e-Tips

It’s been said that Gen Y/Millennials are adaptable. That’s become obvious as they sour on sexy startups and all they connote in favor of more stable and secure older, larger tech companies after seeing share prices plunge on some big names. They are getting more sophisticated about questions to ask and analyzing financials. A 33-year old marketing executive in San Francisco said now perks strike him as a sign that a firm isn’t spending wisely. Perks used to be a requirement to attract young talent.

In Silicon Valley, according to a recent Wall Street Journal article (“Workers Get Choosy with Jobs,” 3/16/16), recruiters related that workers in later-stage startups or stable companies are now less willing to jump ship for something new even if they’re not happy in their current positions.

Talent is becoming skeptical about non-cash equity, pushing for cash compensation over equity stakes. “Now when I see equity I think that’s nice, but I want it in actual money,” said a 29-year old designer. Twitter in reaction is handing out cash bonuses and restricted stock. Some candidates won’t interview at companies planning to raise money in the near future.

Approaches potential hires are taking include requesting to speak with investors in the company and asking about sinking share prices. As a result, the head of investor relations has been asked to instruct recruiters on how to explain earnings and share price results, and the tone of job postings has become more subdued than the previous ballooning hyperbole.

Some recruiters say it’s the nature of Millennials to move every two or three years. Or they may be hoping so to keep themselves in business!

Some Takeways

While there are no overall statistics on the cool down of enthusiasm for jobs in startup (usually tech-focused) companies, there are indications that young professionals are getting smarter about reading the caution signs as they gain experience, especially as they want to start families and pay down student debt.  They are realizing there are trade-offs and risks.

Here are some observations and prognostications:

• Big banks continue to view tech startups as their rivals for talent and are combining some of the more flexible culture and opportunities for social entrepreneurship experiences in their offerings to balance more mundane early career requirements. Citigroup Inc. recently announced such programs to appeal to young workers. Goldman Sachs Group, inc. and J.P. Morgan Chase & Co. already have made changes.
• Since individuals within a generation differ as to their work expectations, desires and tolerance of risk, we will see a split between those who prefer the challenge of risk and potential upside and those who seek security and stability. This will shift across a spectrum based on the overall economy and the  formative influences that color their wants, fears, and comfort levels.
• Technology will be so embedded in most industries – even law – that there won’t be a clear distinction between tech companies and many other types in opportunities for tech savvy workers.
• Personal time and professional time will continue to blur.
• Growing diversity of all kinds will increase the blur and make assumptions and predictions about work, life and politics more difficult.

 What are your thoughts on the risk-aversity of the generations? How big a factor are generational attributes vs. personal style and experience? Send your comments to pwhaserot@pdcounsel.com or post on the Cross-Generational Conversation group on LinkedIn.