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Managing Gen Y talent in Project Teams
The right approach for managing (IT) projects in terms of acquiring and retaining Gen Y talent,
and getting ROI
PMI National Conference - 2013
Technical Paper
Debabrata Pruseth - IT Strategy and Architecture Consultant -TCS
Lakshmi Varagan D - Lead Pre Sales and Solutions , APAC -TCS
Ramanand Garimella – Global Delivery Head – Program Management Practice - TCS
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 2 (15)
Table of Contents
1 Abstract.............................................................................................................................................................3
2 Gen Y in the workforce....................................................................................................................................3
2.1 The Generation Matrix ...............................................................................................................................4
2.2 Why a different talent management approach is required? ........................................................................5
2.2.1 Secondary Research: Gen Y traits in the Global Context .........................................................5
2.2.2 Primary Research: Gen Y traits in the Indian IT context ...........................................................6
2.2.3 Need for change in talent management approach .....................................................................6
3 Managing the Gen Y talent .............................................................................................................................7
3.1 Current talent management framework and its challenges.........................................................................7
3.2 New approach to manage Gen Y talent......................................................................................................8
4 Future Direction.............................................................................................................................................12
5 Conclusion.......................................................................................................................................................14
6 References .......................................................................................................................................................14
7 Authors profile................................................................................................................................................15
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 3 (15)
1 Abstract
IT industry being knowledge driven is highly human capital intensive. The proportion of Gen Y individuals in IT
companies is significantly high, as the average age of the workforce is below 30 years, and this pool of talent is
growing at a faster rate. Consequently, Gen Y has become an important stakeholder in any project. Hence, a
systematic approach in managing this pool of talent is important for a high success rate in projects.
Today’s Gen Y individuals have a different outlook towards their work. They set high expectations for themselves
and work with great enthusiasm towards achieving their goals. Notable characteristics of Gen Y are a greater
preference to working in teams, and a higher proficiency in working with social media tools and technologies.
They are well educated, skilled in technology, self-confident and are capable of multi-tasking.
This article explores the current challenges faced while dealing with projects having a sizable Gen Y population
and the best practices to manage Gen Y based on our experiences in large IT projects. The approach addresses
Gen Y talent lifecycle management from a project management perspective, covering Gen Y induction into project
teams, work allocation, monitoring, skill development and performance management. These lifecycle phases are
analysed from the three crucial dimensions of technology, process and people. Critical levers are identified and
explored in detail for each of these perspectives including the mechanism for effective governance.
2 Gen Y in the workforce
The workforce currently consists of four generations working together in the same workplace. As per a research
article published by Steelcase1, the workforce in India can be categorized into four generations namely Freedom
Fighters (born before 1946), Traditionals (born between 1947 and 1964), Gen X (born between 1965 and 1979)
and Gen Y (born after 1979).
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 4 (15)
Gen Y
Traditionals
Gen X
Freedom
Fighters
2.1 The Generation Matrix
Figure 1: Demographic Distribution India’s Population, 2012
Figure 1 illustrates the demographic distribution of population of India in 2012. Assuming that the working age
group lies in the average age range of 18 to 65 years, it can be clearly seen that majority of the working
population falls under the age bracket of 18 to 30 years, who constitute the Gen Y population. It can also be
clearly deducted that with time the percentage of Gen Y in workforce will grow steadily as companies need to
keep themselves ready for the opportunity and challenges associated with this trend, especially in the IT sector.
Currently, the IT/BPO sector in India hires over 2.8 million professionals. The percentage of Gen Y workforce in IT
sector is especially large. TCS, India’s largest IT Company in its annual report 2011-122 stated that almost 69%
of its employees fall under the Gen Y category.
A survey was conducted among project managers in the PMI conference held in Chennai (India) on 22nd June,
2013 in the form of a questionnaire. The responses were received from Project Managers of leading Indian IT
companies like TCS, Infosys, HP, IBM, Syntel, and Hexaware and so on. Based on the observations from the
survey, on an average 49% of IT projects have a Gen Y population of more than 50%.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 5 (15)
Figure 2: Gen Y population in IT projects
2.2 Why a different talent management approach is required?
2.2.1 Secondary Research: Gen Y traits in the Global Context
As per a research done by Susan Eisner3, Gen Y’s entrance to the workplace presents many opportunities in
today’s competitive organizations in which high performing workers are an asset with demographic shifts pointing
to impending labor shortages. They tend to be goal-oriented, and interested in self-development (both personal
and financial success) and improvement. Managing these expectations of Gen Y workforce has been a challenge
for most project managers.
Cisco recently published its Connected World Report
4
about people under 30 from around 14 countries. This
report states that approximately one in three said that they would prioritize social media freedom, device flexibility
and work mobility over salary in accepting a job offer. Employees also expect employers to offer a flexible
schedule and freedom to work remotely. Most of these expectations have been unheard in their professional life
for project managers who now have to deal with them.
Some other notable observations of Gen Y are:
They frequently change jobs and seek challenging jobs
They need constant affirmation that their work is meaningful
They seek organizations that follow ‘business casual’ dress codes, flexible work hours and schedules.
They require instant feedback that is justified, immediate and gives a fair opportunity for corrective action.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 6 (15)
2.2.2 Primary Research: Gen Y traits in the Indian IT context
A survey was conducted where project managers were asked to note the three major challenges they have faced
in handling Gen Y individuals in the project. The following table lists some of the Gen Y traits found in the survey.
Lack of quality deliverable Lack of accountability Adjusting own and peers approach to
manage them
Lack of process adherence Need to switch jobs quickly Making them in line with organization
objectives and policies
Need for flexible working hours Training requirements Adapting them to the new project
Need for constant support of peer
groups
Focus on social media Need for continuous communication
Lack of responsibility Need for perks Sensitive to recognition and feedback
Lack of synchronization with team
members above 35 yrs
Monday blues Need for constant motivation
Managing escalations and Talent
Management
Adaptability Issues Commitment
Based on the observations from the primary research, secondary research and our personal experiences we can
categorize the important traits of Gen Y under the three sections of Technology, Process and People as listed in
the following table.
Technology Process People
Tech savvy – would work on
latest technology
Social media freedom
Mobility and Device
flexibility
Need challenging job
Open minded and
Competitive
Look for liberal HR policies
in workplace.
Goal Oriented and have high
expectations to succeed personally,
professionally and financially
Need instant feedback
Energetic and Ambitious
2.2.3 Need for change in talent management approach
The current project talent management and HR policies need to be enhanced to suit the needs of Gen Y which
has been causing friction in workforce that is evident due to the high attrition rate in most IT companies and
frequent job hopping among youngsters. As per a research done by a global HR consultancy Aon Hewitt
5
, Gen Y
individuals tend to switch jobs 4 to 6 times before they hit their mid-30s, in a span of 10 years.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 7 (15)
Above is a major concern for the project management and requires immediate attention towards improving the
talent management approaches. This was substantiated by the findings from the survey conducted. 70% of the
project managers agreed that there are challenges in dealing with Gen Y in projects. 88% of the project managers
stated that there is a need to change the project talent management approach to handle these challenges.
3 Managing the Gen Y talent
3.1 Current talent management framework and its challenges
Most of the talent management frameworks follow the develop-motivate-retain-attract life cycle. The main
functions covered under the cycle are compensation, performance management, employee engagement, career
development and training. However as discussed earlier, though the methodologies are strong as far as
processes are concerned, the people/employee orientation side especially when applied in the project
management scenario, needs to be enhanced to suit Gen Y.
A severe talent crunch has already been realized in large PSU organizations. 20% of the staff in the PSU banks is
expected to retire by 2015
6
. About a quarter of Coal India Ltd
7
. employees will retire in next four years.
IT, being relatively new, does not face the retirement issue, but the underlying issues of recruiting and managing
Gen Y talent remains a challenging task for most projects. Additionally, the generation is causing communication
related challenges in the workspace. This is compounded by the fact that large projects have different cross
national teams spread across different locations worldwide. When generations fail to communicate or work
together effectively, it impacts the organization’s bottom line. Turnover rates and tangible costs such as
recruitment, hiring, training and retention can be negatively impacted. Morale may also suffer which can result in
Figure 3: Survey Result – How challenging is it
to Work with Gen Y
Figure 4: Survey result – Need to change project
talent management approach to cater to Gen Y
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 8 (15)
increased complaints, and perceptions of unfair treatment or inequity. All these challenges need to be addressed
in the current talent management framework.
3.2 New approach to manage Gen Y talent
We have used the SNAC framework to analyze the major issues faced in IT projects and find possible solutions to
it, when it comes to managing Gen Y talent. SNAC Framework is an acronym for Stakeholders, their Needs, the
system factors which can be Altered and Constraints which come in the way of fulfilling the needs.
Stakeholders Those who have an interest (a stake) in the operation and the performance of
the organization. They may or may not be in a position to influence the
organization directly.
Needs The needs each stakeholder group seeks to fulfill through the organization.
Alterable These parameters, events or processes that can be controlled or altered to fulfill
the needs of stakeholders.
Constraints The limitations imposed by factors that cannot be controlled by the organization
Based on our experiences in leading various IT projects, we have come up with the following SNAC analysis for
that can be applied to a standard IT project.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 9 (15)
Stakeholder Needs Alterable Constraints
IT Company as
organization
Best skilled professionals
Availability of resources
for projects
Low attrition rate
Investment in workplace
Investment in training
facilities
Freedom to HR for rolling
employee friendly policies
Competition
Infrastructure
Time
Cost
Availability of quality
professionals
Attrition
Program/Project
Manager
Best skilled professionals
Project completion on
time and with utmost
quality
Work culture Project deadlines
Manpower Budget
HR Develop niche skills
Keep the attrition low
HR policies for recruitment,
reward and recognition,
appraisal and skill
development
Infrastructure
Cost
Employees
(Gen Y)
Opportunities for skill
development
Open work culture
Future growth options
Challenging and
rewarding job
Work culture
HR policies
Availability of project
Company policies and
standards
Employees
(Other )
Communicate effectively
with young employees
and get the work done
Maintain a healthy work
culture
Work culture
HR policies
Company policies and
standards
The final objectives that any IT project strives to achieve from the above SNAC analysis can be concluded as
follows:
Attract, recruit and retain best Gen Y talent available in the market
Consider the aspirations of Gen Y while devising HR and other work policies
Motivate Gen Y to get the best out of them and decrease the attrition rate
Integrate different generations in the work culture to have a productive and focused team
The implementation of these objectives requires coordination between project manager and various other units of
the organization like HR. IT companies have been striving to achieve these objectives in a collaborative approach.
Some of the best practices that have been implemented towards the same can be categorized across the talent
management lifecycle and segregated among the three dimensions of technology, – process and people. The
analysis is based primarily on our past experiences in working in large IT companies.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 10 (15)
The Talent Management lifecycle comprises of the following processes:
A. Recruitment and Induction
While recruiting people for IT projects, the project managers and HR need to work together in formulating
the Job Description which should be clear and attractive enough to inspire and attract Gen Y
professionals.
After recruitment and before the final joining date, the company should stay in touch with the recruits. For
example, TCS has its Campus Connect NextStep
8
program where all hired recruits can log in and interact
with other new joiners, HR and even the higher management. The look and feel of Campus Connect site
is just like any social media site. This presents a digital savvy image of the organization among the future
joiners and helps them to stay connected during the lean period when they are waiting to join.
Use organization’s social media and portal to engage Gen Y to join project teams.
The peer network can be leveraged attract Gen y talent to projects
HR policies need to be liberalized to suite the demands of Gen Y. It has been observed that flexible HR
policies will decrease the attrition in the projects.
Digital medial needs to be used for Induction to facilitate any time anywhere learning. This will
significantly reduce lead time for induction.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 11 (15)
Figure 5: Approach for Gen Y talent management
B. Work allocation and monitoring
Bring Your Own Device (BYOD)
A BYOD policy is very essential in today’s work culture. A Large IT Company has evolved a unique BYOD
policy. Now the associates can easily access the Company’s Enterprise Applications on their personal
smartphones and tablets.
Through this program, the Company brings an exciting platter of Enterprise Applications through which an
associate can get real-time access to business critical information, connect with the Leadership team, stay
tuned into the voice of the Company and speak one’s mind when the idea first strikes! One can now save
those precious minutes by filling timesheets and clearing your work lists without being confined to the
workplace.
These Enterprise Applications are configurable on devices like (Smart Phone/Tablet) and are specially
designed to enable the associates to ideate, innovate and collaborate more effectively and improve
efficiencies.
Workspace Culture
It has been observed that young employees prefer open space with their personal desktop instead of being
cramped in tiny spaces and sharing common applications like desktop and telephone. Though resource
constraints prevent full fledge liberal roll out of such policies, open workspace culture should be encouraged
as far as possible.
Deployment of an enterprise wide Knowledge sharing platform where each employee can share thoughts,
blog, communicate and even follow their top leadership is necessary. A communication channel with higher
management is also essential. Periodic sessions should be conducted through these mediums where higher
management interacts with rest of the organization through WebEx and other medium.
The current appraisal system needs to be revamped to incorporate a 360 degree feedback process. There
should be an annual feedback process where positive inputs and areas of improvement in the appraisal and
other important process directly impacting the associates should be surveyed and analyzed.
More spot awards and instant recognition to budding talents should be distributed by HR at regular intervals.
HRs should be more interactive and conduct various team building activities on the floor at regular intervals
targeting the new Gen Y.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 12 (15)
C. Skill development & performance management
There should be a new generation social ideation platform, where associates are encouraged and rewarded
for bringing in new ideas. Gen Y especially will come up with new ideas on emerging technologies that should
be encouraged and also constantly reviewed in terms of business opportunities by the management.
There should be constant encouragement for external and internal certifications with reimbursement options,
so that associates can develop their skills based on project context.
Personalized mentorship is very much required. In leading organizations usually, whenever new associates
join, a personal mentor is assigned to induct them in the workspace about the culture of the organization and
also to help them in the initial days of the project. This care and support gives constant assurance to new
joiners.
New opportunities within the organization should be shared so that associates can select the project matching
their skill sets. Many organizations have internal job portals where new openings are displayed so that
associates can choose new projects based on their interest.
Digital-based training programs should constantly be rolled over by HR, keeping in mind the tech savvy
nature of Gen Y.
In case there is no major project work load, it is the project manager’s responsibility to ensure that associates
are engaged productively in other value added activities like doing addendum task or enhancing their
knowledge/skill so that they do not feel ignored.
Gen Y is socially responsible and look for an opportunity to give back to the society. An active CSR cell in the
organization where associates can participate and contribute to the society is a positive initiative.
4 Future Direction
Companies need to rethink the way their employees work, and make major changes that will accommodate the
unique work desires of Gen Y. Companies will increase employee performance by reducing turnover and have
happier, and more productive Gen Y employees. A BPW Foundation’s Gen Y study
9
published in April 2011 also
noted that by 2025, Gen Y will make up roughly 75% of the world’s workforce. With this many millennial making
up majority of the workforce by 2025 — only 12 years away — employers cannot afford to ignore Gen Y.
In our survey, 54% of the project managers agreed that Gen Y are highly significant for the projects, restating the
importance of Gen Y in IT projects in coming days. 56% of the project managers have already made some
changes to their talent management approach to cater to Gen Y needs.
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 13 (15)
Based on our experiences and also on research done in this area, like that by Johnson Controls
10
and Susan
Eisner
3
, following are some of the key measures that the project managers can adopt in their organization:
A. Create Culture of Creativity and Productivity
Encourage team work to boost creativity
Provide open workspace to support productivity
Provide the right technological support to achieve high productivity
Create a working environment which promotes interaction and bonding with team members
B. Reinvent the Work Culture
Flexible Working should be the norm for the Gen Y
HR must consider the workplace as a recruitment factor. Employers must not neglect the impact of their
workplace to attract, recruit and retain talent. The way of working is tightly linked to the way people prefer
to live
The Gen Y privileges colleagues relationships rather than financial compensations
C. Do not ignore the other generations
Freedom Fighters: They should be encouraged to share their knowledge of the past. They should be
encouraged to assert their authority and demonstrate their track records.
Figure 6: Survey result – Significance of Gen Y Figure 7: Survey result – changes to project talent
Management approach
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 14 (15)
Traditionalists: On the other hand, traditionalists should be conveyed that they are important for the
organization’s success, and are valued for their unique and important contributions.
Gen X: They respond well to being told to do things on their own, and that there are minimal rules and
bureaucracy.
D. Ask yourself the following questions:
How will you leverage the unique strengths of each generation in order to retain your key players,
improve productivity, and maximize teamwork?
What are you doing differently to attract and retain the best talent?
Are you adopting the technologies that Gen Y professionals live with – and expect to use?
Are you leveraging Gen Y’s behaviors to foster collaboration and innovation?
5 Conclusion
Gen Y is a highly educated and skilled generation. Their skills and potential are crucial for a business to move up
the value chain. New innovation is required in today’s business and we need to tap the Gen Y talent for the same.
The current talent management approaches have to keep pace with the changing needs of Gen Y. The
suggested approach in this paper provides the holistic approach covering life cycle of talent management from
three perspectives - Technology, Process and People. This approach enables formation of cohesive and high
performance team with Gen Y leading to significant ROI.
6 References
1. http://www.steelcase.com/en/resources/research-
projects/documents/steelcase_workspace%20futures_geny_india_april2011.pdf
2. http://www.tcs.com/investors/Documents/Annual%20Reports/TCS_Annual_Report_2011-2012.pdf
3. http://phobos.ramapo.edu/~seisner/Managing.htm
4. http://www.cisco.com/en/US/solutions/ns341/ns525/ns537/ns705/ns1120/2012-CCWTR-Chapter1-Global-
Results.pdf
5. http://articles.economictimes.indiatimes.com/2012-09-07/news/33677248_1_new-recruits-campus-recruits-e-
commerce-firm
6. http://www.livemint.com/Opinion/Nxk9U4pulRiYXzJ385tZEJ/Public-sector-banks-face-acute-manpower-
crisis.html
7. http://articles.economictimes.indiatimes.com/2013-04-23/news/38763409_1_coal-india-ltd-s-narsing-rao-coal-
production
8. https://nextstep.tcs.com/campus/
9. http://www.forbes.com/sites/85broads/2012/01/23/gen-y-workforce-and-workplace-are-out-of-sync/
10. http://www.johnsoncontrols.in/content/dam/WWW/jci/be/global_workplace_innovation/oxygenz/Oxygenz_Rep
ort_-_2010.pdf
Managing Gen Y Talent in Project Teams
PMI National Conference – Technical Paper Page 15 (15)
7 Authors profile
Debabrata Pruseth is an IT Strategy and Architecture Consultant with Tata Consultancy
Services (TCS). Mr. Pruseth has rich experience in IT and management consulting in various
roles and across diversified technologies. Prior to joining TCS, he was a consultant in
Capgemini India. He did MBA degree in Finance and B.Tech in chemical engineering. He can
be reached at debabrata.yes@gmail.com
LakshmiVaragan D is a pre-sales lead in TCS for APAC Region. Lakshmi has 19yrs of
experience covering both IT & Manufacturing Industry. Lakshmi is PMP, CPIM & ITIL V3
certified professional managing projects in application services, application development, ERP
Implementation, Custom application Development, maintenance & Support in the IT Industry.
Lakshmi did BE in Mechanical and MBA in Operations management. He can be reached at
tellvaragan@yahoo.com
Ramanand Garimella is Global Delivery Head of Program Management practice in TCS having
rich experience in Program, Project and Operations Management.He published articles on Agile
Methodology, Agile Testing, Defect Management and Data Migration. He B. Tech.in Mechanical
Engineering and master’s in IE from NITIE –Mumbai. He can be reached at
g_ramanand@yahoo.com

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  • 1. Managing Gen Y talent in Project Teams The right approach for managing (IT) projects in terms of acquiring and retaining Gen Y talent, and getting ROI PMI National Conference - 2013 Technical Paper Debabrata Pruseth - IT Strategy and Architecture Consultant -TCS Lakshmi Varagan D - Lead Pre Sales and Solutions , APAC -TCS Ramanand Garimella – Global Delivery Head – Program Management Practice - TCS
  • 2. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 2 (15) Table of Contents 1 Abstract.............................................................................................................................................................3 2 Gen Y in the workforce....................................................................................................................................3 2.1 The Generation Matrix ...............................................................................................................................4 2.2 Why a different talent management approach is required? ........................................................................5 2.2.1 Secondary Research: Gen Y traits in the Global Context .........................................................5 2.2.2 Primary Research: Gen Y traits in the Indian IT context ...........................................................6 2.2.3 Need for change in talent management approach .....................................................................6 3 Managing the Gen Y talent .............................................................................................................................7 3.1 Current talent management framework and its challenges.........................................................................7 3.2 New approach to manage Gen Y talent......................................................................................................8 4 Future Direction.............................................................................................................................................12 5 Conclusion.......................................................................................................................................................14 6 References .......................................................................................................................................................14 7 Authors profile................................................................................................................................................15
  • 3. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 3 (15) 1 Abstract IT industry being knowledge driven is highly human capital intensive. The proportion of Gen Y individuals in IT companies is significantly high, as the average age of the workforce is below 30 years, and this pool of talent is growing at a faster rate. Consequently, Gen Y has become an important stakeholder in any project. Hence, a systematic approach in managing this pool of talent is important for a high success rate in projects. Today’s Gen Y individuals have a different outlook towards their work. They set high expectations for themselves and work with great enthusiasm towards achieving their goals. Notable characteristics of Gen Y are a greater preference to working in teams, and a higher proficiency in working with social media tools and technologies. They are well educated, skilled in technology, self-confident and are capable of multi-tasking. This article explores the current challenges faced while dealing with projects having a sizable Gen Y population and the best practices to manage Gen Y based on our experiences in large IT projects. The approach addresses Gen Y talent lifecycle management from a project management perspective, covering Gen Y induction into project teams, work allocation, monitoring, skill development and performance management. These lifecycle phases are analysed from the three crucial dimensions of technology, process and people. Critical levers are identified and explored in detail for each of these perspectives including the mechanism for effective governance. 2 Gen Y in the workforce The workforce currently consists of four generations working together in the same workplace. As per a research article published by Steelcase1, the workforce in India can be categorized into four generations namely Freedom Fighters (born before 1946), Traditionals (born between 1947 and 1964), Gen X (born between 1965 and 1979) and Gen Y (born after 1979).
  • 4. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 4 (15) Gen Y Traditionals Gen X Freedom Fighters 2.1 The Generation Matrix Figure 1: Demographic Distribution India’s Population, 2012 Figure 1 illustrates the demographic distribution of population of India in 2012. Assuming that the working age group lies in the average age range of 18 to 65 years, it can be clearly seen that majority of the working population falls under the age bracket of 18 to 30 years, who constitute the Gen Y population. It can also be clearly deducted that with time the percentage of Gen Y in workforce will grow steadily as companies need to keep themselves ready for the opportunity and challenges associated with this trend, especially in the IT sector. Currently, the IT/BPO sector in India hires over 2.8 million professionals. The percentage of Gen Y workforce in IT sector is especially large. TCS, India’s largest IT Company in its annual report 2011-122 stated that almost 69% of its employees fall under the Gen Y category. A survey was conducted among project managers in the PMI conference held in Chennai (India) on 22nd June, 2013 in the form of a questionnaire. The responses were received from Project Managers of leading Indian IT companies like TCS, Infosys, HP, IBM, Syntel, and Hexaware and so on. Based on the observations from the survey, on an average 49% of IT projects have a Gen Y population of more than 50%.
  • 5. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 5 (15) Figure 2: Gen Y population in IT projects 2.2 Why a different talent management approach is required? 2.2.1 Secondary Research: Gen Y traits in the Global Context As per a research done by Susan Eisner3, Gen Y’s entrance to the workplace presents many opportunities in today’s competitive organizations in which high performing workers are an asset with demographic shifts pointing to impending labor shortages. They tend to be goal-oriented, and interested in self-development (both personal and financial success) and improvement. Managing these expectations of Gen Y workforce has been a challenge for most project managers. Cisco recently published its Connected World Report 4 about people under 30 from around 14 countries. This report states that approximately one in three said that they would prioritize social media freedom, device flexibility and work mobility over salary in accepting a job offer. Employees also expect employers to offer a flexible schedule and freedom to work remotely. Most of these expectations have been unheard in their professional life for project managers who now have to deal with them. Some other notable observations of Gen Y are: They frequently change jobs and seek challenging jobs They need constant affirmation that their work is meaningful They seek organizations that follow ‘business casual’ dress codes, flexible work hours and schedules. They require instant feedback that is justified, immediate and gives a fair opportunity for corrective action.
  • 6. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 6 (15) 2.2.2 Primary Research: Gen Y traits in the Indian IT context A survey was conducted where project managers were asked to note the three major challenges they have faced in handling Gen Y individuals in the project. The following table lists some of the Gen Y traits found in the survey. Lack of quality deliverable Lack of accountability Adjusting own and peers approach to manage them Lack of process adherence Need to switch jobs quickly Making them in line with organization objectives and policies Need for flexible working hours Training requirements Adapting them to the new project Need for constant support of peer groups Focus on social media Need for continuous communication Lack of responsibility Need for perks Sensitive to recognition and feedback Lack of synchronization with team members above 35 yrs Monday blues Need for constant motivation Managing escalations and Talent Management Adaptability Issues Commitment Based on the observations from the primary research, secondary research and our personal experiences we can categorize the important traits of Gen Y under the three sections of Technology, Process and People as listed in the following table. Technology Process People Tech savvy – would work on latest technology Social media freedom Mobility and Device flexibility Need challenging job Open minded and Competitive Look for liberal HR policies in workplace. Goal Oriented and have high expectations to succeed personally, professionally and financially Need instant feedback Energetic and Ambitious 2.2.3 Need for change in talent management approach The current project talent management and HR policies need to be enhanced to suit the needs of Gen Y which has been causing friction in workforce that is evident due to the high attrition rate in most IT companies and frequent job hopping among youngsters. As per a research done by a global HR consultancy Aon Hewitt 5 , Gen Y individuals tend to switch jobs 4 to 6 times before they hit their mid-30s, in a span of 10 years.
  • 7. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 7 (15) Above is a major concern for the project management and requires immediate attention towards improving the talent management approaches. This was substantiated by the findings from the survey conducted. 70% of the project managers agreed that there are challenges in dealing with Gen Y in projects. 88% of the project managers stated that there is a need to change the project talent management approach to handle these challenges. 3 Managing the Gen Y talent 3.1 Current talent management framework and its challenges Most of the talent management frameworks follow the develop-motivate-retain-attract life cycle. The main functions covered under the cycle are compensation, performance management, employee engagement, career development and training. However as discussed earlier, though the methodologies are strong as far as processes are concerned, the people/employee orientation side especially when applied in the project management scenario, needs to be enhanced to suit Gen Y. A severe talent crunch has already been realized in large PSU organizations. 20% of the staff in the PSU banks is expected to retire by 2015 6 . About a quarter of Coal India Ltd 7 . employees will retire in next four years. IT, being relatively new, does not face the retirement issue, but the underlying issues of recruiting and managing Gen Y talent remains a challenging task for most projects. Additionally, the generation is causing communication related challenges in the workspace. This is compounded by the fact that large projects have different cross national teams spread across different locations worldwide. When generations fail to communicate or work together effectively, it impacts the organization’s bottom line. Turnover rates and tangible costs such as recruitment, hiring, training and retention can be negatively impacted. Morale may also suffer which can result in Figure 3: Survey Result – How challenging is it to Work with Gen Y Figure 4: Survey result – Need to change project talent management approach to cater to Gen Y
  • 8. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 8 (15) increased complaints, and perceptions of unfair treatment or inequity. All these challenges need to be addressed in the current talent management framework. 3.2 New approach to manage Gen Y talent We have used the SNAC framework to analyze the major issues faced in IT projects and find possible solutions to it, when it comes to managing Gen Y talent. SNAC Framework is an acronym for Stakeholders, their Needs, the system factors which can be Altered and Constraints which come in the way of fulfilling the needs. Stakeholders Those who have an interest (a stake) in the operation and the performance of the organization. They may or may not be in a position to influence the organization directly. Needs The needs each stakeholder group seeks to fulfill through the organization. Alterable These parameters, events or processes that can be controlled or altered to fulfill the needs of stakeholders. Constraints The limitations imposed by factors that cannot be controlled by the organization Based on our experiences in leading various IT projects, we have come up with the following SNAC analysis for that can be applied to a standard IT project.
  • 9. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 9 (15) Stakeholder Needs Alterable Constraints IT Company as organization Best skilled professionals Availability of resources for projects Low attrition rate Investment in workplace Investment in training facilities Freedom to HR for rolling employee friendly policies Competition Infrastructure Time Cost Availability of quality professionals Attrition Program/Project Manager Best skilled professionals Project completion on time and with utmost quality Work culture Project deadlines Manpower Budget HR Develop niche skills Keep the attrition low HR policies for recruitment, reward and recognition, appraisal and skill development Infrastructure Cost Employees (Gen Y) Opportunities for skill development Open work culture Future growth options Challenging and rewarding job Work culture HR policies Availability of project Company policies and standards Employees (Other ) Communicate effectively with young employees and get the work done Maintain a healthy work culture Work culture HR policies Company policies and standards The final objectives that any IT project strives to achieve from the above SNAC analysis can be concluded as follows: Attract, recruit and retain best Gen Y talent available in the market Consider the aspirations of Gen Y while devising HR and other work policies Motivate Gen Y to get the best out of them and decrease the attrition rate Integrate different generations in the work culture to have a productive and focused team The implementation of these objectives requires coordination between project manager and various other units of the organization like HR. IT companies have been striving to achieve these objectives in a collaborative approach. Some of the best practices that have been implemented towards the same can be categorized across the talent management lifecycle and segregated among the three dimensions of technology, – process and people. The analysis is based primarily on our past experiences in working in large IT companies.
  • 10. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 10 (15) The Talent Management lifecycle comprises of the following processes: A. Recruitment and Induction While recruiting people for IT projects, the project managers and HR need to work together in formulating the Job Description which should be clear and attractive enough to inspire and attract Gen Y professionals. After recruitment and before the final joining date, the company should stay in touch with the recruits. For example, TCS has its Campus Connect NextStep 8 program where all hired recruits can log in and interact with other new joiners, HR and even the higher management. The look and feel of Campus Connect site is just like any social media site. This presents a digital savvy image of the organization among the future joiners and helps them to stay connected during the lean period when they are waiting to join. Use organization’s social media and portal to engage Gen Y to join project teams. The peer network can be leveraged attract Gen y talent to projects HR policies need to be liberalized to suite the demands of Gen Y. It has been observed that flexible HR policies will decrease the attrition in the projects. Digital medial needs to be used for Induction to facilitate any time anywhere learning. This will significantly reduce lead time for induction.
  • 11. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 11 (15) Figure 5: Approach for Gen Y talent management B. Work allocation and monitoring Bring Your Own Device (BYOD) A BYOD policy is very essential in today’s work culture. A Large IT Company has evolved a unique BYOD policy. Now the associates can easily access the Company’s Enterprise Applications on their personal smartphones and tablets. Through this program, the Company brings an exciting platter of Enterprise Applications through which an associate can get real-time access to business critical information, connect with the Leadership team, stay tuned into the voice of the Company and speak one’s mind when the idea first strikes! One can now save those precious minutes by filling timesheets and clearing your work lists without being confined to the workplace. These Enterprise Applications are configurable on devices like (Smart Phone/Tablet) and are specially designed to enable the associates to ideate, innovate and collaborate more effectively and improve efficiencies. Workspace Culture It has been observed that young employees prefer open space with their personal desktop instead of being cramped in tiny spaces and sharing common applications like desktop and telephone. Though resource constraints prevent full fledge liberal roll out of such policies, open workspace culture should be encouraged as far as possible. Deployment of an enterprise wide Knowledge sharing platform where each employee can share thoughts, blog, communicate and even follow their top leadership is necessary. A communication channel with higher management is also essential. Periodic sessions should be conducted through these mediums where higher management interacts with rest of the organization through WebEx and other medium. The current appraisal system needs to be revamped to incorporate a 360 degree feedback process. There should be an annual feedback process where positive inputs and areas of improvement in the appraisal and other important process directly impacting the associates should be surveyed and analyzed. More spot awards and instant recognition to budding talents should be distributed by HR at regular intervals. HRs should be more interactive and conduct various team building activities on the floor at regular intervals targeting the new Gen Y.
  • 12. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 12 (15) C. Skill development & performance management There should be a new generation social ideation platform, where associates are encouraged and rewarded for bringing in new ideas. Gen Y especially will come up with new ideas on emerging technologies that should be encouraged and also constantly reviewed in terms of business opportunities by the management. There should be constant encouragement for external and internal certifications with reimbursement options, so that associates can develop their skills based on project context. Personalized mentorship is very much required. In leading organizations usually, whenever new associates join, a personal mentor is assigned to induct them in the workspace about the culture of the organization and also to help them in the initial days of the project. This care and support gives constant assurance to new joiners. New opportunities within the organization should be shared so that associates can select the project matching their skill sets. Many organizations have internal job portals where new openings are displayed so that associates can choose new projects based on their interest. Digital-based training programs should constantly be rolled over by HR, keeping in mind the tech savvy nature of Gen Y. In case there is no major project work load, it is the project manager’s responsibility to ensure that associates are engaged productively in other value added activities like doing addendum task or enhancing their knowledge/skill so that they do not feel ignored. Gen Y is socially responsible and look for an opportunity to give back to the society. An active CSR cell in the organization where associates can participate and contribute to the society is a positive initiative. 4 Future Direction Companies need to rethink the way their employees work, and make major changes that will accommodate the unique work desires of Gen Y. Companies will increase employee performance by reducing turnover and have happier, and more productive Gen Y employees. A BPW Foundation’s Gen Y study 9 published in April 2011 also noted that by 2025, Gen Y will make up roughly 75% of the world’s workforce. With this many millennial making up majority of the workforce by 2025 — only 12 years away — employers cannot afford to ignore Gen Y. In our survey, 54% of the project managers agreed that Gen Y are highly significant for the projects, restating the importance of Gen Y in IT projects in coming days. 56% of the project managers have already made some changes to their talent management approach to cater to Gen Y needs.
  • 13. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 13 (15) Based on our experiences and also on research done in this area, like that by Johnson Controls 10 and Susan Eisner 3 , following are some of the key measures that the project managers can adopt in their organization: A. Create Culture of Creativity and Productivity Encourage team work to boost creativity Provide open workspace to support productivity Provide the right technological support to achieve high productivity Create a working environment which promotes interaction and bonding with team members B. Reinvent the Work Culture Flexible Working should be the norm for the Gen Y HR must consider the workplace as a recruitment factor. Employers must not neglect the impact of their workplace to attract, recruit and retain talent. The way of working is tightly linked to the way people prefer to live The Gen Y privileges colleagues relationships rather than financial compensations C. Do not ignore the other generations Freedom Fighters: They should be encouraged to share their knowledge of the past. They should be encouraged to assert their authority and demonstrate their track records. Figure 6: Survey result – Significance of Gen Y Figure 7: Survey result – changes to project talent Management approach
  • 14. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 14 (15) Traditionalists: On the other hand, traditionalists should be conveyed that they are important for the organization’s success, and are valued for their unique and important contributions. Gen X: They respond well to being told to do things on their own, and that there are minimal rules and bureaucracy. D. Ask yourself the following questions: How will you leverage the unique strengths of each generation in order to retain your key players, improve productivity, and maximize teamwork? What are you doing differently to attract and retain the best talent? Are you adopting the technologies that Gen Y professionals live with – and expect to use? Are you leveraging Gen Y’s behaviors to foster collaboration and innovation? 5 Conclusion Gen Y is a highly educated and skilled generation. Their skills and potential are crucial for a business to move up the value chain. New innovation is required in today’s business and we need to tap the Gen Y talent for the same. The current talent management approaches have to keep pace with the changing needs of Gen Y. The suggested approach in this paper provides the holistic approach covering life cycle of talent management from three perspectives - Technology, Process and People. This approach enables formation of cohesive and high performance team with Gen Y leading to significant ROI. 6 References 1. http://www.steelcase.com/en/resources/research- projects/documents/steelcase_workspace%20futures_geny_india_april2011.pdf 2. http://www.tcs.com/investors/Documents/Annual%20Reports/TCS_Annual_Report_2011-2012.pdf 3. http://phobos.ramapo.edu/~seisner/Managing.htm 4. http://www.cisco.com/en/US/solutions/ns341/ns525/ns537/ns705/ns1120/2012-CCWTR-Chapter1-Global- Results.pdf 5. http://articles.economictimes.indiatimes.com/2012-09-07/news/33677248_1_new-recruits-campus-recruits-e- commerce-firm 6. http://www.livemint.com/Opinion/Nxk9U4pulRiYXzJ385tZEJ/Public-sector-banks-face-acute-manpower- crisis.html 7. http://articles.economictimes.indiatimes.com/2013-04-23/news/38763409_1_coal-india-ltd-s-narsing-rao-coal- production 8. https://nextstep.tcs.com/campus/ 9. http://www.forbes.com/sites/85broads/2012/01/23/gen-y-workforce-and-workplace-are-out-of-sync/ 10. http://www.johnsoncontrols.in/content/dam/WWW/jci/be/global_workplace_innovation/oxygenz/Oxygenz_Rep ort_-_2010.pdf
  • 15. Managing Gen Y Talent in Project Teams PMI National Conference – Technical Paper Page 15 (15) 7 Authors profile Debabrata Pruseth is an IT Strategy and Architecture Consultant with Tata Consultancy Services (TCS). Mr. Pruseth has rich experience in IT and management consulting in various roles and across diversified technologies. Prior to joining TCS, he was a consultant in Capgemini India. He did MBA degree in Finance and B.Tech in chemical engineering. He can be reached at debabrata.yes@gmail.com LakshmiVaragan D is a pre-sales lead in TCS for APAC Region. Lakshmi has 19yrs of experience covering both IT & Manufacturing Industry. Lakshmi is PMP, CPIM & ITIL V3 certified professional managing projects in application services, application development, ERP Implementation, Custom application Development, maintenance & Support in the IT Industry. Lakshmi did BE in Mechanical and MBA in Operations management. He can be reached at tellvaragan@yahoo.com Ramanand Garimella is Global Delivery Head of Program Management practice in TCS having rich experience in Program, Project and Operations Management.He published articles on Agile Methodology, Agile Testing, Defect Management and Data Migration. He B. Tech.in Mechanical Engineering and master’s in IE from NITIE –Mumbai. He can be reached at g_ramanand@yahoo.com