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 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/.

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.

A Generational Leadership Vacuum?

Recently I co-presented at an event with a Dean of a Liberal Arts program on how colleges and universities are teaching students differently today and the impact that has on companies regarding development, training and work performance.  Keep in mind, for the most part, when we discuss traditional college students we are talking about the Millennial generation (born 1980 to 2000). 

But what our presentation was about is not nearly as important as the question I was asked by another academia at the end of the program.  The question was about the leadership vacuum being created within the Millennial generation.  Specifically the attendee wanted to know my thoughts on how the Millennial generation would lead one day and if we have a generation that will not be able to lead well. 

I’m not exactly sure how I answered because to be honest I think the question may be premature.  Isn’t it natural for an older generation to wonder and question – out loud – if the generation younger than them will be able to take their place one day?  When Generation X entered the workforce didn’t the Baby Boomers and Traditionalist question if we would have the work ethic to show up on time, day in and day out (remember they did call us ‘slackers’).  Now the Xers can’t wait for the Baby Boomers to hurry up and get out of the way so it can finally be their time to be in charge. 

And when in your 20s don’t you naturally make mistakes when it comes to leading or even working with your co-workers, typically your peers, and begin to develop your leadership style in the early part of your career?  Is there an expectation being set today that the Millennials should be able to graduate one day and shortly after assume the helm of a team, project or division and be successful at it?

When we discuss a leadership vacuum, is there really one?  If you look around your company how many people do you think would like to move into a leadership role? Could you make an accurate assessment that is not solely based on your subjective opinion?  And of those ready for a leadership role which ones have been trained, coached, mentored and held accountable for developing their leadership skills?  How many have received accurate and timely feedback on their behaviors and abilities?    

How many Millennials are receiving this kind of training and development now?  If you want them to lead for some future “tomorrow” don’t you need to invest in them now?

Paying for Good Grades.. Future Work Implications & How Bad is it Really?

June 1, 2010:  I’m usually a few weeks (or months) late catching up on all the magazines that are delivered.  So as I was catching up on a past issue of Time magazine  the cover article (“Should Schools Bribe Kids?”) from the April 19, 2010 edition caught my attention.  The article on page 40 titled “Is Cash the Answers?” is about a Harvard professor and scientist who conducted an experiment in four cities testing the validity of using financial incentives in the classroom to motivate children to do better. 

Reading the article brought back the memory of being paid for good grades by my parents.  Oh how we loved report card day!  During my high school years (and my brother’s) my parents paid us $20 for an “A” and $10 for a “B”.  No money was paid for a “C” or lower because a “C” was not acceptable in our house.  As I read the article it hit me that I had never asked my parents why they paid us. 

So I called my dad and asked him about the decision to pay for grades and he said, “Your mother and I paid you because we felt that getting good grades was your job and it was what you were supposed to be focused on.  Remember, we discontinued the allowance with the grade payment.” (Side note – I never remember getting an allowance.)  But my parents didn’t pay for grades in college so I asked why the payments stopped thinking his answer would be that because they were paying for college.  But no, his answer was “we figured you were old enough to figure out how important grades are in college and if you couldn’t figure that out then you shouldn’t be going to college.”  He added, “We actually felt this way your senior year in high school too but decided to pay anyway.”  [For those wondering if grade payment worked my brother and I never made “C’s” and for me - I graduated high school with a small academic scholarship and graduated USC with honors.  That would be the real USC – University of South Carolina.]

At the crux of the argument for or against paying for grades (or paying to show up on time, get perfect attendance, attain a certain score on SAT, etc) is that people should derive instrintic pleasure from the task itself, not the reward that follows according to University of Rochester’s Edward Deci.  He believes that money does not work well to motivate over the long term and people work harder and perform better if they actually enjoy the work, not just the reward.  But as Amanda Ripley, the article author, states “most adults work primarily for money and in a curious way, we seem to be holding kids to a higher standard than we hold ourselves.”

Now I do agree that to truly do what you do well you need to enjoy it on some level and should feel the company you work for values and appreciates your contribution. 

But is incentivizing a sales team with a luxury trip for exceeding sales goals or the potential for an employee to receive a bonus or promotion for exceeding expectations (and in some cases just meeting them) really any different than kids being paid to make good grades?  If adults are motivated to give more at work by the allure of the dangling carrot, why would we expect kids to be any different?  It seems to be a beneficial win-win for all involved.  The company gets better performance, the employees feels recognized for their performance and the kids learn the value of cause and effect – good grades = cold, hard cash.  Through this model we are also conditioning kids to strive to do better after school when they join the workforce, but I guess that means companies will need to keep rewarding with incentives.  I’m thinking this may resonate well with employees and future employees everywhere.   

What do you think?  Please share your comments.