For some years now, it has become increasingly difficult for employers to attract young professionals and retain them in their own companies in the long term. This also applies to talented young people from the web design and IT sector. The agency sector in particular is complaining about a lack of motivated and qualified applicants. Today I will show you what Generation Y has to do with this development and how you, as a small employer, can improve your chances of success in the "war for talent".
In many industries, the search for suitable employees has become increasingly difficult in recent years. Agencies in particular have problems positioning themselves as attractive employers among qualified young applicants.
Today, however, it is not only the well-known companies that pick out the best talents with big salary promises and prestige. Through innovative employee concepts and a convincing vision, more and more start-ups are attracting qualified young talent. Find out why this works so well in this article.
"War for Talent" - High Demand, Small Supply
The competition for the best web design, development and IT talent can be explained on the one hand by the fact that the demand for websites, customised programmes, apps and co. has increased sharply in recent years.
Employers who do not offer attractive conditions for these hotly contested skilled workers will sooner or later be left out in the cold.
The shortage of skilled workers has another major driver: demographic change. According to a study by the German Institute for Economic Research (DIW), Germany will have a shortage of almost ten million workers in 2040 at worst.
Why you should take Generation Y seriously
Due to the shortage of skilled workers, qualified candidates in many industries can afford to be choosy about where they work. To attract the best talent, you need to understand the needs of your future employees.
If you want to motivate your (potential) employees and retain them in the long term, you as an employer need to understand what is really important to them.
The generation that will dominate the labor market in the next few years is Generation Y - also known as "millennials". Depending on the definition, this includes those born between 1981 and around 2000.
As is the case with all generations, Millennials are attributed special characteristics. As a rule, these are generalized characteristics based, for example, on reports from teachers and employers, scientific studies or simply a general impression.
Generation Why - Volatile and demanding
Generation Y is described, among other things, as technology-savvy, flexible in terms of location, selfish, spoilt, fickle and self-confident. In the work context, their desire for constant feedback is also often mentioned.
Because of their characteristic of always wanting to question everything, Millennials are also known as Generation Why.
In articles and studies from an employer's point of view, it is often said that millennials have excessively high expectations of their workplace compared to their predecessors, Generation X. This is not true of millennials.
However, ignoring the supposedly unjustified demands of Generation Y is not a sensible strategy. Those who want to continue to attract the best young talent in the future should address the needs of Millennials.
What do millennials expect?
In July 2017 (as part of my master's thesis on employer branding), around 140 students and young professionals from Generation Y rated several employer benefits according to their importance.
The results showed that the following things are most important to young Generation Y employees:
- A committed and collegial team
- A fair remuneration
- Openness to new ideas and feedback
- Challenging and varied work tasks
- Chances of permanent employment (e.g. after trainee programme)
- Attractive further training and development opportunities
- Transparency, trust and respect as company values
- An appreciative and transparent company culture
- Flexible working hours and home office
Sustainability, well-known customers and partners, awards such as "Top Employer" or additional material benefits such as a company car and mobile phone were rated as less important.
Many major studies have come to a similar conclusion: the working atmosphere and colleague cohesion are the most important things for Generation Y. In addition, work tasks should be interesting and meaningful, the work-life balance should be right, further training opportunities should be available and the workplace should be secure.
Score with corporate culture and clear values
What can you as an employer learn from these results? Generation Y cannot be convinced with empty phrases and entrenched corporate structures.
If you want to attract qualified millennials, you need an appealing corporate culture and values with which they can identify. Many start-ups have already understood this.
A study on cultural fit in the IT industry confirms the importance of culture. The results show, for example, that 95 percent of respondents are willing to change jobs because of an inappropriate corporate culture. 70 percent have even changed jobs for this reason.
Authentic values as a differentiator
If you haven't yet established corporate values, you're probably asking yourself right now, "What does my company actually stand for?" Thinking about this is the first step in the right direction.
To find mission statements that are reflected in your company's history, that are authentic, and that your employees can identify with, I recommend the book "Der Sinn des Unternehmens - Wofür arbeiten wir eigentlich" by Dominic Veken (unfortunately only available in German).
During the job interview, you can then use the right questions to check whether potential employees really fit in with your corporate culture.
Let's assume that one of your values is "unquenchable thirst for knowledge. If you ask your applicants in an interview whether they have a thirst for knowledge, they will probably answer in the affirmative. However, if you ask them when their last training was and which book they read last, you will get much closer to a real "fit".
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Raidboxes builds on transparency and team spirit
At Raidboxes there are six major values which, together with our Code of Conduct, determine our actions as a company on the one hand and the cooperation of the entire team on the other. The two most important guiding principles are freedom and performance orientation.
We are freedom-loving and self-responsible: with concepts such as. holacracy, flexible working hours and home office, everyone has the freedom - but also the responsibility - to make the right decisions in their own area.
We are performance-hungry and love productivity because we always want to be number one. To be even more productive, we work according to the SCRUM principle, for example. This allows us to launch new features even faster.
At Raidboxes, turnover figures, financial plans and salaries are visible to all team members at all times. We always communicate openly and honestly, even in difficult situations.
Our goal is to make everything even easier for our customers: as few clicks as possible, as self-explanatory as possible, as fast as possible. Our Raidboxes Dashboard is also structured according to this principle.
We are experimental and creative, because only by breaking conventions and trying new things can we hold our own against the giants of the hosting world. One example of this is our Free Dev program for agencies and web designers.
Whether in the team or with customers: Should emotions ever boil over, we remain friendly and understanding. Conflicts within the team are dealt with directly and personally in order to resolve tensions immediately.
By communicating these values transparently and reviewing them in the job interview, we increase the chance that applicants will fit in with us and stay with the company in the long term.
The right cultural "fit" between Raidboxes and new employees is even more important to us than a seamless resume or a top university degree.
Acting entirely in the interests of the environment is a necessity in today's world - and is reflected in our corporate culture. As a climate-positive host , we live these values in many aspects. One great measure we have taken is the Eden Reforestation Project - a tree is planted for each new website hosted at Raidboxes.
Conclusion: Corporate values create a win-win situation
If mutual expectations arise during the interview that cannot be realised in reality, high employee turnover is inevitable. The right "fit" between employer and employee can only be achieved if both parties know their needs and communicate them openly.
As an employer, you should be aware that a transparent corporate culture is increasingly becoming a differentiating factor and that you can score points with it in the "war for talent".
Basically, if you not only communicate your values, but also actively act on them, you will attract exactly those employees who fit your company.
What is your experience with the search for young talent? Have you ever had problems finding suitable professionals? I look forward to your comments!