2019 – The Year of the Millennial

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sherrie-suski-millennials2019 is the year that the Millennials, or Generation Y as they are sometimes referred to, will overtake the Baby Boomers.  Their numbers will top 73 million while we see the Baby Boomer population in the US decreases to 72 Million. Those staggering realities have far reaching impacts across consumption trends, housing and employment, just to name a few.  It is less about being classified as the generation who wants to know “what’s in it for me” than about the impact their shear numbers will have on shaping our economy.  

Morgan Stanley recently published their research in the ReShape US Housing brief that outlines the dwindling demand for single family homes purchases and the uptick in the long term rental markets, especially the single family home market, as the Millennial population moves through their lifecycle from the freewheeling singles to the couples with kids, looking for a little more space.  The millennial population has long been thought to diverge from the baby boomers in their lust for purchasing a “permanent” home. This generation seems content with the flexibility that a rental home provides, and while many will start out in apartments, as the generations that preceded them did, most will eventually be in search of a single family home to rent.  The lack of permanency that is dictated by the desire and decision to rent instead of own has implications in the workplace as well. The millennial generation is less likely to expect to stay in a position for a decade or more. In fact, most millennials expect to have 15-20 jobs over the course of their careers and a full 91% of millennials expect to stay in a job less than 3 years.  Part of what drives that ability to move frequently is their decision to rent instead of own their own homes.

So how do employers provide opportunities to appeal to a generation that does not value permanency, stability and the status quo?  The millennials are the first generation to grow up digesting and assimilating mass quantities of information at a time.   Therefore, it’s important to make sure your content captures millennial’s attention and then keeps it. Communicate through multiple touch points, with emails as a last resort.  Use text blasts, contests and social media sites to communicate.

Ensure that both programs and communications are tailored for the individual.  The millennial population is not used to a one size fits all approach. They are used to having campaigns tailored exclusively to them based on past buying or search habits.  Ensure your programs are capable of the same. Jellyvision has a wonderful tool where ALEX, a bot, walks each person through their own health insurance open enrollment based on their unique needs and their answers to questions pondered on their behalf.  Our research has shown not only wide acceptance of these types of tools but that first year participation rates were over 72%.

It is approaches like the above that will both individualize the message and capture the attention of a generation that values an engaging experience over the stability and predictability of the status quo

Tech and Analytics Set Top HR Departments Apart

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According to recent research from The Hackett Group, an IT service management firm, “World-class HR organizations” achieve more than other HR operations by spending 26% less, relying on 32% fewer staff and embracing digital transformation.  The adoption of digital technology could help HR departments reach world-class status in fewer than five years and see progress in less than two years. To be honest, HR departments who fully embrace the use of tech and analytics can see progress in as little as 6 months.  

The study went on to find that top tier HR organizations are better at developing people and moving them into new roles; two-thirds of open managerial positions at these organizations were filled by internal candidates. The Hackett Group said world-class HR departments contain an estimated 33% fewer transactional employees and 34% fewer staff dedicated to employee lifecycle activities.  The old rule of thumb of having 1 HR person per 100 employees is falling by the wayside with the introduction of technology. Technology not only makes the bottom line look better, but offers opportunities to employees, previously solely devoted to administrative work, an option to focus on more meaningful activities and the opportunity for real growth and career path.

Among the study’s takeaways, authors found that world-class organizations use digital technology to improve the customer experience, develop analytics capabilities, transfer resources from low- to high-value initiatives, and provide expertise and insights to business leaders. Use cases include recruiting, compliance, staffing services and outsourcing.  

Imagine:

  • Being able to predict turnover down to the individual level
  • Having zero errors in your administration because all of it is automated
  • Guiding each of your employees through their own personal benefit enrollment process focusing on only the items important to them
  • Creating a flawless candidate experience where each candidate gets a “red carpet” treatment

World-class HR leaders understand the need to provide other business leaders with HR data and insight affecting their individual operations. This technology-based capability demonstrates HR executives’ knowledge of the business and financial sides of an organization, which can seat them alongside other C-suite executives and shore up employee trust in HR program.  Top HR departments around the globe are moving to not only use but embrace these tools. Have you started?

2018 Canadian HR Trends

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It is always interesting to look at Human Resources Trends from around the world to explore the similarities and differences of varying cultural perspectives.  As our parent company is Canadian, let’s look at a few of the trends that are top of the list for 2018.  Morneau Shepell compiles an annual list of Canadian HR Trends:

Insights on what HR leaders are expecting in the coming year:

 

• Improving employee engagement is a top priority

Employee Engagement is top of mind for companies in the US as well.  Not only for altruistic motives, but for the sheer fact that engagement can be tied to better productivity and bottom line numbers all around.  Trying to tap into the discretionary effort each employee has is big business. http://www.snacknation.com/guides/definitive-guide-employee-engagement/

• Streamlining administration and absence management continue to be focus areas

Streamlining administration is a worthy cause in any country.  Streamlining can take the form of creating new processes or automation.  Robotic process automation has real potential to transform the mundane tasks in HR.

• HR leaders continue to be cautious about salary increases.  Salaries expected to increase by 2.3 per cent in 2018.

While salary increases are trending just slightly higher in the US, there are still concerns about how to differentiate between average and high performers with such small increase budgets.

• Employers are looking at workforce data in silos, with very few looking at data in an integrated way

Data will be THE FOCUS in 2018 whether in silos or a more integrated approach. 

• Complex mental health claims are the top disability management concerns

Large claim management in general is a concern.  A few large claims can turn the loss ratios in the wrong direction.

• Manager training is a focus in managing absence and disability

Manager training is a focus for all companies.  It should encompass the hard skills like managing absenteeism and disability LOA’s, but should also encompass softer skills like having difficult conversations, confrontation and inspiring your employees.

• Organizations are concerned that their employees are not adequately prepared for retirement

This is a growing concern amongst many US employers as well.  Financial wellness training for the workforce is a partial solution.  Other approaches may include automatic enrollment in 401(k) plans and writing plan documents to exclude the popular loan provisions.

Companies around the globe have the same goals, to inspire their workforces, yielding a team of more engaged workers and better profits at the bottom line.