M A N A G E M E N T
practice management
Understanding Millennials in the Workplace
By Shele Bannon, Kelly Ford, and
Linda Meltzer
E
ach generation has characteristics that
make it unique. The Millennial
generation is set to make an impact
in the workplace, and CPA firms should be
aware of this generations particular skills and
desires in order to incorporate them into
the profession successfully. By some
definitions, Millennials were born between
1980 and 1992, but other studies use
ranges anywhere from the mid-1970s
through the early 2000s. Millennialsalso
known as Generation Yare more tech-
nologically savvy, better educated, and
more ethnically diverse than any previous
generation.
Numbering between 50 million and
80 million (depending upon the defini-
tion), Millennials represent a sizable
population cohort. They account for
10% to 15% of the U.S. labor force, and
they are currently entering the lower
management ranks. Millennials are poised
to be powerful drivers of the economy,
both as employees and as consumers. They
will change todays workplace, and busi-
nessesfrom mom-and-pops to multina-
tional corporationsneed to understand
what this future workforce will look like
in order to tap its potential. While the char-
acteristics of Millennials may appear to
clash with the existing traditional work
environment, these traits can be an asset
if properly utilized.
Describing a Generation
Employers must determine what type of
compensation, rewards, recognition, or other
incentives will meet the needs of Millennials
entering the workplace. Successfully meeting
these needs will lead to an increase in employ-
ee morale and efficiency, as well as to
greater long-term employee retention.
According to the Pew Research Center, near-
NOVEMBER 2011 / THE CPA JOURNAL
ly 57% of younger workers say it is not very
likely or not likely at all that they will stay
with their current employers for the remain-
der of their working life. Among Generation
X workers (those born from 1965 to 1980),
those numbers are nearly reversed: 62% say
it is likely they will never leave their current
employer, while only 36% expect to someday
work for someone else. Baby boomers (born
from 1946 to 1964), many of whom are at or
approaching retirement age, are even more set-
tled, as 84% expect to remain with their cur-
rent employer for the rest of their working
lives. Based on this information, it is crucial
for employers to understand what motivates
the Millennial generation if they hope to retain
these valuable employees.
Several organizations have conducted sur-
veys to further investigate the ways in which
Generation Y will impact the workplace:
Pew Research Center, Millennials:
Confident. Connected. Open to Change,
February 2010
PricewaterhouseCoopers (PwC),
Managing the Millennials: HR Survey
of Recent Graduates, September 2008
KMPG, Beyond the Baby Boomers:
the Rise of Generation Y, 2007
Johnson Controls, Generation Y and
the Workplace: Annual Report 2010
Deloitte, Generation Y: Powerhouse
of the Global Economy, 2008
Brill Street & Company, 2009 Gen-
Y 50
The Ethics Resource Center (ERC),
2009 National Business Ethics Survey,
Millennials, Gen X and Baby Boomers:
Whos Working at Your Company and
What Do They Think About
Ethics?
Combining the key findings
from all these surveys, the
authors have identified five dis-
tinct characteristics of the
Millennials. These traits include
their advanced technological
skills, as well as their attitudes
toward work and life balance,
social responsibility, education,
and diversity. The authors have
also highlighted companies that
are successfully attracting
Generation Y to the workplace,
and have provided recommen-
dations for changes within an organization.
Technological Savvy
Millennials are often characterized as
tech-savvy, a quality observed in many
aspects of their lives. For example, they
are the first generation to experience only
a postdigital and globalizing world. They
grew up untetheredwith wireless devices,
workplace mobility, and textingand
remain connected with friends via social
networks. According to the Pew survey,
about 75% of Millennials are members of
an online social network. In addition,
62% of Millennials, more than any other
group connect to the Internet using a lap-
top or handheld device. Millennials treat
their cell phones as natural extensions of
themselves and about 83% keep their cell
phones next to them 24 hours a day; they
are always in touch if they need or want
to be. They spend hours playing video
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