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VOLUME-II | ISSUE 6 MAY 2012

H I R I N G & B E YO N D

www.research.timesjobs.com

Managing Generation X & Y
The multi-generational approach to hiring and retention

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ccording to a recent TJinsite study, Generation Y (Gen Y) represent majority of the workforce in most of the companies (67%), followed by Generation X (Gen X) which represents 28% of the workforce in the surveyed organisations. More than 81% of the organisations are actively hiring Gen Y.

can maintain a healthy work-life balance. As the two groups are different, the selection practices adopted for the two also varies. Employers revealed that while

selection method for recruiting both Gen X & Y candidates. In case od Gen X recruitment portals took an edge over other channels of recruitment as more than 50% of the employers voted

to learn something new and growth is more important these days. Though, Gen X still considered money as the best retention option but for the younger population (65%) training and growth opportunities are more essential. Training and development leads not only to higher productivity but also to higher retention as stagnation in work results in greater dissatisfaction. In today’s employment market, it is comparatively easier to hire resources than trying to retain them. Earlier the employees were happy to continue in the same organisation for years. This generation was known as the ‘baby boomers’ and were considered as assets by the companies as they never contemplated career moves. However, this scenario has changed with large number of people belonging to “baby boomer” category retiring and creating a huge void. This void is being filled by the newer generations who are referred to as the “Gen X” (born between 1965-1979) and “Gen Y” (born between 1980-1994). Job hopping is very prominent among people belonging to these groups. Thus, both recruitment and retention of employees are equally important.

Both these generations are willing to change jobs anywhere from five to ten times over the course of their career, reveals the study. Where there are certain similarities, there are varied differences as well in the approach and attitude of these two generations. The study observed that the various deciding factors for Gen Y to take up a job in order of preference were salary (42%), job profile (23%), flexibility (18%) and brand value (14%) . Almost 35% of Gen X workforce considered job position as the most important deciding factor followed by job profile (22%), salary (18%), brand value and flexibility (11%). This generation of employees demand creative freedom and authority to perform their job. Gen Y want attractive salary package and flexible working hours and schedules, so that they

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selecting a candidate, in case of Gen X, experience evaluation accounts to around 50%, and the same criteria weighs much less (17%) for Gen Y. Skill sets matters the most (48%) when hiring Gen Y. Nearly 64% of the employers prefer using interview as the

for it. For Gen X, reference/word of mouth are said to be more preferred and effective recruitment methods. Like the hiring approach for Gen X & Y differs, the retention strategies are also varied. The TJinsite study clearly revealed that job satisfaction, opportunity

Inside Insite
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Survey Highlights

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Guest Column

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Expert Speak

Each generation of employees has a different set of values, working style and expectations from the work environment. The employers need to understand this difference and develop strategies to manage the multi-generational workforce. Explores more with TJinsite on pg 3 & 4.

Our Guest Columnist this month, Shubha Kasi, Director-HR, SunGard, tells us why appraisals aren’t and should not be just about money. She asserts that appraisals must be as continuous as performance and the two must not be separated. To read more on the subject turn to pg 6.

In an exclusive conversation with TJinsite, Mukund Menon, Director – HR for India &, Singapore, Steria, shares the approach, strategies and challenges in hiring and retaining and engaging Generation X & Y. Read the excerpts from the interview on pg 8.

research.com 2 .VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www.timesjobs.

whereas 45% of the Generation Y is lured by salary Since.research. On the other hand. their differences present the challenges in hiring the best. Generation X employees are most indemand for Back office/ Administration profiles (33%) followed by sales/marketing and HR functions (28%). Nearly 48% of the employers feel that relevant skills are of utmost significance while hiring Generation Y employees. the sales and marketing profiles are suitable for them. Being techsavvy Generation Y is the ideal choice for IT jobs. Generation X . On the other 36% of employers claimed that for Generation Y employees IT and Sales and Marketing profiles are most sought after. The employers believe that given the aggressive nature of Generation Y. Generation X is good at people management skills and thus the administrative and personnel management roles suit them the best. Besides 20% 12% Flexibility Job Position Generation Y other recruitment and talent management issues close to onethird of the HR managers find the increasing gap between baby boomers and Generation X and Y employees as another big HR challenge. making them more suitable for such jobs. HR managers pointed out that organisations which are able to recognise and become accustomed to Gen X and Y’s needs are more likely to retain them longer. Another TJinsite study revealed that Generation Y employees are also seeking jobs in IT and Sales/Marketing domain. employees are hired largely for mid-management positions. Nearly 35% of the employers stated that an ideal mix of both 36% 33% 28% 7% 20% Back-office/ Administration Generation Y Human Resource generations across functions basis expertise helps in attaining organisational goals.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. A recent study by TJinsite revealed that 35% of the Generation X employees are more concerned about the job position and profile. stated the surveyed employers. feel the employers. feel 28% of the employers. Generation Y employees are more accustomed to using social networking and new technologies which allows them to work from Which of the job functions/roles are most in-demand ? 36% 28% 12% Information Technology Sales & Marketing Generation X anywhere. Recruitment portals delivers best results in hiring Generation Y candidates. work experience in terms of number of years and also hands-on domain experience matters most.timesjobs. anytime. Nearly A What is the deciding factor for Gen X & Y to choose a job? 45% 34% 36% 28% 18% 7% Job Profile Salary Generation X 33% of the employers feel that reference/word-of-mouth works best in sourcing Generation X candidates.com Survey Highlights Jobs in demand for Generation X and Y C • For 67% of the organisations Gen Y makes up for the majority of workforce population • 82% of the organisations likely to recruit Gen Y employees in future urrently. 3 . said 75% of the surveyed employers. • 35% of Gen X employees consider job profile most while choosing a job Process and challenges in hiring Generation X and Y lthough Generation X and Generation Y have certain characteristics in common.

stated one-third of the employers. The new generation leaders value action. The TJinsite study revealed that job satisfaction and growth opportunities are becoming more and more important for the current generations. On the other hand. traditional ways of working doesn’t appeal to them. more tech savvy endorses the use of technology to gain efficiency at workplace. stated nearly 50% of the surveyed employers. The preferred training method employed for Generation Y is on-the-job training and for Generation X workshops and seminars. Providing training and development opportunities E Which strategy works best to retain Gen X & Gen Y? 65% 37% 25% 23% 10% 1% 27% 11% Flexible Work Schedules • 33% employers stated Reference/Word of mouth delivers best results while recruiting Gen X Training & Opportunities Monetary Benefits Generation X Non-Monetary Rewards Generation Y • 30% employers prefer recruitment portals & agencies for hiring Gen Y help in attaining higher retention as it avoids monotony and work dissatisfaction.timesjobs. Approximately 40% of the respondents claim that Generation Y staff should be handled with less leading & control. Nearly 57% of the employers feel that Generation X employees makes for better leaders.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. Generation Y employees prefer a mix of leadership and individual control sans micromanagement. On the other hand about 37% of the employers feel that monetary benefits are the best way to retain Generation X employees. It was found that Generation X employee training was focused more on developing leadership (32%) and technical skills (30%) whereas Gen Y employees preferred area of training was soft skills (48%). Nearly 65% of the surveyed employers believe that the best policy to retain Generation Y employees is providing them with training and growth options. both Generation X & Y value team work and communication.com Survey Highlights Retaining and engaging Generation X and Y arlier TJinsite studies have shown that the secret of a successful recruitment strategy lies more in retaining employees than finding the best fit. Leadership style of new generation workforce he study cited that the two groups vary in their leadership skills and styles as well. This is a challenging task and takes great skill. • For 57% of the employers Gen X makes for better leaders T According to 35% of the surveyed employers. there are differences in their approach. Generation X & Y leaders feel that flexible work culture brings in more efficiency and improves productivity Generation Y being . The employers need to find ways to bridge the generation gap in the multi-generational workforce. collaborative and situational methods. followed by flexible work schedules. Generation X leaders have strong leadership style coupled with individual control and micro-management. Where.research. 4 Generation Y . All this starts with understanding Which generation of employees posses better leadership skills? 65% 43% Generation X how the new generation of leaders thinks. but with a more creative.

moderated the subsequent session on “Engaging Employees: Healthcare to welfare”. 2012. Accretive Healthcare discussed about the increasing focus on health & wellness.timesjobs. Mr C S Puri. The keynote address was delivered by Mr Samik Basu. President & CEO. Life Patron-DMA. Mercer-Principal. The first session highlighted the “Talent Challenges in a globalized environment: CEO’s expectation on deploying total EVENTS AR END CAL D rewards to optimize talent strategies”. The second day of the Summit began with the panel discussion on “Pay for Performance ”chaired by Mr Anurag Aman. Head Talent. President-DMA.com Events Summit on Enhancing the Health. Mr Sandeep Girotra. Mr Manmohan Bhutani. Ms Ira Gupta. Delegates from the corporate sector like HR leaders. The vote of thanks was delivered by Mr Dey . Dr Nimitha Menon. welcomed the eminent gathering of learned speakers and inquisitive participants. VP & MD-Pitney Bowes Business Insight (India) and Mr Vijay Rai. gave the opening remarks. C&B specialists. Wealth & Quality of the Workforce Rewards & Benefits Strategies in a Talent Scarce Market Organised by DMA elhi Management Association (DMA) organised a two day Summit on the theme of ‘Enhancing the Health. Mumbai Organised by RAI The Bharatico BP0 Conference 23rd May. The last session for the day was lead by Mr Mukund Menon. management consultants and academicians attended the two day Summit. Mr Manish Choudhary. New Delhi Organised by BPO Association of India International Convention of Human Resources Professionals 25th-26th May. Mercer was the Knowledge Partner. Ms Leena Sahejwani. Director (HR)-Steria India on “Elements of Employee Value Proposition & Retention Strategies”. Wealth & Quality of the Workforce: Rewards & Benefits Strategies in a Talent Scarce Market’ on 5-6 April. Mr Anurag Mohit. Partner and National Leader for Human Capital Global Mobility Practice-Ernst & Young acquainted the audience about Upcoming Events RAI’s 8th Retail Technology Conclave 2012 17th-18th May. Vice President-Fiserv Global Services.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. Head (HR)-Convergys and Mr Rajeev Sharma. 2012. at Hotel Crowne Plaza. Leadership & ODGSK and Ms Deepti Mittal. concerns for employer-employee health now and in future and health & wellness strategies. Head (HRD). Director (Total Compensation)IBM India andMr Dhyan PS Chauhan. Ms Sonu Iyer. workforce health through ROI driven employee wellness programs and flexibility in benefits management and workforce quality through compelling focus on rewarding high performance and driving engagement. Mr Nishchae Suri. 5 . moderated the session on “Changing face of Employee Compensation & Benefits”. Director (HR-South Asia Markets) – Tetrapak shared their thoughts on why there is a need for robust benchmarking and differentiating reward elements for high performers. Health Management Sr ConsultantMercer. MrSukantaDey. Head (C & B-HR Shared Services)-First Source shared their views on the trends around long term incentive plans. Programme Director & Chief People Officer PepsiCo India Region who shared that the Summit provided a platform to engage thought leaders in comprehending the evolution of total rewards and what that evolution entails for each of us in this changing talent landscape enhancing workforce wealth through investment portfolio approach to employee segmentation. Gurgaon. rewards as retention framework and creating a great employer brand The next session on “Evolution of Total Rewards” was chaired by Mr Muninder Anand. optimizing benefits investments. remuneration and the trends on retrials. Rewards Head-GE India. 2012 Organised by IHRD Industry leaders deliberated on the elements such as knowing what employees value. MD-Mercer. Powercon Knowledge Services were the eminent speakers.research. Director (IPS)-Mercer. impact of current economic & business environment on executive the“Impact of changing tax regulations on compensation structure & Implications of Direct Tax Code”. 2012.

research. but find that I am unable to enjoy or perform – I would expect that I be moved out of those areas. there are opportunities for outcomes that are not always optimized by organizations and managers.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. 6 . And mind you. HR should complement this at a more long term and importantly strategic level. there should be no nasty surprises. Also if there are areas where I have tried. but what about the outcome of an appraisal process? The standard – and often. it occurred to me that from an HR perspective. Shubha K. as closely dovetailed with the performance as possible. So far. All well. these are not small outcomes and are probably the single most significant changes that occur in an employment history Let us not delude ourselves on . With the managers providing year along feedback. No system gives feedback. But that’s where the W disconnect is. the audience is seen shouting. it is laughable to propose a system that entails daily or weekly feedback. SunGard hat makes IPL matches so exciting? Apart from the game itself. appraisals must be as continuous as performance. The HR community at large over-engineered the systems and lost touch with the employee whose performance. giving an opportunity to the employee to step back from the daily routine and see where his efforts are taking him. where she pioneered techniques in modeling. Having two appraisals a year is a good solution. we have been talking about managers – where do HR and the appraisal system come in? While managers should be delivering instantaneous. in conjunction with smaller. hit and fielded is delivered instantaneously In addition to the . Practically though. it was perfect: feedback was immediate. but in training managers to give feedback as quickly as possible. the importance of money in our work lives. bringing this experience to her both free-lance consulting and corporate roles.com Guest Column Are appraisals just about money? Shubha Kasi is a post graduate from XLRI (1992). I would want the opportunity to actually improve. it’s the high energy during those couple of hours that define the event. and so on. not enough time for appraisers to forget. it is neither sufficient nor complete. and areas that will allow me to shine and so on. swearing in dejection at every dropped catch or missed stump. only – outcome is the annual increment and promotion lists. Could you imagine meeting Sachin Tendulkar at the end of the year and giving him consolidated feedback? Management science somewhere lost sight of the fact that ‘Performance Management Systems’ should focus on the first word and not the last in that name. with one focusing on the increments and promotion and the other focusing on the development and role areas. she was leading the Asia Pacific research center for Mercer. So. Instead. So. in determining employee satisfaction with work. as important as money is. forecasting and analyzing compensation structures. highest score so far. immediate review meetings will help address employee and organizational needs. This frequency of formal appraisals. The frequency of appraisals needs to be such that you give the appraisee sufficient time to perform and yet. team health etc. RRR. the aims and aspirations that the employee has. there are the stats that keep flashing on screen – CRR. task based. She combines strategic thinking and analytical ability with excellent people skills to provide leadership. unfortunately. Previously. We separated the appraisal or the feedback from the performance and I believe that was the single largest mistake we made. She has worked across industries in both HR and non-HR roles. only managers do. areas where he / she needs help. Director-HR. clapping or punching the air for every boundary or a wicket taken. The key to an effective performance management system is to equip managers to give feedback on an ongoing basis. such a meeting can revolve around the employee’s ability to learn and change. When I get appraised. This is where HR should pull in the metrics that track performance delivery. Without exception. In an ideal world. manager effectiveness. which will come up during an appraisal which can be addressed in a formal setting. She leads the centers of excellence for performance management and compensation & benefits at SunGard. In addition to role related impact there are issues around company culture. feedback that is given. merely being told what I do well and what I need to do to improve isn’t enough. what else must the appraisal process do to meet these needs? In addition to salary hike and promotions. This may call for a role change – exposure to areas that will improve me. What’s going on? Feedback is what is going on – performance of every ball bowled. success is not in the forms and templates. However.timesjobs. the process was supposed to enable. who has the orange cap… When I was watching the match last night. during a formal sit down performance review discussion. operational level feedback and advice. then.

and given the skill deficits and employability issues in this sector. n The Economic Times. emphasized Sakaar Anand. which in turn increase their productivity "In today's tough . He also underlined that the recognition culture is not built by rewarding a few top performers once a quarter. their Generation C employees (who are better informed and have more choices) by embracing the 'recognition culture' ". a direct dialogue with the supervisor and HR is the key". women who are able to survive this primary barrier advance much faster in their career than men.timesjobs. According to a TimesJobs. Lucknow.Business Services Division. Supporting the need of post-appraisal feedback mechanism. "There will always be a chance of expectation mismatch and surge of emotions after appraisals. Therefore. May 2012 7 . According to the National data collection agencies. "Post appraisal feedback is just as important as the actual appraisal process. foreign funding and industry endeavors the education sector is expanding fast. position at the work place. It gives us a look into how the efforts are being viewed and helps keep us grounded. the knowledge and research arm of TimesJobs. n The Economic Times. 30% of the workforce in software industry is female and they are at par with their male counter parts in terms of wages. CA Technologies. Opening up of big and renowned educational institutions and surge of coaching institutes combined with the growth of supporting infrastructure is a major factor contributing to the rise of employment opportunities in these cities. Nasik. Anagha Wankar.com." In TJinsite's survey. it has become incredibly important for companies to recognize. There need to be stronger mentoring programs in organisations to encourage women in technical streams". May 2012 Women forming a significant part of the IT talent pool "Women question the status quo and bring refreshing new thoughts. Today.com. suggest industry experts. Nagpur and Kochi which reported 15-25% jump in job opening in the education sector. research and knowledge arm of TimesJobs. VP & Head HR . n The Economic Times.com Recent News TJ R E S E A R C H I N N E W S Lack of recognition hinders employee productivity In a poll concerning employee productivity. Head ." believes Prince Jayakumar.com. nearly 62% organisations voted one-on-one discussions as one of the most preferred post appraisal feedback method.research. acknowledged Prince Jayakumar during an interaction with TJinsite. "Women form a significant part of the IT talent pool.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. revealed that more than 35% of the employees consider lack of recognition of work as the biggest hindrance to their productivity According to them. Other cities in the list include Ranchi. n The Economic Times. Its expansion in the smaller cities has unlocked a host of new job opportunities in the sector. IT organizations need to make the most of the opportunity they offer. May 2012 Open dialogues crucial for post appraisal feedback Nearly 68% of the organisations deemed post appraisal feedback process as an essential part of performance management system in a survey conducted by TJinsite. and Visakhapatnam have emerged as the top employment providers in education sector. reward and value their most valuable and difficult to source assets. They are more assertive than men and make quicker decisions. HCL Technologies Ltd.Human Capital Management of Fujitsu Consulting India mentioned. rewards and . economic environment. In his view. Allahabad.com study these cities have registered a growth of close to 50% in the vacancies in education sector in the past quarter ending March 2012. Logica India. research and knowledge arm of TimeJobs. Vice PresidentHR. Head-Talent Acquisition. claimed Subrat Chakravarty. with government initiatives. TJinsite. recognition for achievements at workplace act as morale booster. May 2012 Education sector unlocking job opportunities in smaller cities Smaller cities such as Kozhikode.

Gen X has the power of innovation and creative excellence through which they have positioned India as a progressive IT destination. In his last 23 yrs of experience in the industry around 11 yrs had been in the US with responsibility around global locations. Gen Y are the young leaders.com. While hiring a candidate. but the average employee age in our organisation is 28 years. What are the deciding factors for Gen X and Y to choose a new job? Gen X looks for: l Stability l Esteem l Peer Group l Business Knowledge l Wealth Creation l Career Goal Gen Y looks for: l Brand Name l Growth prospects l On-the-job learning and development l Salary l Overseas Opportunity What are some of the key work traits that Gen X should learn from Gen Y? In my viewpoint. Whereas. Gen Y is .timesjobs. Noida. Plot No 6. global by default and will lead the competition and take it to the next level.com. . Contact: TJinsite. he talks about how to engage and retain Gen X and Gen Y employees in the company. Sector 16A. Gen X. Gen Y is more aligned towards monetary rewards followed by instant recognitions such as ‘Star of the month’ or ‘Bravo Award’. This practice in-turn helps us to manage a healthy multigenerational workplace environment. a 40 year old IT Integrator with revenue of 1.VOLUME-II | ISSUE 6 MAY 2012 H I R I N G & B E YO N D www. we do periodic assessments to identify potential leaders from the bottom and escalate their growth via our fast-tracker program.6 bn Euros and more than 20. And. However. TimesJobs. How do you engage employees in today’s multi-generational workplace? Our strategy is to create a corporate culture.research. We pick and hire only candidates who we think can fit into our company’s DNA and able to identify with the company’s vision. In case of Gen Ys. gamechangers. wealth-creation options such as ESOPs works well in keeping them motivated.com and a clear acknowledgement to TimesJobs. money is the leading factor in affecting their employment decisions. the attitude is the Mukund Menon Director – HR India & Singapore Steria Mukund Menon is Director – HR for India & Singapore at Steria. particularly about the Indian IT industry. sales savvy and has the right aggression to pull numbers. Write in to girish.com Copyright ©2012 Times Business Solutions Limited. All rights reserved. obviously with considerable wealth generation. He has a bachelor's degree in commerce and masters in HR from the University of Madras. with their hard work. They are driven by working with mobility concept and follow a method in madness working style.000 employees worldwide. A considerable pie of Gen X employees are already leading businesses across industries with their industry intelligence and work experience. Gen Xs are usually stable and aim for higher/senior position(s) within the same organisation. globally But. which is essential for IT industry . Disclaimer: Information provided in this newsletter shall not be reproduced. Who makes for a better leader – Gen X or Gen Y employees? Both types can develop into good leaders. it is mostly the sense of pride and feeling that he/she is running the business/vertical/ department. . motivates them to stick in the current job. where we give equal growth opportunities to all employees. What motivates these generations to continue in the existing job? For Gen X. In conversation with TJinsite. Gen X employees are the ones who have put India on the global IT map as a potential leader in IT domain. Going by the general trend. efficiently Whereas.com Expert Speak GEN X and GEN Y Employees What are the key works attributes of generations X & Y? Talking. to nurture and promote young employees at Steria. knowledge. In fact. In this role he Heads HR and Administration and in addition he has responsibility to help build Professional Services business in India.bindal@timesgroup. Gen Y workforce is still learning and evolving to leave a mark. intelligence and creativity . which are work and money In case of . Which generational group makes up for the majority of your workforce? We don’t have ‘so-called’ generational groups in our workforce. What sort of recognition and rewards works best for Gen X & Y employees? There are two basic hard factors for both Gen X and Gen Y in rewards. re-sold or otherwise distributed in any medium without the prior written permission of TimesJobs. published. they are not able to market their full potential biggest differentiator at Steria. Film City.