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1615 H Street, NWWashington, DC 20062 | www.uschamber.com The Millennial Generation RESEA The Workplace Professional Associations Technology is only one part of what makes this generation what it is. The unique That’s why the National Chamber Foundation (NCF) decided to take a closer look at Millennials and how they are impacting business. Much research already exists about this generation. Assembling this research into a concise format was a tool NCF aimed to share with others. NCF’s commitment to exploring emerging issues and examining “what’s next” is a mission that it believes in. When you see that mission personied and driven by Millennials as described in this research review, it is easy to declare that “the future is now.”If you look closely, you will nd members of this generation in every one of these locations, NCF’s advice is fairly straightforward: Buckle up and be ready… it’s going to be an Sincerely, The Millennial Generation RESEA Washington, D.C.Seppanen, the principal of Sepp6, delivers programs designed self-management.She holds degrees in communications and psychology, is Coaching Federation.Seppanen’s research on generational dynamics helps Wendy Gualtieri in an ever-changing economic environment. Gualtieri holds an M.B.A. from the University of Michigan and a bachelor’s in nance from Miami University in Ohio. The Millennial Generation RESEA The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, insight and resources to address tomorrow’s challenges. © National Chamber Foundation, 2012. All rights reserved. No part of this publication may be reproduced or transmitted in any form—print, electronic, or otherwise—without the express written permission of the publisher. The Millennial Generation RESEA 36 Twenge, J. M ., Campbell, S., M., Hoffman,ducation and the Workforce, Georgetown University (2010) Help Wanted: ., P., Smith, W12Millennials in the workplace: A communication usiness & Psychology, 25, 225-238. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2868990/Pew Research Center Pew Social & Demographic Trends (February 2012) Underemployed and Optimistic Coming of Age Slowly in a Tough Economyhttp://www.pewsocialtrends.org/2012/02/09/young-underemployed-and-optimistic/Millennial Inc., Mr Youth, Intrepid, (2010) . http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdfWhat Millennials Want, Bellevue Universityab. http://www.humancapitallab.org/blog/?p=256Deloitte Volunteer impact Survey. http://www.deloitte.com/ssets/Documents/us_2011DeloitteVolunteerIMP Ldevry.edu/images/20004/Future%20of%20Millennial%20Careers%20Report.pdf U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 35 The 20-Something Donor. http://philanthropy.com/blogs/social-philanthropy/sleeping-Sources—WorkplaceW1 Statistics Labor Force . http://www.kenan-agler.unc.edu/executive-D48662.ashx LMillennials And The World Of Workconomist’s AWork Force Age Matters. http://www.apqc.org/knowledge-base/conomic Research. http://www.nber.org/digest/nov06/w12159.htmlThe Long-Term Labor Market Consequences of Graduating , working paper, Yale School of Management. http://mba.yale.edu/faculty/pdf/kahn_longtermlabor.pdfThe 10th MetLife Annual Study of Employee Benets Trendshttp://www.metlife.com/assets/institutional/services/insights-and-tools/ebts/Taylor, P., Parker, K., Kochlar, R. et al (February 9, 2012) Young, underemployed and optimistic. Coming of age, slowly, in a tough economyTrends. Washington: DC. http://www.pewsocialtrends.org/les/2012/02/young-underemployed-and-optimistic.pdfDemos, Young Invincibles (December 2011) The State of Young Americansmerican Dream. http://www.demos.org/state-of-young-americaCensky, http://money.cnn.com/2011/12/12/news/economy/american_dream_women/e NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 34 Yahoo!, DM12 Euro RSCG Worldwide (2010) Prosumer Report, Gender Shift: Are Women the New Men? http://www.prosumer-report.com/gender/wp-content/uploads/2010/12/GenderShift_Final.pdfP1http://www.marketinggeneral.com/resources/benchmark-report B B http://www.bizjournals.com/philadelphia/print-edition/2011/03/25/decline-in-bar-association-membership.html?page=all http://www.modernphysician.com/article/20120516/MODA National Study of Member-based Advocacy Organizations.http://www.monitorinstitute.com/downloads/Disruption_report_(annotated_slides).pdfProctor, Kristina, (September 2009) xaminer. http://www.examiner.com/article/gen-y-Gen Y is Here, is Your Association http://www.scsbyavmg.com/2011/12/22/gen-y-is-here-is-your-association-greeting-them-2 The Millennial Generation RESEA 33 Haltiwanger, J., Jarmin, R., Miranda, J. (May 2012) Business Dynamics Statistics Brieng: Where Have All the Young Firms Gone?DS) is a ureau. http://www.kauffman.org/uploadedles/bds_2012.pdfUpstarts! How GenY Entrepreneurs are Rocking the World of Barkley, SMG, xecSummary.pdfHow Social Media Has Changed the WorkplaceFast Company. http://www.fastcompany.com/1701850/how-social-media-has-changed-Galloway, Scott (December 2010) Gen Y Afuents Media Survey, L2 Think Tankwww.l2thinktank.com/genyafuents/GenYhttp://www.comscore.com/Press_ Exchange. http://www.edelman.com/insights/special/8095/8095whitepaper.pdfBrand Managers: Think You’re in Control? Think Again.http://socialmediatoday.com/SMC/187924Innerscope Research, Time Inc. (http://www.timeinc.com/pressroom/detail.php?id=releases/time_inc_study_digital_natives.phpM10iving rrangements, Table SHP-1. Parents and Children in Stay- The Millennial Generation RESEA 32 Pryor, J. H., De., Hurtado, S., & Tran, S. (2011). Wendover, R. (2010) From Textbook to Facebook: How the Millennial Generation is Impacting Today’s Community Colleges Aabson Survey Group, http://www.onlinelearningsurvey.com/reports/ducation Statistics (2011) Table 286. Bachelor’s degrees conferred Federal Leaders Face Challenges Attracting Top College Graduates to http://www.sba.gov/sites/default/les/FINuzz Marketing Group and the Young 2011 Youth Youth Pulse 2010 Kauffman Foundation Custom Reporthttp://www.kauffman.org/uploadedFiles/youth_eship_report_2010.pdf Ewing Marion Kauffman Foundation and Young Invincibles (2011) Young Invincibles . http://www.kauffman.org/newsroom/millennials-want-to-start-companies- The Millennial Generation RESEA 31 Retrieved from http://www.edweek.org/media/diplomascount2011_pressrelease.pdf BCollege Enrollment And Work Activity Of 2011 http://www.bls.gov/news.release/hsgec.nr0.htm/http://nces.ed.gov/programs/coe/indicator_pgr.aspJulian, T., Education and Synthetic Work- Life http://www.census.gov/prod/2011pubs/acs-14.pdf Demos, Young Invincibles (December 2011) The State of Young Americans: Economic . http://www.demos.org/state-of-young-america BTrends in College PricingTwenge, J. M. (2009), Teaching at Its Best: A Research-Based Resource for College Alexander, C. S., Sysko, J. M. (generation Y’s entitlement mentalityeadership. http://sbaer.http://www.drtomlifvendahl.Rickes, P., C. (March 2009) Make Way for Millennials! How Today’s Students are Shaping The Millennial Generation RESEA 30 D Taylor, J. (March 2011) Technology: Myth of Multitasking, Psychology Today. http://www.psychologytoday.com/blog/the-power-prime/201103/technology-myth-multitasking., Nass, C., Wagner, http://www.pnas.org/content/106/37/15583.fullTwenge, J. M., Campbell, S. M., Hoffman, Differences in Work Values: Leisure and Extrinsic ValuesIncreasing, Social and Intrinsic Values DecreasingRoundtable/Twenge%2010.pdfG6Millennials in the Workplace: usiness and Psychology. http://www.ncbi.nlm.nih.gov/pmc/Singer, P.W., Messera, H., Orino, D.C.’s New Guard: http://www.brookings.edu/~/media/research/les/reports/2011/2/young%20leaders%20singer/02_young_leaders_singer.pdf Child Trends Databank (2009) http://www.childtrendsdatabank.org/?q=node/221Demos, Young Invincibles (December 2011) The State of Young Americans: Economic . http://www.demos.org/state-of-young-america2010. The Surgeon General’s Vision for a Healthy and Fit Nation. [pdf 840K] The Millennial Generation RESEA 29 ) that his organization is hiring. Happily, she interviews and receives an offer with a ne starting salary. She veries with her still make her Wednesday late afternoon volleyball games and consults with her mom about the Her manager, who is 49, appreciates her enthusiasm and energy. Jessica clearly wants to be Gen Yers. Jessica has appreciated her manager’s support, and their relationship is positive. She is enjoying the feeling of stability.Many of Jessica’s friends are still looking for jobs, so she feels lucky. master’s degree. She’d like to further her education one day as well. She texts her friends about Social Security Administration, Top Names (5/14/2012) http://www.ssa.gov/oact/babynames/top5names.html The Millennial Generation RESEA 28 A summary of Millennials, told in short story form Titled “About ‘Jessica’” as it is one of the most Her college’s family engagement center enlightens instructors of this new student philosophy and concern her parents. They continue to support her and with the school’s help, nd her a therapist The Millennial Generation RESEA 27 to feel positive, loyal, and satised than those who rarely or never volunteer, and they are more likely to recommend their companies to friends. Volunteering shows more ambition than altruism, with 51% saying that volunteerism needs to benet them professionally.Millennials volunteer, proportional to that of Gen X.ethic, initiative, interpersonal, and adaptability. NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 26 Still, more than half of Gen Y workers agree that given the choice, they hope to be working for another perhaps reecting their short-term focus and different idea of a job and career. U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 25 employers, and 63% say that benets are an important reason for staying with an employer.While managers believe that Millennials put the highest priority on salary,income protection benets more important, not traditionally valued by the young worker. They look for stable, even if it means lower, returns more than older workers. Many organizations have shifted their benets and environments accordingly. NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 24 VAHigher education is appearing essential for economic security, as more and more jobs are Only workers with a bachelor’s degree experienced an The median earnings for young women with at least a bachelor’s degree rose 20% over the last White only, Black only, Asian only, Total populationTable compiled and prepared by Catherine Reutschlin, retrieved from: Reutschlin, Catherine (February 2012) The What Unemployment Rates Don’t Tell Us bout Millennials’ Jobs Woes, policymic Next Generation News and Politics. http://www.policymic.com/articles/4047/what-unemployment-rates-don-t-tell-us-about-millennials-jobs-woes U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 23 SSIONARY ones offering lower average wages, especially at smaller rms. Wage losses can amount to about Research suggests that even after recovery, college graduates ll agree that it’s much harder to be a young adult today than it was even just a generation ago. s noted earlier, for 25–29 year olds, gain work experience. They are postponing marriage and family.Total Civilian rojected) Unemployment Rate Total level Total projected The Millennial Generation RESEA 22 the types of jobs offered, affecting employment rates for younger, less experienced candidates. The Millennial Generation RESEA 21 SUMMARYshrunk. Technology has blurred borders all within an accessible connected context, clarity, and independence. They prefer processes. They value trust and transparency.and allow mutual knowledge transfer. Welcoming this generation into the delivered needs of this generation bring out the best talents in each employee. The Millennial Generation RESEA 20 COMMUNICATIONSFor member-based organizations, as well as for companies and other organizations, the fewer larger donations and tend to give one time for a specic cause or event versus annually. U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 19 VA PROPOSITION In a 2012 study, the primary reasons association executives gave as to why members join and political issues. Millennials (and increasingly other generations) use Facebook, Twitter, and interested in joining established member-based organizations.specialized and current information regarding the reasons people join associations. This contrasts with NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 18 ASSOCIATIONS—DOWN (AND MAYBin 2010; 49%, in 2011; and 52%, in 2012. Many member-based organizations showed an Specically, two of the largest associations in the United States have shown overall declining ’s Standing Committee on Membership, says that the organization ssociations’s 2011 annual report shows decreasing membership totals for 10 of memberships given to rst-year residents who had been student members the previous year. The Millennial Generation RESEA 17 ASSOCIATIONS SUMMARYMillennials expect timely, meaningful, and relevant communications and The Millennial Generation RESEA 16 L dramatically. When gathering information and making buying decisions, Millennials rely on platforms 27 times per hour.ll along, Gen Yers have been told that they can do anything they want to do and be anything include dads who work part time while remaining the primary caregivers. Women can control their with or without a male partner. Meanwhile, the working Millennial male does not have the same SPN has launched a new website, espnW, targeted toward female Some estimates are even higher. study shows that the biggest objective for young adults today, both male and female, is The Millennial Generation RESEA 15 A TWO-WAY STReverything. With brands and services, what used to be a one-way conversation is now a multifaceted, 24-hour-a-day, seven-day-a-week dialogue between brands and their customers and among their technology, and network to voice their opinions. With Millennials, brands know where they stand, ccording to one survey, 86% of Millennials are willing to share information about their brand preferences online, making it a top personal identier.user-generated content.experiences with their product or service and ensure that it is in harmony with their brand strategy.ATIONSHIPS Tapping into the Millennial generation as they begin their adult lives, as with previous generations, availability of information can also destroy it faster. Once Millennials lose faith in a brand, it’s The Millennial Generation RESEA 14 With Millennials’ peak buying power still decades away, marketers s referenced earlier, more than three-quarters of Millennials have created a prole on a In an eight-hour workday, people spend approximately one hour on social media sites. This seems like a large percentage of the workday, but it is even larger for Millennials The majority of Gen Yers use social media to connect with brands, though most rms still allocate Gen Yers also To be effective, advertising should be placed around engaging content. On average, engagement is higher among Millennials than other generations for television and websites; on a percentage basis, it is greater on the Web than on TV. It appears that Millennials are highly engaged with content they choose to view online and on TV, which amplies the effectiveness of ads for Millennials. The Millennial Generation RESEA 13 SUMMARYpower, both through their own increasing earnings as they age and through Millennials contribute to the market directly, but they also contribute as vocal consumers and early adopters to inuence the purchases of others. They are popularity of social media, keeping marketers on their toes. This generation’s user experiences. Additionally, this generation will continue to change the will broaden their reach across gender lines to take advantage of the larger, educated entitlement multitasking narcissistic needy opportunity optimistic over-labeledover-studied rules sheltered structure technology tolerant transactional transparency The Millennial Generation RESEA 12 The curriculum has been evolving quickly, trying to develop more relevant offerings reective of today’s trends. University, 40% or more of the freshmen that come into their entrepreneurship program have The workplace values business ownership and education on an applicant’s resume. uthor Donna Fenn’s book on Gen Y entrepreneurship as a way of life. She also believes that starting a business in today’s digital age is cheaper and less risky. She predicts that in 20 years Millennials will prove to be the most That may be true, especially with the abundant support from parents, teachers, and older entrepreneurs. Members of this generation are also regarded as serial entrepreneurs, who will likely The Millennial Generation RESEA 11 RATIONMason of Groupon. Small business is regarded as a driver of the U.S. economy, providing jobs for the nation’s private workforce.Though research varies, one-half to two-thirds of Millennials are interested in entrepreneurship, and atinos are most inclined Startups are essential to job creation in the United States. The entrepreneurial mind-set of Millennials could support the economic recovery, helping reverse a declining trend of business startups.OBSTAC The Millennial Generation RESEA 10 UR SUMMARYdo its part in creating more jobs and helping rescue the economy. U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 9 Yet as Millennials enter college not just as students but also as teachers (currently, one in ve Millennials become teachers), they will have a Millennials are sizing up to be the most educated generation in history.achelor degrees conferred were predominantly in business, the social sciences and history, health sciences, and education.sector, while 17% have set their sights on the nonprot eld or teaching. Only 2% of respondents NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 8 NT Two-thirds of students predict that they will perform in the top 20% of the population in their adult They are showing measures of stress, anxiety, and symptoms of Millennial’s parents uniquely close (and hovering) relationship has given rise to increased combine straight instruction with the applied team learning Millennials prefer. This less formal The Millennial Generation RESEA 7 DUCATION—pproximately 58% of those entering a four-year institution will receive a bachelor’s degree within six years.than any other demographic factor.school, with a high school diploma, with a bachelor’s, to those with an advanced degree. The The Millennial Generation RESEA 6 DUCATION SUMMARYMillennials have and will continue to inuence education. First, as students, these digital natives have forced learning institutions to communicate and educate in new ways. involvement in their children’s U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 5 agging behind Different from the youth of the two previous generations, merican leaders, 61% listed parents as most inuential, far in advance of public leaders (19%) and the WHAT’S THmost important to Millennials, similar to those held by Gen Xers at a similar stage of life. Similarly, of life’s priorities are that older generations are more likely to place a higher importance on a very NATIONAL CHAMBER FOUNDATION The Millennial Generation RESEA 4 TITASKING R More likely, they are apt to switching tasks quickly enough to appear to be doing them simultaneously. When it comes to heavy media multitasking, studies show greater who can simultaneously play video games, watch TV, and do homework. They are retraining than previous generations. Psychologist and Gen Y researcher Jean Twenge contradicts these assumptions. She and her colleagues nd that today’s youth are more interested in extrinsic The Millennial Generation RESEA 3 ureau statistics, there are plenty of them to study—80 million plus (the largest cohort size in history). There are data to nd most of what you are looking for, as the data are varied and sometimes contradictory. In fact, Millennials are full of contradictions, which, of course, may explain the youth of any generation. Most consistent is that this generation is technically savvy, almost as if it has a digital wired, connected world is all that Millennials have ever known. country, compared with 26% of those over 30., reality TV, and an “iWorld,” where Starbucks is usually just a short walk away.For the purposes of this report, this cohort will be called Generation Y, Gen Y, or with more frequency, Millennials, as they reportedly prefer. There are at least 30 other labels for this generation. RATIONYoung people are more tolerant of races and groups than older generations (47% vs. 19%), versus 70% for those 30 and older. This reects a record low of whites, with 19% Hispanic, sian, and 3% of mixed race or other. dditionally, 11% of Millennials are born to The Millennial Generation RESEA 2 case, the era in which individuals were born and when they came of age. We will use the birth years of 1980 to 1999 here to dene the Millennial cohort. However, sources are inconsistent, Today’s Generations ventually, the young adults of one making a lasting impact on society.If each generation has a personality, you may say that the baby boomer is the idealist, shaped by Woodstock, JFK, RFK, and MWatergate, and the PC. Generation Y is the connected, diverse collaborator, shaped by 9/11, U.S. CHAMBER OF COMMERCE The Millennial Generation RESEA 1 1 A’ NATIONAL CHAMBER FOUNDATION Workplace Professional Associations