New Generation Workers. Accenture Research Report: Millennials At The Gates

Millennials at the Gates Results from Accenture’s High Performance IT research

Contents

Executive summary.............................................................................................................2 Key findings...........................................................................................................................3 Implications...........................................................................................................................9 About this study...................................................................................................................10

Executive summary

The Millennial generation (defined as those born between 1977 and 1997) is beginning to establish itself in the workplace, flush with attitudes and expectations that are markedly different from prior generations. Nowhere perhaps are the differences between new workers and their more experienced colleagues more apparent than with the use of technology. The Millennials have grown up multitasking, enabled by a rapid evolution of consumer electronics and social networking applications that allows them to stay “plugged in” 24/7. Students and young workers take for granted the ability to connect with friends and family at any time, from anywhere, via the Internet or their cell phone. They are now bringing those expectations into the workplace – and turning IT policies upside down in the process.

To examine how the Millennial generation views and uses technology, Accenture embarked on a study in June 2008 as part of its long-term program of research designed to identify and understand the drivers of (and challenges to) achieving high performance within IT. The survey queried more than 400 U.S. students and employees across three age groups — 14-17 (“younger Millennials”), 18-22 (“mid-Millennials”) and 23-27 (“older Millennials”). We found an increasing demand among these respondents for high-tech devices to connect with colleagues, peers, friends and family – both inside and outside of the office or the classroom. From a corporate perspective, the findings point to a disconnect between the enterprise technology that organizations provide their employees and how young workers actually want to use technology and collaborate in the workplace.

The implications for enterprise IT organizations are potentially significant. As Millennials begin to exert more influence in the workplace, IT leadership teams will have to find a way to adapt their policies and procedures to accommodate the new technology these younger workers are demanding. And they must do so without putting the enterprise at risk. This report provides a summary of the research and the potential impact on corporate IT organizations.

2

Key findings

One-third of the mid-Millennials said they expect not only to use the computer of their choice, but also to access their preferred technology applications once in the workforce

3

My life, my tools – deal with it The majority of our young respondents said they expect to use their own technology and mobile devices for work rather than those supplied by their current or future employer (Exhibit 1). One-third of the midMillennials (ages 18-22) said they expect not only to use the computer of their choice (32 percent), but also to access their preferred technology applications once in the workforce (34 percent).

This sentiment may be at least partly attributable to Millennials’ disappointment with the technology that employers currently provide. In nearly every category of workplace technology, more than 20 percent of the respondents who have used employer-provided technologies said those technologies did not meet their expectations. In particular, respondents were dissatisfied with employer-provided virtual communities (39 percent), online collaboration tools (30 percent), and enterprise wikis (26 percent). (Exhibit 2)

Exhibit 1 - ‘Mid-Millennials’ expect to use their own technology and mobile devices for work Expected, Current and Ideal Work environments Mid-Millennials (18-22) Expected

Company devices (computer)

12%

9%

Current

Expected

17%

Expected

19%

22%

22%

6%

23%

35% 28%

9%

27%

19%

20%

18% 16%

16% 29%

32%

48% 27%

My own mobile

48%

20%

My devices (computer)

39%

17% 7%

17% 29%

7%

21%

Current Ideal

16%

30%

Ideal

17%

15%

12%

9%

17%

35%

9%

32%

23%

16%

23% 11%

18%

Current

Corporate social network applications

10%

9%

12%

Ideal

Corporate technology applications

17% 14%

28%

Ideal

Expected

30%

37%

Current

Mobile from my employer

Expected = 18-22 in school Current and Ideal = 18-22 working

19%

29%

10% 9% 6%

17%

11%

Technology applications of my choice

My personal online social network

5 = Personal choice 4 3 2 1 = Corporate choice

Personal choice

Corporate choice

Exhibit 2 - Millennials who are dissatisfied with technologies supplied by their employer are falling back on tools not supported by the IT department Looking at the following list, which technologies do you currently use or access for work related activities that are not supported by your organization’s IT department, or not meeting your expectations? social networking sites

59%

virtual communities

33% 54%

blogs, vlogs, Twitter

34%

18%

36%

35%

26%

23%

instant messaging

28% 12%

47%

enterprise wikis

26%

39%

mobile phone/blackberry

online collaboration tools

15%

38%

30% 38%

11% 21%

51%

VOIP

27%

21%

52%

open source technologies email Internet

22%

27% 14% 10%

13% 16%

Currently use but not supported by IT department

51%

28%

19%

Currently use and supported by IT department, but not meeting expectations

47%

online applications

RSS feeds

Currently use, supported by IT department and meeting expectations

59%

13%

60% 73% 74%

4

Exhibit 3 - Use of e-mail at school or work is still strong among older Millennials, but the trend shifts downward among younger respondents How many school or work hours during the week do you actually spend on 10

9.5

Mean hours

7.9

7.7

8

5.9 6.1

6

3.5 1.9 2.0 0.7

0

Writing or receiving school/work related emails Young Millennials

4.8 3.8

3.1

2.6

1.9 1.7 0.8

0.7

Text messaging

On the Internet

Mid-Millennials (in school)

We’re even beginning to see some shifts away from workplace staples such as email. While older Millennials still spend an average of 9.5 hours a week writing or receiving work-related emails, mid-Millennials already in the workforce say they spend just 7.7 hours a week on e-mail. High school and young college students spend far less time with traditional email – less than two hours a week – instead preferring newer (and more immediate) alternatives such as text messaging, instant messaging, and communicating on social networking sites (Exhibit 3).

5

5.4

4.2

4 2

Email is still a reality in the workforce, but text and instant messaging is making way in as well as social network sites

2.6

1.9

2.3

3.0

2.8 1.6

0.6

0.6

On social network sites

Older Millennials (in school)

2.8

2.6

Listening to portable device

Instant Messaging

Mid-Millennials (working)

Millennials find many of these types of emerging communication channels to be lacking in the workplace – highlighting a significant gap in expectations vs. reality. While 21 percent of respondents say their organization should provide online chat and instant messaging for communicating with clients or customers, only 6 percent say their employer actually does so; similarly, 18 percent thought their employer should support text messaging, though just 5 percent said their organization supports this channel. Ditto for RSS (really simple syndication) feeds: 12 percent said their organization should communicate externally through RSS versus only 5 percent who said they actually offer such feeds. (Exhibit 4)

0.9

0.9 0.5 0.7 0.2 0.2 0.1 0.1 0.2 0.1 0.1

In a virtual community

Blogging or on Twitter

Older Millennials (working)

Asking forgiveness, not permission In many cases, Millennials are doing more than just expressing disappointment with their employers’ lack of leading-edge technology; many are bypassing corporate policy and installing and using external devices and applications that are more to their liking. Thirty-nine percent of mid-Millennials said they use mobile phones that are not supported by their employer for work-related activities (Exhibit 5). The percentages were high as well in regards to unsanctioned use of instant messaging (27 percent) and social networking sites (28 percent). Other “back-door” technologies of note: open source technology (19 percent) and online applications (12 percent).

Exhibit 4 - There’s a gap between how organizations enable employees to communicate with clients and customers and how younger employees would prefer to communicate with them Organizational communication with clients/customers [Working Millennials] 80%

In person

58% 76%

Phone/Voice mail

49% 74%

Emails

46% 38%

Physical mail

20% 6%

Online chat/Instant Messaging

21% 5%

Mobile text message

18%

New communication channels

5%

RSS feeds posted on portal

12% How is your organization communicating

1%

Widgets

How should your organisation be communicating

9%

Exhibit 5 - High percentages of mid-Millennials are using unsanctioned mobile phones, instant messaging and social networking sites for work activities Technologies currently used or accessed for work related activities Mobile phone/ Blackberry

Open source technologies

Instant Messaging

8% 22% 39% 7%

8%

20%

19%

5%

Online applications 11.8%

12% 27%

10.8%

8% 30%

6%

10% 5.3%

5%

Social Networking sites 17% 28%

12%

23.7%

28%

18.3%

3%

8% 9%

31%

26%

19%

57%

51% 34%

MidOlder Millennials Millennials Currently use but not supported by IT department

42%

MidOlder Millennials Millennials

59.1%

55%

60.5%

68% 55%

41%

MidOlder Millennials Millennials

Currently use and supported by IT department, but not meeting expectations

MidOlder Millennials Millennials

Currently use, supported by IT department and meeting expectations

MidOlder Millennials Millennials Not applicable, do not use

Indicate significant difference between groups at 95% confidence level

6

Exhibit 6 - Millennials are filling in the gaps of IT-supported technology by accessing or downloading software from free public websites For those technologies that are not made available to you at work or that are not meeting your expectations do you then: Mid-Millennials Older Millennials

75% 8%

25% 72%

Mid-Millennials

20%

71%

Older Millennials

25%

29% 50%

Mid-Millennials

25%

52%

Older Millennials

48%

20%

Mid-Millennials

7%

Older Millennials

8%

Mid-Millennials

9%

Older Millennials

60% 45%

10%

Older Millennials

8%

Use your existing personal technology

48%

46%

46%

35% 20%

Mid-Millennials

20%

56% 40%

40%

33%

57%

23%

69%

Access/download the technology from free public websites

More than half of Millennials say they are either unaware of their companies’ IT policies or are not inclined to follow them

online applications

open source technologies

instant messaging

social networking sites

email

Purchase the technology yourself for work only

Similarly, Millennials say they regularly download free, nonstandard technology from open source communities as well as “mashup” and “widget” providers. For example, three-quarters of the mid-Millennials report that they have accessed online collaborative tools (75 percent) and online applications (71 percent) from free public websites when those technologies were not available at work or not meeting their expectations (Exhibit 6). The results, in fact, show either a surprising lack of awareness or a blatant disregard for corporate policies regarding the use of information technology. More than half (60 percent) of Millennials say they are either unaware of their companies’ IT policies or are not inclined to follow them. This finding is particularly troubling when considering issues of privacy (Exhibit 7). Only 40 percent of all respondents said their employers have published detailed policies related to posting work or client information

7

online collaboration tools

on public websites. Nearly one-third (31 percent) of respondents claim they don’t know if their company has such a policy; 17 percent said their employer hasn’t published such a policy; 6 percent said that whatever policy their company has published is too complex to understand; and 6 percent said they will post work or client information on public sites regardless of any policy, at least when communicating with colleagues. Millennials’ nonchalance about online privacy should give CIOs pause. One out of four (26 percent) working Millennials in our survey said that they write openly about themselves and friends online, and one in six (17 percent) said they openly share details of their life online. (Exhibits 8.1, 8.2)

Exhibit 7 - Sixty percent of respondents either don’t know about or don’t adhere to their organization’s policy for posting sensitive information on the public Internet Has your organization implemented a policy restricting the posting of work or client information on public websites outside of the organization’s firewall? My organization has published detailed and easy to understand regulations restricting the posting of work or client information on public sites

40%

My organization has published a policy, but it is too complex, I do not understand it

6%

My organization has published a policy, but I post work or client information on public sites anyway when I communicate with colleagues only

6%

My organization has not published a policy

17%

Don’t know/Not applicable

31%

Exhibit 8.1 - Twenty-six percent of working Millennials said they write openly about themselves and friends online Usage of blogs or social sites

Mean

Young Millennials

24%

21%

28%

13%

14%

2.74

Mid-Millennials (in school)

19%

25%

34%

14%

8%

2.68

Older Millennials (in school)

31%

15%

29%

10%

15%

2.63

Millennials (working)

20%

24%

30%

18%

8%

2.70

1

2

3

4

5

I never post any information about myself or friends online

I love writing about myself and my friends in blogs or my social sites

Exhibit 8.2 - Seventeen percent of working Millennials say they openly share details of their life online Usage of blogs or social sites

Mean

Young Millennials

35%

22%

34%

6%

3%

2.20

Mid-Millennials (in school)

27%

30%

29%

10%

4%

2.35

Older Millennials (in school)

33%

22%

27%

11%

7%

2.37

Millennials (working)

33%

19%

31%

10%

7%

2.38

1

2

3

4

5

I very am selective about what I post online

I share openly details of my life online

8

Implications

More than half of respondents said that state-of-theart technology is an important consideration in selecting an employer

These findings hold serious implications not just for corporate IT leaders, but for hiring managers as well. It appears that Millennials increasingly are choosing their place of employment based on how accommodating companies are to their personal technology preferences. More than half (52 percent) of our respondents said that state-ofthe-art technology is an important consideration in selecting an employer. In particular, 57 percent of the midMillennials and 67 percent of the older Millennials still in college claim that an organization’s use of state-of-theart equipment will be an important factor when choosing where to work. (Exhibit 9) The message from Millennials is clear: to lure them into the workplace, prospective employers must provide the same type of leading-edge technologies they have grown accustomed to in their personal lives. And if employers don’t support their preferred technologies, Millennials are likely to use them anyway – regardless of corporate policy.

9

In order to acquire (and retain) the best talent from this new generation of workers, organizations must develop a better understanding of emerging technologies – not just how Millennials view and use them, but how these tools might benefit the organization as a whole. A proactive review of corporate policy – with input from the Millennials themselves – is an important first step in getting ahead of the technology curve to ensure that the future workforce can work productively with its preferred technologies, in a way that does not compromise enterprise security.

Exhibit 9 - More than half of all Millennials said state-of-the-art technology is an important consideration in selecting an employer State-of-the-art equipment and technology will be vital in my employer selection 52%

Total

4% 8%

Young Millennials

36%

39%

6%

30%

22%

31%

22%

2%

Mid-Millennials (in school)

4% 6%

Mid-Millennials (working)

5%

34%

32%

34%

13%

24%

26%

5 = Totally agree

22%

4 Older Millennials (in school)

30%

43%

3%

Older Millennials (working) Totally Disagree

4%

24%

3

Note the aspiration vs realization! 37%

13%

28%

2

18%

1

1 = Totally disagree

5

Totally Agree

About this study As part of a survey to understand how the technology-driven culture of today’s “Millennials” — the incoming workforce — would affect IT organizations’ decisions in the future, Accenture conducted a quantitative online survey in June 2008 of more than 400 U.S. consumers between the ages of 14 to 27 (Exhibit 10). All respondents aged 14-17 have completed at least middle school, and all respondents 18-27 years of age have completed at least high school. All respondents included in the analysis were in school, recently graduated or employed. Respondents represent a random sample of this subgroup, not of the general pool of U.S. consumers. The survey was part of Accenture’s ongoing High Performance IT research program, which aims to better understand the drivers and challenges to achieving high performance within IT. For more information, contact Jeffrey Francis at jeffrey.a.francis@ accenture.com or Gwen Harrigan at [email protected].

Exhibit 10 - Research methodology and structure (sample) Age group 23-27

14-17 27%

Number of respondents:

106

Number of respondents:

107

121

169

7

26%

189

109

47%

18-22

Education

2%

26% 42% 30%

Full-time student in high school Part-time or full-time student at college or university Graduated and working part-time or full-time Recently graduated and unemployed 10

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ACC08-0659

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