Account for GenY in hiring policies to mitigate risks
It is estimated that by 2025, up to 75 percent of an organization’s workforce will come from what sociologists call Generation Y. That’s why organizations should start now to look into the changes coming from an increasing percentage of employees that prioritize media freedom, device flexibility and mobility over salary.
Generation Y (Gen Y) is a term used to describe the group of people born between 1981 and 1989. They are around 30 years old today, many are already employed and some are starting to take strategic and high-level positions in companies around the globe.
According to Frank Ridder, research vice president at Gartner, “Generation Y has a higher appetite to look externally when seeking a new IT solution. To leverage those solutions, they are willing to take some risks and to give some trust to the quality of an externally provided service such as the cloud. This can impose risk to the organization; risks that have to be balanced with end-user desire together with real business benefits such as speed and flexibility.”
This generation shift is impacting all areas of an organization, including sourcing and IT. It is important that CIOs and sourcing managers understand the requirements of Gen Y end users when it comes to technology and services as well as their way of working. CIOs are responsible for including new technology and delivery models in their sourcing strategies to optimize service delivery and are, therefore, in a central position to make the changes that best enable Gen Y employees.
Gen Y is also changing old paradigms. It turns the make versus buy trend around by 180 degrees - it looks first into what is available on the market before deciding to build anything, especially with highly commoditized services. Today’s sourcing executives have to prepare a strategic approach that allows that shift to happen seamlessly and with optimized risk.
Additionally, sourcing managers and contract managers should understand that Generation Y values different things and has a higher degree of trust toward what external sources can deliver. While the demand for low-cost and high-quality services is not any different from today’s purchasing attributes, the demand for speed is much higher with today’s impatient Generation Y workers, and customer experience is joining the list of key purchasing attributes. This requires new evaluation criteria and a new set of information to collect during request for proposal phases. This also increases the importance of the “try before you buy” purchasing approach.
Generation Y impacts are not coming overnight and organizations have up to 12 years before 75 percent of their workforce will come from this generation. However it is crucial for organizations to understand their own impact timeline so that they can prepare, plan and start implementing initiatives early enough.
- Cloud Computing Driving Innovation For Next Generation
- Gartner: Top 10 Strategic Tech Trends For 2018
- Blockchain, Distributed Ledgers Will Take Time To Mature: Gartner
- Deep Learning To Spur Fraud Predictions By 2019
- Cloud Momentum Consistently Up Across Financial Biz Apps
- Indian Firms Need To Improve Their IT Security Posture: Gartner
- 7 AI Technologies To Power The Enterprise
- Key Cyber Security Initiatives for Indian Enterprises: Gartner
- Evolving Cyber Threats, Be Responsive To Defend
- How Businesses Can Overcome 3 Key Challenges Of AI