10 More Ways Generation Y Will Change the Workplace

Published by Ryan Healy on February 26th, 2009 in Generation Y, Noteworthy | 23 Comments

Last May, I wrote a post titled 10 Ways Generation Y Will Change the Workplace. It received a lot of attention and more importantly a lot of conversation. The gist of the post was not to say that Generation Y is great and we will make everything better. Rather, it was a testament to what I witnessed during trips to different companies and what I heard from my peers in the workforce.

Nine months later, the economy has collapsed and the workplace is changing before our eyes. This next year or two will be a defining time for our generation, and I believe it will shape our world view and work view in many ways. Based on this, I've come up with 10 more ways Generation Y will change the workplace. Hopefully it will strike up just as much conversation and maybe even some action, so things can start changing for the better.

1. We'll reduce executive compensation for underperforming companies

It's already happening. Obama put a $500,000 cap on executive pay at the banks that were bailed out. In 2007, the average CEO salary at the largest companies was more than $11 Million. It's hard to justify paying anyone that much. In some cases, these executives probably do provide more $11 million in value to their respective companies. And when that happens, they should be compensated for it. But having a CEO expect $11 million regardless of performance is just bad business. The Obama administration is setting the precedent, and as Gen Y takes power we will follow through and reduce executive compensation for underperforming companies.

2. Discussing salaries will be completely normal

Transparency is king. You hear it everywhere these days. Social media is forcing companies to open up their doors and show the world what's really going on. Obama has promised budget transparency to the American public. And the vast majority of the world's under-30 population are living their entire lives online. Transparency is no longer an option. Websites like Glassdoor and Payscale let you compare your salary with others in the industry. My company, Brazen Careerist practices complete transparency. Even financial gurus like Suzie Orman say it's great for business. As Gen Y continues to work our way up the ladder, it will just be a matter of time before companies of all sizes have transparent salaries.

3. Employees will be more loyal than ever before

Transparency does not just mean that everyone knows what everyone else in a company makes. It means that the company must educate their employees on everything that is going on. When Pepsi was ready to release their new "Gen Y Friendly" logo to the world, they wanted to make sure that their employees weren't surprised when they found it in the grocery store. So they invited their staff to a party and introduced the product. The employees were excited and they felt like the company actually cared about them. When employees feel like they matter and the company thinks about them first, they feel a sense of pride and true loyalty to a company. Expect to see this trend continue as Gen Y comes of age.

4. There will be less mass layoffs, but more pay cuts
When someone feels a true sense of pride and loyalty to their company, they're more likely to figure out a way for everyone to pull through when times are tough. We watched our parents and our friend's parents being laid off when we were young and we're going through it now. We know the hardship that comes with it. Don't be surprised to see across-the-board pay-cuts instead of mass layoffs when times get tough. Start ups do it all the time – my company did it without thinking twice. And it's already happening at large corporations; HP just instituted a 5% or more across-the-board pay-cut rather than laying off hundreds. When you're part of a team, you want that team to succeed, and you'll do what's necessary to survive. And as we all know, Generation Y is the ultimate team player generation.

5. We'll truly get over the "punch clock" mentality
It's easy to say you have a progressive workplace and that you don't care what hours people are actually working at the office or what they do outside of work. But the truth is, companies care and people care. At the typical company, everyone notices what time someone leaves the office and what time people get in. We're still stuck in a workplace that was designed around producing widgets on an assembly line. As life moves more and more online, and new technologies are invented that allow traditional offices to be truly optional, the punch clock mentality will slowly disappear. By the time Gen Y is ready to retire, people won't even know what a punch clock is, and maybe then we will finally be working in the environment that knowledge workers are meant to work in.

6. Independent contractors will become part of the team
Nearly every company hires independent contractors to work for them. Contractors are great. They don't require health insurance and you don't have to pay the extra taxes. But they're often treated very differently than traditional employees. As more people develop skills that allow them to be effective independent contractors, and some form of universal healthcare is finally adopted, companies will begin to think of their contractors as their employees. When Brazen had a big budget, we worked with a ton of contractors. When people asked how many employees we had, I would always mention that our team felt much larger because of all the freelancers. As the number of independent contractors increases, they will become a vital part of the team.

7. Corporate branding will work in conjunction with personal branding

Companies spend a lot of money on branding. They throw huge budgets at PR firms and superbowl ads. It usually results in a ton of brand recognition. But brand recognition is no longer enough. Consumers want transparency, conversation and experience. Generation Y doesn't want a company to talk AT us, we want to talk WITH a company. The only way for a company to talk with a person is to give employees the freedom to interact. It's already happening as people like Sharpie Susan are branding themselves as social media players and helping their companies in the process. Who knows exactly how this will play out, but as Gen Y invents new technologies and new marketing strategies, corporate branding will never look the same.

8. Leadership will be a team effort
Jack Welch was a larger than life CEO. Everyone knew who he was and his personal brand may have been just as big as GE's brand. In Good to Great, Jim Collins determined that dominant CEOs like Jack Welch actually have a lower than average ROI during their tenure. This is because CEOs need to be respected and admired by their employees, and they need to be selfless and always thinking about the organization. As a team-oriented group, Generation Y will not stand by and watch one person insert his will on the company. We will figure out a new form of leadership, where one person is the decision maker, but leading is a team effort. With all the new social technologies, there will always be a place for people with huge personal brands and huge personal egos. They will make a lot of money and still be well-known, but they won't be the ones running large organizations.

9. We will really know people before we hire them

I can't tell you exactly how they will look, but sooner than later, resumes will be extremely different. It's not because a hard copy piece of paper is outdated, it's because people are becoming more and more complex. Resumes were created when people went to school, graduated, got a job and maybe another job. But today people blog, job-hop and have multiple hobbies outside of work. We live our lives online. It's too limiting to judge someone based on one sheet of paper. Social technologies give employers a window into people's souls. As Gen Y become responsible for hiring decisions, you can bet we will know almost everything we possibly can about someone before we give them an offer.

10. Entry level employees will be students and teachers

In the old days, entry-level employees had to pay dues before they moved up. This makes sense, it's impossible to know how a job or an industry works when you've never been there before. Young people had everything to learn and nothing to teach. Things are different now. For the first time in history, the youngest people in the workplace have the most knowledge about a very important topic – technology. And get this; we want to teach our bosses and managers how to use these technologies. This trend will continue. Young people will stay on top of the newest useful technologies. As Gen Y grows up, cross-mentor programs will be instituted. Old will teach young and young will teach old. Sounds like a great environment to me.

Leave your thoughts here. (23 responses)

This article´s comments All Employee Evolution comments

Mathieu

Feb 26th, 2009 at 6:34 am

Great post Ryan! Love the spirit and enjoying every bit of building that Brand New World you describe…
On a realistic note we are still far away from it. Challenges and opportunities ahead! :)

I also wonder how Gen Y will be affected by the responsibilities and mentality switch that tend to come when hitting your 30s: marriage, kids… Will Gen Y ever settle? How will that affect them in the workplace? Will the close mixture of work-life that Gen Y lives by, make these changes even more felt in the workplace?

Also would love to hear your thoughts on the sociological/psychological changes that this recession will impose on Gen Y. We have lived in two decades of very very cheap money: our social behaviours will need to adapt fast. Will that impact the behaviour of Gen Y in the workplace?

You know you have read a great post when your brain starts firing right-left-n-center…
Keep up the good work!

Ian

Feb 26th, 2009 at 7:50 am

Interesting post, I disagree with point 6 though. Certainly in the UK there is something called IR35 that stops contractors from being too involved with a company.

It means contractors have to prove that they could be replaced by another member of their company (even though most contractors are the only employee of their company!) otherwise they have to pay far more tax.

This subtlety means that contractors will normally refuse to do anything that isn't exactly what they've been hired to do, and they won't stay working for one company for too long.

Agree with point 2 totally, this policy has been practised by some companies, like Semco, for years.

Bob Pease

Feb 26th, 2009 at 8:59 am

This was an awesome read, and from my experience with my company I agree with most of these, as we already practice them. I think that #5 might be a bit too far though, I'm not sure we can completely ditch the punch clock, but it will certainly be a lot less prominent.

Jen

Feb 26th, 2009 at 9:41 am

Interesting, but I disagree with #5. It's simply not realistic in all industries. Perhaps it's my nature being in the industry I'm in. As an engineer providing a service to corporations in both the commercial and military sector, it's simply not possible for people to work over the internet or from home, etc. You are working with actual EUT's, trying to meet real specifications dependant on where it will be used or sold, dealing with real problems and come up with solutions, in real time. As long as there are defense contracts and regulatations on products you sell, it's highly unlikely there could ever be such huge changes from the norm. Not if you still want to be profitable, anyway. :)

Ryan Healy

Feb 26th, 2009 at 9:54 am

@Mathieu Good point, our values will undoubtedly change as we approach 30 and have kids etc. The generation you are a part of has as much to do with what makes you who you are as the life stage you're in. That said, I think we will push for these types of changes because they will be just as beneficial to our home life as our work life. As far as psychological changes this recession will have, I guess only time will tell. I think our general sense of optimism will remain intact, but there may be a big dose of realism mixed in with that as we grow up and become more conservative with money than our parents probably were. If you want to talk more feel free to shoot me an email.

I'm glad I could make you think a little, that's always my goal, so its the biggest compliment I could receive. Thank you.

@Ian I wasn't aware of IR35, I would be interested to see if there is something similar in the US. Thanks for the tip.

@Bob Thanks! I think we can ditch the punch clock. It's just going to take a long time. I would look into Best Buys ROWE program to see a company that's already done it.

@Jen You're right, some industries will require more face time than others. But that is a choice that people should make before they begin a career. Also, flexibility will look different in every industry/sector, im sure we'll figure something out in the next 50 years!

-Ryan

rikin

Feb 26th, 2009 at 10:22 am

Great post! #9 is probably the biggest sweeping change between our generation of employees and Gen X and the Boomers. We have facebook, myspace, blogs, tumblrs, tweets, and almighty google to learn who a person really is not just how to evaluate a 1 page resume. The web is ME unfiltered.

I mentioned some of these things in one of my older posts so I hope you don't mind that I linked to it below. In terms of saving costs not only is there salary but let's also not forget that health insurance cost for singles are lower and that 401k employee contributions peak after 30. In fact 20 somethings make up less than 15% of all 401k holders.

http://www.rikinontheweb.com/how_gen_y_can_save_the_economy

Dave

Feb 26th, 2009 at 11:51 am

Some good ideas if a bit idealistic. Tools change from generation to generation, but changes to human nature take millennia. If we want #5, we'll have to change the mindset of our unions and politicians who are determined to put us all on the clock.

JR Moreau

Feb 26th, 2009 at 2:56 pm

If someone beats me to creating a company that reflects these values, please put me on the "do-hire" list :-)

This whole post put a big smile on my face. Let's hope we can all push for this together!

Jesse Torres

Feb 26th, 2009 at 6:37 pm

Check out The Next Generation of Banking: Generation Y – Is Your Institution Ready for Them? Provides a little more on Gen Yer's from the banking perspective.

http://www.tinyurl.com/bankdir

Ashley Acker

Feb 26th, 2009 at 6:44 pm

My favorite point is #5 – our focus needs to be on results, rather than time. And this isn't just about working online. It's about having a choice–the freedom–to work when, where, and how you work best. I know we'll get there, but it will take a huge shift in mindset and what we believe to be true about work.

I agree with #8 too. Leadership is becoming more collaborative and process-oriented and shifting away from the old "command and control" model. Leadership may change hands depending on the situation and project needs.

Thanks for writing this follow-up to your 1st post Ryan!

Lisa

Feb 27th, 2009 at 5:43 pm

I'm a Gen Xer and we thought many of the same things. The generation before me – the bloated boomers were the first to know "technology" too. They became all the managers before 30 and still haven't left. We were the first to know PC's and Client/Server computing. Blah blah blah.

I am not trying to dis your list. It is actually comical and could have been written 30 years ago by your boomer parents or one of my peers 10 or 15 years ago.

I thought that we would see the end of the need to be in the office long before now – HA! Face time is king and always will be, much to my chagrin. Too many managers are clueless how to manage remote workers. Gen X will never be in management so it will be up to you to figure that out.

Otherwise I like many of the things that you mentioned – very interesting and clearly from the perspective of a very young (green) person… I had forgotten what that sounded like. I hope that my children will benefit from your lead in 15 years when you are my age. If the market comes back I will happily bow out and let y'all take over!!

Kari Quaas

Feb 27th, 2009 at 9:10 pm

I enjoyed your post and really hope that #5 comes true someday. I really do.

T.J.

Mar 1st, 2009 at 7:39 pm

>

HP first did this in the 70's with the "nine day fortnight" where all employees took a 10% paycut and worked 9 days in two weeks. In 2001, HP, along with many tech companies instituted 10% pay reductions.

Sometimes this is enough but other times, it isn't. In the 70's it was enough for HP. In 2001, it wasn't. They had to resort to pretty high layoffs.

MLongInc

Mar 2nd, 2009 at 3:01 pm

Interesting post. However, wouldn't it be fairer to say in point one that a "Gen Xer" took control. I mean President Obama is a bit older than 30 right? On a brighter note, point ten is true. Students will be the teachers at entry level jobs. That is really how it should be from the point of owning a business. Employers are buying knowledge. Otherwise, if they fail to collaborate and harvest the new information from the entry level asset, he/she will move on. I know I did when put into a sterile, static company that has since left town.

RJ

Mar 3rd, 2009 at 4:18 am

Ryan – great post. Thought provoking and poignant. However, the subsequent comments bring more meaning to me after many years working for Corporate America. Perhaps what should be understood most by the Gen Y's you talk of is the concept of self interest. As a generation still in the throws of collegiate togetherness where entry level jobs bring equality, self interest for Gen Y's still feels aligned with the common good. However over time, this will change. Peoples preferences and performance will differentiate them and transparency will begin to present as many risks as it brings benefits. Mass lay-offs should also not be dis-counted as they offer opportunity to correct corporate wastefulness and if handled appropriately release the lowest performers to find where their true utility lies. Many workers prefer this as a consequence over the prospect of a personal pay cut when they have bills to pay. Anyway, as said above, I thoroughly enjoyed reading the post. Keep up the good work.

Brad

Mar 17th, 2009 at 1:43 pm

I love the energy and thoughts of this post!

Maybe some things will happen later than sooner or be completely modified to something better.
Take heart in what has happened of recent and what everyone has the chance to make happen!

I guess I come out of what Lisa referred to as 'the bloated bloomers'. Not everyone of any generation is totally to blame nor totally to be rewarded for anything of any decade. It comes from a mixture of hands and minds. There is such a blending of generations during any time period that it's hard to differentiate who initiates what. But change is needed and usually will come in small (sometimes sneaky) ways. Twitter is yesterday's pager but in much better ways!

What is great is this moment and the next one and the ones after that! The more open minds and experimentation that come in playing with technology and rules and digital nomadism, the more that work and play will be redefined and the more everyone can make changes to the world or at least to their own lifestyle. Some things will work for some situations; some things will remain the same. This is where Churchill's adage of 'never give up' comes into play only on a much grander scheme!

Each generation will contribute to another; each will exchange information and ideas; each will break a mold; each will create something new.

The important point is that posts like this keep happening, that people keep talking, inventing and experimenting and that no one is afraid to blaze a different path!

Violary

Mar 20th, 2009 at 2:51 pm

Is there a way to become a content writer for the site?

Free Online Textbooks

Mar 24th, 2009 at 4:34 am

Excellent article Ryan! For those of you who said we will never get over the punch-clock mentality, I disagree. While obviously as mentioned certain industries will be forever bound by punchclock restraints, we have to take into consideration the whole concept of outsourcing. There are outsourcing companies, Brickwork or YIM anyone?, that can complete just about any work-related or personal related task for you from thousands of miles away. Just something to think about in the scheme of things.

I recommend checking out The 4 Hour Work Week to see how just about ANY worker can use outsourcing to their advantage.

Nadia

Apr 3rd, 2009 at 11:25 am

I clicked on this blog to learn more about Generation Y -since they're entering the workforce and I need to hire them.

This blog reflects what I have experienced, much to my chagrin, and that is an abudant amount of arrogance on the part of Gen Y employees. Gen Y staff seem to think they know everything, that certain ideas and professional practices are banal and, most suprisingly, seem to have no qualms telling us their opinion on these matters -all the time.

As I write this I'm realizing it's probably not a Gen Y thing, it's probably an age thing. I may have been that obnoxious when I was a younger professional too. I really hope not but I suspect I was.

It's okay. Life and experience has a way of showing you that being arrogant gets you absolutely no where. Then, a rational person re-adjusts their approach. And then they stand a chance of getting somewhere and making a difference -and maybe changing some things.

RJ

Apr 3rd, 2009 at 4:22 pm

Nadia – I have been hiring, developing and dealing with Gen Y employees for a number of years now. Your comments about them suggesting our practices are banal, etc ring like music to my ears. However, I have to say, I've learnt to embrace their perspective by issuing them the challenge of improving those practices they don't like. And I have to say, this generation are innovative! The tech savvy among them churn out macros to make obsolete dull and risk prone manual procedures in days when my technology division has been incapable of doing so in years and if given guidance on risk management, they produce even more controlled work environments than we previously had. My advice is to exploit their talent when they first arrive and then mold them with gentle guidance and appropriate conditioning as they establish themselves more at your Firm. That's been and continues to be my approach and I have to say, now I've got to grips with them, things couldn't be better!

Elizabeth Pagano

Apr 21st, 2009 at 5:23 pm

And what a wonderful world it will be … you're right on. #10 – yes, we're seeing more and more reverse mentoring. There are even examples right now of Boomers who are doing unpaid "internships" (http://tiny.cc/y02VW). And if we as a collective workplace finally get over a "punch clock" mentality, then I have one more request: that sabbaticals become a regular part of a career trajectory. That we all experience a meaningful break from work – every 5-7 years. I think Gen Y is helping to make that a reality. Thanks, Ryan.

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