Attracting and Engaging The N-Gen Employee

June, 2007
Attracting and Engaging the N-Gen Employee

by Janet Hardy and Bill Gillies
The Story in Brief

The combination of diminishing unemployment and the imminent mass exodus of Baby Boomers from the
workplace is intensifying the war for talent from within the Net Generation (N-Gen), the cohort of 88 million North
Americans who were born between 1977 and 1997. These fresh-thinking, vitalized youth—supported by the most
powerful technology ever invented—have the potential to generate wealth on an unprecedented scale, but attracting
them to employment opportunities and retaining them within organizations may prove challenging. N-Geners both
expect and want jobs and work environments that promote flexibility, collaboration, upward mobility and personal
development. Having grown up digital and highly interactive, N-Geners may be ideally suited to co-innovating with
customers, sharing resources, and unleashing the power of mass collaboration to generate opportunity and profit:
the keys to the kingdom in global competition. Therefore, employers that resist the changes N-Geners demand, risk
serious peril during the challenging days ahead.
Human capital is at such a premium that the need to satisfy employees is tantamount to the requirement to
satisfy customers. To attract premium talent, companies must develop Talent Relationship Management (TRM)
strategies that help N-Gen employees achieve their own goals, while maximizing their effectiveness and
productivity within the organization. This white paper outlines programs and policies designed to help attract and
retain N-Gen workers within a tight labor market.
Table of Contents The need for freedom: balancing work and

personal life
1 Competing for North America’s Premium The need for customization: personalizing career
Talent paths, learning and rewards
1 The New Framework: Talent Relationship The need for entertainment: finding fun at work
Management The need for innovation: adding value and feeling
The three stages of Talent Relationship important
Management What does the Net Generation need to learn?
3 Stage 1: Initiating the N-Gen Employment N-Gen employees require different leadership
Relationship
16 Stage 3: Evolving the Relationship—Extending
A. Connecting to the N-Gen prospect the Impact and Influence of the Relationship
B. Recruiting the Net Generation The opportunities—business proposition
C. Onboarding: early learning and responsibility is
essential for the win-win 17 The Road Ahead: A Roadmap for Change and
Measures of Success
7 Stage 2: Engaging the N-Gen Employee Net Generation at work: assessment approaches
The need for speed: progress and communication
The need for collaboration: engaging work 21 Possible Barriers to Adopting a TRM Approach
opportunities and work relationships 23 A New Approach to Measurement
23 Conclusion
© 2007 New Paradigm Learning Corporation

Attracting and Engaging the N-Gen Employee 1
Competing for North America’s Premium Talent

“I REMEMBER THE ‘90s HIRING BOOM, and I thought that was the peak. I would say this time
hiring is even more aggressive,” says Barbara Massa, recruiting services director at EMC, an information
management and storage company based in Hopkinton, Massachusetts. “All the companies want the ‘A’
players... You’re doing things for candidates that, a couple of years ago, you wouldn’t have to even budge
on.”1
By all indications, the competition for talent Our Methodology
will become even fiercer in the years ahead. At Nine University of Toronto graduate students
4.5 percent in April 2007, unemployment is collaborated on a research project focused on N-
already low and the first wave of Baby Boomers is Geners and the workplace. To that end, we
just reaching retirement age.2 In the United States interviewed 31 students on campus (graduate and
alone, the number of jobs is expected to exceed undergraduate), as well as nine graduate students
the number of workers by 10 million by the year who are about to enter business management. We
2010.3 This widening gap is already topping the also conducted an extensive literature review.
list of executive concerns within the automotive, We also drew on the findings of the N-Gen Global
industrial, broader public, education and Research Study, which explored the eight norms
healthcare sectors. The leaders recognize that in a internationally. Sixteen questions were posed to
knowledge-based economy, attracting the best respondents to gauge the relevance of the norms
employees is the organization’s primary across 12 countries. In addition, a benchmark sample
competitive advantage. Unfortunately, where N- of Xers and Boomers was gathered in the U.S. and
Geners are concerned, the attraction quickly fades. Canada. The study was conducted during April-May
2007.
Today, fully one-third of new employees begin
investigating alternative employment options
within six months of being hired.4
Organizations must somehow concurrently meet the imperative to reorganize themselves for greater
flexibility, lower overhead and higher productivity, while providing a work environment that both attracts
and retains N-Gen talent.
The New Framework: Talent Relationship Management

Today’s youth think and relate to others differently, and are well suited for a working world of continuous
change. Although N-Geners are savvy, confident, upbeat, open minded, creative and independent, they
tend to be challenging to manage. To meet their
demand for more learning opportunities and Customer Relationship Management (CRM) principles
responsibility ownership, instant feedback, greater can serve as building blocks for a Talent Relationship
Management (TRM) strategy and principles within a
work/life balance and stronger workplace
TRM framework.
relationships, companies must alter their culture
and management approaches, while continuing to Mapping the Net Generation norms onto CRM
respect the needs of older employees. If properly relationship principles allows for the development of a
cultivated, this generation’s attributes will be a set of validated TRM principles. The following
suggestions serve as guidance for establishing new
valuable source of innovation and competitive
leadership and people practice benchmarks. The TRM
advantage to the organization. model has an added layer of complexity since
In developing the leadership culture and employees interact with each other to a much greater
people practices for this new generation of degree than would be typical of customers.

workers, managers can borrow a useful framework from their colleagues in sales and marketing.
Sophisticated Customer Relationship Management (CRM) practices have been the backbone of high-
performing organizations since the late 1990s. CRM practices and processes are client-friendly and place
the customer at the center of a long-term, profitable relationship rather than a series of isolated purchases.
The CRM approach is easily applicable to the new employer-employee relationship, and companies can
use it to develop equally sophisticated and successful Talent Relationship Management (TRM) practices.
TRM is a strategy that gives organizations a framework for developing the optimal corporate culture and
employee programs for the Net Generation.
The three stages of Talent Relationship Management

New Paradigm’s Talent 2.0 paper outlines why the old model of recruit, manage and retain is outdated.5
The more appropriate employer-employee relationship for this generation is described as initiate, engage
and evolve. These activities reflect the relationship’s reciprocal nature and better respond to N-Gen
norms. Organizations must build a positive presence in the minds of potential N-Gen employees and
dynamically engage them throughout their employment years. Companies should encourage those who
need a change of scenery and exciting new developmental opportunities to work for business partners,
while continuing to maintain ties through alumni groups and other types of networks that can provide
ongoing feedback and support for corporate initiatives (see “Stage 3: Evolving the Relationship”).
Initiate. Stage 1 involves “initiating” a relationship with Net Generation prospects or new hires. To
attract both, organizations must work to differentiate themselves in the talent marketplace, use personal
networks to recruit candidates, and create a process that promotes mutual selection. Organizations must
paint an accurate picture of their culture, work environment, career opportunities and reward programs,
and begin to deliver on their promises within the first 90 to 120 days.
Engage. Stage 2 involves “engaging” the N-Gen employee throughout their career. Engagement is a
two-way street and a merging of the well-defined needs of the employee and the company. “What’s in it
for me?” and “What’s in it for you?” are questions that must be clearly addressed. Then it is up to both the
employee and the organization to deliver on their commitments. Organizations must adopt new work
styles, workflow models, time horizons for the workday, and career paths. N-Gen employees will show up
with energy, enthusiasm and dedication if mentored and coached to contribute to business performance.
Evolve. Stage 3 involves “evolving” the N-Gen employee relationship beyond the historic definition
of tenure to encompass a longer-term, value-added, post-employment relationship. This requires thinking
of employees as an alumni network with a web of contacts and a wealth of knowledge that has the
opportunity to add value, even after they have left the company. Social networking, communities of
practice and other Web 2.0 platforms allow an employee of any age to contribute, stay connected, and
provide wisdom and contacts. N-Gen employees will embrace this kind of thinking as it reflects their way
of interacting and contributing to their various communities through online communities such as
Facebook and MySpace.
Table 1: The CRM and TRM Linkage

Net Generation
CRM Principles Norm Alignment Talent Relationship Management Principles
Trust Integrity Trust and integrity matter
Peers are accountable
Upper management does the right thing
My manager provides the right guidance and accurate feedback
The organization keeps its promises

Net Generation
CRM Principles Norm Alignment Talent Relationship Management Principles
Responsiveness Speed Speed matters
Bureaucracy is not a roadblock to progress and progression
Decisions and requests are made in a timely manner
Performance and potential, not age, make the difference
Transparency and Scrutiny Transparency matters
Knowledge Employee input is valued and forums for dialogue are available
Decision-makers provide context and understanding
Information is accessible
Networking Collaboration Collaboration matters
Working in teams and with partners is encouraged
Leaders behave as coaches—not autocrats
Mentors are made available to employees who want to develop and
progress
Creation of New Innovation Innovation matters
Ideas Opportunities to provide suggestions and make changes are
supported wherever possible
Challenging the status quo is encouraged
Consumer Entertainment Fun matters

Engagement Various social opportunities, both formal and informal, are available
and participation in them is encouraged
Volunteer opportunities that promote social consciousness are
provided
Understanding Customization The individual matters
Expectations The company’s people practices are flexible and accommodate a
range of individual needs
Recognition is specific, frequent and accurate
Career development options are numerous and have few
constraints
Leaders and employees work together, respecting each other’s
unique styles, skills and goals
Mutual Interests Freedom Freedom and balance matter
Personal, productive work/life balance is possible
Opportunities exist for a variety of alternative work arrangements,
locations and flexible time commitments, and technology supports
these conditions
Stage 1: Initiating the N-Gen Employment Relationship

A. Connecting to the N-Gen prospect
Companies can generate online excitement by creating engaging and informative Web sites using tools
such as blogs and podcasts, and creating attractive multi-media material for distribution on sites such as
YouTube and/or Facebook. N-Geners want to easily acquaint themselves with different aspects of a
potential workplace, such as its culture, social responsibility, career paths, products, and global

operations. Potential employees expect transparency and a true picture of the employment offer.
Inaccuracy and hyperbole will turn them off. Clarity and humor will attract them.
Web sites
The Web site is the first point of contact for most N-Gen prospects. They will review the Web site to
gather basic information and get a feel for whether the organization meets some of their basic
employment criteria. This is an excellent opportunity for a company to sell its employment brand and
position itself as an attractive N-Gen employer.
Pfizer.com has an excellent career section with characteristics that N-Gen prospects find particularly
appealing:
• career opportunities that are directly accessible from the home page and Google.
• domestic and international job postings featured prominently on the career home page.
• no registration.
• job postings that encourage a broader range of applicants by keeping qualification requirements
open-ended.
• direct links to company vision and values, awards, culture, work environment, benefits and
diversity definitions—all of which are positioned to appeal to N-Gen employee norms.
• a clear overview of all lines of business.
• a special university relations section with information about career opportunities, internships and
campus schedules.
• specific details of volunteer and community programs.
• FAQs covering university recruiting, general employment issues and the business.
Navy.com acknowledges the influence of parents on N-Geners with a dedicated section for them on its
Web site. It contains FAQs, recruiter contacts, message boards and an overview of why a Navy career is a
positive life choice. The career section contains skills assessments and other interactive tools to help N-
Gen prospects identify a Navy career plan. These are mapped out, with employee pay and benefits clearly
linked to them.
The only thing missing from both Web sites is a “forward to a friend” capability to expand the
number and range of pre-qualified prospects.
Blogs and podcasts

Microsoft uses recruiting blogs and podcasts extensively. The Technical Careers @ Microsoft blog6 is
representative of its online presence, which is witty, brutally honest and revealing. Although the overall
tone and feel is lighthearted, there is a wide range of comments, from positive to critical.
Companies must ask themselves a number of questions prior to launching a truly interactive online
presence:
• is the company comfortable with the possibility of being criticized in a public forum?
• what are the ramifications to employees or managers who criticize company policy or leadership
online and in public?

• is the company prepared to act on such feedback?

• what is the optimal way for the company to employ technology to present itself?
Organizations who use blogs generally believe that the information exchange will provide valuable
feedback on that which works and doesn’t, and the public’s perception of it. For example, a Microsoft
recruiter who posted a message to jobsblog at 11:59 on April 26, 2007 asking for input, received critical
feedback.
I would never work at Microsoft because...

Ahh… I have heard this statement many, many times.
Whether it be from a student at a career fair who loves Linux, or from the grumpy man I sat next to a few
weeks ago on an airplane. It seems EVERYONE has an opinion about our little homey company.
I know many of you read this blog and would love to work at Microsoft—it’s maybe even a career goal. But
I also know that there are many of you who read this blog to see what things you can take and share with
your friends and co-workers about how we are doing something wrong.
So... I invite you to tell me why you would never work here. Seriously, tell me—I can take it. I really want
to know.
re: I would never work at Microsoft because...
Thursday, April 26, 2007 4:34 PM by aa
1) It’s Seattle... no, Redmond. It rains all the time. The local sports teams suck.
2) The interview process is lengthy and too harsh. With a 1 percent acceptance rate, who the hell wanna take
a few days off at work, fly over, and be interviewed all day long? Only students could do so.
3) One won’t get extremely rich working at M$ (most developers make less than 100k and options are
worthless because of the flat stock price).
4) M$ doesn’t have free haircut service, oil change, meals, or a workfree Friday...
This response challenges Microsoft recruiters to redirect their attention to N-Gen norms, such as
accelerating and simplifying the hiring process, freedom to balance personal life and work, and being
transparent about the real value of the compensation program.
In an appeal to N-Gen employment prospects, Microsoft Chairman Bill Gates appears in a video clip
as Napoleon Dynamite’s sidekick on YouTube. The use of self-deprecating humor and the pop culture
linkage makes Microsoft seem more in touch and its leader more approachable.
Social networking sites

When it comes to using alternative recruiting methodologies, the military is an early adopter. The U.S.
Marine Corps’ MySpace recruiting page contains streaming videos of drill sergeants, wide-eyed recruits
struggling through boot camp and seasoned marines landing on beaches. Visitors can directly click on a
link entitled “Contact a Recruiter” for immediate action.
B. Recruiting the Net Generation

Monarch Ski and Snowboard School in Colorado has adopted a new relationship-based recruiting
approach in which committed N-Gen employees instantly respond to job queries from prospects their age.

The N-Gen staff member can address issues from the perspective of the applicant, recount the pros and
cons of the job and answer questions and concerns—all of which serves to place candidates at ease and
build a connection to the company. This program is effective because it aligns with the needs and wants
of N-Geners.
First, it eliminates lengthy delays. Between the time of application and the all-important first contact,
no time is wasted. Second, it engages existing N-Gen employees in an enriching activity that increases
their commitment to the company and satisfies their need for change and more advanced responsibilities.
Third, it creates an immediate ally for the new applicant. Often, the original N-Gen employee who acted
as the first contact will serve as a mentor or a trainer for the new employee they helped to recruit.
Organizations are using the latest technology to provide an interactive recruiting experience and
appeal to the N-Ployee sense of fun. In mid-May 2007, TMP Worldwide Advertising & Communications,
an independent recruitment advertising agency, opened the doors to the first official job fair to be held in
a virtual world. Job seekers and recruiters engaged in all the activities of a real-life job fair—but in this
instance, participants communicated via personalized avatars on “TMP Island,” TMP’s space within the
popular virtual world Second Life.
Job seekers were able to apply for positions in areas such as financial services, engineering,
information technology, sales and management at the six participating companies: eBay, HP, Microsoft,
Sodexho, T-Mobile and Verizon. Candidates were directed to a company’s specific location on TMP
Island where recruiters interviewed them within virtual client offices and allowed them to experience the
company culture. TMP briefed and prepared job applicants for their interviews. “As a high-tech company,
we’re always looking for new avenues to discover talent from a rich and diverse pool of candidates who
can grow with the company,” said John M. Bell, a top HR executive with Verizon. “This is as much a
career opportunity for the applicants as it is an opportunity for Verizon to tap into a world of new
candidates.”7
When devising their recruiting strategies, organizations must consider the following N-Gen norms or
risk losing the best prospects:
• Speed. How lengthy and complicated is your interview scheduling and hiring process? Graduating
university students who participated in this study expressed frustration with lengthy, multi-step
processes and an absence of employer feedback. With the number of available alternatives,
employment offers that are long on coming often get rejected. To N-Geners, a rapid response
signals an organization that is decisive, efficient and respectful—all of which make it a desirable
employer.
• Customization. Is the recruiting process informal, personalized and relationship oriented? Good
recruiters focus on hearing candidates’ unique attributes, backgrounds and personal interests, and
talk less. They also engage peers or recent hires as part of the process. Since N-Geners are
experiential, inviting them to “try on” a job that interests them for a few hours is an excellent way
to engage them.
• Innovation. Does the hiring process show that you understand the N-Gen employee? As in the
Monarch Ski and Snowboard School example, the inclusion of a peer in a key recruiting role
demonstrates the organization’s respect for existing N-Gen employees and their ability to assume
developmental activities beyond their usual role.
• Entertainment. Do your recruiting practices capitalize on the sense of fun and adventure N-
Ployees seek?

C. Onboarding: early learning and responsibility is essential for the win-win

A traditional condition of employment in many organizations is a 90-day probationary period during
which new recruits are assessed for their suitability. Nowadays, with the luxury of so many employment
options before them, N-Ployees regularly use the first 90 to 120 days to decide whether they have selected
an employer that values their talents and gives them responsibilities early. If the organization has failed to
deliver on its promises regarding responsibility, work content and/or the dynamics of the work
environment, N-Geners will soon transfer their attentions elsewhere and move on. Given their regular
scrutiny of online job sites and social networks, N-Geners may accelerate the rate of turnover within the
workplace.
Therefore, employers must use creativity and flexibility when organizing the first few months of work
so as to expose the new recruit to various leaders, work situations, and work content.
For example, many employers are tailoring their initial training programs to be interactive and
entertaining. Computer simulations are replacing training seminars. Employees at Nike stores play a game
called “Sports Knowledge Underground” which mimics a subway system with routes that teach basic
sales skills and product information.
The traditional, first day of work “welcome” monologue from an executive has now been replaced by
a series of one-to-one chats with various leaders to discuss their area of the business and the various
career opportunities within their departments. Chats with peers are also scheduled to enable discussions
about the relational aspects of work—social life, culture, who’s who, etc. and also to encourage new
work-based friendships to develop.
Mentors or shadow peers are assigned to new recruits to help them adapt more quickly to the
organization and advocate for expanded job content. These relationships provide the organization with
valuable feedback on how the employee is settling in and raise concerns that should be addressed quickly.
At PacifCorp, new graduates spend their first nine months learning the energy business and strategies
for operating effectively within an environment of mostly older workers. Under the guidance of an
assigned mentor, newcomers receive traditional training, and rotate through various business units and
project assignments to accelerate learning and help them assume challenging responsibilities more
quickly.
Many organizations have learned the hard way that demanding N-Gen recruits expect their employers
to be upfront about the work, environment and culture they will encounter as new employees. Greater
transparency, and exposure to and interactivity with the broader organization during the initiation phase
will lead to a win-win outcome. It is anticipated that companies who attend to this important time will
benefit from less turnover, shorter ramp-up speeds, higher levels of engagement, and earlier and greater
returns on their new N-Ployee investments.
Stage 2: Engaging the N-Gen Employee

“Leaders need to put more color into their companies. The way companies appear right now
is boring—particularly to the Net Generation. Companies are like the one-channel, black and
white, no remote control TV of 1961. But life today—particularly to the Net Generation—is an
HDTV world—colorful, multi-channel and vibrant. One of the biggest challenges is for
companies to look at their organization, structures, systems, values and leadership and
really think how to make them fun and enjoyable for everybody.”
—Dominique Turcq, President, Boostzone Institute, Paris

The Net Generation is as large as the Baby Boom generation was. When the workplace begins to
experience the full force of this new demographic, substantial changes to existing human resource
practices will soon begin to manifest. Here are the types of changes that will likely be precipitated by
N-Gen norms.
The need for speed: progress and communication

The N-Gen desire for speedy decisions and processes aligns perfectly with the urgencies companies face
in the new economy. For most members of the Net Generation, maximum speed is the preferred speed. In
our interviews, N-Geners criticized email for being a stodgy and slow communication tool, reserved for
formal communication such as “sending a thank you note to a friend’s parents.” N-Geners prefer IM and
text messaging, with multiple, concurrent conversations on the go. Thirty-three percent of respondents
admitted to having little patience and said they “can’t stand waiting for things.”8 When N-Geners have
questions, they want immediate answers. If colleague A is not available, rather than waiting, an N-Gener
will ask colleague B. And if to proceed further they have to wait for their managers, they can quickly
become frustrated and resentful—viewing the manager as an obstacle to their progress.
N-Geners not only want to work in a fast-paced environment, they want their career advancement to
be fast-paced as well. A 2004 survey of Canadian college graduates noted that as job seekers, their
primary job selection criteria revolved around opportunities for advancement.9 This is a major challenge
for established companies who must accommodate the N-Geners’ desire for rapid advancement without
offending the sense of seniority and entitlement of older workers.
The need for collaboration: engaging work opportunities and work relationships
N-Ployees prefer to work and learn collaboratively, and enjoy interactive and team-based work, open
spaces, and technologies that reinforce this norm. Early assignments to a project team with clearly defined
deliverables and timelines build social connectivity, self-efficacy and a sense of accomplishment, all of
which are critical aspects of early engagement. It is important for managers to understand and observe
whether N-Ployees are experiencing enough opportunities to work with others, interact with leaders, meet
new colleagues, and attend external events or social functions.
Building on 25 years of success as one of Ontario’s largest volume home builders, Tribute
Communities introduced a one-year coaching program that began in the fall of 2005 and focused on
developing the employees’ and the organization’s culture. Leaders, who were taught coaching skills and
techniques for working more effectively with a diverse range of generations and cultures, were sent to
various construction sites to establish connections between older, experienced trade workers and young,
unskilled labor. This tiered model of a leader-coach, older mentor and young apprentice, has allowed for a
faster progression of younger workers through the apprenticeship model. This approach is adaptable to
any type of employment where wisdom can be transferred from an experienced employee to an
inexperienced one through role modeling.
The U.S. Army is a leader in the development and application of social networking techniques in the
workplace. Its password-protected sites offer insight into the challenge of commanding soldiers and the
complexities of fighting urban guerrillas. Companycommand.army.mil is divided into sections such as:
Training, Warfighting, and Soldiers and Families. These are subdivided into discussion threads on
everything from mortar attacks to grief counseling and dishonest sergeants. The site describes itself as “a
grass-roots, voluntary forum that is by and for the profession, with a specific, laser-beam focus on
company-level command.” Captains post comments on coping with fear, motivating soldiers to break the
taboo against killing, and even tips for counseling suicidal soldiers. Even at the most remote bases in Iraq,

captains access the Internet to check the site every day to post tricks or ask questions like: “What has
anyone tried to do to alleviate the mortar attacks on their forward operating bases?”
The military’s collaborative Web sites are a cyber extension of the mess hall conversations that have
transpired for decades. Social networking and Web 2.0 are all about strengthening relationships and
capturing and sharing learnings from conversations. It’s important to underscore that the N-Geners
understand these tools intuitively and use them extensively in their personal lives.
Organizations must also build in personal collaboration attractors. N-Ployees want to do their jobs
more effectively, but not at the expense of working harder or longer. Give them their own personal space
(e.g., through a blog or personal Web page that hosts collaborations or conversations) that offers “pride of
ownership.” Recognize and/or reward innovation and constructive contributions to discussion groups and
project teams. Provide geographic and time flexibility in exchange for an active presence in online work
communities.
Social networking and Web 2.0 are primary communication domains of the Net Generation.
Organizations have the opportunity to leverage this knowledge and develop more productive and
innovative collaborative work efforts—the ideal way to engage the N-Ployee (for more insight see New
Paradigm’s Wiki Workplace paper).10
The need for freedom: balancing work and personal life

As reported in previous New Paradigm research, N-Ployees like to choose when and where they work and
want to escape traditional workspaces and hours. As N-Gen employees enter into a seller’s market,
flexibility and work/life balance will assume greater significance. In the U.S., the demand for more than
30 million college-educated workers in the next ten years far exceeds the 23 million new college
graduates that are expected.11 N-Geners are in demand: they know it and they will not hesitate to ask for
concessions to meet their need for freedom. What’s more, these changes will benefit all employees.
What kind of freedom are N-Ployees seeking?12
• they need to make their family life work: younger parents divide household responsibilities more
equally and understand that time spent together as a family is important to stave off marital
discontent.
• they don’t want to commute: concerns about environmental conservation and increasing
commuting times influence where N-Geners live and work.
• they are very interested in the amenities available at work—particularly those that help to meet
their work/life balance issues.
• they have significant interests and priorities outside of work.
• they don’t want to be constrained by specific work hours: if work outcomes and timelines are well-
defined, N-Ployees expect the freedom to set their own schedule.
• the office is fine but flexibility is better: they might work from their apartment or the ski hill if they
can still manage to deal with customers, contribute to project work and deliver results.
“Working to live” is the motto of the Net Generation and organizations and their leaders will need to
respect that younger employees want to go home at night. After decades of workweek expansion, the
most common request of the future workforce may well be that the length of the workday and the
weekend be respected. Older managers and executives may misinterpret N-Geners’ need for work/life
balance as proof of their lack of commitment. To the contrary, N-Ployees believe it speaks to higher

levels of commitment—to their families, health, communities and personal beliefs. Nonstandard
employment relationships, such as part-time work, flextime, temporary work, job sharing, nontraditional
shifts, seasonal employment, on-call work and endless internships will become integrated with full-time
work to accommodate a range of personal needs. Call centre expenses will be reduced and productivity
boosted as more organizations adopt tactics similar to that of U.S. Airline Jet Blue, which offers remote
employment to non-unionized students who work around their university schedules.
In fact, all 1,500 reservation agents employed by JetBlue are home-based. Most are female, in their
thirties, and work part-time. Just 3.5 percent of its agents turn over each year, and the company receives
only one complaint from customer service problems per 300,000 passengers—one-third the rate of the
larger airline carriers. “People working from home are generally happier. They don’t have to commute,
they can be doing something on the domestic front and log on two minutes later without having to travel,”
says Steve Mayne, JetBlue’s operations and business processes manager. “Happier employees make for
better customer service, and happier customers make for repeat customers.”13
This kind of flexibility demands that managers clearly articulate what is expected, when it is
expected, and how success will be measured. New technologies increasingly allow for remote work. N-
Geners will expect companies to adopt these technologies, set up remote working policies and build
leadership capabilities that support less control and more freedom.
Unfortunately for N-Geners, remote employment is not an option for every type of work. N-Ployees
constrained by schedules and locations will expect to be compensated for these inconveniences or
employers will pay the consequences in turnover. Higher pay, expanded benefits such as support for
close-to-work fitness facilities, family days, enhanced maternity programs, wellness programs and
concierge services are all options to enhance work/life balance. Deloitte Consulting in Toronto offers all
this and additional services like dog walking, grocery shopping, and personal training. The goal is to free
up employees’ personal time to be less chore-oriented and more fun-filled. Not all employers have the
resources to provide these kinds of enhanced benefits. The fundamental issue is more about personal
freedom and free time than the perquisite.
Interviews with Net Generation graduate students at the University of Toronto revealed that they
expect to be more productive, creative and efficient during their work hours if they have the freedom to
work from their homes and at odd hours. Some want to start work at 6 am so as to finish by 4 pm; others
prefer to start at 10 pm and work through the night. Flexibility is key and allowing employees to influence
their own schedules will be necessary to competing effectively for top talent. A bright N-Ployee prospect
was very clear in his interview: balance was his number one criteria for selecting an employer. He expects
compensation, benefits and opportunities to lead to be comparable from employer to employer and to
serve as baseline employment features. Personal freedom is the true differentiator.
The need for customization: personalizing career paths, learning and rewards
Traditional one-size-fits-all career paths, development opportunities and rewards will not satisfy the Net
Generation. This educated, diverse and mobile workforce will demand that organizations develop
approaches that meet their individual aspirations through smart use of technology and support from
leader-coaches. Sixty-nine percent of N-Geners who participated in this study agreed with the statement:
“In my ideal job, I’ll get to choose when and where I work.”14
TRM borrows customer-marketing techniques and technologies from CRM colleagues to customize
total reward programs. Personal Web portals provide reward menus with dollar credits based on work
complexity and achieved performance. This allows N-Ployees to select from a wide array of work, cash
compensation and benefit options including: time and money for training, technology to accommodate

more remote work, time off for community service, and/or increased leisure time. N-Ployees who want to
purchase a home may elect to take the majority of their rewards in cash, foregoing some of the traditional
benefits they do not need, while new parents may opt for time off or more life insurance.
Many companies currently provide total reward statements to inform employees about the total value
of the compensation, benefits and training programs they receive. A number of companies are testing
customized reward menus that provide credits equivalent to an employee’s total compensation package
and permit the individual to design the particulars of his or her own total reward package. AstraZeneca is
piloting this type of program in the U.K. through a Web portal that provides a shopping option. Providing
customized choice will increase N-Ployee satisfaction and retention while improving the ROI for dollars
spent on employee rewards.
N-Ployees also want to modify their job content to develop new skills and highlight personal
strengths. This places pressure on traditional career development and promotional practices that are often
fraught with policies N-Geners find annoying—seniority over performance; politics over merit; and an
absence of skills-based assessment in decision-making. Current performance management and review
practices require restructuring and revising so as to be relevant and meaningful to N-Geners. Performance
Engagement Plans focus on the factors that influence engagement including: skills and capability
development, career advancement opportunities, performance feedback and dialogue, and clarity of
expectations. Performance Engagement Plans differ from traditional performance improvement plans by
providing more focus on:
• individualized learning and development opportunities and less on generic training programs.
• overall job contribution within the organization and less on specific, annual goal setting.
• dialogue and less on forms and reporting.
• monitoring performance with more frequent informal discussions and less focus on a prescribed
performance management cycle.
• improving the quality of the manager-employee working relationship and less on a command and
control approach to performance management and reporting.
An organization that is perceived by many firms as the best college recruiter is also positioning graduates
to become top candidates for other companies. Teach for America recruits the brightest and best college
graduates by appealing to the Net Generation’s philanthropic nature like the Peace Corps did in the 1960s.
Teach for America obtains funding from companies like Wachovia and Goldman Sachs to expand its
work in inner city schools. In return for their philanthropy, these financial supporters receive preferred
access to Teach for America graduates who have completed their two-year commitment. Teach for
America puts graduates on an accelerated learning curve; first by providing basic training and then
assigning them to some of the toughest schools in U.S. inner city communities. Teach for America corps
members get a hands-on lesson in resiliency, perseverance, team leadership and productivity. They fail,
succeed, establish compelling visions, and plan within a resource-constrained environment with a group
of diverse educational consumers. Organizations are keenly interested in these skills. Teach for America
is a role model organization that has determined what it takes to ramp graduates up quickly to make
significant contributions within their work environments.
The need for entertainment: finding fun at work

N-Ployees expect work to have an element of fun and collegiality—celebration and work relationships are
a primary motivator and engagement factor. Some 67 percent of N-Geners surveyed in this study agreed

that “working and having fun can and should be the same thing.”15 The fun has gone out of work for
many people and N-Ployees will seek alternative work if they do not find their current work environments
entertaining at least some of the time.
The Net Generation will be an important source of creativity and inspiration to make work more fun.
This will be possible only if work outcomes are well-defined and levels of accountability are consistently
high across the board. Fun at work will be one of the lasting hallmarks of the generation. Fun is
experienced by establishing great social work connections, seeing senior leaders in nontraditional
situations, having access to friends online throughout the day as well as having some freedom to come
and go to meet social obligations outside of work.
Fun organizations build entertainment into their meetings, training, and planning sessions as a break
from the mundane—video games, puzzles, games, and quizzes all offer the opportunity for N-Ployees to
broaden their social circles and meet interesting colleagues. Sports teams, arts events, travel groups,
celebratory parties, wellness activities and community service opportunities appeal to the interests and
personal needs of the breadth of N-Ployees.
Entertainment and fun are personal and generational preferences. N-Ployees should be engaged in
generating ideas and organizing these activities at work, along with more experienced employees. A
balance of new ideas with a firm grasp of the culture will generate the kind of entertainment options that
encourage cross-generational participation and provide opportunities to share information and build
broader networks.
The need for innovation: adding value and feeling important

N-Ployees want to add value, make a difference and understand how their work contributes to
organizational success. To that end, aligning day-to-day work with strategic priorities will be of
increasing importance. The opportunity to be involved in proposing and making change is appealing to
this generation and organizations are beginning to experiment with different ways of tapping into
N-Ployees’ advanced knowledge of media, pop culture, social networking, consumer research and
technology.
Corus Entertainment is a traditional media company whose primary business units are radio and
specialty television channels. Traditional media is undergoing significant change and Corus knows it
must reinvent itself or risk becoming obsolete along with existing technology. N-Ployees have been
assigned the momentous task of challenging the status quo and brainstorming new directions for both the
company’s interactive and traditional businesses. These vibrant young businesspeople are front and center
at “future-storming” sessions where they present findings of the research they have conducted through
their social networks and on blog Q & A’s, and summaries of online discussions and publications they
have reviewed. Top young talent also serves on Corus’ Innovation Council, a group that is commissioned
to review different ideas and innovations submitted by employees, customers and the programming
audience. Who better to assess ideas from the N-Gen audience than N-Geners themselves? N-Ployees
value the opportunity to be engaged in innovative discussions and to have exposure to the company’s
senior leaders. The best ideas are given a seed budget and permission to proceed.
Technology and reality TV have combined to provide the Net Generation with the requisite
motivation and tools to identify and develop innovative ideas in collaborative ways. They already
understand competition and hard work and have witnessed the spoils that go to the winners—either from
having watched American Idol or Survivor. If organizations would apply the same kind of interactive,
idea-generating relationships they have cultivated with customers and develop similar competitions,

rewards, opportunities for participation, and a shared picture of “winning” for N-Ployees, the payoff
could be awe inspiring.
What does the Net Generation need to learn?

The Conference Board published “Are They Really Ready to Work?” in 2006 and concluded that there
are a number of deficiencies in the Net Generation’s knowledge base, including:
• the realities of corporate life: understanding timeliness, courtesy, online communication protocol,
respect for authority, establishing joint expectations and the truth about both the speed and
expectations of the career ladder.
• basic academics, especially written communication.
• understanding effective performance: asking for desired outcomes, using feedback and dealing with
positive and negative feedback, and developing and maintaining independence and expectations.
• building cross-generational relationships.
Online multi media training will need to provide customized learning opportunities to bring N-Gen
employees up the learning curve in their early employment days. If this training is effective, the cost of
investing in teaching, mentoring and clarifying the above topics should produce a payoff in increased
productivity and lower turnover. The cost of not investing will be weak intergenerational respect,
frustrated managers and poor performance.
Thanks to permissive Baby Boomer parenting styles, constant media entertainment and the ongoing
presence of technology in their lives, this new generation of young people is certainly high maintenance.
Organizations will be challenged to recruit, onboard and mentor N-Ployees so that their lofty expectations
are tempered by the realities of work life without turning them off or shutting down their youthful
exuberance and unbridled confidence.
N-Gen employees require different leadership

The primary shift in managing the Net Generation is the move away from a generic set of people
management practices to ones that are more user-focused and individually customized. The old
“command and control” leadership style is increasingly less appropriate, and leaders have discovered that
they have the power to influence rather than dictate. Organizations will also have to change the definition
of a successful leader and reinforce new leadership skills, behaviors and attitudes because the Net
Generation has been taught in different ways than previous generations. This new management reality
requires leaders who interact differently with each employee, and work hard to understand N-Ployees’
personal aspirations and preferences, strengths and weaknesses, and informational needs. To lead N-
Geners effectively, managers will need to assume the roles of coach, educator, delegator, knowledge
broker, resource allocator and advocate.
The coach-leader builds N-Ployees’ understanding of the realities of the work world while
strengthening their capability to intelligently contribute to a breadth of work opportunities. Leaders must
educate N-Ployees on the balance between hierarchy and self-directed efforts, openness and security, and
risk aversion and change. The leader must also coach N-Ployees on business challenges; change
management, understanding the formal and informal power structures; where they can take independent
action and initiative; and where opportunities to create an impact exist.

In a recent HR Magazine article, Kathryn Tyler argues that helicopter parents and technology have
contributed to young people’s heightened dependency.16 Tyler cites a number of examples from experts
who have dealt with this phenomenon:
• Ann Reynolds, director of university career services at Texas Christian University in Fort Worth,
says she has received feedback from employers about “parents calling to find out why their child
was not hired or offered more money. A few want to be involved in negotiating salary.”
• Susan Revillar Bramlett, PHR, an HR generalist for a defense research contractor in Fort Wayne,
Indiana, and a millennial herself, “overheard a parent yell at the HR person because her daughter
was turned down for a promotion.”
• as a result, Tyler reports that some companies are reaching out to both parents and applicants
simultaneously and cites Enterprise Rent-A-Car as a company that offers to provide information to
the parents of prospective candidates. She claims that about half of the candidates accept.
Leaders of this generation will need to mentor young workers to develop behaviors including
independence, discretion, realism, patience and professionalism in a manner more akin to a coach than a
platoon leader. In addition, top N-Gen talent will need to ascend the career ladder quickly to replace
retiring boomers. Training and leader role modeling will be critical to meeting these accelerated
development timelines.
Managing in a diffused leadership environment requires a much defter understanding of soft skills
than is the case with command and control hierarchies. These skills will need to be evaluated and
rewarded, with training programs established to equip old and new employees with the proper tools. To
equip existing leaders and those being groomed for leadership with the requisite skills to manage and
motivate new recruits, an investment in training programs will be necessary and companies must be
prepared to commit to them.
The following are the preferred leadership characteristics that best respond to the eight N-Gen norms:
Table 2: Traits Most Desired for Leading the N-Gen

Net Generation
Norm Desirable Leader Behavior
Freedom Sets expectations and performance standards clearly.
Provides schedule and location flexibility.
Ensures technological resources that support mobility.
Customization Bases feedback on individual performance and aptitude.
Questions and listens to understand the individual and responds to his/her unique needs.
Provides opportunities that accommodate work preferences and interests.
Recognizes performance in an individualized way.
Scrutiny Creates transparency by explaining how and why decisions are made.
Establishes trust by providing inspirational vision and direction.
Builds open communication with information sharing and routinely meets with
N-Ployees to provide opportunities for dialogue.
Integrity Possesses values; articulates, explains and lives up to them.
Acts as a context provider by explaining not only what, but also why.
Behaves consistently by not playing favorites; does not display emotions beyond an
acceptable range.
Displays a respect for and values diversity. Provides reward and recognition based on
performance.

Net Generation
Norm Desirable Leader Behavior
Collaboration Team oriented—ensures that staff has the opportunity to work with different people across
a range of projects, developmental assignments or work rotation.
Inclusive—involves staff fully in all stages of work from decision-making to execution.
Encourages new challenges—exposes staff to a variety of work projects, teams and
challenges.
Entertainment Creates positive reinforcement through coaching.
Believes in employees and goes to bat for them.
Promotes fun by celebrating successes; displays a sense of humor.
Speed Increases responsiveness by providing regular and timely feedback.
Behaves interactively and is accessible.
Supports and guides career development in line with employees' development.
Innovation Provides opportunities to challenge the status quo.
Admits to mistakes and is open to suggestions for change.
Do we need a title shift here?

The days of the term “leadership” being defined as a single attribute or job requirement are over. As the
number of N-Geners in the workforce grows and the next generation of talent management advances,
leadership will increasingly be viewed as an action that any worker or group of workers can take to meet
the needs of specific business situations. Decision-
making will become increasingly decentralized Criteria for the Manager of Mirth Award
and deciding what to do and how to do it will
become the responsibility of the average worker, 1. Creates a positive culture: The leader
rather than the sole privilege of executives and appreciates, motivates and inspires employees.
managers. Workers will make the decisions that 2. Knows people as individuals: The leader gives
are best made by them given their expertise and creative, timely and appropriate recognition.
closeness to the issues at hand.17 3. Work is fun: The leader finds ways to make
Whole Foods Market Inc. has decentralized serious work fun!
decision-making at its core with a philosophy that 4. Together we’re better: The leader values and
“decisions should be made closest to the place fosters creativity and teamwork.
they’ll be carried out, should directly involve the
5. Sets the example: The leader has a high sense
people affected and should leave out people who of self-esteem, is able to take him/her self lightly,
aren’t involved.”18 At Whole Foods, all candidates and thereby manages stress more effectively.
for hire work a 30-day trial in one of the store
departments. Then the entire department, whose
bonuses depend on group performance, votes on whether to employ the candidate.
Leaders must also be encouraged and rewarded for their efforts to create fun. At EDS in Buffalo, New
York, leaders who create a fun environment for their employees receive the prestigious “Manager of
Mirth Award.”
Generational common ground

Although this paper focuses on the eight N-Gen norms that make this generation unique, there are a
number of work life expectations that transcend the generations. In her book, Retiring the Generation
Gap, Jennifer J. Deal researched attitudes across five generations of workers—Silents; Early Boomers

and Late Boomers; Early Xers and Late Xers. Although the Net Generation was not singled out as a
research group, the theories presented in the book provide interesting food for thought. Deal theorizes that
the generations have similar values, but that they express them differently. Both leaders and the broader
workforce can benefit from emphasizing these similarities while understanding and addressing the
differences. Some of the identified similarities include:
• everyone wants respect, although the generations define respect somewhat differently.
• people want leaders who are trustworthy and credible although the generations observe these traits
in different ways.
• no one really likes change but younger generations are more accepting of it.
• all generations are seeking employment stability and long-term career and work opportunities.
• everyone wants a coach for a leader.
Deal’s research clearly buttresses that of New Paradigm, providing further validation for the Talent
Relationship Management approach set out in this report.
Stage 3: Evolving the Relationship—Extending the Impact and

Influence of the Relationship
In Talent 2.0, Tapscott and Barnard suggested that all organizations would benefit from extending the
relationship with N-Geners after they leave an organization. Companies will want to tap into the extensive
personal and business relationships that N-Geners take with them and the new relationships they
subsequently develop.
Consulting and accounting firms have effective alumni networks, and other types of companies will
soon begin organizing them. The technology is inexpensive and N-Geners are happy to network. The
financial benefits of a well-executed alumni network justify the required investment in resources,
communications outreach and technology. In fact, existing social networking sites such as Facebook and
MySpace can be readily leveraged by companies that are unable or unwilling to invest in their own
proprietary tools. And since most N-Geners use Facebook and its equivalents anyway, it makes sense to
use platforms that have already achieved critical mass.
The components of an effective alumni network can include organizational information sharing,
opportunities for face-to-face or Web-based interaction, a Web-based career opportunity page, and access
to leaders who will update and request assistance as needed from the alumni network.
The opportunities—business proposition

A company’s relationship with an N-Gen employee shouldn’t stop when formal employment ends. One of
the greatest impacts of the evolve phase of the employment relationship may be access to a broader
network of employee prospects which can fill a pre-qualified employment pipeline. The extension of the
work relationship beyond its normal boundaries demonstrates how the tremendous social networks of N-
Geners could be tapped to broaden the organization’s contacts, not only today but into the future. In some
cases, alumni can be called upon to provide honest and open feedback on new ideas, product
developments and business challenges, long after these employees have formally left the company.
Certainly, there are issues like privacy, proprietary knowledge, disgruntled ex-employees and
feedback accuracy. Screening processes, technological enhancements, group self-monitoring and other

control mechanisms will develop to counter these concerns. The biggest roadblock lies in the cultural and
leadership attitudes that must progress in order to embrace the wealth of information and ideas that have
remained virtually untapped for decades. The financial returns from this source are both calculable and
significant.
L’Oréal has a series of pages on MySpace with different dimensions. Alumni and interested
customers are invited to comment on new advertising campaigns, product innovations, refer friends for
employment opportunities and provide feedback on what they like and don’t like about L’Oréal.
Participants are rewarded with products if their feedback and suggestions are adopted. The company
reports that the input is honest, instructive, actionable and timesaving. A L’Oréal Canada recruiting
director reports that employees that stay connected to the company often seek employment opportunities
at a later date.
The general manager of Unilever Canada’s personal care division also endorses the communities of
customers, employees and ex-employees who provide feedback on advertising campaigns, product
extensions and new product ideas. Unilever also extends its exit interview beyond the traditional face-to-
face complaint session for a period of time and encourages online interaction regarding the organization’s
“do betters” and “did wells.” This information serves in annual planning for the human resources group
and influences leader development activity.
The Road Ahead: A Roadmap for Change and Measures of

Success
This paper was written with the TRM practitioner in mind. Many companies will need to create new staff
positions to assist in building integrated employee-facing programs and leader capability. These positions
should not be filled exclusively by HR practitioners who may have experience building measurement
systems.
The N-Ployee relationship language—initiate, engage and evolve—is derived from the need for TRM
practitioners to describe a new business capability or arrangement of capabilities, that focuses on the
N-Ployee life cycle, not a series of discrete programs.
Net Generation at work: assessment approaches

To determine an evidence-based road to change, a series of assessment tools can be used to define an
analytical approach to directing resources and efforts to make the most business applicable and achievable
change. As with CRM, early “wins” engender a sense of trust and an expectation that the organization
understands the N-Gen employee and is taking steps to make focused and positive changes to leadership
behavior and/or people practices. The following chart illustrates the type of questions and issues that
transcend current employee engagement questions to get at the heart of the future, relationship-based,
individualized world of work.

Figure 1: Implementing the TRM Model
Competitive Landscape Business Model and

Net Generation Norms
for Business and Talent Competitive Advantages
Nature of Work Content N-Ployee Aptitude

and Work Flow and Attitude
Structures Requirements
Net Generation Talent

Relationship Management
(TRM) Strategy and
Guiding Principles
N-Gen Employee N-Gen Employee User-

Leadership Style, Skills Based Practices and
and Behaviors Policies
Initiating the Relationship Initiating the Relationship

• Selling • Inviting
• Connecting • Contracting
• Mentoring • Onboarding
Engaging the Relationship Engaging the Relationship
• Coaching • Rewarding
• Individualizing • Developing
• Recognizing • Promoting
• Supporting • Structuring work
Evolving the Relationship Evolving the Relationship
• Connecting • Networking
Gap Analysis and Implementation

Action Planning
Measures of Business and

N-Gen Employee Impact

Figure 2: Net Generation Leadership Capability Assessment

The rating scale can be used to assess your organization’s activity with 1 indicating an extremely low rating; 3
indicating some activity being present; and 5 indicating that the practice or behavior deserves a high rating.
Urgency
Current Desired and Ability Actions
State State to Change Required
Generational
Norm Consideration 12 3 4 5 1 2 3 4 5 1 2 3 4 5
Freedom Are N-Ployees provided work location
flexibility?
Are N-Ployees provided work time
flexibility?
Do N-Ployees say they have adequate
personal life and work balance?
Customization Do leaders know what individuals aspire
to?
Do leaders recognize and deploy
individual strengths?
Do leaders differentiate and recognize
strong performers?
Do leaders differentiate and deal with
poor performers?
Do leaders truly tap into individual
potential?
Does the organization store individual
performance information?
Does the organization make work and
promotion decisions based on individual
performance information?
Scrutiny Do leaders explain the context of work?
Does the organization provide a context
and rationale for strategic decisions?
Do employees feel they are adequately
invested in?
Do employees feel listened to?
Do employees have access to pertinent
business information?
Do leaders encourage challenges to the
status quo?
Integrity Do N-Ployees feel trusted with information
and increasing job challenges?
Do leaders value people’s diversity and a
range of personal styles?
Does the organization deliver on its stated
employee value proposition?
Do employees have input into company
values?
Do leaders/the company honor their
commitments to employees?

Urgency
Generational
Collaboration Is teamwork or the opportunity for social
interaction a key element of work?
Are employees empowered to collaborate
across departmental silos to get things
done?
Do leaders value diversity of opinions,
approaches and ideas?
Do N-Ployees have the opportunity to be
connected to customers or the front-line?
Do N-Ployees have the chance to meet
and mingle with senior leaders?
Entertainment Do leaders promote a positive work
atmosphere?
Do leaders routinely recognize
contribution in fun ways?
Do leaders take the time to celebrate
group and individual successes?
Speed Do leaders promote access to learning as
quickly as possible?
Do leaders and colleagues respond quickly
to questions and requests?
Do leaders and colleagues deliver results
on time?
How challenging does the leader make
the work?
Do high-performers have opportunities for
promotion?
Is employee productivity improving?
Innovation Do leaders create opportunities for
employees to contribute to key
organizational decisions and processes?
Are employees encouraged to offer new
ideas?
Does the organization have an innovation
council or alternate approaches to
brainstorming?
Do leaders encourage lateral, service-
oriented thinking?
Do leaders train N-Ployees to become
more knowledgeable about the context of
work?
People practices assessment

As well as determining leader capability, it is critical to assess organizational strengths and shortcomings
regarding people practices according to N-Gen norms.

Figure 3: Net Generation People Practices Assessment

Urgency
Generational
Freedom Do organizational policies and practices
provide the leader with discretion on
location and time flexibility?
Customization Do performance evaluations provide
detailed information on individual
results, strengths and aspirations?
Are rewards and recognition programs
customized to meet individual
preferences?
Scrutiny Is information organized and shared in
a way that promotes transparency?
Integrity Do performance assessments include
peers, customers and others close to
the N-Ployees’ work?
Do leaders talk about the issues that
matter?
Collaboration Do learning programs support better
listening, probing and understanding of
different perspectives, roles and issues?
Are employees rewarded for
contributing to shared resources and
knowledge bases?
Does team performance factor into
individual compensation?
Entertainment Does the organization support and fund
celebratory events that are user-
focused?
Speed Is time wasted completing forms,
and/or attending meetings?
Is time wasted waiting for responses
from managers or colleagues?
Innovation Are employees rewarded for being
innovative?
Are employees given time to work on
self-directed projects?
Possible Barriers to Adopting a TRM Approach

Technology is the primary impetus behind many of the TRM program options that are currently available.
The new capabilities have radically changed the ability to inform, educate, interact, connect, clarify and
measure. Wired or wireless, at work or away, from almost anywhere around the globe, N-Ployees will
want to plug in, stay connected and work.

Organizations will have to align all resources: HR staff, leaders, technology, people programs and
information in a user-focused approach to addressing the Net Generation norms. Companies will need to
look at their TRM business through the CRM lens of “mass customization” and “one-to-one marketing”
in order to address the need of “individual focus” and “customized” management practices. Technological
opportunities to support change will have to be identified as part of the assessment process.
However, significant impediments to adopting a TRM approach do exist. Here are potential barriers
and strategies for overcoming them:
• the issue lacks visibility. TRM champions will need to set up high profile N-Gen groups to tackle
design, communication, workplace and consumer challenges thereby deliberately showcasing the
high potential of N-Ployees to senior leaders and demonstrating their technological savvy,
creativity and fresh approaches to old problems.
• lack of positive generational PR. There is a need for leaders throughout the organization to
understand the opportunities and challenges posed by the Net Generation. The media has been
critical of it, portraying youth as selfish and self-centered—exemplified by Paris Hilton and
Lindsay Lohan. It is imperative that organizations focus on the potential of N-Geners and
understand how best to accommodate their need for recognition, technology and direction.
• lack of Net Generation critical mass to drive an immediate need for change. A strategic HR
exercise would be to map three years, five years, and ten years out at different rates of hiring and
turnover. This process will provide a sense of the impact this generation will soon exert—as the
largest cohort in any company—and emphasize the need to develop a strong leadership pipeline to
meet the Baby Boomer retirement crunch.
• lack of leader readiness. Organizations have not significantly increased their training budgets for
many years and virtually every major business magazine has reported on the looming leadership
talent crisis ahead. Training budgets will need to increase to prepare leaders to respond
appropriately to generational needs—a focus on coaching, performance development and
communications skill is imperative.
A 2x2 matrix can be used to map what practices and behaviors have the largest gap (current to desired
state) and the level of urgency and ability to effect the change required. This grid can assist in building a
structured roadmap for change. The upper right quadrant represents opportunities to close urgent
workplace gaps and to begin to determine the organization’s receptivity to change. Gaps mapped into the
upper left quadrant represent significant challenges. These gaps are best explored by a community of
multi-generational champions. These champions can co-create potential responses and plans of action that
build broad support for change and clearly represent all organizational constituencies.
Figure 4: Practices and Behavior Gap and the Ability to Change
Gap: High Gap: High

Urgency and Ability Urgency and Ability
to Change: Low to Change: High
Gap: Low Gap: Low

Urgency and Ability Urgency and Ability
to Change: Low to Change: High

A New Approach to Measurement

The ability to measure user-facing activity is crucial to the successful management of a TRM approach.
Businesses have become quite effective at measuring customer activity and value-add. Therefore, if talent
is truly one of the only differentiators of future success, then organizations must begin to measure
N-Ployee activity and engagement with the same rigor.
The main uses for TRM measurement are:
• to influence and validate decision-making.
• to guide ongoing activities and tactics.
• to predict future states.
Companies will implement TRM measurement differently based on their internal decision-making style.
As organizations make decisions about TRM strategies, they will look to N-Ployee measurement to help
influence decision-makers, the decision-making process, and/or to validate ideas about how best to
manage N-Ployee relationships. These measurement decision-making styles will break down into
categories:
• the hard ROI approach is one where companies develop an ROI model that seeks to assess the
actual cash benefits to the company. This approach identifies cost savings, productivity
improvements or revenue generation opportunities. Illustrations of TRM ROI measures may
include:
» ROI on Web-based investments in career sites relative to reduced overall costs of hiring or
reduced turnover costs in the first year.
» ROI on the cost of operating an N-Gen innovation “think tank” relative to increased revenue or
decreased costs associated with implemented ideas.
» ROI on the customized reward programs relative to overall compensation cost reduction
targets, savings from increased retention, revenue or earnings per N-Ployee.
• competitive assessment measures how other organizations initiate, engage, and evolve N-Ployee
relationships relative to their own performance. An appropriate and productive assignment for an
N-Ployee would be to conduct a comparative assessment of a competitor’s Web presence.
• employee engagement scores can be reported by demographic and compared to other companies by
external survey firms or an organization can aspire to be on one of the many “Best Places to Work”
lists.
• instinct and experience summaries by N-Ployees about their own work life and also by leaders
regarding N-Ployees are subjective and individualized assessments of engagement and satisfaction.
These can be aggregated to measure the quality of work relationships and experiences.
Many companies adopt more than one style of measurement. The use of broader strategic measurement
approaches such as the Net Generation Leader Capability Assessment, and the Net Generation People
Program Assessment tools provide for a rigorous and comprehensive approach.
Conclusion
When applied to the world of work, the Net Generation norms—speed, innovation, collaboration,
freedom, and fun amongst others—provide a manifesto for change that will revolutionize the workplace

of tomorrow and provide competitive advantage to companies that embrace these norms today. TRM,
which is the application of the N-Gen norms to people practices, is about creating new opportunities,
enhancing competitiveness, reducing costs, and increasing profits and success. N-Ployees are proposing
and pushing a new way of doing business and experiencing work—being better connected and informed;
asking for clear direction and deliverables; and seeking increasingly difficult work assignments. What is
your organization doing to tap into this talented generation’s unlimited potential?
JANET HARDY is a senior advisor to New Paradigm. Recognized as an expert in the interface
between performance management and compensation programs, she creates solutions for clients looking
to lead their workforce to higher levels of contribution, innovation and development. Her experience
and straight-forward communication style have helped clients such as RBC, Tim Hortons, and Ontario
Ministry of Health to redesign and implement compensation and performance management programs
that deliver results, grow talent and build commitment. Janet also works with boards to improve the
integrity and value proposition of their executive compensation programs and facilitates the Board-CEO
performance evaluation interface. Janet has degrees from Queens, Dalhousie and Royal Roads
University, as well as the Ivey School of Business. She is on faculty at the University of Toronto and
teaches a graduate course entitled “Creating High Performance Reward Systems”.
BILL GILLIES is an independent communications consultant and writer-editor associated with New
Paradigm, with senior-level experience in both the private and public sectors. He is the co-author of the
Net Generation Norms research paper. Past deliverables have ranged from comprehensive
communications strategies to editorial content such as speeches, op-ed pieces, white papers, and Web
site/blog content.

Endnotes
1
Stephanie Armour, “This is job recruiting?” USA Today, March 26, 2007.
2
U.S. Department of Labor, www.dol.gov.
3
Nancy R. Lockwood, “The Aging Workforce,” HR Magazine, December 2003.
4
Stephanie Armour, “This is job recruiting?” USA Today, March 26, 2007.
5
Don Tapscott and Robert Barnard, “Talent 2.0 – The Net Generation and the World of Work,” New Paradigm,
October 2006.
6
http://blogs.msdn.com/jobsblog
7
Verizon News Release, “Participating in Virtual Job Fair Can Lead to Real Career Opportunities at Verizon,” May
15, 2007, http://newscenter.verizon.com/press-releases/verizon/2007/participating-in-virtual-job.html.
8
New Paradigm Study of the N-Gen, n=1,750, 13–20 year olds in the U.S. and Canada, 2006 and 2007.
9
D-Code/Brainstorm Communications, “From Learning to Work, 2004: Campus Recruiting in Canada.”
10
Brendan Peat and Bruce A. Stewart, “The Wiki Workplace”, New Paradigm Big Idea paper, 2007.
11
“The American Workplace,” Employment Policy Foundation, 2003.
12
13
Matt Keating, “Phone Home,” The Guardian, October 15, 2005.
14
15
Ibid.
16
Kathryn Tyler, “The Tethered Generation,” HR Magazine, May 2007.
17
Elissa Tucker, Tina Kao, and Nidhi Verma, “Next-Generation Talent Management: Insights on How Workforce
Trends Are Changing the Face of Talent Management,” Hewitt Associates, 2005.
18
Charles Fishman, “The Anarchist’s Cookbook,” Fast Company, July 2004.

The 8 Norms of the Net Generation
New Paradigm has identified certain normative attitudes and behaviors endemic to the N-Gen, which
differentiate them from previous generations. These norms have become part of the vernacular of marketing.
Freedom
To an N-Gener, choice is like oxygen. With the proliferation of media, sales channels, product types, and brands,
N-Geners leverage technology to cut through the clutter and find the products that fit their needs. They expect to
choose where and when they work; to be able to use technology to escape traditional office space and hours; and to
integrate their home and social lives with their work lives.
Customization
N-Geners have grown up using media they can customize. With their own blogs and Web sites, personalized cell
phones, TiVo, Slingbox, and podcasts, they get the media and information they want, when and where they want it,
and alter it to fit their unique needs and desires. They want to be able to customize their workplace—doing things
like helping improve work processes and having input into their own job descriptions.
Scrutinizers
They are the new scrutinizers. Older generations marvel at the consumer research available on the Internet:
N-Geners expect it, and as they grow older, their online engagement increases. N-Geners know that their market
power allows them to demand more of companies. As employees they demand trusting and transparent relationships
with the companies they work for.
Integrity
When deciding what to buy and where to work, they look for corporate integrity and openness. Whether they are
exposing a flawed viral marketing campaign or researching a future employer, N-Geners make sure a company's
values align with their own.
Collaboration
Unlike their TV generation parents, N-Geners interact with media and with others through media. They collaborate
online in chat groups, play multi-user video games, use email and share files for school, work, or just for fun. They
influence each other through "N-Fluence Networks," where among other things, they discuss brands, companies,
products and services. Marketers must recognize that there is more to the consumer relationship than brand recognition.
Having grown up being authorities on something important, they have a different view of authority in the workplace.
Entertainment
N-Geners want their work, education, and social life to be fun and entertaining. They bring a playful attitude to work—
they know that there's always more than one way to achieve a goal, just like in the latest video game. They seek
entertaining experiences in products and services. Workplaces must be fun—as work, learning, collaboration and
entertainment are for the first time inseparable.
Speed
N-Geners need speed—and not just in video games. In a world where information flows rapidly among vast networks
of people, communication with friends, colleagues, and bosses takes place faster than ever. Marketers and employers
should realize that N-Geners expect the same quick communication in return—every instant message should draw
an instant response. N-Geners are speeding up the metabolism of business—for the good.
Innovation
For N-Geners, digital tools have encouraged and facilitated innovation in all aspects of their lives. Marketers reach
them in increasingly creative ways, while N-Gen business leaders have literally changed entire industries. Their need
to innovate challenges established norms, some of which will need to be adapted, and some to which N-Gen will
need to adapt.
This report is an analysis of a Big Idea, presented as part of New Paradigm's Net Generation: Strategic Investigation Program.
The program, sponsored by leading companies such as yours, is investigating the impact of the Net Generation in the marketplace
and the workplace.
Don Tapscott: Chief Executive
Joan Bigham: Executive Vice President, Strategy and Business Development
Mike Dover: Vice President, Syndicated Research
Anthony Williams: Vice President and Executive Editor
John Geraci: Program Manager, Net Gen Global Investigation
© 2007 New Paradigm Learning Corporation. Reproduction by any means or disclosure to parties who are not employees of Net
Generation: Strategic Investigation member organizations or wholly-owned subsidiaries is prohibited.
The Net Generation: Strategic Investigation research program membership includes unlimited free access to a
secure web site where the research team project plans and research publications are posted for member review
and feedback. Please visit www.newparadigm.com for information. For more information, please contact
Joan Bigham at jrbigham@newparadigm.com or (860) 536-6693.
Attracting and Engaging
the N-Gen Employee
www.newparadigm.com

Attracting and Engaging The N-Gen Employee

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Attracting and Engaging the N-Gen Employee

The Story in Brief

Table of Contents The need for freedom: balancing work and

© 2007 New Paradigm Learning Corporation

Competing for North America’s Premium Talent

The New Framework: Talent Relationship Management

© 2007 New Paradigm Learning Corporation

The three stages of Talent Relationship Management

Table 1: The CRM and TRM Linkage

© 2007 New Paradigm Learning Corporation

Consumer Entertainment Fun matters

Stage 1: Initiating the N-Gen Employment Relationship

© 2007 New Paradigm Learning Corporation

Blogs and podcasts

© 2007 New Paradigm Learning Corporation

• is the company prepared to act on such feedback?

I would never work at Microsoft because...

Social networking sites

B. Recruiting the Net Generation

© 2007 New Paradigm Learning Corporation

© 2007 New Paradigm Learning Corporation

C. Onboarding: early learning and responsibility is essential for the win-win

Stage 2: Engaging the N-Gen Employee

© 2007 New Paradigm Learning Corporation

The need for speed: progress and communication

© 2007 New Paradigm Learning Corporation

The need for freedom: balancing work and personal life

© 2007 New Paradigm Learning Corporation

© 2007 New Paradigm Learning Corporation

The need for entertainment: finding fun at work

© 2007 New Paradigm Learning Corporation

The need for innovation: adding value and feeling important

© 2007 New Paradigm Learning Corporation

What does the Net Generation need to learn?

N-Gen employees require different leadership

© 2007 New Paradigm Learning Corporation

Table 2: Traits Most Desired for Leading the N-Gen

© 2007 New Paradigm Learning Corporation

Do we need a title shift here?

Generational common ground

© 2007 New Paradigm Learning Corporation

Stage 3: Evolving the Relationship—Extending the Impact and

The opportunities—business proposition

© 2007 New Paradigm Learning Corporation

The Road Ahead: A Roadmap for Change and Measures of

Net Generation at work: assessment approaches

© 2007 New Paradigm Learning Corporation

Figure 1: Implementing the TRM Model

Competitive Landscape Business Model and

Nature of Work Content N-Ployee Aptitude

Net Generation Talent

N-Gen Employee N-Gen Employee User-

Initiating the Relationship Initiating the Relationship

Gap Analysis and Implementation

Measures of Business and

© 2007 New Paradigm Learning Corporation

Figure 2: Net Generation Leadership Capability Assessment

© 2007 New Paradigm Learning Corporation

People practices assessment

© 2007 New Paradigm Learning Corporation

Figure 3: Net Generation People Practices Assessment