This document discusses generational characteristics of Generation Y (also known as Gen Y or Gen buY), born between 1978-1990. Some key points: - Gen Y is more ethnically diverse than previous generations and values community and collaboration over individualism. They are confident and want flexibility in their careers. - Financially, Gen Y has significant spending power but also faces high costs for housing, education, and healthcare. They are tech-savvy investors who manage finances online. - Gen Y is marketing savvy and wants choices. They are not swayed by "hard sell" advertising but influenced by lifestyle connections and customer loyalty.

1. Instantaneousinternationalfacebook“pursue happiness”americanOnlinemacvs pcGoogleLeadershipcredibilitywikipediauncertaintyopportunityBlogsglobaltwo incomestechnologydream jobreality TV“express yourself”team sportsWirelessiTunescell phonesamerican idolMentoringMobilityvalue systemsGeneration WHY?ConfidentautomationEmploying & Marketing to the Echo Cohort RSSproblem solverscontinuous partial attentionFacilitationfeedbackSocial MovementscollegepiercingsDirectiPodData DrivenConvergenceinteractivecompetitionCollaborationmicromanagementinternetOpportunityOpeneasily boredpersonal plannerequalityAdaptable“you can do anything”Diverse“just be yourself”guitar heroenvironmentalismYouTubefamilyProductivepraisedexpectationsIndividualityParticipation“stand up for yourself”myspacedetermination“respect yourself”terrorismContent provided is the sole property of the author and may not be reproduced or redistributed without express permissionChristy Woodward Kaupert Presentation to New Braunfels Chamber of Commerce February 24, 2010

2. “S’up?”

3. Why are they SO different? This generation has attended colleges that are changing and are teaching differently:Learning CohortsHybrid coursesProblem Based LearningMore group-based collaborative learning experiences In the workplace and the marketplace these present interesting challenges!

4. Hewitt Associate’s observation:“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.”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.”

5. Who are these people?Born between 1978-1990*, this year they range in age from 20-32 years old. There are two subsets: Gen Y and Gen Y Version 2.0.Roughly 70 million comprising over 20% of the population More diverse

6. The Generations in Perspective

7. Gen Y and Gen buYGen Y are older (20+) and were the first to grow up with internet and computers in the homeGen 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

8. As a generation…..Gen Y is 1.3 million more than the Baby BoomGen Y is three times larger then Gen XGen Y currently makes up about 20% of the work force, by 2014, it is expected they will comprise over 40%Gen Y is connected---family, life, community, the world! Social Networking is HUGE! Not all sites are created equal though----(LinkedIn versus FDCareer.com)

9. Cohort CharacteristicsThis generation is more ethnically diverse than any past generationPretty impatientThey demand ‘planning’ and need structureLack interpersonal skills but value ‘getting along’While not overtly anti-authoritarian, they excel in egalitarian environments

10. Cohort CharacteristicsMassive spending powerGen X technology is passéMultitasking is “genetically encoded”Entitlement attitudeGeneration Y combines the can-do attitude of Veterans, the teamwork ethic of Boomers and the technological savvy of Generation X.

11. They (almost)

12. TheyMore than 350 million active users 50% of our active users log on to Facebook in any given day More than 3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each weekMore than 700,000 local businesses have active pages on Facebook

13. They YouTube is the SECOND MOST TRAVELED SITE on the net!Bloggers mention this site on average every 20 minutesBought by Google$1.65 billionTutorialEtrade has become WILDLY popular. Conversely, you could just create a contest and get a kitschy adcreated for you!

14. Be Careful about assumptions….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! When asked about their reasons for joining a brand or fan group on a social network, the top 5 reasons included“get news or product updates” (67 percent), “view promotions” (64 percent), “view or download music or videos”(41 percent), “submit opinions” (36 percent),“connect with other customers” (33 percent)Pace University’s Lubin School of Business’ Interactive and Direct marketing (IDM) Lab Survey exploring Generation Y behaviors within social networks, 3/3/2009

15. Tech- savvy Advertising Sites Gen-YersTom’s ShoesStarbucksJones SodaRed BullCoolPeopleCareTargetdELiA’s

16. Individual Characteristics

17. MoneyToday's Generation Y teenagers have grown up with a greater degree of affluence than any generation before them. 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 powerMany 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.

18. However…the other side of the coin shows usGen Y is facing incredible debt burden, both individually and as a cohort in the nationRising heath care, housing and education costs are posing significant challenges to those chasing the American DreamAside from their student loan debt, the median credit-card debt of low- and middle-income people aged 18 to 34 is $8,200.The disconnect between their perception of the future and the reality---it is what it is.

19. Health Care Costs 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 %)

20. Survey says…EHealthInsurance conducted a survey of college students and found63% of students prefer health insurance portability, preferring to find a health insurance plan on their own and keep it regardless of where they work.37% would prefer to change health insurance plans every time they change jobs 85% of those surveyed were counting on their future employers to provide them with health insurance68% 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

21. Housing CostsIn 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.”Real housing costs in terms of average is much higher than median but the median prices have increased almost 75%just in their lifetime!Caveat: Job mobility qualifiers are a major factor for obtaining mortgages!

22. Median Real Housing 1965-200573% increase in 20 years

23. Education CostsCollege costs continue to rise at a rate well above inflation. Last year, it rose an average of 6.5%

24. It’s Bigger in Texas

25. TimeSelf sufficient, responsible, and matureFamily time is importantGen Yers will forego extra money for time off.Gen Yers can be very productive but need flexibilityGen Yers don’t ‘delineate’ personal time from professional time

26. InfluenceParents give their Gen Y opinions considerable weight in making major purchases. IF Gen buY teens like it the parents will buy it!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)

27. Gen Y is financially literate!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.In a survey conducted by Scottrade, Gen Y has embraced technology to manage finances!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)

28. Why do you invest?

29. What do you do on your PDA/Phone?

30. Financial Advisors: Here’s a suggestionAt no other time in history have America's children been more interested in money. Consequently, an increasing number of mutual fund companies, financial planners', and other investment firms are starting to tailor their products and services toward youth. 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)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.

31. Gen Y is Marketing SavvyGeneration Y is not favorably impressed with an "in your face, hard-sell" approach to advertising. 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 consumptionMaking that lifestyle connection and generating customer loyalty among the members of Generation Y is critical. YOU TUBE!

32. Cost versus ValueGeneration Y members are concerned about getting "good deals" and are willing to go out of their way to get themRather than being concerned about how much an item costs, these youths are more concerned about the total cash outlay. Generation Y also wants choices, choices, choices!

33. Economic and Ethnic diversityThis generation is the most ethnically diverse with respect to the family units in which they were reared.Significant numbers from single-parent householdsSignificant numbers who are 2nd generation AmericansEighty-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.

34. For Merchants….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.“What this means is that merchants must:Be available 24/7ListenBe creative

35. What these things mean for your businesses…..In Hiring:Consider your technological capabilitiesConsider your expectationsBe SPECIFICBe FLEXIBLE

36. In Marketing:They READ---lots. It has got to be genuine though! AVOID FLUFF!This generation is less brand-loyal than past ones—make it relative to them! Wi-Fi and Stainless steel!In 24 hours they can destroy what took your marketing department weeks or months to put together.

37. Like Pooh Says: You can't stay in your corner of the forest waiting for others to come to you. You've got to go to them sometimes….

38. When in Rome…whether recruiting or marketingConsider those activities Gen Y participates in:Outdoor eventsSkate parksCoffee houses & open-air concertsCultural events and festivalsEvents that are associated with ‘social’ awarenessHabitat for Humanity builds“Clean-ups”Social Networking Sites!

39. As Employers…Ignorance is not blissA survey of more than 2,500 employers and managers by CareerBuilder.com has identified stark generational differences between Generation Y and their managers.Almost 50% of managers said there was a big gap in communication styles25% said Gen Y had different frames of referenceNearly 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 generationsJob-hopping is quite acceptable

40. As employees…..Nearly three quarters said Generation Y workers expected to be paid more6 out of 10 potential employees demanded flexible work schedulesMore than half said they expected to be promoted within a yearAlmost half said they expected more vacation or personal time awayAlmost half of Generation Y workers expected to have access to state-of-the-art technology.

41. No mean feat to manage….Build opportunities for leadership for them 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!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

42. The path can be difficultConsider new benefits and compensation strategies Do not respond well to command and control management styles ("do this or else"). Remove/minimize company politics if possibleHierarchy is almost meaninglessSmall goals with tight deadlines Work is a sociable and fun activityPandora, Farmville and “helicopter parents”

43. Gen Y’s Employees….Need to be validated: valued and engagedNeed to have open communication and feedbackValue diversity and globalizationRequire flexible, informal, decentralized work environmentsLike team atmospheresPrefer evaluations measuring results, not time spent on the jobFollow leaders based on credibilityAre not necessarily afraid of losing their jobLike to learn with hands-on opportunitiesWill openly talk about career paths and optionsDesire the workplace to be fun

44. Attracting Gen Y “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” Sharon Pugh, Staffing Manager at Eastman Chemical

45. Texas’ PopulationPopulation is growing rapidlyAlmost 13% since Census 2000The Hispanic population is the fastest growing ethnic group nationally, mirroring the rate for the state at roughly 4%

46. Population Changes by County (2006)

47. In Texas…

48. Texas’ Population Projection 2040

49. In Comal County

50. Projections for New Braunfels 2010 - 2015

51. In New Braunfels

52. Age DistributionComalTexas

53. Growth ratesMedian 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. 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. Roughly 25% of Comal county’s population is between 14-29 years old

54. New Braunfels’ EconomyThe median household income (in 2008 inflation-adjusted dollars) was $56,079Median family income (in 2008 inflation-adjusted dollars) $63,554 Per capita income (in 2008 inflation-adjusted dollars) $25,488

55. Morley Safer mused…. “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…” http://www.sling.com/video/show/226322/18/The-Age-Of-The-Millenials

56. Questions?

57. For further reading: “Talent Shift: A New Generation of Professionals Means a New Profession in the Making” Deborah Morrison, Advertising & Society Review 10:1, 2009“Youth Is Wasted on the Generation Y Investor.” NY Times, 3/19/2006Y-Size Your Business: How Gen Y Employees Can Save You Money and Grow Your Business by Jason Ryan DorseyNot Everyone Gets A Trophy: How to Manage Generation Y by Bruce TulginY in the Workplace: Managing the “Me First” Generation by Nicole Lipking and April PerrymoreBridging 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

58. & even further reading The Ten Demandments: Rules to Live By in the Age of the Demanding Customer, by Laura Mooney & Laura BergheimAn America Challenged, Steve MurdockAnalysis: College students need lessons in failure.USA TODAY, 11/5/2009