1. © Integral Talent Systems, Inc. All rights reserved Attracting & Retaining Young Workers Presented by: Dr. B. Lynn Ware President & CEO Integral Talent Systems, Inc. Palo Alto, CA www.itsinc.net

2. © Integral Talent Systems, Inc. All rights reserved Who is ITS?  Thought leaders in talent management since 1992 Attracting, Developing & Retaining Talent  Proven experience in employee retention with up to 63% annual turnover reduction  Work with 130 of the Fortune 1000 as well as many small and medium size companies  Provide tools, services & consulting in talent management across the employee lifecycle

3. © Integral Talent Systems, Inc. All rights reserved Talent Management Data Retention Practices Feedback Data Exit Interview Data Employee Commitment Assessments Company HRIS Systems

4. © Integral Talent Systems, Inc. All rights reserved Tools and Services

5. © Integral Talent Systems, Inc. All rights reserved Younger Workers Who are they?  18-35 years of age at the far end of the range  76 million of them in U.S. workforce  Generation Y, Echo Boomers, Millenniums  Generation Y are primarily children of Baby Boomers  Make up 72% of workers in the IT industry -Computer Weekly

6. © Integral Talent Systems, Inc. All rights reserved Younger Workers  Communicate More Through Technology:  97% own a computer  94% own a cell phone  76% use Instant Messaging  15% of IM users are logged on 24 hours a day/7 days a week  34% use websites as their primary source of news  28% own a blog and 44% read blogs  75% of college students have a Facebook account  60% own some type of portable music and/or video device such as an iPod

7. © Integral Talent Systems, Inc. All rights reserved Younger Workers  May not already have the skills you need:  A consortium of business research organizations found the incoming generation sorely lacking in much needed workplace skills — both basic academic, including writing skills and more advanced “applied” skills. -The Conference Board

8. © Integral Talent Systems, Inc. All rights reserved Stereotypes  “They feel entitled.”  “They want to be the President after six months.”  “They won’t work long hours.”  “They have no work ethic”.

9. © Integral Talent Systems, Inc. All rights reserved Workforce Mobility Trends Employee Tenure at a Company Source: Dept of Labor Employee Tenure Surveys, 1955-2007 TENURE

10. © Integral Talent Systems, Inc. All rights reserved Tenure with a Single Employer by Age Source: BLS Longitudinal Study Tenure Less than 1 yr. Less than 2 yrs. Less than 5 yrs. Age 18-22 71%84%97.3% Age 23-27 58%74%87% Age 28-32 50.4%66%81% Age 33-38 38.7%54.0%70.1%

11. © Integral Talent Systems, Inc. All rights reserved Change in Number of Younger Workers* Source: Bureau of Labor Statistics Age1970-19801990-20002001-2007 20-2450%-5%14% 25-3472%-9% * While workers age 45-54 increased 54%

12. © Integral Talent Systems, Inc. All rights reserved India: Workforce Trends  Young workforce, median age 24, less than 8% over 65  Vast majority of population is still agrarian  U.S. firms are continuing large employee increases in India  Attrition rates in India call centers averages 70-80%  60% of recruitment in IT companies has shifted to new graduates entering the market (Experienced older employees are scarce and costly)  Average salary increase for software jobs:  18.3% in 2006, 18.7% in 2007

13. © Integral Talent Systems, Inc. All rights reserved Why Invest? China: Workforce Trends  Workforce is relatively young. However, low birthrate means workforce will actually decline in the next 20 years  Regional employers are competing aggressively for the same graduates  Recruiting and retaining effective managers is increasingly difficult  Paradox: 3.1 million university graduates in 2006, (U.S. 1.3 m) yet less than 10% have the skills to work for a US or European based multinational -McKinsey

14. © Integral Talent Systems, Inc. All rights reserved You probably need them whether you like it or not….

15. © Integral Talent Systems, Inc. All rights reserved You will stand out if you differentiate as a workplace for young workers  According to a recent study only fifteen percent of employers have said that they changed or implemented new policies or programs to accommodate Gen Y workers -Careerbuilder.com

16. © Integral Talent Systems, Inc. All rights reserved ITS Talent Study 2005-2007 Data collected from randomly selected:  1500 Gen Y  1500 Gen X  1500 Boomer These employees came from 17 organizations in 8 industries:  High Technology  Telecommunications  Pharmaceuticals/Biotech  Retail  Health Care  Publishing  Professional Services  Financial Services

17. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  Do not plan on being with one employer for long  Implications: -Your organization will need to take active, conscious steps to retain them in order to get an ROI on your investment -Gen Y’s success will be increasingly linked to their ability to acquire as wide a variety of marketable skills that they can as they move about in their careers.

18. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  They value skill development and career advancement  Implications: -Your managers will need to be aware of employees career aspirations and areas of interest -Managers will need to be comfortable having “career conversations” -Your organization will need to allocate resources for development -required to have a skilled workforce -employee retention

19. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  They value “interesting work”  Implications: -Special care needs to be taken during interview and selection -Managers should go out of their way assigning and balancing team work allocations

20. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  They really care about work peers and the team  Implications: -Hiring for team fit - very important -Managers need to be comfortable addressing conflict and poor performance -Efforts can be made to create team situations that encourage relationships and interaction

21. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  Do not care MORE about work/life balance, but are more vocal about it  Implications: -Look for work efficiencies -Emphasize performance vs. presence

22. © Integral Talent Systems, Inc. All rights reserved Gen Y Attitudes Towards Work  Less tolerant of incompetent management  Implications: -Develop culture of accountability – for senior management too! -Be sure to give reasons behind the change -Ask for their input on how they would like to implement changes that will affect them

23. © Integral Talent Systems, Inc. All rights reserved Other Trends  Gen Y Wants Responsible Investment: “There is a growing interest in environmental, social and governance issues and the emergence of younger generations into the high net worth space is facilitating a surge in interest in responsible investing among family foundations and high net worth individuals as well as at the retail level. “ - Mercer, 2008  Use of technology in the workforce

24. © Integral Talent Systems, Inc. All rights reserved Attracting Talent: The Employment Value Proposition Positioning Value Benefit Attribute Competitive Frame Target Audience(s) Leverage Points Brand Personality © Halleck

25. © Integral Talent Systems, Inc. All rights reserved Target Audience  What keeps them up at night?  What are the drivers of choice for our target demographic?  What makes them a hero?  What are their work aspirations?

26. © Integral Talent Systems, Inc. All rights reserved Leverage Points  Identify key attributes that your organization possesses that no one else has or can claim  Differentiate

27. © Integral Talent Systems, Inc. All rights reserved Competitive Frame  Strengths: Define the strengths of each competitor  Weaknesses: Identify their areas of weakness  Opportunities: What opportunities are presented by both market conditions and the weaknesses of our competitors  Threats: What threats we need to be aware of in the market and as a result of the strengths of our competitors

28. © Integral Talent Systems, Inc. All rights reserved Brand Personality  Define the employment brand as if were a person  Determine personality traits, voice to our target employees, and how we can expect them to speak back to us

29. © Integral Talent Systems, Inc. All rights reserved Recruiting Young Workers Wells Fargo 3M Amazon Google

30. © Integral Talent Systems, Inc. All rights reserved Developing Your “Brand”  Articulate what your company is all about: values – culture – aspirations  Develop a metaphor that communicates this theme  Design the collateral materials – and the experience of the process – to reflect the theme  Validate with your target audience

31. © Integral Talent Systems, Inc. All rights reserved What’s Important for Attracting Candidates? The People Top Five CLC Research

32. © Integral Talent Systems, Inc. All rights reserved What’s Important for Retaining Talent? The People Top Five CLC Research

33. © Integral Talent Systems, Inc. All rights reserved ITS Retaining Top TALENT TM Model: Management Practices for Retaining Talent T Targeted Hiring/Assignments A Achievement L Learning & Professional Growth E Ensuring Recognition N Nurturing Career Development T Team Quality

34. © Integral Talent Systems, Inc. All rights reserved Questions to Ask:  Do we need younger workers to achieve our current and future business goals? If so, why?  Based on what I heard today, why would younger workers be attracted to our organization?  What policies should we consider changing to better retain younger workers?  What new ideas should be implemented to better engage younger workers?  What management practices should we adjust to better retain younger workers?  What will I personally do to help my organization get started?

35. © Integral Talent Systems, Inc. All rights reserved Ready to take action? Dr. B. Lynn Ware Integral Talent Systems, Inc. drware@itsinc.net 650-320-8299 Sign up for regular updates on workforce trends at www.itsinc.net