Learning to Manage Millennials

From smSmallBiz

JUGGLING THE ROLES of supervisor and social ringleader amongst his 15-member staff, Stephen Channon, of ad-sales firm Mongoose Atlantic in New York, is not your traditional "stuffed shirt" vice president. But, as the 37-year-old executive sees it, what better way to manage a group comprised entirely of twenty-somethings? For them, casual is key.

Reminiscent of day camp, Channon's young employees organize into small teams called "pods," each with a line manager, and battle against each other in monthly "pod wars." "Whichever pod has the most points for sales gets to leave early on a Friday," he says. And Channon's open to more: For example, when someone suggested listening to iPods at work, he agreed under the condition that sales remain strong. Whatever results in more efficiency, goes.

As illustrated by Mongoose Atlantic, businesses with minimal tradition often see maximum productivity from millennials, the generation born between 1980 and 1995. That doesn't mean older bosses are necessarily quick to accommodate a group of youngsters pegged as the most self-entitled, irresponsible and immature workers to date.

But with close to 80 million millennials eventually hitting the job market and just as many baby boomers soon leaving, businesses are finding it necessary to embrace the shift. Even managers who are Generation X'ers, born between 1965 and 1977, find the younger set to "be a little high maintenance," says Channon. Trying out unconventional work practices, however, hasn't meant compromising the bottom line. "We hit target every year," he says, "and [employee] retention has improved."

While challenging, it doesn't take a horse whisperer to train this new breed of workers. Here are some tips on developing healthy multigenerational work relationships:

Fully Engage Young Workers

"What all businesses, big or small, should know about this generation is that they would like to do everything if they can," says Chris Resto, co-author of "Recruit or Die: How Any Business Can Beat the Big Guys in the War for Young Talent." Having multitasked since birth, millennials continually thirst for learning and growth in the workplace. That makes make them particularly strong assets for smaller organizations who "are likelier to afford them extra responsibilities because there's much less hierarchy," he says.

Just be careful of presenting one-sided opportunities, says Robin Throckmorton, co-author of "Bridging the Generation Gap," and president of human-resources consulting firm Strategic Human Resources in Cincinnati. Millennials not only want to learn, they want to teach, so "mentor them on the practices and strategies of your business, and, in turn, have them mentor older employees on how to better incorporate technology," she suggests.

Improve Retention Through Incentives

It's too early for long-term statistics, but current trends indicate that the majority of twenty-somethings job-hop every 18 months — a phenomenon often blamed on restlessness. While some young employees might leave a job because they're bored, the likelier cause for the move is financial, workplace experts say. With the average college senior graduating with more than $20,000 in debt, younger employees might switch jobs "because there's this carrot of another $500 or $200 a month, and they think, 'man, I've got these loans to pay off,'" says Carolyn Ockels, partner at Emergent Research, a Lafayette, Calif., firm that studies small businesses and the millennial generation.

A number of companies have found that offering financial incentives is a good way to improve retention. At Mongoose, for example, employees with the highest sales revenues for the month get either a cash award or an extra day's holiday. Little surprise, "they mainly go for the cash," says Channon.

In addition to short-term incentives, Ockels suggests offering to help an employee pay a student loan after a commitment of a year. And finally, make benefits packages available immediately, says Steve King, also a partner at Emergent Research. Long-term benefits that take months or years to become active don't help convey your commitment to them, he says.

Meet Regularly

"A client of mine who owned a coffee shop once asked me, 'What's with these kids? They keep tugging on my shirt asking 'How am I doing, how am I doing?'" recalls Throckmorton. Younger employees typically seek constructive feedback on a regular basis, and a yearly review doesn't cut it for them. Instead, try meeting informally as often as once a month to discuss their progress and any concerns, she says.

Having frequent chats will also help prevent any unpleasant surprises. "We've had clients report that they came into the office and found a sticky note on their desk that said, 'I quit,' and the employer never knew something was wrong," says Throckmorton. Managers should realize that millennials can be masters at avoiding conflict "because they were coddled growing up and rarely had anyone yell at them," she says.

Finally, talk to young employees about their next steps, says Resto. "Twenty-five years ago, you wouldn't really discuss your exit strategy with your employer when starting a new job," he says. But this generation wants a trajectory from the outset. Keep in mind, the conversation isn't about their leaving the company but leaving the position, explains Resto. "It's a good thing because it forces employers to think about growth."

Be True to Your Culture

Regardless of the competition your businesses face for young talent, don't make changes to your culture that aren't genuine. "Companies need to be honest with themselves," says Resto, "and trying to create a cool coffee room with a ping-pong table generally doesn't work." Millennials will see right through it. What's more, they value a casual working relationship with their superiors much more than a casual social atmosphere. "They want to see their boss as a peer with more experience and not as someone who dismisses their ideas because they're younger," he says.

Also, no matter what your culture, young workers want to know they're adding value to your business. "When they work here, they can actually see that they make a difference very quickly," Channon says of his young employees, who also vie for the title of Mongoose of the Month, "and that's important to them."

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