The 2015 Deloitte Millennial survey
Millennials’ view on how leadership operates influencing the education model
Mind the gaps: The 2015 Deloitte Millennial survey
The survey targeted Millennial, employees who joined the labor market in beginning of this millennium and are on their path to become leaders within their organizations. All respondents were born after January 1983, are degree educated, and in fulltime employment. Three-quarters of the 7,806 participants work in large organizations that have at least 100 employees, while 78 % of them are employed in private sector. In addition, the survey focused in gender and different geographies comprising developed and emerging markets.
The footprint of the survey did not include Albania, however the findings in this survey, especially those concerning emerging markets reveal strong messages on how our business community should react in order to adapt to the models that Millenials will shape.
Millennials have different view on how actual leadership operates.
From this survey, Deloitte could sketch the Millennials’ “socially focused” perception of leadership. The personality traits of individuals identified as “true leaders” include: Strategic thinking (39 %); Being inspirational (37 %); Strong interpersonal skills (34 %); Vision (31 %); Passion and enthusiasm (30 %); and Decisiveness (30 %).
Millennials view leadership in a way that runs contrary to how they feel their current leadership teams operate, signaling a “leadership gap” between what Millennials would prioritize if they led their organizations and where they believe their senior leadership teams are currently focused.
Thus, having an “autocratic” approach (6 %) was the least popular individual characteristic of leaders among Millennials; being “driven by financial results” (10 %) was similarly unpopular.
When considering Albania, the above individual characteristics we can agree that are more present in our business models. This might derives from our past regime patterns as well as by the injection of “fast growing need” that we have in our social psychology when aiming to meet developed countries standards. We often see our organization shaped in military models of “commanders” defining targets and employees struggling to achieve with the limited “education” resources they have compared to global competitors.
Millennials believe that more than half of the skills required to run daily activities are gained within the organization.
The 2015 Deloitte Millennial survey underlines that, an under-developed graduate skill set, regardless of gender or geography; only 28 % of Millennials feel that their current organizations are making “full use” of the skills they currently have to offer. The good news is that the majority of Millennials say they now have, or will be able to obtain in their current organization, the skills and experience that allow them to meet their career ambitions.
Millennials agree that when they left college, they did not offer the full range of skills, personal qualities, and experience for which today’s businesses are looking. When asked to estimate the contributions that skills gained in higher education made to achievement of their organization’s goals, Millennials’ average figure is 37 %.
This point to businesses’ successful ability to train and develop young people who did not express great confidence in their abilities upon graduation.
In other words, two-thirds of the skills required to meet the needs of their organizations have been gained while in employment, meaning that employers are required to invest large amounts in training and development so that raw recruits can make a meaningful contributions to organizational objectives. Other findings suggest that skills gained in higher education contribute only 40 % to the fulfilment of day-to-day roles and responsibilities, and 42 % towards meeting longer-term career aspirations.
Albanian Millennials have already marked their presence in the market
Albania has a relatively young population and Millennials are already “taking-over”. Few years ago, the main employers as well as the main targeted of millennial graduates where in Banking sector as well as Mobile Communication. Leaders within these sectors, apparently have promptly reacted in helping recruits to gain additional skills by establishing pre-graduation study programs as well as in some cases there has been performed an adaptation of German professional academies where students parallel to the academic studies are involve in work training by caring real employment tasks within the companies participating to this program.
Mirroring the growing market, Deloitte in Albania is also directly influenced by Millennials’ path. Understanding this gap between commerce and academia, we are trying to create a larger pool of graduates possessing business acumen. Apart the internship program that we have run successfully for several years we are now focusing on specific technical courses with the universities, where students will gain additional knowledge form tangible experience. We are also supporting the establishment of specific and elite master programs with the University of Tirana as well as Turin University. Moreover, we have running project like “summer boot camp”. Deloitte believes that these tailored initiatives with serve to better prepare Millennials for the labor market as well as for high professional services firms.
Business should use a structured approach to maximize return on training investment and minimize staff turnover.
Despite this, it is obvious that the above-mentioned have been a reactive action to the employment market needs and they are mainly localized to these specific sectors. Other sectors like, Oil and Energy, Utilities, Insurance, Pharmaceuticals, Construction and Consumer Business in all its branches; production, distribution, retail and HoReCa now are representing major employers of Millenials with a fast growing share.
The bad news is that in none of the sectors we have observed a “lesson learned” action by proactively approaching students and junior recruits. Instead, in some cases for example in Consumer Business and Pharmaceuticals Distribution we have observed reactive actions where business are giving “overdoses” of technical training to junior employees and/or interns.
This action has given these Millennials tools and skills, which have enabled them to crystalize their vision of leaders within their sectors but no leadership or managerial skills, which would enable them to implement their visions. Thus, business themselves have given to Millennials tools to be prepare in job interviews from competitor and prematurely gain managerial positions within new organizations resulting in low managerial performance and consequently very high staff turnover. On the other hand, the Return of the Investment (ROI) on staff training looks like has been neglected.
The good news is that some business are trying to address these issues in structured way. They are contracting consultancy service (from Deloitte in Albania as well) for the assessment of the managerial capabilities within the organization.
They are putting more and more focus toward managerial competences and like leadership, executive, innovation and collaboration competencies. In most of the cases such assessments helps them to understand weather the organization will afford their growth plans.
As a next step, they are requesting the preparation of competency model (matrix of the correlation of the competencies with job descriptions) which serves as a map for the training need assessments (TNAs) as well as for employee capabilities growth plan. This way they are maximizing ROI in training investments. Moreover, the competency model serves also as a foundation for implementation of long lasting KPIs models and performance based incentive schemes that influences directly the staff turnover ratio.
Surprisingly, connectivity is a differentiator
Another interesting finding of the survey suggests that “super-connected” Millennials (those who are significantly more likely than average to use social media in a personal and business context) feel more strongly than their less-connected peers that businesses have a positive impact on wider society and that the purpose of business is to “improve society/protect the environment.” They are more optimistic about general economic conditions; are more likely to say their company’s purpose is part of the reason they chose to work there; and are generally far more positive about businesses’ motivations and behavior. “Super-connected” Millennials also consider themselves to have been better prepared for their working lives upon leaving higher education; including have a significantly higher self-rating on leadership (32 % vs. 16 %).
Given these findings, businesses around the world may want to be more diligent in identifying the “super-connecteds” in their presence and harnessing their potential.
Summarizing the survey reveals Millennials view of the future state of the companies: “A leading company gives its employees a chance to learn and grow. It is capable of making correct but difficult decisions and able to succeed.”
Barry Salzberg, CEO of Deloitte Global said: “The message is clear: when looking at their career goals, today’s Millennials are just as interested in how a business develops its people and its contribution to society as they are in its products and profits. These findings should be viewed as a valuable alarm to the business community, particularly in developed markets, that they need to change the way they engage Millennial talent or risk being left behind.”