is well how they relate to work. They are a remarkable known, but it does not mean it makes them generation, and here is why... more efficient in the way they work. 16 17 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  10. 10. workplace divas… The Generation Y apparently believes they can achieve anything. They have been called The majority of the sources describe the Generation Y as consumers, colleagues, the Generation Y is challenging to manage. They appreciate clear direction, demand immediate energy… ‘workplace divas’1&6, millenials, homo zappiens… even Genys! But some say they even are ‘high employees, managers, and technological and social innovators. The sources explore feedback on performance, expect to be consulted and included in management decisions, and maintenance, high risk and high output’2&7. They communication styles, values, motivations, and demand constant intellectual challenge. innovation… are strongly team-focused, collaborative, and seek characteristics, but not many studies focus on meaning in work and opportunity to learn. the aspirations of this young generation about The Generation Y is demanding, as a right, a new challenging… But also: their future working environment. Although they bring energy and innovation to the workplace, reality from work. They insist on working flexibly, choosing when and where to work. intellectual challenge… They are now under more financial threats than the previous generations since the a new reality from work… 2008 and 2009 crisis Demographics Tech-savvy Millennials at work No definitive agreement on birth Connected…24/7 Work well with friends and on working flexibly… They have grown up with green issues into their society, but there is no evidence that it years; experts say somewhere between 1978 and 1995; most Self-confident teams Collaborative, resourceful, say 1981 to 1993 Optimistic full of contradictions… is actually embedded in their culture Hopeful innovative thinkers Love a challenge They are more urban focused, and even more conservatist… in the future with the growth of urbanisation Children of Baby Boomers Independent Seek to make a difference Comfortably self-reliant Want to produce something non-conformist… They quickly buy into new concepts and ideas while new technologies become more Younger siblings of Gen Xers Determined worthwhile Goal oriented Desire to be a hero tech savvy… affordable, and invade our market at a fast pace Largest generation (75 million) Success driven Impatient value driven… after the Boomers (80 million), compared to the Gen Xers (40 Lifestyle centered Comfortable with speed and Diverse Here is an entire cohort secure million) money grabbing… change in the knowledge that their well- Inclusive 38% of millennials identify Thrive on flexibility and space to to-do Boomer parents can bail Global, civic- and explore themselves as “non-white” community-minded them out of financial difficulty. Pulling together Partner well with mentors If they don’t like their job they Positioned in history to be the Service oriented Value guidance can, and do, chuck it in and head next “Hero generation” Expect respect back to live with their parents. Entrepreneurial tion – a The Impact of Digitaliza Figure 1: Who are the Millennials, aka Generation Y? generation apa rt, KPMG International Source: Deloitte Consulting (2005). Who Are The Millennials, aka Generation Y? Research Report, 2007. 18 19 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  11. 11. The Generation Y are full of contradictions, or at least what is written about them is. They think like entrepreneurs and value relationships, are tech-savvy and creative, and are environmentally conscious and mobile8. They will in the future place a high premium on job security9 and they apparently currently job-hop. They are value- Although they bring energy and innovation to Manuel Castells, the renowned sociologist, and his driven and money-grabbing (due the workplace, the Generation Y is challenging to colleagues see the emergence of a new trend in to being saddled with high student manage. They appreciate clear direction, demand global youth culture, which they call ‘networked loans)10. They are conservative11 and non-conformist12. immediate feedback on performance, expect to be sociability’. Digitally connected or face-to-face, consulted and included in management decisions, networked sociability is driving the Generation Y to and demand constant intellectual challenge. form peer groups that become the context for However most employees would demand the same, their individual and collective behaviour5. generation Y or not! We know that the Generation Y is significant in There are at least three reasons why we need to our society. What else do we know about them? understand Generation Y: Why are they all that different from their older colleagues? How do they relate to their future For a start, there are not enough of them. At working environment. least that is the case in the US, UK and Europe. As the Baby Boomers retire, there are millions New technologies platforms like Web 2.0 have fewer young people to replace them. been adopted by entire generations... the internet, What’s more, they are a highly educated podcasting, Twitter, Facebook, YouTube, Google, and skilled generation. Their already scarce MSN and SMS are continuously on the mind of skills are even more in demand in today’s the Generation Y. But it also infiltrates other globally networked, creative and knowledge older generations, not only the Generation Y. economies. Generation Y’s skills and potential are crucial if economies are to move up the value chain. The next reason to understand them is the way they use communication technologies, which is creating both challenges and opportunities in the workplace . Having grown up in the Internet age, members of the Generation Y are furious digital innovators. The majority of the sources describe Generation Y as consumers, colleagues, employees, managers, and technological and social innovators. The sources explore communication styles, values, motivations, and characteristics, but not many focus on the aspirations for their working environment. 20 21 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  12. 12. World Demographics As economies and businesses become more knowledge-intensive, knowledge and skills are at a Generations Population % Of World Population premium. The fact that there are not enough of them only makes their talents even more attractive. Gen Y - 15-29 years old 1,723,911,077.00 25.47 Apparently there is a dearth of Generation Y entering the workforce in Western Europe . In the UK, for 13 example, they are the smallest of the generations in the current total population. Increasing numbers of Gen x - 30-44 year old 1,442,951,791.00 21.32 them are highly educated and their talents, as in the rest of the world, are in demand. Baby Boomers - 5 - 64 years old 1,233,836,150.00 18.56 Traditionalists - 65-74 years old 316,330,067.00 4.67 The world population increased from 3 billion the Great Leap Forward in China. During that in 1959 to 6 billion by 1999, a doubling that time, both natural disasters and decreased occurred over 40 years. The Census Bureau’s agricultural output in the wake of massive latest projections imply that population social reorganization caused China’s death rate growth will continue into the 21st century, to rise sharply and its fertility rate to fall by although more slowly. The world population almost half. is projected to grow from 6 billion in 1999 to 9 billion by 2043, an increase of 50 percent In addition to growth rates, another way to Figure 2: World Population in 2009 that is expected to require 44 years. The look at population growth is to consider annual Source: U.S. Census Bureau, International Data Base14 world population growth rate rose from changes in the total population. The annual about 1.5 percent per year from 1950-51 to increase in world population peaked at about a peak of over 2 percent in the early 1960s 88 million in the late 1980s. The peak occurred due to reductions in mortality. Growth rates then, even though annual growth rates were thereafter started to decline due to rising age past their peak in the late 1960s, because the Worldwide In 2009, if we consider the wider definition of the generation Y (15-29 years old) and rely on at marriage as well as increasing availability world population was higher in the 1980s than current statistical database of the US Census Bureau, the wider Generation Y represents 25.47% of the and use of effective contraceptive methods. in the 1960s.’ world population, the wider Generation X (30 to 44) represents 21.32% of the population. The first of the Note that changes in population growth have Baby Boomers (45-64 years old) represent 18.55% of the world population and are due to retire in large not always been steady. A dip in the growth Source: U.S. Census Bureau, Population Division numbers, starting in 2004, taking their knowledge and experience with them. Countries such as Canada, rate from1959-1960, for instance, was due to Australia, and the United States could lose more than a third of their government employees by 201015. Worldwide, within the age group which we research, they are more males than females, especially amongst the young generation (below 25 years old), while the older generation (above 50 years old) has more females than males. 22 23 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  13. 13. Who is the Generation Y? Digital, Connected, Social Challenging Scarce Transformational They have grown up with the Internet and mobile Part of the challenge is to manage practices. In all countries around the world, there are not Wherever they are in the world and no matter communications. They are digitally, globally, The Generation Y is said to appreciate clear enough of them. how large or small their numbers, the signs are and constantly connected. They are driving how direction, demand immediate feedback on that they are setting off a new wave of social and mobile communication technologies are used, performance, expect to be consulted and included This is true even in countries like the US, where business transformation that will equal or surpass initiating social behaviours that are transmitted in management decisions, and demand constant they are the largest generation since the Baby what the Baby Boomers achieved. to other generations. intellectual challenge, opportunities for learning, Boomers - The post World War II generation and meaningful work. responsible for social change and unprecedented This is because they have grown up with the Generation Y are supposed to be able to wealth creation. The problem is that the first Internet and mobile communications and are navigate vast amounts of data, use multiple Part of the challenge is to manage attitudes. Older of the Baby Boomers were due to retire in large digitally, globally and constantly connected. digital devices simultaneously and parallel- managers might see technologies such as instant numbers starting in 2008, and are taking their process multiple stimuli. They are networked, messaging, text messaging, blogging, social knowledge and experience with them. Countries They are driving how mobile communication collaborative and highly social, expecting to be networking and multi-player games as a waste of such as Canada, Australia, and the United States technologies are used, and they are setting constantly connected to their social networks, time and a distraction from work. could lose more than a third of their government behavioural trends that ripple through and within and beyond company boundaries, and to employees by 201035. influence social behaviour in other generations. work within a sociable environment with other The Generation Y is demanding a new reality from people. Generation Y’s rapid take-up of digital work. They want to work flexibly, choosing when In India, the Generation Y makes up more than technologies, how they use them, and how they and where to work. half of the population. Despite the large potential prefer to work is challenging for business. workforce, not all are ‘employment ready’ and so their talents are in short supply. There is a dearth Generation Y’s rapid take-up of digital of them entering the workforce in Western Europe. technologies, how they use them, and how they In the UK, for example, they are the smallest of prefer to work is challenging for business34. the generations in the current total population. Increasing numbers of them are highly educated and their talents, as in the rest of the world, are in demand. Also, as economies and businesses become more knowledge-intensive, knowledge and skills are at a premium. The fact that there are not enough of them only makes their talents even more attractive than they already are. 24 25 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  14. 14. Who is the Generation Y in the USA? In all countries around the world, there are apparently too few of them. This is true even in countries like the US, where they are the largest generation since the Baby Boomers - The post-World War II generation responsible for social change and unprecedented wealth creation. According to the 2006 CIA World Fact book, around 27% of the world’s population is below 15 years of age. Tammy Ericsson (http:// tammyerickson.com), writer about the Generation Y in the US, argues that Generation Y will dominate the workforce for the next forty years and beyond. In 2005 in the US, the Generation Y was the fastest-growing segment of the workforce — growing from 14% of the workforce to 21% over the past four years to nearly 32 million workers. 1 in 5 young adults between the ages of 18 and 29 is unemployed, compared with a 7 percent unemployment rate for those over age 30. Twenty-somethings are also graduating from college with more debt than their predecessors did and taking jobs that don’t always come with health insurance (20). Some even said that America’s younger generation is in jeopardy. Figure 3: USA – Demographic pyramid, 2009 Source: U.S. Census Bureau, International Data Base “Despite their shaky finances and breezy approach to workplace demands, the cohort’s strong affinity for personal fame and wealth are likely to translate into serious financial clout over time, to the tune of some $3.5 trillion by middle age. A penchant for instant gratification and customizable products, along with demand for socially responsible corporate policies.” The Adults of Generation Y in the U.S.: Hitting the Demographic, Lifestyle and Marketing Mark, 2008, http://www.marketresearch.com 26 27 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  15. 15. Who is the Generation Y in India? In India, they make up the more than half of the Highly competitive, Generation Y is more than population. Despite the large potential workforce, ever before seeking higher education and landing not all are ‘employment ready’ and so their talents jobs in multi-national companies in areas such as are in short supply. The Generation Y in India is IT, back office operations, media, strategy and a remarkable group that is ambitious, optimistic, management positions. With opportunities aplenty embraces change and have a clear sense of where in the current economy, they are also job-hopping, they are headed. Most are ‘entrepreneurial and something not seen in their parents’ generation. business savvy, as well as technologically capable and connected21. With about half of India’s one billion people under “Gen Ys expect challenging work assignments, the age of 25, Generation Y in India is the world’s accelerated career growth, socially responsible largest. Positioned in a time of exciting and rapid workplaces, flexible work environments, freedom, economic growth in the country, they are keen to and collaboration and innovation from their jobs participate in the country’s future and success. The and employers.” country’s recent parliament elections saw a huge R. Anish, Intel’s South Asia HR Director22 turnout of Generation Y population, demonstrating their ambition to take the country forward. Figure 4: India – Demographic pyramid, 2009 25 Source: U.S. Census Bureau, International Data Base Research indicates that as employees, the Generation Y ‘value work life balance more than any other generation’23. Level of engagement among Generation Y employees in India was found to be about the same as the other generations, making them an exception compared to their cohorts around the world. While they are willing to work in shifts to support global operations, they are averse to working long hours24. 28 29 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  16. 16. Who is the Generation Y in China? China’s Generation Y is composed of hard and get rich” mentality27. approximately 200 million 15 to 25 year olds. Like The Generation Y is no exception when it comes their peers around the world, they are a techsavvy, to valuing work life balance, and working long ambitious, multi-tasking, better educated, hours is not something they can adapt to. openminded, Entrepreneurial by nature, they would rather start individualist cohort that is seeing the their own business and work for themselves. In country transform from a communist government the workplace Generation Y are regarded as ‘high into an emerging global capitalist market. They are achievers, extremely adventurous, impressionable, ‘significantly more entrepreneurial and capitalistic and consequently highly employable’(??). With than their parent generation’26. many graduating in Engineering and Sciences, there is a high demand for them in multinational The Generation Y has a large exposure to the companies. technological advances in China’s present day, they are connected to the internet, mobile and The Generation Y’s spending habits are noteworthy. social networking websites. Heavily influenced by As single children it appears they may be Western culture, they generally know more about pampered, as findings show they often consume Westerners than Westerners know about them. an astonishing 50% or more of family expenditure Having grown up as a single child in the One- Child in some major cities. policy era, China’s Generation Y is more inclined toward a lifestyle devoted to freedom and personal satisfaction rather than the more traditional “work http://www.publiclibraries.com/authors/mico14/chinageny/ Figure 5: China – Demographic pyramid, 2009 Source: U.S. Census Bureau, International Data Base28 http://www.gallup.com/poll/15934/Chinas-Gen-Bucks-Tradition.aspx 30 31 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  17. 17. Who is the Generation Y in UK? More 18 years olds would be available until 2012 Apart from lack of employment opportunities to enter the workforce than would leave at 65. linked to the recession, economic inactivity among The situation reverses in 2012, although the the 18 – 24 year olds is attributed to a record high gap between new replacements and numbers of of student numbers. As for the 50 to retirement retirees shrinks in the following years to 201631. age group, many are remaining in work as long as Of course the whole population is not available to possible in the face of a pension crisis exacerbated work. The Labour Market Overview for June 2009 by the recent events in the financial sector. indicates a working age employment rate of 73.3 %. Economic inactivity in 18 – 24 year olds has increased as it has in other age groups except 50 to retirement, which has been the only age group to experience a fall32. Figure 6: UK – Demographic pyramid, 2009 33 Source: U.S. Census Bureau, International Data Base The overall picture is complex but we can say that if young people continue accessing full-time education, this diminishes the numbers of 18 -24 year olds in the workplace but is partially offset by the older workers postponing retirement. Something else is happening, apart from their insufficient numbers, to make them valuable. 32 33 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.
  18. 18. Differences Emerge A poll of PwC new-starts in China, the US and the Of course, the data you get depends on UK before they joined the company, uncovers the questions you ask. How accurate is our some conservative attitudes. Perhaps the biggest understanding of Generation Y’s desired surprise is that an average of 75% of respondents workplace attributes? across all the countries expect to keep regular hours, with a figure of 82.5% in the UK. The None of the surveys we reviewed asked the conservatism continues when respondents were Generation Y what they think of their physical asked how many jobs they expected to have over work environment. This is consistent with the their lifetimes, which was between two and five themes reflected in the wider Generation Y reported by 74.4% in China, 80.4% in the US and literature. The role of the physical environment 79.6% in the UK. in attracting and retaining scarce skills, and in influencing and mediating social interactions, is This is hardly the job-hopping behaviour suggested not always addressed. in other research. In one survey, 34% said they expected to stay in a job between one and two We know that workplace design matters in years, with 57% saying two to three years. In nurturing innovation within organisations(37). We another survey, one in four said they would stay also know that quality of place matters to people less than four years. These two surveys paint a when choosing where to live and work(38). People picture of The Generation Y hungry for opportunity, look for social conditions and amenities that fit jumping ship in expectation of experiences that their lifestyles. resonate with their workplace priorities, such as having fun, being socially connected, and having If it is the case that the Generation Y has strong the scope to learn and be developed. ethical values, social tendencies, and is highly collaborative, how much does the workplace Employers are having to feed this hunger to attract environment matter to the Generation Y? How the best of the Generation Y, branding themselves important are location, workplace design and and tempting the objects of their desire with environmental considerations in deciding juicy morsels in the form of ‘employee value where they want to work and who they want to propositions’ that align with The Generation Y’ work for? What should employers do in their ideal workplace attributes. workplaces and facilities to recruit, attract and retain the Generation Y? 34 35 Copyright © 2010, Johnson Controls. Confidential. All Rights Reserved. Global WorkPlace Innovation Intellectual Property Johnson Controls, Haworth and iDEA.

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