Young entrepreneurs - the new 'cool'

Recent research from Barclays Bank shows there has been a 15% rise in business start-ups among those under the age of 25.

"Young people can bring sky high levels of ambition and 'out-of-the box' creative thinking. And these are characteristics we have found to be perceived as critical to entrepreneurial success," said John Davis, marketing director for local business at Barclays.

This MSN article by by Emma-Lou Montgomery, talks about 5 hot UK entrepreneurs.

First Baby Boomer to Retire in USA

On a recent trip to the US a front page article on the complimentary hotel newspaper caught my eye. Kathleen "Kathy" Casey-Kirschling - described as the nation's first baby boomer is retiring and has filed to collect her Social Security (state pension) early at the age of 62. School teacher Kathy was born at 00:01am on January 1st 1946. She is on the leading edge of what the Social Security administration refers to as a "silver tsunami," nearly 80 million Americans born from 1946 to 1964 who will qualify for Social Security over the next two decades. The first ripple of that tsunami, more than 3 million Americans, turns 62 next year. Like Casey-Kirschling, about half are projected to choose early retirement. Those who remain in the work force will qualify for full benefits when they turn 66 in 2012. The article contained some interesting facts:

• When US Social Security was created in 1935 - for every retirement benificiery there were 42 working people paying in
• In 2007 - this ratio had reduced to 3:1
• By 2020 - it is estimated that the ratio will be 2:1. Each couple will in effect be responsible for supporting one senior citizen

Interesting stuff - but what does this mean for the world of work? Well, it's impact will be increasingly felt in both public and private sectors. Research by Bersin Associates reveals that in the US, 50% of senior managers will retire from the top Fortune 500 companies within the next 5 years. Other research shows that NASA could loose up to 50% of its workforce to retirement. If organisations are not prepared for this then thousands of man-years of experience, expertise and knowledge will walk out the door. Organisations need to start thinking about this issue now.

I wrote about this here in a previous posting http://Generationxynext.blogspot.com/2007/09/when-is-your-organisations-next-dec.html

The Baby Boomer Generation - Old, Smart, Productive

There is a popular assumption that we slow down as we get older. Medics used to believe that once muscle strength was lost for example, there was little chance of regaining it. Later research by Walter Frontera and Maria Fiatarone proved that this is not true. They have established that age doesn't matter and you don't have to loose muscle strength as you grow older. Furthermore, even if you have lost it, you can regain it through simple resistance training.

We've been focusing a lot on generation Y and I felt the need to re-address the balance a bit. Are we saying that we need to focus totally on the young, bright things? No, definitely not. The most important thing is to play to individuals' strengths - no matter what their age. Mature employees bring experience, maturity, energy and focus.

I found this article most interesting. It describes how rather than being an economic deadweight, the next generation of older Americans is likely to make a much bigger contribution to the economy than many of today's forecasts predict. An analysis by BusinessWeek finds that increased productivity of older Americans and higher labor-force participation could add 9% to gross domestic product by 2045, on top of what it otherwise would have been. (This assumes, for example, that over the next 40 years better health and technology reduce the productivity gap between older workers and their younger counterparts.) This 9% increase in gross domestic product would add more than $3 trillion a year, in today's dollars, to economic output.

Much like the muscle strength, research suggests that boomers will have the ability - and the desire - to work productively and innovatively well beyond today's normal retirement age.

Tips to get rich young from the young rich!

Marc and I have been talking about generation Y and the different approach they have to life, work and the future. There is this a video we used in the preparation for a recent conference workshop, which shows a group of young employees talking about their expectations for the future. 'We want to be rich by the age of 40' a girl says ... 'by the age of 30!' another adds.

A survey carried out by City & Guilds, the vocational training group, found that 49% of 16 to 24-year-olds have a "strong desire" to set up their own business. The main reason being they want to be their own boss. One in 10 wants to get started in the next year and 35% plan to launch their businesses in the next five years.

"Owning your own business is no longer the preserve of older employees with decades of work experience," pointed out Chris Humphries, director general of City & Guilds. "Starting a business is highly appealing to today's youth who long to be their own boss and set their own agenda."

Young people who have already made their mark are providing the biggest inspiration for the next generation. Nearly half of the young wannabe entrepreneurs said they know someone under the age of 30 who has already gone it alone. The following article contains the advise, tips and insights about starting up in business from five young, and highly successful, entrepreneurs.

Fries with your laptop? - Digital Natives in the kitchen.

In 2001, Marc Prensky coined the term "Digital Natives" to describe the generation of young people who:

• Have grown up with the Internet and email always being there


• Turn to online sources of information as their first call


• Thrive on being connected and multitask with ease


• Prefer branching and hypertext instead of linear, didactic flow


• See graphics and games as vehicles for learning

To some extent, the older generation of technology user has adapted - some have become complete converts. But most of us "Digital Immigrants" retain our accent to some degree.

These concepts were really brought home to me by my daughter, who is 19 and back home for her summer break from university. In an attempt to boost her funds (and reduce her overdraft) she took a summer job at an HR Shared Services centre. Her team decided that each Friday, they will take it in turns to bake some cakes and bring them into the office. Becky was first up and decided to make some Carrot Cake. Now, our kitchen has a bookcase in it with around thirty cook and recipe books. I reckon she could have found at least 5 Carrot Cake recipes in that collection. But no. In true Digital Native style she brought her wireless laptop into the kichen and searched for a recipe from Google. Having found one that suited, she kept the laptop on the butcher's block island unit for reference, covered the keyboard with some cling film and produced a great cake. She didn't even feel the need to print the recipe out.

I consider myself to be a pretty savvy Digital Immigrant - but this stopped me in my tracks. Becky didn't even THINK of using a book. Her first call was on technology - WiFi, laptop and internet - something she did intuitively and almost instinctively.

Europe's Young Entrepreneurs

Facebook was founded by a 23 year old, Mark Zuckerberg. Last year he turned down an offer of $1 Billion from Yahoo. Facebook is Social networking tool with has 30 Million active users. If it were a country, it would have roughly the same population as Canada!
Mark Zuckerman is not alone; I was watching in the BBC Breakfast news an item about Peasy.com earlier in the week. Peazy is an online marketplace for parking spaces, enabling users to search for and book parking spaces before they leave, and homeowners to add their home parking spaces to the Peasy network and begin earning instantly. Rental prices can be considerably cheaper than comparable season ticket, contract parking, or local storage companies. A great offering for long suffering commuters (I'm sure you'll agree), a nice little earner for homeowners with parking spaces. And yes ... you guessed it right! Charles Cridland, the CEO of the company is another twenty something.
Follow the link for further stories on some of Europe's youngest entrepreneurs.
http://uk.biz.yahoo.com/youngentrepreneursarticle.html

What Gen Y Really wants

With 85 million baby boomers and 50 million Gen Xers, there is already a yawning generation gap among American workers--particularly in their ideas of work-life balance. For baby boomers, it's the juggling act between job and family. For Gen X, it means moving in and out of the workforce to accommodate kids and outside interests. Now along come the 76 million members of Generation Y. For these new 20-something workers, the line between work and home doesn't really exist. They just want to spend their time in meaningful and useful ways, no matter where they are.

See full article

http://www.time.com/time/magazine/article/0,9171,1640395,00.html

Meaningful Work Helps Keep Gen Y Workers

For many employees, it's a bad thing to be summoned to the boss' office.

But the young professionals who comprise the so-called Generation Y want to be invited to stop in and converse regularly about their assignments and how their jobs fit into the company's strategic goals. Encouraging input can help stem the staff turnover rate that is common among workers in their 20s.

Click link for full story.
http://www.post-gazette.com/pg/07249/814953-28.stm

Five ways to deal with Gen Y technology in the workplace

I can remember when I got my first laptop and mobile phone at the ripe age of 35. Both were provided by my company. Then we got internet access at work - it took me four years to get it at home. Compare and contrast this experience with my 19 year old daughter. She had her first mobile when she was ten years old - and is now on her 10th handset. She has her own wireless laptop giving her almost universal connectivity at home, college and in Cafe Nero. The 2012 generation will have wide experience of technology ownership - and may be ahead of the game compared to many workplace organisations. Naturally this may cause concern - and IT secutity issues are often at the top of the list. Here's some advice around this area:

"The fundamental part of all of this is setting expectations," says Daniel Gingras, a partner at Tatum Partners, a consulting and executive staffing firm.
Gingras recommends that IT executives take the following steps:

1. Understand the culture of the organization. While it's not typically found in an IT professional's job description, understanding the corporate culture is essential to setting and implementing acceptable use policies related to technology, says Gingras. For help, look to HR, upper management, and the compliance and legal departments.
2. Craft (or update) a policy that fits with the culture. If the corporate culture disallows iPods in the workplace, the policy must state that clearly. On the other hand, if the organization allows iPods in the workplace but doesn't let employees download music or videos to iTunes, that must be specified, too.
3. Communicate the policy repeatedly. A written policy that sits on a bookshelf in the HR director's office won't serve the needs of the company. IT can play a role in communicating policy by asking new hires to sign a document that says they have read the portions of the handbook related to technology, and by setting up logon screens that contain pertinent policy information.
4. Create a level of expectation that workers will conform to the policy, and make sure you have the technology in place to enforce the rules. "You have to build in the audit trails so that you trust, but verify," Gingras says. "Everybody [should know] you trust them, until they give you reason not to." There are many data-leak prevention, content-monitoring, and compliance products on the market that create audit trails of employees' actions related to sensitive data.
5. Constantly weigh the advantages of a flexible work environment against network security. If policies are being abused -- for example, an employee continues to use his personal Web mail account for business communication, therefore potentially putting sensitive information at risk and circumventing audit trails -- consider blocking the use of personal mail accounts at work.

I feel this advice is spoken like a true techie - and is heavy on "banning" and "conforming" to procedures. In reality - this is a difficult balancing act. I like the idea that you trust everyone until you have a reason not to.

When is your organisation's next Dec 31st 1999?

My colleague, Maria, talks about the "Human Capital Millenium Point" - that is - when is your organisation's December 31st 1999? Trouble is, it won't have a clearly defined date. You know that you'll face some kind of people challenge that's sort of connected to the changing demographics of the population. Here's a few things to think about:

1. Which segments of your workforce create the most value for you?



2. Which areas of your organisation will be most impacted by impending waves of retirement?



3. What skills do you need over the next five years that you don’t currently possess?



4. In what areas is the talent market heating up?



5. What is your turnover in critical areas? How much is it costing you?



6. Are you actively developing talent portfolios that will help us understand the consequences of talent decisions?

Generation Next In Action

This video clip highlights some of the differences between the 20 somethings working in your organisation and their older bosses. It's interesting to reflect on their desire for instant rewards and the fact they're not willing to spend ten years earning average rewards.