Millennial Stereotype Backlash2

Millennial Stereotype Backlash

Millennials number 83.1 million and represent more than one-quarter of the nation’s population. Source: 2015 U.S. Census Bureau.

Millennials have been variously described as enthusiastic, adaptable, entrepreneurial and skilled multitaskers – and as lazy, entitled and unmanageable job hoppers. What seems to have escaped the modern media machine in its zeal to define this influential generation is that they don’t appreciate being shoehorned and typecast. Particularly when it comes to the thing employers have come to count on them for facilitating technology’s integration into the workplace. They’re beginning to abhor working in a virtual vacuum. SOURCE: Chris Plummer in Ozy.

There are all sorts of ramifications to thinking that the Millennial generation is markedly different from every generation that has gone before them. Nothing could be further from the truth. The way they do life, their preferred social and living settings, their skills, attitudes and environment may be different, but the key is that people’s inherent behavior and talents are hard-wired. They remain the same regardless of generation.

In their report, “The Millennial Consumer Debunking Stereotypes,” the Boston Consulting Group highlights the following:

Not your typical Millennial: Disparate Personalities US Millennials are by no means homogeneous .understanding and recognizing these distinct segments and their nuances is essential for companies that hope to develop effective product offerings, marketing campaigns, channel strategies, and messaging. A one size fits all effort will fail to connect with every millennial segment.SOURCE

To support this thought, BCG offers the following graph and shows the segments into which they have placed millennials according to their responses to their survey.

Business blog

These responses go some way to revealing behaviors that demonstrate millennials are not and cannot be standardized.

Don’t just hire and manage Millennials – lead them. If ever a generation could benefit from the wisdom held by older generations it’s this one. This relationship, if handled well, could significantly change the way we do business. We have so much to learn from each other. Take position out of the equation and build great relationships and teams. Mix the generations. The only difference between your Millennial employees and the older ones is their digital proficiency. They don’t know anything different.

To Millennials, it’s normal to use mobile and social technologies. Where else would you go to access data, find out the latest ideas and trends, build networks, and share experiences.

Fundamentally, generations never change. They are born with inherent behaviors. A person’s natural instinctive behaviors are hard-wired into the brain based on genetics and their very early life experiences in the first 3 years of life. Research shows the neural pathways in the brain become substantially set by the time a person is 3 years old, and this is when their natural instinctive style is set. Of course, a person’s behavior in particular circumstances may change or be adapted based on experiences, education, values, and circumstances. However, such temporary behavioral shifts will be based on situational modification and are not hard-wired.

The generations are not so different:

Business blog2

The Millennials are no different to any other grouping. If you want to attract them, focus on getting to know them and understanding what drives their decision-making. The vehicle they use to do business is inevitably going to change, but the essence of who they are and how they want to be treated will be no different from any other group.

Says TIME writer, Joel Stein, “millennials are just adapting quickly to a world undergoing rapid technological change they’re optimistic, they’re confident, and they’re pragmatic at a time when it can be difficult just to get by.” Source

Don’t shy away from hiring Millennials. Don’t be persuaded by negative press.

  • Some are positive and confident and know they can take on the world.
  • Others seek structure and look to leadership to provide a clear vision.
  • Still more want to be taken seriously and have a chance to share their thoughts and ideas.
  • Many want to be part of a team, but many others prefer to work alone.

How, I wonder, is that so very different from past and present work environments in which we see ourselves? Well, the truth is, it isn’t. The key is to reveal and understand inherent hard-wired behaviors. This insight will deliver a fundamental shift in thinking and enable organizations to focus on the relationship management across generations. In addition, this approach will deliver understanding into how businesses can “know, engage and grow” their clients and customers to provide customized life-long experiences that increase sustainable performance.

Millennials represent the first wave of digital natives to enter the workforce, and this does distinguish them. Organizations that have embarked on their own transformation urgently need this digital capital. They should eagerly look for ways to embrace Millennials and create the work environments where top talent can flourish across all generations. This will require nuanced strategies that reflect the reality of a multigenerational workforce: employees of all ages are complex individuals working in an environment that’s becoming more virtual, more diverse and more volatile by the day. SOURCE: Myths, exaggerations, and uncomfortable truths. The real story behind Millennials in the workplace IBM Institute for Business Value. Source

As a baby boomer, I say let’s embrace Millennials. They keep us up-to-date on anything happening in the world. They have opinions about our nation and the world. Let’s get to know them in a way that uncovers the treasure trove of talents they have. Let’s begin by accepting that every person, regardless of age, has hard-wired inherent behaviors all of which have a place in building a successful business.

To better understand each person’s unique Natural Behavior talents and how to maximize their value to your business, contact inquiries@dnabehavior.com for a free trial.

Blog Ryan3

Financial DNA, the All-in-One Behavioral Finance Platform

Communication Styles, Behavioral Biases, and Risk Profiles will soon power your CRM with
the Financial DNA App for Salesforce. Review the slide share below to see the features of our
newest CRM integration.

About the process:

1. A 20-minute time commitment for clients
Identify the complete financial personality of your client in 1 simple, web-based questionnaire.

2. Immediate results

Financial DNAs behavioral finance platform provides a clients communication style, behavioral biases, and risk profile.

3. Identify the best client fit

Advisors naturally engage only 40% of clients. Behavioral finance closes the “Relationship Gap” with the remaining 60% to identify the best opportunities.

4. Training and Support every step of the way.

In guiding our vision, all Financial DNA Packages include help to onboard, support, and train advisors.

Try Financial DNA for yourself today.

 

About the author:

Ryan Scott – Manager, Product Development and Integrations

As the Manager of Product Development and Integrations, Ryan designs, develops, and maintains all of the web-based DNA Behavior products and solutions in addition to providing support for clients.
He has a passion for creating and implementing efficient business processes and leveraging technology throughout our business. Read more

 

Millennials and their Money- they are Savvier than you think.

Millennials and Their Money: They are Savvier Than You Think!

Companies are currently bending themselves out of shape in an effort to attract the 83.1 million Millennial [Source: 2015 U.S. Census Bureau] in the US to their offering or services. But what are they really doing to get to know Millennials as a group?

The Financial Services Industry could do well to recognize that Millennials are very specific about what they want from their Financial Advisors:

Millennials and their Money 1

Source: Millennials and Money Merryl Lynch

This survey highlights the importance of really understanding what Millennials want to do with their money, and what kind of relationship they want with their financial advisor.

The message: Get to know Millennials. Understanding the Millennials behavioral style will enable messaging to be targeted to the individual. Regardless of their age or generation – are the Millennials naturally spenders or savers, goal driven or content to build a balanced life, risk takers or cautious, trusting or skeptical etc.? Put another way, Millennials can be your “Millionaire Next Door” type who is frugal or that person who lives large, spending all they have in the belief tomorrow will take care of itself. There have been these types of people across all generations.

With this insight, find the most appropriate medium to converse with them. Revealing their behavioral style, core talents, and decision-making approach will ensure you get their attention if you translate that knowledge into a personalized offering. Remember, Millennials now represent the largest generation in the United States.

For every person, regardless of generation, there is always a lot going on below the surface that is motivating his or her life and financial behavior. Generally, these behaviors cannot be easily or quickly measured by human observation. This then makes it difficult to know how extreme and/or predictable the behavior will be.

A structured behavioral finance approach benefits both the advisor and the client by making the advisory process more tangible and robust. This is achieved by both the advisor and client participating in an objective financial behavior discovery process when the planning process starts.

A key point that financial advisors must always remember is that their behavioral style will influence how they perceive the investment markets, their clients, and the advice they give. Research studies show that advisors can have “Over-Confidence” and “Myopic Loss Aversion.” Therefore, advisors will have a behavioral bias that may influence their recommendations. This together with a population segment bias about Millennials, ensures the financial services industry will be unlikely to attract any new younger clients, regardless of demographic. In other words, do you already have a bias towards Millennials based on all the adverse publicity they are receiving? It’s a question worth asking and answering.

The Millennials are not dummies. According to a new survey undertaken by T. Rowe Price:

The 18 to 34 year-old set is better about tracking their spending and sticking to a budget than Baby Boomers. 75% track their expenses carefully. 76% of Millennials stick to a budget; 40% of Millennials have increased their 401(k) contributions in the past twelve months. Source: Millennial Investment Behavior.

Uncovering and understanding the behavioral style of Millennial clients and how they want to use their money allows the Financial Advisor to target their services more effectively. Harvard Business Review in their article “Stop Designing for Millennials” highlights the importance of understanding customer attitudes and behaviors:

Defining an ideal customer for a potential product or service using broader human themes allows you to create solutions that resonate with a larger group of people. ..Far too many companies take a “product-out” view of segmentation, where they essentially ask their customers to line up around their products by demographics such as age or income. They should take an “outside-in” view that orients its products around their customers’ attitudes and behaviors instead. Meeting the functional and emotional needs of a group of people is much more likely to generate transformative results than targeting a generational cohort with tenuous links. Source: Stop Designing for Millennials HBR

An example of this approach can be seen in the fall off of the banking system as we know it.

Almost all (88%) of Millennials do their banking online and half of those use their smartphone to do so. This experience leads about three-fourths of Millennials (73%) to be “more excited about a new offering in financial services from Google, Amazon, Apple, Paypal or Square” than from a nationwide bank. Since both the technology and the financial wherewithal to offer such services exists within these firms, the study’s prediction of “seismic” change in the near term future of banking appears to be at least a realistic vision of the future.” Source: “Millennials Invest More Time in Digital Banking,” emarketer.com, March 25, 2014.

As a financial advisor:

  1. You must learn how to communicate with Millennials on their unique terms defined by their behavioral style (regardless of the communication vehicle).
  2. If you know the Millennials behavioral style, then you know how to frame information to attract them.
  3. Get to know where your inherent bias and behavior sits. Then learn how to manage both.
  4. Stop reading Millennial-focused press clippings that cause undue bias or incorrect perceptions about them.
  5. Get to know the Millennials already in your world. That insight will be invaluable to what kind of an advisor you will be to your Millennial clients.