Did the PwC Chairman read my Accounting Today article?

In October of last year I published an article in Accounting Today magazine titled “Managing the Millennials…Firms must deal with their changing expectations.”  In the article I discuss how accounting firms are finding themselves stuck between the way the business has been run for decades and the changing expectations of Millennials as they consider their long-range career track. I made the argument that :

“Accountants and auditors are valued precisely because of their deep knowledge and expertise, so radically altering the business model is unrealistic. Yet the looming demand for accounting services and the shrinking talent pool give urgency to finding ways to accommodate the expectations of young workers.” 

Millennials want to develop their skills, be challenged and not pigeonholed into one job or function for the rest of their career (sound familiar?).  Cross-training is considered a valuable growth opportunity as Millennials develop skills that give them mobility. In the article I urge accounting firms to start the conversation now on how to better grow and develop this need in their young talent. 

Well is seems the PricewaterhouseCoopers Chairman Dennis Nally may have read my article.  In a recent issue of The Wall Street Journal, when asked what is the biggest challenge for companies when trying to recruit talented staff, Nally responded with:

“This millennial generation is not just looking for a job, they’re not just looking for salary and financial benefits, they’re looking for skill development, they’re looking for mobility, they’re looking for opportunities to acquire different skills and to move quickly from one part of an organization to another. How you manage that sort of talent and how you deal with their expectations is very different from what’s been done in the past.” (July 11, 2011, “PwC Chairman Aims to Keep Millennials Happy”)

Mr. Nally – I couldn’t agree more and if my article helped you formulate your people strategy I am pleased it was of use to you. To other companies, not just accounting firms, it is time to understand how the needs of the Millennials regarding career growth and future expectations are changing your workplace and workforce. 

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*Please note – SBR Consulting, LLC is becoming Randall Research… Data-driven solutions for people-driven companies™.  Our services have not changed but our new name better reflects our core mission of using data to drive employee engagement and productivity.  Our new website will be www.randallresearch.com. *

A University Recruiting Perspective on Millennials and the Recession

Our expert series continues with a conversation with Lisa Simmons who is the assistant director of recruiting for the Schools of Business at Wake Forest University.  Our research uncovered interesting findings on the value of education and degrees and Lisa provides insight from her perspective of working within higher education.  Enjoy!

Q: As the Assistant Director, Recruiting for the Wake Forest Schools of Business, what were your initial reactions to the findings in the white paper? 

A: Actually, several points really struck a chord with me.

• Distrust of “big business“ – Millennials hold out a larger and more holistic ideal for companies than the profit motive.  Their model business is engaged in sustainability, diversity, and is giving back to the community. By and large, they are people and not profit focused.  They believe in “doing good” and expect to be treated as a human being and not a commodity by their employers.  
• Dissatisfaction with current employment – Your findings about Millennials actually reflect that of the larger American workforce.  So, while this was no surprise, it did reinforce the belief that college students need careful career exploration and a career plan.  
• Doubt about cost versus value of college education – This has been in the news a lot lately.  Parents, students, and even various pundits have been discussing the issue.  There is no doubt that college can be an expensive endeavor.  Yet, without a degree, it is difficult for young adults to find work and then to grow.  That’s not to say that it cannot happen; only that it is very rare. It is just very difficult to get a foot in the door of a company without the requisite education.  

Q: From your perspective, what are some best practices employed by Wake Forest University Schools of Business in preparing students for the “real world?”

A:

• Focus on lifetime career management – Our career staff provides students with the necessary tools to manage their career and job search, not just while in college, but for a lifetime.
• For-credit career education – Career education is a mandatory part of the curriculum.  While academics are of supreme importance, the student’s ultimate success will be measured by employment.
• Four P’s Program – The career coaching staff trains students in the Four P’s of Purpose, Passion, Preparation, and Performance, which is a solid foundation for career contentment and achievement.
• Dedicated Employer Relations – Having a dedicated staff allows full-time pursuit and development of employer relationships.  Some models I have seen place the responsibility for employer relations on the career coaching staff.  That leaves less time for specialization in either area. 
• Mentorship Program – Career staff carefully pair corporate volunteers with students to provide a more rounded real-world experience.
• Supportive administration – Our administrators understand the importance of student success in our own success as a school.  They supported the building of a career staff that could meet the needs of students.  Wake Forest Schools of Business was featured in a June 10, 2011 Inside Higher Ed article entitled MBA in Job-Hunting?

Q: Do you find that students ask different questions than students did 5 or 10 years ago regarding the ROI on their college education investment?

A: It’s my opinion that the value of a college education has not changed but the perception of its value has in the weak job market.  A college education has been understood to be the usual gateway to the “American Dream.”  It is a door opener and a box that must be checked for many jobs. While it is still true that a college degree is a necessary step on the path to a career, given the state of the job market, some students (and even parents) may have begun to doubt. 

The competition for jobs is high.  Job seekers not only need a degree for many jobs, but also must be competitive in job seeking. It’s like the adage, “I don’t have to outrun the bear, I just have to outrun you.”  Thus, job seekers need to outpace the competition.  The resume, elevator speech, and interview skills must be polished.  The candidate needs to be able to relay his or her value to the employer.  In addition, the candidate should be able to demonstrate knowledge of the company, industry, and competition.  That is why university career services offices are crucial to student success.  

Q: As mentioned in the white paper, there have been numerous recently released statistics regarding people looking to make a move and my research showed 70% of Millennials were considering the possibility of changing jobs.  As someone on the ground floor working with the Millennial generation, what is your reaction to these type of statistics?

A: I think there may be a few factors at play here.  First, as students step out into the world for the first time, they may learn that things are not quite as they once imagined.  Reality may shake apart previously held idealistic views when they finally get on the job.  Perhaps the job that they thought they wanted no longer seems to be a good fit, or maybe the industry in which they are working is no longer desirable.  Of course, the current economic conditions are not facilitating employee satisfaction by and large.  The temptation for employers is to try to do more with less, and this usually falls on the shoulders of the employees via increased workload, light to non-existent raises, few promotion opportunities, and benefit cuts.  There may even be inadequate funds for professional development and other needs / programs.

Another reason that Millennials might be unhappy is that they did not receive enough career assistance while in college.  Either their school did not stress career management or students never believed it to be necessary.  They may have taken the first job offered rather than having set and pursued a goal throughout college, culminating in a close approximation to their dream job.  How many undergrad students become engaged with career services when they are freshman or sophomores versus the last semester of their senior year when graduation is knocking on the door?  How many graduate students ignore the career resources at their disposal? The temptation may be to pursue the academics and let the career development take care of itself.  Unfortunately, that strategy works best at or near full employment and not during a recession. 

Wake Forest is concentrating on the development of the whole person since the launch of the Office of Personal & Career Development. Likewise, the Wake Forest Schools of Business, faculty and staff are very involved with students because our success is measured by their success.  Thus, shortly after orientation, our career staff begins to expose students to the work world through industry panels, company information sessions, company site visits and trips, practical learning opportunities and other career education opportunities.  In addition, they assist students in putting together a plan and a brand and provide a mentor.  This leads to more informed career decisions that are likely to boost eventual job satisfaction. 

Thank you Lisa for your time!

The Employee Experience…Not Just For Millennials

Our expert series continues as we look deeper at the survey results released in the Millennial Generation Today: Impact of economic environment on recruitment, retention and engagement white paper.  We are speaking with Bob Dean who is the Director of the North American business for Profiling Online, a global talent management solutions company. Bob has served as a senior executive for learning and talent management for Ernst & Young, Grant Thornton and Heidrick & Struggles. In 2006, he became one of the first ten people in the world to be certified in the models and frameworks of the The Experience Economy.  Bob uses this certification to design, develop, and deliver transformational customer and employee experiences for his clients.

Q: What are your initial thoughts on the survey results?

A: The survey covered information that is relevant today.  When you consider the financial meltdown and all that has happened in our country, and the world, information or articles on one generation from three years ago may not necessarily be as relevant today.

Q: Where or why have companies lost their way in engaging employee over the last few years?

A: Many corporate cultures have failed to adapt in the last 10 years.  Companies need to get back to their core values and what they stand for.  Companies should consider what culture they currently have and if it is the type of culture they need to sustain their businesses.  If it is a sustainable culture then the communication with employees has to change and have substance.  Communication has changed dramatically and communicating with employees is more than just an intranet or Facebook page.

Companies, especially large ones, have historically thought anything they needed to know as an organization they could find by tapping into their employees, their inside collective knowledge.  When they needed to know something they went to their employee source.  But what happens to companies when a large number of the employees leave through a layoff?  That company’s collective knowledge is now out in the market place.  And the marketplace now mirrors what the company once was in terms of knowledge. 

A company is either a closed culture or an open culture and those that are closed have lost their way and are not quick to understand the value of talent and tapping into collective knowledge. 

Q: Explain the employee experience concept?

A: Millions and billions of dollars is spent on corporate learning and development.  If you assess the retention and application of what’s covered in training sessions – it is maybe 20%.  So, much of the training has become a “check the box” activity.  Companies, spending that kind of money, need to get more out of their investment, should want to get more out of their investment.  The idea of the employee experience is to design learning experiences that deliver and make an impact.  Think about getting coffee at Starbucks versus your home.  It is the personal experience that differentiates what you remember and apply (in this case choosing to return to Starbucks).  The employee experience was adapted from The Experience Economywritten by Joe Pine and Jim Gilmore in 1999.  I was certified in this book in 2006.  The concept started with differentiating the customer experience through customization and has been adapted for the employee experience. You can learn more at www.strategichorizons.com.

Thank you Bob for your time and expertise.  I appreciate you sharing your knowledge with our readers.

Looking Deeper at Social Entrepreneurship: Here to Stay or a Fad?

We are enjoying our expert interview series as we dive deeper into our “The Millennial Generation Today” research results.  We have spoken with a financial expert for graduates, CEO of a staffing and recruiting agency, CEO of a national Millennial-led organization and we continue our blog series today with Christopher Gergen, a visiting lecturer and adjunct faculty member of the Hart Leadership Program at Duke University’s Terry Sanford School of Public Policy.  Our discussion continues with social entrepreneurship.

So let’s start with some food for thought…what does it mean for companies today – your company – that a majority of Millennials want to work for a company that does well by doing good?  According to our research 66% of Millennials believe it is important to work for a company that embraces and supports social responsibility and 69% want to work for a company that does well by doing good.  What does this mean for your company?

Q: So is social entrepreneurship here to stay or just a fad?  

A: I teach an undergrad class at Duke called “Leading as a Social Entrepreneur.”  I will be teaching it for the second time this coming fall and we already have 40 students on the wait list; this class fills fast.  Students are interested in taking these kinds of classes because they have a significant appetite for learning about opportunities that align with their values.  Consider the largest student group at Fuqua (Duke’s School of Business) is Net Impact.  Duke’s Net Impact mission states: 

As business school students, we believe our greatest benefit to future employers is not only increasing their bottom line, but doing so while creating a sustainable world. We believe sustainability will continue to emerge as a value creation opportunity for businesses in the 21st century.

There are Net Impact chapters at business schools all across the country and there are others opportunities for students to get involved including the Social Enterprise Conference at Harvard which is the largest student led conference, and the growing number of Changemaker campuses. 

Q: Our research shows that while it is important for Millennials to work for companies which embrace social responsibility there is a disconnect with Millennials being skeptical of companies and their corporate social responsibility (CSR) plans.  What are your thoughts?

A: I think this reflects a broader trend of growing corporate skepticism.  Companies claim they are green but in reality they are not, their statements are superficial.  There is a move toward a more authentic direction.  Standards are being created to define what social responsibility really means.  Through the B Lab a validation process certifies companies a B Corporations.  And companies that are authentic in their drive for the triple bottom line attract better talent, have a more loyal customer base, and attract a different kind of investor, an “impact investor” looking to make a difference. 

Q:  Our research found only 9% want to start their own company in the next five years but 46% do want to work for themselves.  What are your thoughts on these findings? 

A:  Millennials, like most of us, want control of their own destiny.  They want to live an intentional life that has a purposeful path.  They are seeking to work with smart, passionate people and want to be constantly challenged.  We all want these things but in this generation I see it more pronounced.  They want to pursue a path that keeps with their values.  In the classes I teach there is an entrepreneurial mindset. But it also depends on how you define “entrepreneur.”  There are different shades of entrepreneur – consider the free agent versus a scaled entrepreneur. 

Thank you Christopher for your time and providing great insight on social entrepreneurship and what it means to the Millennial generation. 

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The Growing Debt Load…A Millennial Dilemma

As our guest expert series continues today as we talk with Maya Enista, CEO of mobilize.org.  Mobilize.org is a national Millennial-led organization with the mission to improve the way democracy works by investing in Millennial-driven solutions.  Mobilize.org is no stranger to the rising costs of higher education and one of the first organizations to introduce me to the rising debt load of graduating college students.  To be honest, I am one of the fortunate ones whose parents paid for my education and as a young parent I wonder how we will provide the same blessing to our kids.  Read on for my discussion with Maya and her thoughts and reactions to our recently released white paper – The Millennial Generation Today.    

Q: Our research mirrors your organization’s research in regard to the average debt load of graduating college students being in the $20,000 to $22,000 range.  How does the debt load differ from previous generations and what is the impact on the Millennials?  

A: Comparing the Millennial debt burden and that of past generation’s is like comparing apples and oranges, due in large part to external factors such as an increase in cost of living and increased education costs. Millennials are facing unique challenges in terms of their debt, and it’s important to note that while there are always exceptions to the rule, Millennials are not in debt because they own too many clothes, or are addicted to Starbucks. Millennials are in debt because of the skyrocketing costs of higher education (tuition, housing, books, etc.) and the costs associated with healthcare. It’s important that we don’t paint this generation with a careless, apathetic brush, but instead – as hard working young people who are making important choices for their future, and dealing with the consequences, both positive and negative. At Mobilize.org, our work focuses on empowering and investing in Millennials to address critical social problems, and I am happy to report that this is a generation (my generation!) that is above all else, resilient, collaborative and entrepreneurial and I am certain that the challenges that are faced (financial, employment, etc.) will be overcome.

Q: Our research found 61% of graduates graduated with some debt?  Within your work with the Millennial generation do you find this statistic high, on average or low? What are your thoughts on this statistic?

A: I’m surprised that you found that only 61% of Millennials graduated with some debt. With 77% of 4-year college students and 42.5% of community college students applying for financial aid, it is a rare scenario for Millennials today to complete their post-secondary education without some financial assistance, and for many, loans are the best option. I encourage Millennials to look into the resources that their schools (and their states) offer, and maximize the dollars available for their education. If you’re applying for college, considering applying for college, etc. please check out information on the FAFSA (http://www.fafsa.ed.gov/) and find out more information about the loans, and scholarships that you may be eligible for. Today, more than ever, the United States is a heavily focused on skills-based service oriented jobs. By 2018 our economy will create 46.8 million job openings, according to the Center on Education and Workforce. Nearly two-thirds of these 46.8 million jobs will require workers with at least some college education. Mobilize.org believes that higher education is becoming less of an option and more of a serious path to financial stability. The debt is burdensome, the costs are prohibitive at times, but the education is priceless.

Q: The Millennials are projected to make up almost 50% of the workforce around 2016 – what are the biggest challenges they will face as they continue to grow their careers or start their careers?

A: As I was growing up, my mom always told me that if I was lucky enough to find a job that I loved, I’d never work a day in my life. She was right, and I was lucky to find Mobilize.org.  I have the privilege of working in a flexible, passionate, entrepreneurial organization and I hope all Millennials are lucky enough to find that job that allows them to never work a day in their lives. However, the tension between the entrepreneurial, flexible organization and company and those that are set in their ways, rigid and reluctant to change, present a tension for the creative and collaborative Millennials entering the work place.  It’s important here to also point out that Millennials aren’t a different species, and they will face many of the same challenges growing their careers as other generations did – questioning authority, balancing work and families, etc. Just as other generations (and each individual) have arrived at a balance that suited their own lives, Millennials will as well.

Q: Our research found that many Millennials are in limbo with almost half being in a job they did not want to be in.  Do you think this generation is underemployed? Looking in your crystal ball, do you think this is temporary or the new normal for young workers?

A: Millennials are young, early in their careers, and exploring their interests and passions. Our parents generation (Baby Boomers) had an average of 2 – 3 jobs over their lifetimes, and it’s said that Millennials will have an average of 15. The workplace is changing, as is the definition of a career and a meaningful contribution in society. I do think this dissatisfaction, or period of exploration, is temporary and I think it’s natural. Pair that with the economic depression, where Millennials (and everyone else) were hard pressed to find a job, much less one they loved, you have a unique set of circumstances that welcomed this generation into the workplace. This generation is certainly facing unique obstacles in their employment, which double digit unemployment numbers for the general population, spiking for minority Millennials. The focus, of the public sector, must be on creating jobs for this generation (and all generations) that take into account the new industries that are strengthening America’s economy.

Thank you Maya for taking time to share your thoughts.  You can check out the organization at http://www.mobilize.org/.

Expert Interview Series: Market Movement

Our expert series continues with a Q&A with Melissa McGuire, CEO and founder of Sherpa.  Sherpa is a Charlotte-based staffing, recruiting and consulting agency focused on the fields of accounting & finance, technology and project management.  You can find them online at www.sherpallc.com. 

Q: As mentioned in our white paper (The Millennial Generation Today: The economic environment impact to recruitment, retention and engagement), there have been numerous recently released statistics regarding people looking to make a move and our research showed 70% of Millennials were considering the possibility of changing jobs. What is your reaction to these type of statistics?

A: I believe the statistics. First of all, I believe a large percentage of all employees are considering changing jobs. Never before have I heard so many people express so much stress about their jobs. Most have worked harder than ever during the recession and have received fewer rewards: lower or no bonuses, less 401k matching, less job security, higher health care costs, etc. Additionally, because of fears of layoffs and pressure to produce results has lowered morale in many companies. I don’t track millennials because I don’t look at age when evaluating people, but those newer to the work force are likely to be disillusioned with their jobs and believe there are greener pastures. However, I do believe that most will find better times if they stay in their current jobs. But, the trust has been broken, so many will probably leave.

Q: Do you see movement of those currently employed starting to pick up or has it held steady throughout the recession?

A: I have seen people very reluctant to change jobs during the recession. Instead, they hung on to them, even if they didn’t like them. It is the increase in confidence in the economy that is creating the environment for job changing. There are more jobs to move to and there is a little less fear of being the “last one in” at a company, which is the fear that they could be the first one out if the company had layoffs.

Q: When your recruiters contact passive candidates (those currently employed) are they more willing to consider an opportunity you may be calling about than they were 2 or 3 years ago?

A: Definitely.

Thanks Melissa for taking the time to answers our questions.  We appreciate your insight and know the statistics have some of those responsible for retaining their current talent very nervous. 

As a reminder, the white paper is available for download at www.sbrconsult.com.

Planning for the Future – Guest Interview Re: New Millennial Research

For the next few weeks I will posting a question and answer format with experts in different fields to dive deeper into the results of my research.  We will discuss movement in the market, social entrepreneurship, high cost of education and more. 

For our first “Expert Conversation Series” we are talking with Shay Prosser.  Shay is the co-founder and lead trainer of Get It Together Today. Get It Together Today is a leader in independent financial and legal education. They offer workshops, trainings and mentoring to help all of us manage the business of life. Shay’s new book, authored with her business partner Hallie Hawkins, is now available at www.nowgetittogether.com.  The book is titled Get It Together: The Real-World Money Guide for Graduates.

Q: Our research shows only 41% of the Millennials make saving for retirement a priority? How does this strike you – better than you have seen in recent years or worse?

A: Your research seems to be in line with what I would expect, and frankly it is probably a greater percentage than the % of people in the average population that made saving a priority before the recession. The Millenials are seeing what is happening to older workers and have experienced layoffs firsthand, and as you state in your research, they have found out that it is not pretty. I think in recent years they have become even more aware of the need to take care of yourself and save for a both a rainy day and for the inevitable, getting older. Of course I would love to see an even higher number think saving for retirement, but given their current age and how far away retirement can seem 41% is pretty good. What is also encouraging is that they are looking more closely at benefits that companies offer. For many companies benefits are a place they can be competitive, and retirement is often a centerpiece of those benefits. By simply taking advantage of the opportunity to save some, hopefully with an employer match, a Millennial can get well on their way to financial security.

Q: Can you provide a few tips on how to prepare for retirement for those in their 20s?

A: The best tip I can give about preparing for not only retirement, but your financial life, is to educate yourself. Students are taught algebra and foreign languages in schools, but very often are not taught basic financial skills. Dealing with your own financial life is something everyone has to do throughout their life. So start out right by understanding the basics. Once they understand the basics they are in a far better place to make good financial decisions. From what we have seen with our older clients, many downfalls have been from simply not understanding what they were doing, the options or the possible consequences. Here are a few tips to get started:

1. Manage your credit, don’t take it for granted – build a good credit rating by understanding what good credit is and how to maintain it.

2. The why is just as important as the how much – know why you are making a decision, and what it will give you both tangibly and intangibly. Then make the decision. Your research on higher education is a great example of this – if you are going to go back to school, or attend a pricier school, calculate how much more you will make and compare that to the student loans or savings you will need to spend to get there. And ask yourself, is it worth it?

3. Make choices – sounds simple, but it is important. Decide what you want and make a plan to get there. And make retirement part of your plan. Financial security is something that will help you weather the next downturn, and allow you the opportunity to direct your own life.

4. Start saving now – no matter how little it may seem that you can save now, it can make a big difference. The longer your money has to grow, the more money you will have when you need it.

Q: What advice do you have for graduates struggling with paying back loans and balancing saving for retirement.

A: I would say, do three things at once – save for the short term, save for retirement, and pay off your loans. No one thing is more important than the other. You can pay down your debt and save for both the long and short term all at once. The best way to do this is to separate your money into “buckets” and create a goal and a monthly contribution amount for each bucket. Think in percentage of your income rather than dollars. For instance, if you are making $40,000 and can put away 20% toward debt and savings (which is ideal) you have about $7000 (after taxes) to put away. If you pay $250 toward student loans each month you will have $4000 to put toward short and long term savings, which I would split evenly until you have 6-9 months of living expenses in your short term saving.

And of course there is more on all of this in our book Get It Together: The Real-World Money Guide for Graduates. Check it out on www.nowgetittogether.com

Thanks Shay for taking the time to comment on our research and provide practical advice for Millennials navigating the world of work and life!

Up next for our blog – we talk to the CEO of a staffing, recruiting and consulting agency on the movement in the market. Look for that post by the end of this week. Remember you can download The Millennial Generation Today white paper from www.sbrconsult.com. Click on the research tab.