Just the Facts About Millennials

Research Bulletin | 2011
BERSIN & ASSOCIATES

November 17, 2011

Volume 6, Issue 58

Just the Facts about
Millennials (And How
Organizations Are
Supporting Them)
About the Author

According to popular media and sensationalist authors, the
generations are “colliding” and “crashing,” a scenario more akin to
a NASCAR race than a day at the office. The drama is perpetuated by
a real difference in perspectives, attitudes and behaviors of older and
younger workers. To wit – in 1965, a 20-year old Pete Townshend of
The Who lamented in his song, “My Generation,”
“People try to put us d-down, just because we get

Brenda Kowske, Ph.D.,
Senior Analyst

around. Things they do look awful c-c-cold, I hope
I die before I get old.”
Harsh words, but the lyrics have been sung by every generation since.
Another music group, Green Day, released an album cover in 2001
and Hillary Duff covered it in a 2004 song. Boomers, Gen-Xers1 and
Millennials2 alike – generations just cannot seem to understand each
other’s choices.

Introduction
As the diplomats of industry, HR is challenged to create a workplace
that is structured enough to get work done, but flexible enough
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to accommodate employees of various cultures and backgrounds,
genders, and ages – not to mention work and leadership styles,

1

“Generation-X” are those individuals who were born between 1961 and 1981.

2

“Millennials” (also known as “Generation-Y”) are those individuals who were born
between 1982 and 2003.

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KEY POINT
This research
bulletin cuts

education levels, and skills sets. HR’s job is even more complex when
it comes to generational differences; there are so many stereotypes to
sort through, that it is almost impossible to create programs and make
decisions based on fact.

through Millennial

This research bulletin reviews the facts – the published empirical

stereotypes and

research – to answer the question, “Just how different is the Millennial

reports facts found

generation?” Once we understand the Millennials, we can turn

in research.

our attention to how they are supported by HR and managed by
their bosses. This research bulletin reveals the gaps between what
Millennials need at work and current practices, giving clear direction
f
or improvement.

The Changing of the Guard
A generation’s identity is at the crosshairs of age and history. When
a major historical event occurs, like a world war, a breakthrough in
technology or a natural disaster, older and younger people experience
them differently. As we grow older, people’s ideas and perspectives
change with age – but this is not always based on their generation. For
example, younger people tend to have more angst and older people
are more conservative – but these differences are the same regardless of
generation. When we read reports of generational differences and the
stereotypes they imply, we are attempting to describe and understand
the identity of that generation3, not their perspectives due to their ages.
Societies are motivated to understand each new generation’s
identity because it will literally change the world. The ebb and
flow of generations change society through what has been called,
“demographic metabolism4.” As a new generation is socialized by older
people into their culture, the younger generation simultaneously brings
their own unique experience of the events occurring around them.

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3

Often, research labeled “generational” actually might be reporting age-related
differences in opinions or perspectives. Only time-series or longitudinal designs can
adequately statistically control for age by comparing the generations when they were the
same age. For this report, we have attempted to review the research with an emphasis on
true generational, not age-related, differences.

4

Source: “The cohort as a concept in the study of social change,” American Sociological
Review / N.B. Ryder, 1965.

Just the Facts about Millennials
Brenda Kowske | Page 2
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The new generation’s identity works as a change agent, counteracting
conservative societal forces, and reshapes culture, societal values,
politics and industry5,6.
As members of the young generation grow up, their perspectives and
values will undoubtedly bring about change – but what kind of change
KEY POINT
In the U.S.,
28 percent of
managerial
positions are

is uncertain. For example, the GI and Silent Generations (the parents of
the Boomers) had no idea that their children would make giant leaps
toward racial equality in the 1960s. In their youth, the Boomers took
to the streets and raised their voices; they touted that “separated but
equal” was not equal at all. After 60 years of brutal discrimination, they
brought a country together like never before.

already held by

Millennials, too, will have a chance to make their mark on history as

Millennials.

they rise to prominence in industry. By 20297, the U.S. workforce will
have waved “bye-bye” to the Baby Boomers (Boomers – ages 51 to 68
at press), leaving Generation-X (Gen-X – ages 30 to 50), the Millennials
(ages 8 to 29) and their successors at the helm of organizations.8 But
how will they lead?
Twenty-eight percent of managerial positions are already held by
Millennials, which is enough talent to succeed Boomers’ share of
leadership positions at 23 percent9; Gen-X comprises the remainder.10 In
other words, we have a pipeline full of Millennials on their way up the
ladder. Undoubtedly, Millennials have not ascended to the same level
5

Source: “The problem of generations,” Essays on the sociology of knowledge / K.
Mannheim, Routledge Kegan Paul Ltd., 1952.

6

Source: “The cohort as a concept in the study of social change,” American Sociological
Review / N.B. Ryder, 1965.

7

Source: U.S. Bureau of Labor Statistics, retrieved July 15, 2011, http://www.bls.gov/cps/
home.htm.

8

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Source: Generational age definitions from, Generations: The history of America’s future,
1584 to 2069, W. Strauss N. Howe, William Morrow Company, Inc., 1991.

9

Data reported from the Bureau of Labor Statistics’ Current Population Survey is
aggregated into age ranges that do not directly reflect the generational limits used in
this paper, but which are a close approximation. They are, in 2011, Millennials aged 16-34,
Gen-X aged 35-54, and Boomers aged 55 and older.

10

Source: U.S. Bureau of Labor Statistics, Current Populations Survey Q2’2011, retrieved on
September 15, 2011, http://www.bls.gov/cps/demographics.htm.



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of management as Gen-Xers or Boomers – yet. When they come of age,
Millennials’ unique characteristics will drive change and reshape the
workplace. Already ahead of the game, this research bulletin reveals
that HR and management have started to adapt.

What We Know Today about the Millennials
In our attempt to peer into the future of the workplace, we shine
a light on young employees today. By looking to empirical research
KEY POINT

(which has been conducted primarily in North America), we can describe
the youngest employees as a generation and answer the question,

With regard to

who are the Millennials, and how do they compare to Gen-Xers

the description of

a
nd Boomers?

Millennials, these

There are important caveats to consider when reading this research.

are educated
generalities

•

This research bulletin does not directly address how Millennials
are similar to older generations’ identities. However, we have

derived from

attempted to review all research on generational differences on

statistics, which

work-related traits and attitudes. If it is not here, we can assume

can only describe a

that they are similar to other generations or the perspective in

group and are not

question has yet to be tested.

meant to be cast
onto individuals.

•

That being said, many age-related differences may occur between
workforces; differences due to age are far more likely to be the
culprit of differences at work. The remaining conclusions should
be tempered – in general, academics studying generational
differences agree that differences between generations are rare and
o
ften small.11

•

With regard to the description of Millennials, it goes without saying
that these are educated generalities derived from statistics –
statistics can only describe a group and are not meant to be cast
onto individuals.

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Caveats aside, rigorous empirical research has found some unique Millennial
traits, which are recapped in Figure 1 and discussed in the following section.

11

Source: “Millennials at work: What we know and what we need to do (if anything),”
Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.



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KEY POINT
Statistics only
describe groups;
individual

According to this review, Millennials, as a generation, are as follows.
Individualistic and Confident
Figure 1: Unique Traits of Millennials – Based on Research
Millennials Are:

Millennial
employees might

Individualistic and confident

not share these
traits.

Starting adult life with less knowledge
Motivated, but more likely by offering “rewards”
Looking for balance
More satisfied with work
More likely to leave their company,
similar to young workers in every generation
Source: Bersin Associates, 2011.

Millennials had lower scores in altruism, coupled with higher narcissism,
assertiveness12, self-esteem13 and individualistic traits in general14. These
results contradict a commonly held stereotype that more Millennials are
socially focused and motivated by giving back to society. In actuality,
Millennials think they volunteer less than Boomers.15 The data concurs.
As a testament to the decline in altruism, the Corporation for National

12

Source: “Age and birth cohort differences in self-esteem: A cross-temporal metaanalysis,” Personality and Social Psychology Review / J.M. Twenge, and S.M. Campbell, 2001.

13

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Source: “Egos inflating over time: A cross-temporal meta-analysis of the Narcissistic
Personality Inventory,” Journal of Personality / J.M. Twenge, S. Konrath, J.D. Foster, W.K.
Campbell, and B.J. Bushman, 2008.

14

Source: “A review of the empirical evidence on generational differences in work
attitudes,” Journal of Management and Psychology / J.M. Twenge, 2010.

15

Source: “How young people view their lives, futures, and politics: A portrait of
“generation next,” The Pew Research Center, January 2007, http://pewsocialtrends.org/
files/2010/10/300.pdf.



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and Community Service16 reports a Millennial volunteer rate lower than
that of their older counterparts since data collection began in 2003 (see
Figure 217). This data suggests a trend toward a confident, albeit selfserving, talent pool.

Figure 2: Volunteerism Rates in the U.S. – By Year

40.0%

Percent of Generation Volunteering

35.0%

33.5%

33.2%

33.1%

30.4%
30.0%
26.9%
25.0%

25.9%

29.9%

29.4%

29.8%

29.2%

27.7%

27.4%

28.9%
26.5%

25.5%

26.6%

28.8%

21.5%

21.6%

21.2%

2008

2009

2010

27.6%

25.2%
21.7%

20.0%

20.5%

15.0%
2003

2004

2005

Millennials (aged youngest to 29)

2006

2007

Gen-X (aged 30 to 46)

Boomers (aged 47 to 65)


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16

Source: “Current Population Survey,” Corporation for National Community Service,
2010, retrieved September 16, 2011, www.volunteeringinamerica.gov.

17

Source: U.S. Bureau of Labor Statistics.



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Starting Adult Life with Less Knowledge
Standardized test scores of high-school students in the U.S. continue
to be at an all-time low18. This indicates that, at best, their knowledge
gap is closed in college (for those students who attend) or they lack the
knowledge crucial for responsibilities faced by adults, including their
contributions to the workforce.
Motivated, but More Likely by “Rewards”
Millennials’ motivation for achievement is seemingly alive and well.
Data shows that they are motivated to reach higher levels of education.
Despite a lack of preparation in secondary school, a higher percentage
of people than ever before are gaining bachelor’s degrees in American
universities (31 percent)19, twice the number of college graduates of the
youngest of the Baby Boomers.
When we review actual productivity at work, motivation continues to
shine. Even in high school, Millennials in the U.S. worked to the same
extent as Gen-Xers and Boomers.20 Once graduated, they work equally
long hours as older employees – longer hours than employees have ever
worked in the past.21 Even though research investigating the work ethic

18

Source: “Millennials at work: What we know and what we need to do (if anything),”
Journal of Business and Psychology / J.J. Deal, D.G. Altman, and S.G. Rogelberg, 2010.

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19

Source: “Millennials and the world of work: An economist’s perspective,” Journal of
Business and Psychology / A.R. Levenson, 2010.

20

Source: “Millennials and the world of work: Experiences in paid work during
adolescence,” Journal of Business and Psychology / J. Staff, and J.E. Schulenberg, 2010.

21

Source: “Generation and gender in the workplace,” American Business Collaboration /
Families and Work Institute, 2006, http://familiesandwork.org/site/research/reports/main.html.



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KEY POINT

of Millennials has had mixed results (i.e., contradicting findings22,23,24,25),
it seems as though motivation is an important part of their identity.

Millennials are

However, there are some signs that, although Millennials are putting the

more satisfied

hours in, the elements of work that motivate them may have changed.

at work as a

Some employees are motivated by an internal mechanism; they work by

generational trait,

the mantra “a job worth doing is worth doing well.” However, recent

but as young

research suggests that intrinsic, or self-motivated, work values have

employees before
them, are more

slightly declined for this group26. Yet there is no difference in the value
placed on external “rewards” like pay, recognition or status27,28.

likely to leave their

Looking for a Balance

organizations.

Speaking of work motivation, Millennials are motivated to achieve goals
in both their work and personal lives. Work is less central to their life
and their identity29; more younger workers today expect a meaningful
life outside of work.30

22

Source: “Generational differences in work ethic: an examination of measurement
equivalence across three cohorts,” Journal of Business and Psychology / J.P. Meriac, D.J.
Woehr, and C. Banister, 2010.

23

Source: “Generational differences in work values: Leisure and extrinsic values increasing,
social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M.
Campbell, B.R. Hoffman, and C.E. Lance, 2010.

24

Source: “Generational differences in soft knowledge situations: Status, need for
recognition, workplace commitment and idealism,” Knowledge and Process Management /
P. Busch, K. Venkitachalam, and D. Richards, 2008.

25

Source: “More similar than different: Millennials in the U.S. building trades,” Journal of
Business and Psychology / K. Real, A.D. Mitnick, and W.F. Maloney, 2010.

26

Source: “Generational differences in work values: Leisure and extrinsic values increasing,
social and intrinsic values decreasing,” Journal of Management / J.M. Twenge, S.M.
Campbell, B.R. Hoffman, and C.E. Lance, 2010.

27

Source: “Generation X and the public employee,” Public Personnel Management / C.L.
Jurkiewicz, 2000.

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28

Source: “Generational differences in work values, outcomes and person-organisation
fit,” Journal of Managerial Psychology / L. Cennamo, and D. Gardner, 2008.

29

Source: “Generational differences: Revisiting generational work values for the new
millennium,” Journal of Organizational Behavior / K.W. Smola, and C.D. Sutton, 2002.

30

Source: “New generation, great expectations: A field study of the millennial generation,”
Journal of Business and Psychology / E.S.W. Ng, L. Schweitzer, and S.T. Lyons, 2010.



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As a Generation, More Satisfied with Work
There is good news, too. American Millennials are more satisfied
with their work than are Gen-Xers and Boomers. Where statistically
significant (albeit small) differences exist, more are satisfied with
their jobs and companies, the recognition they receive, their career
development, and job security.31
As Younger Employees, More Likely to Leave Their Companies
Fewer Millennials are considering a job switch than did Gen-Xers –
when they were the same age.32 That being said, age matters. Today,
one-third of Millennials are seriously considering leaving their jobs, as
compared with 25 percent of Gen-Xers and 19 percent of Boomers.33

What Millennials Need from Organizations
KEY POINT
Confident,
individualistic

Unique workforce characteristics mean tailored programs and processes
from HR and management. Given Millennials’ traits, Figure 3 reviews
the programs that HR may want to consider strengthening in service
o
f Millennials.

Millennials can

The rugged individualism and confidence exuded by the Millennial

fuel innovation by

generation, coupled with their high levels of motivation, translate into

questioning the

programs that take advantage of their “I can do it” attitude. HR should

status quo.

look closely at its performance management system and processes.
Does it enable Millennials to forge new paths, relying on their own
competence in their drive toward success?
Strong performance management processes (such as setting SMART34
goals, providing regular, systemic feedback, and measuring performance
accurately) enable employees to know how they are performing

31

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Source: “Millennials’ (lack of) attitude problem: An empirical examination of
generational effects on work attitudes,” Journal of Business and Psychology / B.J. Kowske, R.
Rasch, and J. Wiley, 2010.

32

Ibid.

33

Source: Attitude? What attitude? The evidence behind the work attitudes of millennials,
Kenexa High Performance Institute / B.J. Kowske and R. Rasch, 2011.

34

“S.M.A.R.T.” stands for specific, measurable, achievable, relevant and time-bound.



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as individuals and take action accordingly – by their own volition.
Organizations can take advantage of individualism in another way;
harness the good ideas that come from not following the herd.
Innovation derived from independent thinking can be a significant
competitive advantage. Millennials are confident enough to speak up
when questioning the status quo. But often, collaboration is needed
to make ideas reality; an increased focus motivating this independent
group toward a balance between independent thought and
collaboration may be warranted.
Figure 3: What Millennials Need at Work
Millennials Are:

Millennials Need:

KEY POINT
• Strong performance management practices
and culture

Bersin Associates
Individualistic and confident

• Programs that foster innovation

research found
that the size

Starting adult life with less knowledge
of a company’s
employee

Motivated, but more likely by offering “rewards”
population
has significant
Looking for balance

• Effective development programs
• Recognition, such as pay-for-performance programs
that demonstrate “fairness”
• Targeted health and wellness programs

relationship
to the overall

As a generation, more satisfied with work
effectiveness of the
HR function.

As younger employees, more likely to leave
their companies

• Programs that capitalize on work satisfaction,
like the development of high potentials35 and
careers in general
• Effective employee engagement programs and
processes for recruiting, selecting and onboarding
new workers

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35

A “high-potential employee” is an employee who has been identified as having the
potential, ability and aspiration for successive leadership positions within the company.
Often, these employees are provided with focused development as part of a succession plan
and are referred to as “HiPos.”



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Less knowledge gained in high school for Millennials translates into
remedial development efforts on the part of their employers. Strong
development needs assessment practices, including an accurate
understanding of the knowledge, skills and abilities required by the
job, are essential. If confidence becomes overconfidence, Millennials
might be blind to their own development needs. Honest feedback
provides opportunities for accurate self-assessment – the first step in
any development journey. Catering to Millennials’ independent spirit,
HR should provide expanded venues for self-motivated learning. Finally,
coaching and development systems in general should be fortified
for organizations expecting a jump in hiring, perhaps due to a large
wave of retirements. Beyond Millennials’ need for knowledge as a
generation, these more inexperienced employees need additional
educational opportunities.
KEY POINT

This is a motivated group, but less so through intrinsic motivations, such
as fulfilling a personal value or being altruistic. This tendency would

Work-life balance

force external motivators, like rewards for goal achievement, to play a

will be an

larger role – and introduces an opportunity to implement or strengthen

important aspect
of the employment
agreement; many
Millennials will not

recognition and pay-for-performance programs. The same SMART
goals, along with more regular recognition and feedback previously
mentioned, offer a natural parlay into fair, transparent and earned
compensation. This group will be more open to setting pay expectations
based on the attainment of goals. But HR beware. Millennials’

sacrifice dreams in

individualism may mean that they are motivated to commit to goals of

their personal life

which the accomplishment is in their full control. Setting goals that rely

for the achievement

on others’ successes may act as a demotivator for this group.

of career goals.

This motivated workforce not only has its sights set on work, but also
on home, as well. Work-life balance will be an important aspect of
the employment agreement; many will not sacrifice dreams in their
personal life for the achievement of career goals. The organization will
need to demonstrate flexibility and provide arrangements so that both

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are possible.
Overall, the call to action should be tempered by the fact that
Millennials, as a generation, are more satisfied at work than are GenXers and Boomers. HR should be careful not to change what works!
This satisfaction can be harnessed through high-potential and career



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KEY POINT

development programs by developing satisfied employees into the
next generation of leaders and experts. This future-focus may help to

Do you have a

counteract Millennial flight.

high percentage of

As with generations before them, younger employees leave

Millennials in your

organizations at higher rates. Even with their more positive attitudes

workforce? Efficient

toward work, the motivation to leave pulls harder as they jockey for

and effective

their ideal career path. If organizations provide a clear view of their

recruiting, hiring

career paths and the rewards, leaders and HR can capitalize on their

and selection,
and onboarding
practices are

interest in external rewards like status and pay. Additionally, HR should
foster engagement, including through providing career opportunities.
Employee engagement anchors employees firmly within the company,
providing a force equal to tempting job offers.

compulsory.

High turnover also means higher volumes of applicants for open
positions – especially those for which Millennials are qualified. If a high
percentage of an organization’s workforce is comprised of Millennials,
efficient and effective recruiting, hiring and selection, and onboarding
practices are compulsory.

The Report Card: How HR and Line Managers Are
Supporting Millennials
When we turn to the Bersin Associates data collected in 2010, we
see that U.S. organizations have adopted some new approaches for
managing a largely young workforce, but other practices remain the
same regardless of workforce age. To find out the state of practice
in relation to the generations, we compared 550 HR practitioners’
and leaders’ ratings by those in organizations employing primarily
Millennial, Gen-X and Boomer workforces. We formed these groups
by their responses to the question, “How would you categorize your
workforce demographically?”36 Respondents placed their organizations
in the following workforce categories:
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36

Respondents could also choose “fairly evenly distributed among ages” and “heavy
concentration on mature and young workers, with a gap at the mid-career level.” But, since
this report seeks to isolate the practices tailored to workforces of certain age groups, these
categories were omitted from the analyses.



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•

Mature – Heavily weighted toward Baby Boomers and older (born
1964 or earlier);

•

Middle – Heavily weighted toward Generation-X (born 1965 to
1980); and,

•

Young – Heavily weighted toward Generation-Y (born 1981
or later).

The size and demographic characteristics of each of these groups
were reflective of each generation’s age and background. While the
Boomer and Gen-X categories were roughly equal in respondent size
(n=232 and n=259, respectively), the Millennials’ category was smaller
(n=59). However, this comes as no surprise as only approximately onehalf of Millennials are currently old enough to be in the workforce.
Generations also work in different industries, a likely reflection of
educational opportunities and selection of careers in their youth.
According to our data, these Millennial and Gen-X workforces are
more likely to be in the banking and financial services, technology, and
business services industries. Boomer workforces are more likely in the
manufacturing, healthcare services and government sectors. Millennials
are also more likely to work in larger companies, defined as those with
50,000 employees or more. The results of this research are summarized
as follows.
HR Has Adjusted to Gen-X’s Needs, but Less So to That of the
KEY POINT
Is HR supporting
Millennials’
unique needs?
Maybe not if their
effectiveness is the
same, regardless
of the generation AVENUE
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they serve.
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Millennials
Our first set of analyses targeted HR performance to answer the
question, how have HR professionals adjusted their performance (as
measured through self-ratings of effectiveness) given the age of the
workforce they serve? Although similarities do exist, HR seems to have
responded to Gen-X’s workstyle, but is still forming practices to respond
to the emergence of the Millennials. In some cases, HR has adjusted to
Millennials much in the same way it serves Gen-X workforces. We see
evidence of these shifts in Figure 4 through the discrepancy between
Gen-X’s and Millennials’ workforce data when compared to that of
t
he Boomers.



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Similarities in Supporting the Generations – There are only two areas in
which HR effectiveness is similar across Millennial, Gen-X and Boomer
workforces – identifying critical knowledge, skills and abilities by role
and level, and promoting health and wellness. Ignoring the fact that
an average of only 32 percent of HR professionals rated themselves as
“world class” or “very effective” across our list of HR responsibilities,
we see that HR may want to improve its performance in specific ways to
adjust to the emerging Millennial workforce. The lack of differentiation
in HR effectiveness in defining critical knowledge, skills and abilities is
particularly concerning. Working with mature workforces, HR should be
particularly skilled in this area, given that one-quarter of the workforce
is retirement-bound within the next 15 years. Only 33 percent of
KEY POINT
HR falls short
in providing

respondents said that HR was “very effective” or “world class” in
t
his area.
Differences in Generational Support – We see evidence of HR
adaptation in response to the arrival of Millennials (see Figure 4). When

individualistic

serving a Millennial workforce, HR has raised its level of effectiveness

opportunities for

in areas related to hiring, development and performance management.

self-learning for

These adjustments in HR’s performance match Millennials’ need for

Millennials.

learning, their individualistic nature and their intentions to leave
t
heir companies.

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Figure 4: Differences in HR

57%

Attracting, sourcing, selecting and hiring

54%

42%

42%

Rapidly and effectively onboarding

45%

29%

39%

Allocating high performers' compensation fairly

41%

34%

34%

Promoting a highly engaged workforce

40%

28%

33%

Motivating a high-performance culture

35%

19%

33%

Distinguishing key talent segments

29%

39%

33%

Encouraging innovation and collaboration

42%

30%

29%

Identifying and developing future leaders

24%

25%

Enabling a strong self-learning culture

24%
0%

10%

20%

30%

33%

36%
40%

50%

60%

Percent Rating Very Effective or World Class
Young (Millennial) Workforce
Middle (Gen-X) Workforce
Mature (Boomer) Workforce


There are some areas in which HR is falling short. HR may be
attempting to mitigate Millennials’ higher turnover rates by improving
engagement strategies when compared to organizations employing
mature workforces. Thirty-four percent of HR serving Millennials rated
themselves as highly effective. However, engagement efforts are most
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effective when managing Gen-X workforces (40 percent) – a surprising
gap, given the propensity of Millennials to leave. When it comes to
Millennials’ education, fewer HR respondents reported that they were
effective in identifying participants for development, specifically, their
key talent pool (33 percent). A missed opportunity lies in the lack
of effectiveness in providing self-learning (25 percent), an attractive
development tool for this independent workforce.


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Managers of Millennial Workforces Attract Top Talent and Support
Engagement – Like HR, managers have catered to Gen-X, but seem to
not have adapted as adeptly to Millennial workforces. According to HR
respondents’ ratings of line managers’ competence on a four-point scale
of “poor,” “fair,” “above average” and “world class,” there is quite a
bit of room for improvement.
Similarities in Managing the Generations – When HR rated line
managers’ competence, they reported that five skills demonstrated no
differentiation between workforce ages, indicating a lack of focus on
each generation’s unique needs.
According to HR, line managers showed similar skill levels in assessing
and selecting the right candidate – a problem when Millennials are
more mobile than Gen-X and Boomers and, therefore, interview at
higher rates. They also set goals and objectives with equal competence;
regardless of generation, younger workers will need more direction
as they learn how to be effective at work. Managers’ scores in “giving
people honest feedback” were equal across workforces, which might
fall short of Millennials’ learning needs. When it comes to motivation
on the job, not only will goals give them clear direction, but linking
fair compensation to goal achievement has the potential to have
more impact with this group. With their increased focus on personal
and work-life balance, the fact that managers managing Millennials
do not surpass Gen-X workforces in promoting health and wellness is
troublesome, and may play a role in Millennial retention.
Differences in Managerial Competencies – As in HR effectiveness, we
KEY POINT
More HR groups
and managers
should encourage
innovation – a
critical misstep
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see that more line managers are competent if managing Gen-X versus
Boomer workforces (see Figure 5). More managers are attracting
top talent proficiently (42 percent of organizations’ managers) than
managers supporting mature workforces (29 percent). In the area
of performance management, they are developing both a highperformance culture (29 percent) and engagement (37 percent) at the
same level of competence as managers of Gen-X workforces. Managers
of Millennials have further honed their skills in managing performance
problems (36 percent), as well as coaching and developing their people
(32 percent) – a trend perhaps indicative of managing younger, less
experienced workers.



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Figure 5: Differences in Managerial Competencies

Attracting top talent

39%

29%

Developing high levels of engagement

35%

25%

Managing performance problems
Encouraging innovation and collaboration

33%

27%

Coaching and developing people
Onboarding new staff

31%

25%

Developing a high-performance culture

29%

16%

Identifying and developing leaders
5%

10%

15%

35%

32%

22%

22%

16%
0%

41%

32%

19%

9%

37%

36%

30%

19%

42%

20%

25%

30%

35%

40%

45%

Percent Rating Favorably
Young (Millennial) Workforce

Middle (Gen-X) Workforce

Mature (Boomer) Workforce


KEY POINT
Given their
concentration
in technology
industries, taking
advantage of

However, those managing Millennials seem to still be adjusting in
the areas on onboarding (31 percent), and encouraging innovation
and collaboration (33 percent). As more Millennials are hired, more
onboarding is needed – a critical activity when tasked with making
this more mobile workforce productive as quickly as possible. Given
their concentration in technology industries, taking advantage of the
free-thinking Millennials and fostering innovation may be a critical

the free-thinking

competitive advantage.

Millennials

Figure 6 references results from Figures 1 and 2 to provide a “report

and fostering
innovation may
be a critical
competitive

card” for HR and managers in their attempts to adapt to the unique
characteristics of Millennials. This report card shows that HR and
managers are responding to the Millennials’ unique needs, but there is
also room for improvement.

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Figure 6: HR’s Effectiveness and Managerial Competence in Delivering What Millennials Need
Millennials Are:

HR Can Support
Millennials with:

HR Report
Card

Line Managers Should
Manage by:
Developing a highperformance culture

Individualistic and
confident

Motivation for highperformance culture

C

Setting goals and objectives

=

C
D

D

Encouraging innovation and
collaboration

A strong self-learning
culture

D

Giving honest feedback

Identification of critical job
knowledge, skills, abilities

Motivated, but
more likely by
offering “rewards”

Fair rewards for high
performance

Looking for
balance

Health and wellness
promotion
Programs that identify and
develop future leaders

As a generation,
more satisfied
with work

C

Managing performance
problems
Encouragement of
innovation and collaboration

Starting adult
life with less
knowledge

Manager
Report Card

Identification of key talent
segments
Career development
processes
Support for engagement

Effective hiring and selection
As younger
programs
employees, more
likely to ASSOCIATES, LLC onboarding
leave their Effective
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companies
programs

=

Coaching and developing

=

C

C

Implementing fair and
effective compensation
plans

=

=

Supporting health and
wellness

=

D
D
C
D
C
C

Identifying and developing
future leaders

C

Promoting engagement

C

Assessing and selecting
applicants effectively

=

Onboarding effectively

D
C

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D means fewer organizations are proficient in this aspect of work when Millennials workforces are compared with Gen-X.
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Conclusion
A N A LY S I S

This research bulletin has summarized the Millennial generation (at
least what we know to-date, based on real research and empirical

Companies will

data), and has matched their unique characteristics to reports of HR

need to develop

and line-manager proficiency. We see some differences in the youngest

the skills of
Millennials to
close the gap

of generations’ characteristics and, therefore, it would behoove
HR to improve their skills and those of line managers, accordingly.
As previously stated, the general scientific consensus is that true
generational (as opposed to age-related) differences are rare and small;

left by secondary

consequently, organizations should weigh investment in justifying

education,

practices, processes and skills with generational characteristics. However,

especially through

and especially for those organizations facing a major demographic

self-learning

change as their mature workforces retire, this research suggests

resources and

developing the organization in the following areas:

opportunities.

•

Becoming adept at recruiting, hiring and onboarding to compensate
for younger employees’ higher turnover rates, particularly in the
area of managerial onboarding skills;

•

Developing the Millennials’ skills to close the gap left by
secondary education, especially through self-learning resources
a
nd opportunities;

•

Supporting innovation and collaboration, and finding the balance
between fresh (sometimes irreverent) ideas and working with a
team to make ideas reality;

•

Providing acknowledgment for achievements through pay-forperformance practices and other types of recognition to ensure that
Millennials are motivated to perform; and,

•

Strengthening HR’s effectiveness in promoting employee
engagement to counteract Millennial flight.

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As generations continue their march through time, the societal
shifts they drive are mimicked in industry, forcing leaders and HR to
adapt. However, as with any change, organizations that adapt more
quickly can take advantage of the competitive edge which a new
generation brings. The information explained in this report enables
organizations to take empirical insights, and adjust their policies and
actions accordingly. Implemented correctly, organizations should be
able to adapt quickly to effectively support and manage Millennials – a
leverage point for business success in the future.

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Membership Program
This document is part of the Bersin Associates Research Library. Our
research is provided exclusively to organizational members of the Bersin
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