The 2015 Millennial Majority Workforce: Study Results

Recruiting & HR

elance-odesk
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Description
Millennials will be the largest generation in the U.S. workforce as of 2015. Yet businesses have a difficult time hiring members of this youngest professional generation. Disjoints abound as the nation’s workforce shifts -- millions of jobs remain unfilled while many millennials struggle to build careers. This study reveals changes in how we work, generational differences, and the critical role millennials play for businesses as we move forward.
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  • 1. Study Results:The 2015 Millennial Majority WorkforceCommissioned by Elance-oDesk and Millennial BrandingFor more detail go to: www.elance-odesk.com/millennial-majority-workforceRed Brick ResearchOctober 2014
  • 2. § Two online surveys were conducted in the U.S. among:§ Data collected September 1 – September 10, 2014 by independent research firm Red Brick Research§ Millennial results were weighted to ensure demographic representation across sample, based on figures from theUnited States Census Bureau§ In this study reference is made to “Generation X” or the “previous generation.” For the purposes of this study, thebirth year ranges for these groups are:"Red Brick Research§ Millennials:1982-1993§ Generation X/Previous Generation:1959-19812Research MethodologyMillennialsHiring managers§ Graduates with a bachelor’s "/ Master’s degree or other "postgraduate qualification§ Age 21 - 32§ Company owners or managers§ Age 33+§ All with responsibility over recruitment orHR strategy within their businessSample n=1,039 Margin of Error: +/-3.2%Sample n=200 Margin of Error: +/-6.9%
  • 3. § Understand millennials’ role in our workforce as we approach 2015§ Examine disjoints:§ Millennials’ inability to find work vs. an inability to hire§ Millennials’ differing work priorities§ Varying generational perceptions§ Look at how work is changingRed Brick Research3Study Objectives
  • 4. Millennials are integral to the future of business§ Millennials will be the majority of the U.S. workforce by 2015.§ 28% are management level already; 2/3 see themselves in management inten years.§ Hiring managers believe millennials bring unique skills, especially that theyare more technically adept than prior generations (82% agree).§ The majority (53%) of hiring managers report difficulty finding and retainingmillennial talent, more than 3x the number who say it is "easy."Red Brick Research4Key Findings (1)
  • 5. Key Findings (2)Hard skills reign§ The August Bureau of Labor Statistics report had 4.8 million job openings—the highest number of U.S. job openings since January 2001.§ Hiring managers prioritize hard skills: 55% say they focus more on hard skillswhen hiring, versus 21% who say they focus more on personality.§ 45% expect to become even more skills focused in ten years, versus only11% who expect to become more personality focused.Red Brick Research 5
  • 6. Millennials need something different than traditionalemployers provide"§ 79% of millennials would consider quitting their regular job and working forthemselves in the future.§ Freelancing’s flexibility and control appeal to millennials.§ Millennials care more about the people they work with, exciting work andgood mentorship and less about money than hiring managers realize.Red Brick Research6Key Findings (3)
  • 7. Millennials are integral to thefuture of businessesRed Brick Research 7
  • 8. Millennials have power in numbers: 2015 is the yearthey become the majority in the U.S. workforce20152010Red Brick Research45%38%31%21%22%25%23%36%45%0%5%10%15%20%25%30%35%40%45%50%2005MillennialsGeneration XBaby Boomers8Generations in the workplaceSource: Bureau of Labour Statistics Employment Projections
  • 9. Millennials expect to have power in rank: two-thirdssee themselves in management in 10 yearsSenior/Middle managementBusiness ownerIndividual contributor(not managing others)Freelancing / self-employedRed Brick Research5%15%12%7%15%46%0%10%20%30%40%50%OtherC-Level titles(e.g. CEO, CFO, CTO etc.)9Q: Where do you see yourself in ten years’ time?Millennials Survey, n = 1,03969%Managerialroles28% of millennials are currently managers**Millennials Survey - Composite - Q: Which of the following bestdescribes your current employment; Q: Which option describesyour current job level?
  • 10. Hiring managers say millennials bring uniqueskills, especially as the 1st “native technologist”Red Brick Researchgeneration10Hiring Managers Survey – Q: To what extent to do you agree or disagree with eachof the following statements about how millennial graduates (aged 21-32) compare tothe previous generation (aged 33+)?: ‘Millennials possess certain skills the previousgeneration doesn’t tend to have’, n = 200Hiring Managers Survey – Q: To what extent to do you agree or disagree with eachof the following statements about how millennial graduates (aged 21-32) compare tothe previous generation (aged 33+)?: ‘Millennials are more technologically adept’, n= 200“Millennials possess certain skillsthe previous generation doesn’ttend to have”68% of hiring managersagree“Millennials are moretechnologically adept”82% of hiring managers agree
  • 11. Millennials are seen as having skills that canRed Brick Researchhelp drive innovation“Millennials can learn newthings more quickly”74% of millennials agree*60% of hiring managers agree***Millennials Survey - Q: To what extent do you agree or disagree with each of the following statementsabout how young graduates like you (aged 21-32) compare to the previous generation (aged 33+)?: ‘Wecan learn new things more quickly’, N = 1,039** Hiring Managers Survey – Q (see slide 10) - Statement ‘Millennials can learn newthings more quickly’, n = 200“Millennials are more likely tocome up with fresh ideas”71% of millennials agree*57% of hiring managers agree***Millennials Survey – Q (see above) - Statement ‘We are more likely tocome up with fresh ideas for the company’, n = 1,039** Hiring Managers Survey – Q (see slide 10) - Statement ‘Millennials are more likely tocome up with fresh ideas for the company’, n = 200
  • 12. Workplaces in search of be!er genderequality should benefit from millennialsRed Brick Research12“Millennials have a more equalattitude towards genders in theworkplace”66% of hiring managers agreeHiring Managers Survey – Q (see slide 10) – Statement: ‘Millennials have a moreequal attitude towards the genders in the workplace’, n = 20021% of millennial women feel that work has been worse thanexpected (versus only 12% of millennial men)Millennials Survey – Q: Overall how has work lived up to expectations?, asked of business owners, employees,freelancers and interns, n = 818However:
  • 13. Managers say that finding and retainingVery difficultFairly difficultNeither difficult nor easyRed Brick Researchmillennial staff is difficult4%11%33%44%9%0%10%20%30%40%50%Fairly easyVery easy53%Difficult15%Easy13Q: How difficult is it to find and retain reliable staff inthis age bracket (21-32)?Hiring Managers Survey, n = 200
  • 14. Work in the“millennial majority” world:Tech innovation, rapid responses and hard skillsreignRed Brick Research 14
  • 15. Hiring managers today focus on hard skillsRed Brick Research24%21%55%0%20%40%60%Focused more on SKILLSNeutralFocused more onATTITUDE / PERSONALITY15Q: Generally, when hiring full time employees, does your organizationtend to focus more on their skills or their attitude / personality traits?Hiring Managers Survey, n = 200
  • 16. Hiring managers expect to only increase thisRed Brick Researchfocus on skills16Q: How do you feel this focus will change over the next11%45%45%0%10%20%30%40%50%Become moreSKILLS focusedNo changeBecome more ATTITUDE /PERSONALITY focused10 years?Hiring Managers Survey, n = 200
  • 17. There were 4.8 million job openings in August,a record high in years, yet a gap persistsRed Brick Research17Change in job openings vs. hires since June 2009Source: Bureau of Labor StatisticsSeasonally adjusted100%75%50%25%020102011201220132014
  • 18. Traditional hiring isn’t working for either side39% of millennials* have haddifficulty finding a traditional jobDifficultNeitherRed Brick Research1853% of hiring managers**have had difficulty recruitingmillennials…33%53%0%10%20%30%40%50%60%*Millennials Survey - Q: Have you ever had a difficult time finding a traditional job?, n = 1,03915%** Hiring Managers Survey – Q: How difficult is it to find and retain reliable staff in this age bracket (21-32)?, n = 200EasyHow difficult is it to find and retain reliablemillennial staff?
  • 19. Many millennials report hot STEM skills3D PrintingCloud ComputingWearable TechnologyDriverless CarsInternet of ThingsGenetic ModificationNanotechnologyData VisualizationRed Brick Research1915%15%20%20%18%24%22%29%34%0%5%10%15%20%25%30%35%40%Aerial Imaging / MappingEmerging skills possessed by millennials**Millennials Survey - Q: Which of any of these emerging skills areyou familiar with (not a complete list), n = 1,03954% of hiring managers report a technological skills shortage.IT is the highest-ranked skill in terms of shortages.***Technological Skills defined as - IT/Web Security; IT Tech Support; Digital Marketing; Software development;Web design; Mobile App Development; Graphic Design/Photography/3D; Database/Server Administration;Creative Vision Skills; Media Production Skills; Data Science/Analysis**Hiring Managers Survey - Q: Which skills do youfeel your company suffers from a shortage of? n =200
  • 20. Companies are turning to freelancers to findspecific skills and tackle rapid changeRed Brick ResearchQ: What do you perceive to be the main benefits of usingfreelancers over hiring additional permanent employees?% of companiesusing freelancers20Can often start working immediately45%Ability to scale workload up and down quickly as needs change35%Access to specific / niche skills34%Lower cost of required infrastructure (office space, IT etc.)30%A more flexible team in general29%Hiring Managers Survey, all users of freelancing, n = 13241%of hiring managersplan to increase theirhiring of freelancers inthe next five years(only 5% expect adecrease)Hiring Managers Survey – Q : In the next 5 yearshow do you anticipate your hiring activity will changewith respect to freelancers, n = 200
  • 21. In this new workforce, millennialsneed something different thantraditional employers provideRed Brick Research 21
  • 22. How do hiring managers see millennials vs theprior generation? More adaptable and creativeNarcissisticOpen to changeCreativeMoney drivenAdaptableEntrepreneurial attitudeRed Brick Research27%50%50%34%40%46%66%60%55%65%72%80%73%54%45%35%28%20%0%20%40%60%80%100%OptimisticConfidentTeam playerGen XMillennials22Qualities each generation is seen as more likely to possess(according to hiring managers)Hiring Managers Survey - Q: Please look at this list of personality attributes. Do you think Millennials (21-32)or the previousgeneration (aged 33-55) are more likely to possess each, n = 200
  • 23. Hiring managers agree with millennials that theyare creative, open to change and narcissisticOpen to changeCreativeAdaptableNarcissisticMoney drivenOptimisticEntrepreneurialRed Brick Research23Qualities seen as more prevalent in millennials(% thinking millennials are more likely to possess)73%70%69%90%87%50%Millennials Survey - Q: Please look at this list of personality attributes. Do you think young graduates like you (21-32) or theprevious generation (aged 33+) are more likely to possess each, n = 1,039Hiring Managers Survey - Q: Please look at this list of personality attributes. Do you think Millennials (21-32)or the previousgeneration (aged 33-55) are more likely to possess each, n = 20052%68%75%86%27%46%55%65%80%60%66%72%0%10%20%30%40%50%60%70%80%90%100%ConfidentTeam playerHiring managers' viewsMillennials' views
  • 24. To keep millennials, businesses should placegreater focus on people, exciting work & mentorsRed Brick Research25%30%39%44%16%24%12%75%0%10%20%30%40%50%60%70%80%Earnings potentialThe people / teamthey’ll work withWork is excitingA good mentor / managerHiring managers' views ofMillennials' prioritiesMillennials' actual priorities24Areas where managers’ views of millennial priorities at work are differentthan millennials’ actual prioritiesMillennials Survey - Q: What do you prioritize when choosing a place of work? Select 5 options, n = 1,039Hiring Managers Survey – Q: What do you think are the top 5 things young graduates prioritize when choosing a place to work?, n = 200
  • 25. 58% of millennials*:three years52% of millennials**:successful if they craft their own path** Millennials Survey– Q: Which of these statements do you agree with most? ‘Corporate loyalty is an out-dated concept. Professionals are most successful today if they focus oncrafting their own career path’; or ‘Corporate loyalty is important. Professionals are most successful today if they focus on their career advancement within the same company asRed Brick ResearchMillennials will instigate changeCorporate loyalty is outdated – pros arelong as possible’, N = 1,03925Expect to stay in their job fewer than2.4 jobs***:workers have hadAverage number of jobs 29-32 year old* Millennials Survey – Q: Approximately how much longer do you think you’ll stay with your current main employer?, Asked of employees, n = 759*** Millennials Survey – Q: How many full-time jobs have you had (including a current one) since you graduated?, Asked of those who have had any full-time jobs, mean average, n= 925
  • 26. Freelancing is a!ractive to millennialsRed Brick Research26Would choose to freelance if theycould “find enough projects to earn** Millennials Survey – Q: Do you think at some point in the future, you like toquit your "regular job" and work only for yourself?, Asked of employees, n =759the salary they are worth”*Millennials Survey - Q: If you knew you could find enough freelance projectsto earn the salary you’re worth, would you choose to freelance?, Asked ofthose who have never freelanced, n = 64879% of millennials**:Would consider “quitting theirregular job and working forthemselves” in the future69% of millennials who havenever freelanced:
  • 27. Millennials like the flexibility & control ofFlexible working timesFlexible working placeThe ability to choose what I work on / interesting workRed Brick Researchindependent work27Q: Attractive characteristics of freelance work44%43%43%56%53%66%0%20%40%60%80%Control of my own destiny (Being own boss)No office politicsControl over work loadMillennials Survey - Q: What do you believe are the most attractivecharacteristics of freelance work?, n = 1,039
  • 28. Technology is requiring more of millennials*Millennials Survey – Q: How does technology impact your work life? To what extent doyou agree or disagree with each of the following statements…, asked of businessHiring managers are starting to think that…Red Brick Researchand impacting the way they work28“I can access info whenever andwherever I need it”92% of millennials agree*owners, employees, freelancers and interns, n = 818**Hiring Managers Survey – Q : Do you have any specific concerns or worriesassociated with hiring millennials (aged 21 - 32)?, n = 200“I am expected to becontactable at all times”73% of millennials agree*“I am expected to keep up to date withemerging technology”66% of millennials agree*“Millennials are not used to a standardworking environment”38% of hiring managers**
  • 29. Millennials believe it is easier to start aMuch easierA little easierNo differenceA little harderRed Brick Researchbusiness than ever before1%6%10%46%37%0%5%10%15%20%25%30%35%40%45%50%Much harder82%Easier29Q: Do you think technology is making it easier or harder forindividuals to be their own boss?Millennials Survey, n = 1,039
  • 30. AppendixRed Brick Research 30
  • 31. Elance-oDesk is the world’s largest online workplace. More than 3.7 millionbusinesses and 9.3 million freelancers tap into www.Elance.com andwww.oDesk.com to work together via the Internet. As our increasinglyconnected and independent workforce goes online, talent—like software,shopping and communications before it—is shifting to the cloud. This shift isfreeing professionals from set-time-and-place work, while also making it fasterand easier for businesses to hire. Elance-oDesk is headquartered in MountainView, California, with offices in San Francisco, California, and Oslo, Norway.For more details, go to: www.elance-odesk.com/millennial-majority-workforceRed Brick Research31This study commissioned by:
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