Connect with us

Business

How to Cater to Millennials in the Workplace

Avatar

Published

on

How to Cater to Millennials in the Workplace

Millennials make up the largest workforce by age in the United States, according to Pew Research. Companies spend millions of dollars researching this demographic to better understand their preferences and goals.

Businesses that understand millennials will attract them as employees and steal them from competitors. And if businesses want a good relationship with their millennial employees, they’ll work to understand and meet their needs.

Here are some ways businesses can cater to millennials in the workplace:

Offer solid career development

According to a study by Gallup, the number one thing millennials look for in a job is “opportunity to learn and grow.”

More than money and benefits, millennials want training and career development. There are a few ways businesses can respond:

  • Offer or mandate personal training with experts in your business
  • Offer departmental transfers so employees can explore new skills and areas
  • Ensure continued training and education deep into employment periods

Here’s what not to do: have an annual assessment that gives them a small pay increase. Instead, offer results-based advancement in the workplace.

Even if they’ve been employed for six months, if they’re excelling in leadership, consider making them a supervisor. And give them the resources and tools to succeed in that position.

It’s important to put career advancement in the hands of millennials.

Foster relational management

In the same study, millennials ranked “Quality of Manager” and “Quality of Management” as the second and third most important items in a job.

There are a lot of ways to measure the quality of management, but it’s clearly important to millennials. They don’t want to work for someone with a poor personality.

Here’s how businesses can respond:

  • Encourage supervisors to build relationships with employees
  • Prevent and reduce mistreatment of employees (i.e. not tolerating slander or taking out anger on employees)
  • Promote mentorship to further employee training and relationship simultaneously

This can be challenging since management may have to undo years of psychological conditioning. Businesses should avoid the “I’m just here to work and not make friends” mentality.

Millennials want managers who genuinely care about them.

Offer remote work options

This may not be possible for every business, but working remotely is becoming the new norm.

Technology has allowed millennials to order food remotely, shop for everything remotely, do banking remotely, and find significant others remotely.

This is a normal – and even expected – experience for millennials. It’s only natural for this trend to carry over into their work life.

Here’s what businesses can do:

  • Make certain parts of the job remote, such as writing, making sales calls, or answering support calls for customers
  • Train management to manage workflow remotely
  • Offer employees the ability to work remotely

Businesses must prepare for a downside: some employees are simply not mature enough to work remotely. However, remote work is becoming more common and will soon become expected.

Promote inclusion and diversity

Social media trends reveal millennials care deeply about inclusion and diversity in the workplace with hashtags like #EqualPay. This is, of course, a generalization since millennials have a range of opinions on these matters.

However, businesses should take note of a growing trend: companies are publicly condemned on social media for not practicing inclusion and diversity within their workplaces.

Even if a shamed company does well financially, millennials perceive it as an undesirable place to work. It looks bad on their resume if they worked for a business that isn’t inclusive or diverse.

It is not enough to provide job creation and job stability. Millennials want and expect businesses to practice inclusiveness and promote diversity in the workplace.

Conclusion

Millennials are a complex demographic and there’s still a lot to learn about them.

The business world is experiencing a significant shift in how people look for jobs and thrive in the workplace. This is largely due to millennials, who have different values and priorities in the workplace than previous generations.

For businesses to meet the needs of millennial workers, they will have to continue to research, study, and make appropriate changes.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Many Americans Put Their Stimulus Checks Into The Stock Market

Avatar

Published

on

Many Americans Put Their Stimulus Checks Into The Stock Market

The government sent $1200 stimulus checks to help Americans pay their bills. However, it turns out that many people turned around and put most of that money into the stock market. This is according to research done by Envestnet Yodlee, a data aggregation company.

Bill Parsons, Group President, Data Analytics at Envestnet Yodlee said during a recent CNBC interview, “Covid is causing conversations among family members and family members with their advisors about what to do with their money and were seeing that in the data… Securities trading did see significant lift week-over-week and I suspect that that’s in part due to big changes in the market.”

People Investing in Stocks

In most income brackets, data shows that buying stocks was the second or third most common use for the funds. Fortunately, the most common uses of the stimulus money were increasing savings and cash withdrawals.

The company started tracking the spending habits of 2.5 million Americans in early March. It noticed a divergence in behavior in mid-April when the checks started to arrive in mailboxes. Those that received their check increased their spending by 81% compared to the prior week. Some of that spending went into the stock market.

In the $35,000 – $75,000 income bracket, stock trading increased by 90% in the week the check was received compared to the prior week.

In the $100,000 – $150,000 income bracket, trading increased 82% in the week the stimulus check arrived. Meanwhile, in the $150,000 or higher income bracket, stock trading only increased by 50%. The $150,000 or higher bracket would not have been eligible for a stimulus check. Therefore, it acts as a good baseline.

New Online Trading Accounts

All of this stock buying meant a whole lot of new online trading accounts were opened in the last month or so. However, the brokerage houses aren’t sure if that is due to the stimulus checks, or the opportunity to buy stocks cheaply as the market fell.

Charles Schwab reported “monumental volumes” as it opened 609,000 new accounts in the first quarter. Additionally, the stock trading app Robinhood reported daily trade volume was up 300% in March compared to the previous year. The company co-CEO also said during an interview with CNBC that over 50% of its customers are first-time investors.

You may believe the brand new investors were wise enough to buy stocks because they recognized they were cheap and the markets would rebound. Either way, it seems they have very good timing.

Since the market bottomed in late-March, stocks have staged a tremendous rally in the last two months, with the Dow Jones Industrial Average and S&P 500 climbing nearly 35% from their March lows, and the Nasdaq gaining more than 40% over the same time period.

It’s better than spending the money on weed, sneakers and video games.

Up Next:

Continue Reading

Business

Unemployment Rate Soars Despite States, Economy Reopening

Avatar

Published

on

Unemployment Rate Soars Despite States, Economy Reopening

The slow reopening of the economy has done little to boost the job market and stall the unemployment rate.

Another 2.4 million Americans filed initial jobless claims for the week ending May 16. This brings the total since late March to an incredible 38.6 million.

Continuing unemployment claims, those who file to receive ongoing benefits, added another 2.5 million through May 9. This brings the total to 25.1 million.

Observers were hoping that they would see the number of continuing claims to begin to decrease. This comes after last week’s report only showed an increase of 500,000 claims, the smallest increase since March.

With that figure jumping by 2.5 million, it dashed those hopes.

“It is looking like May is shaping up to be worse for the labor market than we had initially thought,” economists at Jefferies said in a recent note. “We noted in our response to the April employment data that we expected that we would see another drop in payrolls in May of about 1 million, followed by a strong rebound in June. However, the stubbornly high levels of both initial and continuing claims suggest that we are actually in store for another historic drop in payrolls in May.”

Hoping for a Drop

Diane Swonk, chief economist at Grant Thornton, was also hoping to see a decrease in continuing claims. However, she says we may see some improvement soon. It’s possible as companies use money from the Payroll Protection Program to bring back workers.

“I’d love to see a big drop in continuing claims because that would really be a sign of rehiring,” she said, but also cautions that May is shaping up to be a terrible month for workers, who may find that their temporary unemployment may not be so temporary. “This is the week of the survey. … It tells us May is going to be another bloody month, with a lot of downward revisions for an even worse month of April,” said Swonk. “May will be a much worse unemployment rate because people will be looking for jobs again and their layoffs weren’t as temporary as they had hoped.”

Current Concerns

Very real concerns exist that the unemployment figures fare worse than the actually reported ones. These concerns come as states are still overwhelmed by the sheer number of claims and still haven’t processed the backlog.

It’s hard to imagine what the real unemployment rate would be if a backlog of initial filings does exist.

Chris Rupkey, chief financial economist at MUFG Union Bank, said if you add in the initial claims from last week’s report, “That would put the unemployment rate at about 25.4%”

Some states are seeing relatively little impact on employment due to the pandemic. Utah and South Dakota are seeing unemployment rates remain below 10%, while other states have been crippled by job losses.

Georgia and Kentucky have the highest unemployment rates in the country, where the jobless rates are approaching 40 percent. Other states seeing unemployment rates at or near 30 percent include Washington and Louisiana. Also included are Michigan, Rhode Island, Nevada and Pennsylvania, as per Deutsche Bank Research.

Up Next:

Continue Reading

Business

Buffett Recommending S&P Index Fund A Mistake, Says Berkshire Shareholder

Avatar

Published

on

Buffett Recommending S&P Index Fund A Mistake, Says Berkshire Shareholder

In an article earlier this week, we posed a simple question: has Warren Buffett lost his touch?

Mark Hulbert, of the Hulbert Financial Digest, says skeptics are being “unfair” on Buffet. Hulbert adds that anyone suggesting he’s lost his touch should cool their heels. He says Buffett hasn’t lost money in the last 10 years. He also mentions that nobody beats the market all the time.

Others, like Howard Gold, a columnist at Marketwatch, points out that Buffett has been “profoundly underperforming” against the S&P 500 and most of his recent deals have been duds.

Buffet Gives Advice

But what irks one investor, in particular, was Buffett’s advice that the average investor should just buy an S&P index fund.

Buffett’s comment came during the Berkshire Hathaway conference call, when he stated “In my view, for most people, the best thing to do is to own the S&P 500 index fund.”

That may be practical advice for the vast majority of Americans. However, Tony Scherrer, a CFA at Smead Capital Management, says that Buffett’s comment completely goes against his own advice.

Scherrer believes that by recommending an S&P index fund, Buffett is telling investors to buy the exact type of companies that he himself has spent his career avoiding.

Specifically, a quote from the 2007 Berkshire Hathaway shareholder letter, where Buffett says:

“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money.”

Scherrer takes each part of the statement and points out where Buffett contradicts or simply ignores his own advice. He starts with:

“The worst sort of business is one that grows rapidly…”

The S&P 500 has 21% of its weighting in just five stocks: Microsoft, Apple, Amazon, Facebook and Alphabet. Scherrer points to research by David Kostin at Goldman Sachs that shows these top five names have an expectation of revenue growth of 14% over the next two years, and trade at 28x the forward two-year earnings average. The other 495 stocks in the index are expected to grow revenue much slower, at 4% over the next two years, but also trade at a much lower 14x the forward two-year earnings average. In other words, buying the S&P index fund means paying twice as much (28x vs. 14x) for a handful of stocks that are growing rapidly.

“…requires significant capital to engender the growth…”

Netflix, Amazon and Facebook are among the heavily weighted stocks in the index, and Scherrer says they are all burning through significant amounts of money to keep growing.

“Netflix’s cost for its content has mushroomed from $4.5bn five years ago to an expected $15bn in 2020 and will have to continue to expand to operate its business. Amazon… recently announced a $4bn increase in costs associated with safety of its workers and protection in its warehouses on the heels of its deficiencies… Facebook’s recent quarter included a 34% increase in expenses year-over-year to a whopping $46.7bn, as its cost to acquire new customers and increased regulatory expenses spiked.”

“…then earns little or no money”

Looking at the numbers, Scherrer says ”Netflix burned $3.1bn in free cash flow last year and must persistently ramp that up to attract and retain subscribers. Amazon’s flywheel generated an eye watering $280bn revenue number in 2019, but operating profits for everything outside its cloud business came in at a measly $5.3bn. You currently pay 68x forward price-to-earnings for Netflix, 126x for Amazon, and 28x for Facebook.”

Buffett of the Past v.s. Buffett of the Present

Scherrer believes that if 2007 Warren Buffett met today’s Warren Buffett, there’s no way he would allow him to buy an S&P index fund that is highly concentrated into a handful of stocks that are high growth, capital incinerators that earn very little money.

But 2007 Warren Buffett would probably be most appalled that 2020 Warren Buffett would be selling airlines stocks. That means at some point, Warren Buffett thought investing in airline stocks was a good idea.

In the same 2007 shareholder letter, Buffett outlined what “The Great, the Good and the Gruesome” businesses look like. Buffett described a “gruesome” business by using airlines as an example.

Incredibly, he described them as “The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money.”

Up Next:

Continue Reading
Advertisement

Facebook

Trending

Copyright © 2019 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.