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Uncertain economy beats Gen Y into shape: survey

IT workers want more challenges, not more money

Renowned for their arrogance and fleeting company ties, Generation Y workers are now more loyal thanks the adverse economic climate a new survey has revealed.

The impact of the economic slowdown on work attitudes has been greatest among Generation Y (18 to 29) where 31 per cent say the downturn has made them more loyal, compared with 28 per cent of Generation X (30 to 47) and 26 per cent of baby boomers (48 to 65).

The findings are part of the Kelly Global Workforce Index, which obtained the views of approximately 134,000 people, including more than 20,000 in Australia conducted between October 2009 and January 2010.

Generally, 29 per cent of employees say the economic downturn has made them more loyal, while 7 per cent say it has made them less loyal and 64 per cent say it has made no difference.

With most CIOs in the “baby boomer” bracket, they are the least likely to be more loyal are a result of the downturn.

Some 44 per cent of respondents say they feel “totally committed” to their current employer, ranging from 47 per cent among baby boomers, 44 per cent for Gen X and 43 per cent for Gen Y.

What one factor would be most likely to cause a person in IT to leave an organisation? At 27 per cent a piece it’s a dead heat between “poor management” and “lack of opportunities for advancement”.

Other “push” factors include poor salary and benefits, poor communication, poor staff morale, inadequate work-life balance, stress and concern with corporate reputation.

Chris Gardner, CIO of Penrith City Council in western Sydney, said he definitely agrees that people will be more loyal in times of economic uncertainty, particularly people who like to travel.

“Staff are less likely to travel overseas if they are unsure what will be waiting when they get back,” Gardner said.

In addition to economic factors, Gardner says people are more likely to be loyal when they are working close to home for better work-life balance.

“We are stable so I have everyone staying,” he said, adding people will change jobs for a better opportunity but will always consider travelling time and work-life balance.

Across the IT industry people are generally committed to their current employer (45 per cent), and telecommuting ranks in the middle as “somewhat important” with 52 per cent of respondents.

IT people also enjoy a challenge more than money, with 42 per cent saying “more interesting or challenging work” as the one thing would make then feel more committed or engaged with their job.

Kelly Services Australia managing director Karen Colfer said employers who have communicated openly with their staff about the difficult economic conditions and who have tried their best to look after staff have been able to build strong levels of trust.

“This heightened loyalty is likely to become a real advantage, with a more committed and focussed workforce, as the economy recovers,” she said.

“When we look at the things that motivate people in the workplace, it’s clear that opportunities for personal growth and development are critical, as is the chance to perform stimulating and challenging work. Pay is certainly a motivator but it’s not as big as some imagine [so] employers have to examine a broader range of employee conditions if they want to have the workforce performing at its best.”

More information about the survey results is online at: Kelly Services.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Generation X, Kelly Services
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Comments

1

Gary Ryan

Fri 19/03/2010 - 00:08

Gen Y Loyalty

Rodney,

Thanks for your informative article regarding the recent research on employee loyalty. It is certainly interesting, but not surprising to read that opportunities for career & development growth, stimulating & challenging work and travelling time to and from work are critical elements that drive employee loyalty.

In my work in the personal & professional development field with organisational leaders and Gen Y employees I have found these same attributes, along-side a 'fair day's pay for a fair day's work' to be consistent drivers for employee loyalty.

That stated, if employees want loyalty to be returned by their employer when the economy turns down, or they want to have as large a range of choices available to them if they are laid off, then employees have to be 'on the front foot' with their own development.

My experience over time has enabled me to observe that too many people place the total responsibility for their development onto their employer. Of course good employers should provide the very best in their personal & professional development programs (as we have seen in your articles it is a clear winner from an employee loayalty perspective).

However employees who rely 100% on their organisation for their development are setting themselves up for limited career opportunities if:
1) Their employer doesn't do a very good job in this space; or
2) Their employer needs to lay people off because of an economic downturn.

The only way people can protect themselves from an economic downturn (from an employment perspective) is to maintain a high degree of 'current' employability.

Gen Y are statistically more likely than any other generation to change jobs and to change careers. These statistics may change as Gen Y ages, but this is the current state of play. If Gen Y wants to continue to have that lifestyle, then they too must take greater control over their development and not rely on the organisations for whom they work to do it for them.

In simple terms, not taking control of your personal & professional development reduces the chances that you can live the sort of life that you wish to live.

The solution is to consciously develop the ten employability skills listed below:
1) Teamwork
2) Communication
3) Problem Solving
4) Leadership
5) Planning & Organisation
6) Life-long Learning
7) Self-management & Personal Vision
8) Initiative & enterprise
9) The use and application of relevant technology
10) Service excellence

Capturing stories that highlight how each of these skills have been developed and practiced is just one example of how this can be done.

In summary I encourage Gen Y employees (and the other generations too) to treat their own development as their own responsibility. If you do that, then any development opportunities that your organsiation provides will be a bonus. The act of developing yourself will also result in your employer seeing 'you' as more employable which itself is a way to both increase career opportunities and provide job security.

Gary Ryan is a facilitator, consultant, author and speaker who has recently released What Really Matters For Young Professionals! How To Master 15 Practices To Accelerate Your Career

Please visit www.orgsthatmatter.com for more information.

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