Gen Y: Ready or Not—They’re Here!

• There are a lot of them! At 80 million, Generation Y comprises more than a quarter of the U.S. population. They’re now greater in number than the baby boomers and are roughly three times the size of Generation X.
• They’re just getting cranked up as consumers. By 2017—or even sooner—Gen Yers will outspend the baby boomers! But they’re not likely to consume in the same manner.
• They’re different. They’re definitely different from preceding generations in many ways, but this diverse group of individualists also varies widely among themselves.

When it comes to Generation Y, one size does not fit all. But like all generations, because they were born around the same time period, they share many commonalities. Whether you intend to market products or services to them, employ them or recruit them, it helps to know where they’re coming from. A little understanding can go a long way in dealing with any generation.

Diversity—It’s the New Normal How do you effectively reach potential customers? First of all, it’s important to know who they are. Their faces are changing, and as you may have suspected, there is no longer an average American. An analysis of the 2010 U.S. Census by Peter Francese, a demographic trends analyst at Ogilvy & Mather and Founder of American Demographics magazine, underscores just how much our nation has changed, particularly during the decade prior to this census. Where We Live—Three out of five U.S. residents now live in the South or the West. This population shift has been driven by two major factors: immigration, as two-thirds of the 10 million immigrants who arrived in the last decade settled in these areas, and migration, as these regions netted another 5 million from the Northeast and Midwest. How We Live—Households are becoming increasingly diverse and multigenerational. Of the 70 million grandparents in America, about 10 million live with their children or grandchildren. They also help account for the rising number of people who live alone, with that category now comprising 27 percent of all households. Surprisingly, married couples with children account for only 22 percent of households. And for the first time in history, the majority of “heads of household” are women rather than men. Who We Are—In several states, including the two largest—California and Texas—and in all 10 of the largest cities, no one racial or ethnic category composes a majority of the population. It’s important to note that the degree of diversity varies by age, with the younger population being substantially more diverse than those who are older. While 80 percent of Americans over age 65 are white non-Hispanic, that’s true for fewer than 60 percent of children. By 2015, the traditional majority group of white non-Hispanics will account for less than half of the births nationwide.

They’re no longer coming of age. They’re here, in adulthood, all 80 million of them! And they’re not just another wave coming ashore. They’re a tidal wave whose massive power has been steadily building beneath the surface, virtually unnoticed by those still focused on the big boomer wave. And their consumer presence is set to change the marketing landscape forever.

When looking at descriptions of any of the generations, they’re simply generalizations that won’t hold true for many in the group. However, as Jason Dorsey, a speaker and consultant on this segment of the population explains in his article, “Gen Y and Your Meeting,” they do provide clues on where to start to connect with and lead people of different ages.

Regarding the characteristics listed below, you can expect Gen Yers to vary greatly among themselves. Partly because they’re a much more racially and ethnically diverse group than previous generations, and partly because many were raised, for the most part, in very child-centered environments, they don’t fit easily in boxes or molds of any type.

Technology Use

Every generation has distinguishing characteristics, but for Gen Yers, hands down, it’s their use of technology. While other generations may employ technology in varying degrees, Generation Y has woven it into the very fabric of their lives. So much so that the “2011 Cisco Connected World Technology Report” found a full third of those surveyed considered the Internet as important in their lives as air, food, water and shelter. Some even found it more essential than owning a car, dating or going to parties! For many, social media use even tops salary as the workplace currency of choice.

Self-Expression

Most Gen Yers are not too shy about expressing themselves. Whether it’s on their person with tattoos and piercings, online with Facebook and YouTube postings, or on the job, they tend to have a speak-your-mind philosophy. They may not function well in more traditional settings where they’re simply expected to do as they’re told without questioning the status quo. But on the positive side, with their creativity, independent thinking and the ease with which they use technology, they are often able to bring fresh ideas to the table.

Educational Level

According to a recent Pew Research Center report, this group of young people will likely become the most educated generation in American history. Several factors come into play here: Their parents have tried to provide them with good educational opportunities; our modern knowledge- and technology-based economy makes an education more essential for this generation than for previous generations; and with few jobs available upon graduation, many have chosen to continue with additional training or schooling.

Career Development and Work Ethic

Certainly, coming of age during a recession has hampered the career development for many in Generation Y. While economic downturns typically impact young workers more—they’re usually the last ones hired and the first ones fired—the Pew report found the levels of 18- to 29-year-olds who were either unemployed or out of the workforce to be the highest in more than three decades.

You’d think they would be desperate for any type of work, and maybe they will be once their parents quit helping with their bills and kick them out of the house. But this generation tends to take a somewhat different perspective on work than has previous generations. Perhaps it’s from having grown up in homes where they felt their parents worked too much, or because they witnessed the lack of consideration showed their parents and grandparents by corporate America as thousands of jobs were unceremoniously terminated. For whatever reasons, this generation would rather work smarter and preserve their lifestyle. Here are a few ways in which they view work differently:

• For starters, forget the 8-to-5 grind. And while you’re at it, forget the commute as well. The Cisco Report found well over half of the Gen Yers surveyed feel their work schedules should be flexible, and a whopping 70 percent believe that being in an office regularly is unnecessary.


• As Dorsey points out, this group is event-driven, meaning Gen Yers tend to plan their work schedule around their lifestyles and non-work events (such as live music or free food happenings), rather than fit in events as their work schedule allows.


• They like to participate in groups where they can feel included and valued. They have big expectations for themselves, and they want to be a part of the solution. They want to make a difference in the world and to do work that counts.

Incorporating Gen Y’s Values

So why make the effort to recruit these young people who often have a feeling of entitlement and who want things their way? Aren’t they more trouble than they’re worth? While they may approach life differently than previous generations, companies are discovering they’re absolutely worth the effort.

Scentsy is a direct selling company that has tapped into Gen Y’s values in a big way and has been experiencing remarkable growth. As Chief Marketing Officer Cory Pugh explains, “Scentsy appeals to this generation because Scentsy’s owners, Heidi and Orville Thompson, built the company on the values of being authentic, keeping things simple and flexible, and giving back to those in need. These are the very values that appeal to millennials. They look for companies who care about doing good as much as they care about doing well. Millennials want their work and purchases to be meaningful, they want flexibility in how they approach work, and want their voices to be heard. The good news is these values have broad appeal across all generations, giving Scentsy broad appeal as well.”

Recruiting Gen Y

From his consulting work with hundreds of companies and organizations, Dorsey says he knows how valuable, loyal and high-performing Gen Yers can be. He also knows their entrepreneurial tendencies make them a great fit for direct selling companies. He shares below his top three suggestions for successfully recruiting Gen Yers:

1. Position your opportunity as a chance for them to own their own business, to be an entrepreneur—with the benefit that your company already has the systems and support in place for them to increase their chances of being successful.
   
   Dorsey explains that many groups position their opportunity as a chance to join an organization, or they emphasize the systems they have in place. Research conducted by Dorsey and his colleagues at the Center for Generational Kinetics shows that Gen Y is most motivated—both men and women, across all socioeconomic groups—by the chance to own their own business.
   
   
2. Show them how they can make this opportunity unique or special, based on their strengths. While your company provides them a system that works, explain how it will allow them to fit it to their personality and their relationships.
   
   This enables them to tap into their own sphere of influence and customize their business, rather than being required to work in a prescribed manner. That might mean, for example, their using Facebook in certain ways or having friends over for happy hour or tying their work to a certain cause. It’s important that they are afforded enough flexibility to make this business their own and to make it a reflection of themselves.
   
   
3. Provide them with faster milestones. Remember, they’re a generation that has been nurtured, so frequent feedback is important to let them know how they’re doing. They were also raised on video games, and they like instant gratification as well. They absolutely have the tenacity to stick with something worthwhile—if they know they’re on the right track. Most of them don’t yet have a lot of work and life experiences to draw upon, so their upline needs to tell them they’re making progress, even though their efforts so far haven’t led to the desired financial outcomes.
   
   Dorsey feels this is a big missing link with those companies that delay awards or recognition until their distributors attain a certain level of productivity. He’s not talking banquets or trophies, just quick hits, like a few words of praise, high fives or text messages. Dorsey says, “If Gen Y is washing out before 90 or 120 days it’s because they’re not getting the ongoing feedback they need to keep moving forward.”

Dorsey goes on to point out that how you present yourself to Gen Yers is almost as important as how you present the business opportunity to them. Because they are entrepreneurial and motivated by the opportunity to own their own businesses, they like to hang out with accomplished entrepreneurs.

When they pull up your profile on LinkedIn, for example, they will be more attracted to your business opportunity if you hold yourself out as an entrepreneur, someone who’s in business for yourself, rather than as someone who’s simply attained a certain level in an organization. You represent what they can become, and being just another cog in somebody else’s wheel is not what they’re interested in becoming!