Hi! Managers: The challenge of retaining Generation Y employees

Impatient, demanding and outspoken, these so-called "Gen Yers" are forcing human resources professionals to re-write manuals on employee development and retention. For example, unlike their Generation X predecessors, Generation Y employees, who are largely between 20-30 years old, are less loyal to their companies and more concerned about personal fulfillment.

Said one partner at a Big Four accounting firm here in Thailand: "The Generation Y consultant is much less interested in putting in long hours day-in and day-out to become partner, and more interested in work/life balance. They use the firm as a stepping stone to obtain a CPA degree in three years, then go off to business school."

All of the corporate scandals, mismanagement and implosions of companies such as Enron, Bear Stearns and Lehman Brothers have also made Gen Yers wary of dedicating their lives to employers.  "I've seen my father get laid off after working for many years. That is not going to happen to me," commented one Gen Yer, who works at a bank.

Often coddled by indulgent parents, Gen Yers place high demand on achieving personal potential.  They are intolerant of gruelling work hours or choking corporate cultures where self-expression is repressed.  Gen Yers don't want to "pay their dues". They want to live for today.

Fast learners and very adept with technology, Gen Yers are plugged into their network of friends around the world via the Internet and other wireless technologies. As a result, they are well informed about changing events and opportunities in the world around them. Competitive information on salaries, benefits and career progression, for instance, is easily and quickly shared among Gen Yers.

Managing Gen Yers can also pose a challenge. Traditional top-down management where the boss tells subordinates what to do is counterproductive.  Gen Yers need to feel more involved in decision-making. They need to feel their opinions are respected. They relish constructive feedback and two-way dialogue.

These trends have sent human resources professionals scrambling to come up with better solutions to retain Gen Yers, including accelerated career paths, overtime pay, flexible work hours and training line managers to be more open and engaging with staff. Managing the possible backlash from the existing corporate culture also poses a problem.

"We need to cater to this new breed of worker without adversely affecting older workers or short-cutting necessary on-the-job experience," said one HR manager.

In addition to tailoring human resources policies to address Gen Yers, changes need to be made quickly.

"By the time we launch a change in our compensation policy, we need to be thinking about what to do next," continued the HR manager. "Because these Gen Yers spread the news immediately."

Larry Chao is managing director of Chao Group Limited, an organisation change and

training consultancy based in New York and Bangkok (www.chaogroup.com)