HIRING AND RETAINING GEN X, Y AND M EMPLOYEES

I recently wrote an article about marketing to those younger customers that we all covet. In fact, we do have some mixed feelings about them, since they are not deposit rich, we all know they are essential to our banks' future growth . Gen X, Y and Millenials are also indispensable in our work forces. They are our tellers, retail bankers, note clerks. We still use the same recruitment and retention tools we use for older employees, but we also know they are not as effective (try talking to a Millenial about your retirement benefits and see their eyes glaze over). Given the crucial role these employees play in your workforce today and tomorrow, and their inevitable link to your younger target customers, below are some thoughts on how to recruit and retain the "younger generations".

One caveat before we start: don't project from your own experience expectations for these new employees. They will work hard for you, but they are NOT you. Each generation is different, and they are certainly no exception. Don't begrudge them the reluctance to walk in the snow uphill both ways to work; their frequent job changes and apparent lack of loyalty; their expectations for a better work/life balance; their expectations for promotion despite short tenure in the job. They are indeed different, but, with some flexibility, will create much value for your shareholders for years to come.

Consider their background:

• Helicopter parents. They have parents that have been hovering for years, taking often an intrusive role in their lives well beyond childhood, putting the kids in the center of their universe and organizing everything from play dates and chauffeuring duties to intervening with teachers and professors. No wonder they think they are indispensable to the world at large!
• Strong self confidence. The support and affirmation they received, especially Millenials, from both home and schools, have given this generation self assurance bordering on arrogance. Their upbringing causes them to expect to be successful and immediately respected.
• Better life balance expectations. These employees have seen their parents toil long hours to the point of frustration and often divorce. They want a better balance in their life, and will be loyal to an organization that facilitates that, hence expectations for flexible work schedule and location.
• Schedule and structure rule. These kids were raised on four activities a day and tight schedules. They like the structure and expect it in the work environment as well. In many, this expresses itself in a need for more frequent and positive affirmation.
• Pressure to succeed. Along with the support they receive, these younger people have been expected to succeed along all fronts from near-infancy. Consequently, they often bite more than they can chew.

Implications for the workplace are many:

• Don't just love them; adore them. Gen X, Y and M (Millenials) grew on limitless, over-doting parental love. They therefore expect adoration and frequent positive feedback well beyond what older managers are accustomed to. Their role model was dramatically different ("No news is good news"). That approach just won't cut it with the younger generations. They need, and thrive on, frequent feedback. It is essential to their personal happiness and retention. It is also extremely challenging (and alien) for their managers.
• Promote early and often. In conjunction with the adoration aspect, positive feedback includes promotions. These employees expect to be promoted often, within months or their last promotion, not years. The implications are profound. For one, broad-band salary grades don't work for those who need frequent promotions. Instead, grade splintering is a better approach to attract and retain younger generations.
• Incentives need to be modernized. Incentives are another feedback mechanism they thrive on. Our incentive systems are minimal for low level employees, yet these younger people often start as the lowest on the totem pole. Modernizing their incentives to put much more of their pay at risk (north of 25% of base, which means sometimes lower base) is a welcome step by many X,Y, M members.
• Culture shock. Given the child rearing experience of these young people, many find it startling to be doubted, questioned, rebuffed. Managers need to learn how to communicate with these employees effectively. They can be motivated and become loyal employees, or switch jobs quickly if they don't like their manager. The stigma associated with job hopping doesn't exist among them.
• The "greening" of our employees. Gen X, Y, M members like to do good as they do well. Adding that dimension to their work brings content and satisfaction to their job. They want to make a positive difference in the world, and banking can be a great profession to achieve these aspirations, if properly managed and packaged.

The greatest challenge you face is teaching your managers to accept and nurture these young prima donnas. Many of our managers lack effective management skills in the first place, and younger employees present an even greater challenge than the typical employee. Using your own X, Y, M employees as a focus group might help forge a path to success in many ways. They know what they want, and they like to be listened to. Ultimately, though, it's up to each of your managers to learn how to manage this new and challenging work force. The payback is HUGE!