There has been so much written about Millennials. Whether you think they’re entitled, brilliant, naive, sharp, entrepreneurial, motivated, anxious, turned off, turned on, anti-work, tech-obsessed, empowered, or disillusioned — they’re all of the above. Doesn’t matter what any of us think. Because the indicators suggest that something is happening and it’s likely to drag us kicking and screaming into a better world.
They’re part of something bigger… haven’t you been feeling it? A growing consciousness that business, politics, entertainment, and technology can all be elevated to serve a higher purpose. It’s already in motion…when we hear stories, or watch videos which show us a little glimmer of this kinder, gentler future, don’t we feel inspired, and kind of hopeful inside?
Let’s focus on business, because, by all accounts to date, certain sectors are on a collision course with Millennials.
Ironically, the profit-driven, classic corporate agenda which the Millennials sneer at, is going to be the very thing that greases their wheels. Because a decline in profits will be the only way to get the attention of the corner suites, and this will convince CEOs to see this generation as less of a target group, and more of a viral force.
So when experts say Millennials are about to have the most profound impact on business we’ve ever seen, it’s worth looking at.
There’s going to be enough of them to shake things up
In the US, it’s estimated that by 2020, a third of the population will be Millennials. And by 2025, they will represent 75% of the workforce. As they ‘occupy’ the corner offices of corporations, get elected into positions of power, and have enough collective wealth to make their purchasing decisions count, it will be too late to decide then, to adopt their values.
If the Spend Shifters aren’t bleeping persistently on your radar screen, maybe you need new radar
Twenty years ago, Peter Drucker wrote: ‘ the demand for socially responsible organizations will not go away — rather it will widen’. Now, as the Millennials have reached adulthood, they’ve begun to experience our workplaces, and reject business-as-usual.
This is a generation that accounts for more than $1 trillion in U.S. consumer spending, and 84% of them are focused on social responsibility when making purchase decisions.
The Cone Communications 2013 survey of over 1200 adults found that Millennials showed an increased trust of 91% and an 89% greater loyalty to companies who supported social issues. When Young & Rubicam did their 2009 brand attribute study, 75% of these emerging Spend Shifters said they made it a point to buy brands from companies whose values aligned with their own. Fast-forward to present day, and the authors of Spend Shift, John Gerzema and Michael D’Antonio show that for Millennials, corporate values of kindness and empathy rose 391% in those 5 years. Attributes like ‘ exclusive’, and ‘arrogant’, fell significantly, despite their classic connotation of success. This rise in ‘soul values’ is the biggest sea change in the history of the survey.
The Millennial Smoothie: Put Daily Work and Social Good in the blender and crank it
Call them bleeding hearts, or naive whiners if you like, but at your own peril. They are putting their money where their mouth is. Life, work, beliefs and mission are all one now. They’re erasing the lines, and as their buying power increases, companies who want their attention and loyalty might want to chug it down.
Brands which don’t actively demonstrate how they are part of making the world a better place could suffer in the Millennial consumer culture. Customer relationships will need to deepen and become grounded in shared ‘projects’ to better the world. Brand communities will be more activist-oriented. Companies not willing to bend on their profit-driven agendas could lose out.
Being a ‘good company’ in the eyes of this generation means moving social endeavors closer to your core business strategy. They are taking social good from a ‘nice-to-have’, to a ‘need-to-have’.
Here’s how a major sector will be at risk when the Millennials just say ‘no’
The Pew Research Center has identified Millennials as the least trusting of any previous generation. And much of this distrust is aimed at major institutions. Namely, banks.
One millennial puts it this way:
“And it’s not just the complexity. The whole ordeal just feels like a giant grift that taints your soul just thinking about it. I hear ‘we’ll help you design the investment portfolio that fits your risk profile,’ and I translate ‘bankster scum are coming for your wallet.’”
An Accenture survey has shown that there is a marked lack of confidence in traditional financial structures, and a growing reliance on the Internet, social media, and personal networks for financial advice. The authors of the Millennial Disruption Index have singled out the financial sector as the most likely to feel the brunt of Millennial rejection. In the US Millennial survey, of the least-liked brands, the top four were the most powerful banks. Memorably, 71% said they ‘ would rather go to the dentist than listen to what the banks are saying’.
What’s scary is this: they are ready to act on their beliefs. One third of them said they will not need a bank in the future. They bank online with their smartphone and are more captivated by the possibilities of banking with a new offering from the likes of Google, PayPal, Amazon, or Square. They are the lowest investing generation yet, with nearly half of them uncomfortable with investing in stocks.
Another 20-something comments:
“Much of that can surely be chalked up to laziness and incompetence on my part. But I think it also has to do with how Wall Street malfeasance, vast inequality, and the complexity of the financial system combine to create an enormous psychological barrier when it comes to investing, keeping all but the rich out of owning stocks and other assets.”
Even young Wall Streeters are cashing in their ‘Get Out of Jail Free’ card
The departure of young investment bankers, like Samson White (pseudonym) who left Goldman Sachs is profiled in the book, ‘ Young Money’ by Kevin Roose. White makes the life-changing decision to quit, and then writes:
“Free at last. Free at last. Thank God Almighty. We are free at last… The decision to leave GS, I think, will prove to be one of the best of my life. Who knows where it will go, but it’s clear to me now that I should be in media, not finance. I don’t want to be a Carl Icahn or Bill Gross or Steve Schwarzman. I want to be an L.A. Reid, a Richard Branson, a Michael Jackson – where the shit I create will impact people forever.”
Nagged by their conscience, or burned out, they are leaving what they view as a toxic and morally bankrupt working environment. Many have headed for tech firms and startups in Silicon Valley, seeking opportunities to create something that matters to them, and potentially better the world. They’re not afraid to leave the dusty glamour and big paychecks behind, as a recent Intelligence Group study revealed that 64% of Millennials said they would rather earn $40K a year doing something worthwhile, than $100K doing something boring or unfulfilling.
For the skeptics: why this isn’t just another false alarm about the next generation
Yes it’s true — similar warning bells have sounded about the peace-loving hippies and anti-establishment Gen X’ers. However, there are a few key factors that make this impending scenario different:
1) Previous generations had ideology without technology. Millennials are more empowered than any generation before them to rally on social media and become a force to be reckoned with. When they opt-out, they do it en masse.
2) They believe in DIY for Social Good. While the hippies protested and staged love-ins, Millennials don’t wait for the world to fix the problems they see. They fix things themselves.
In San Francisco, three 20-something programmers were able to address the problems that have been plaguing HealthCare.gov for months over the course of a few all-nighters.
3) They don’t buy into evaluations, performance reviews or references from supervisors. As Frank Odasz, a 21st century workforce expert says, “Peer-evaluated, crowd-accelerated innovation will be recognized as a new dynamic for our global hologram of shared
imagination. Digital reputations will be judged by the level of leveraged meaningful activities one leads, and is directly involved in advocacy for. Just-in-time, inquiry-based learning dynamics will evolve.”
Millennials thrive when they feel they’re part of the solution. Why not make them part of YOUR solution?
On the one hand we’ve got Millennials with a hunger for real-life challenges that will move the world in the right direction. On the other hand, we’ve got companies who need to integrate the Millennial agenda in order to win their vote.
Hmmm. Is it a crazy idea to bring these Millennials in, and put them to work making your company a better place, and in so doing, evolve to the point where you and your brands are more attractive to this huge and growing generation of buyers? Not in a control-and-contain kind of way, but in a way that allows this generation to have an positive impact on the way you do business. Seems like win-win to me.
Whole Foods CEO, John Mackey, is the Pied Piper of Millennials
Whole Foods’ staff is almost 50% millennials, and Mackey describes those he has met as highly creative, collaborative, communicative, and pragmatic––a rare blend of qualities that will give this generation the strength and flexibility it needs to rebuild a smarter America. His company’s mission and higher purpose is a magnet for those who are seeking employment with a company whose values mirror their own.
As Mackey says, “This is not a dog-and-pony show. As Whole Foods’ evolution demonstrates, what animates millennials––global sustainability, work-life balance, commitment to a higher purpose––benefits everybody, stockholders included. Ironically, what may appear at first like a management challenge to retain employees, get votes, or keep kids from dropping out of school is actually an opportunity to reexamine ourselves and absorb the wisdom of those who haven’t yet learned what isn’t possible.”
If there’s a light at the end of the tunnel, it’s that soul train. The good news is you’ll be on it in good company: Whole Foods, Google, Southwest Airlines, Nordstrom, Patagonia, and the Container Store, and more climbing on board, hopefully.
