Generation Y, also known as Millennials, are generally defined as the demographic cohort following Generation X. There are varying definitions for the birth years that make up Generation Y, but most experts define it as those born between the early 1980s and mid 1990s to early 2000s.
Defining Characteristics of Generation Y
Generation Y grew up in a time of rapid technological and social change. Some key characteristics that define this generation include:
- Coming of age in the Information Era
- Being the most formally educated generation
- Valuing work-life balance
- Wanting meaningful work
- Being tech-savvy
- Advocating for diversity and inclusion
- Supporting experiences over material possessions
Understanding these traits can provide insight into what motivates and drives Generation Y in the workplace and as consumers.
What Motivates Generation Y at Work
There are several key factors that motivate Generation Y in the workplace:
Meaningful Work
Generation Y wants their work to have meaning and purpose. They desire jobs where they feel they are making a difference and contributing value, not just going through the motions. Having an emotional connection to their work is important.
Work-Life Balance
Flexibility and work-life balance is highly valued by Gen Y. They want fluid schedules that allow them to pursue non-work related passions. Working remotely appeals to them. Strict 9 to 5 schedules do not align with their lifestyle preferences.
Career Advancement and Growth
This generation wants opportunities for career development and training. They expect their employers to invest in helping them continuously learn new skills. Stagnant jobs do not keep them engaged.
Collaborative Work Culture
Gen Y prefers a collaborative team environment versus top-down management styles. They want to feel empowered in their roles and have their voices heard. A flat organizational structure appeals to them more than rigid corporate hierarchies.
Meaningful Rewards
Beyond just financial compensation, Generation Y looks for unique perks and experiences from employers. Things like paid travel, student loan assistance, pet-friendly offices and flexible paid time off incentivize them. Non-traditional benefits resonate strongly with this generation.
Positive Company Culture
Working for companies that are aligned to their values is important for Gen Y. They are drawn to organizations focused on diversity, inclusion, sustainability, and corporate responsibility. Company culture can be a major motivating factor in where they choose to work.
What Motivates Generation Y as Consumers
Some of the main factors that influence Gen Y’s purchasing behavior and brand loyalty include:
Unique Experiences
Generation Y consumers favor spending money on experiences like travel, concerts, and events over material goods. They crave novel experiences that provide lasting memories and post-worthy content on social media.
Supporting Causes
Brands embracing causes resonate strongly with socially-conscious Gen Y. They are compelled to buy from companies giving back or aligning with issues they care about like sustainability and social justice.
Personalization
Customization options appeal to this generation’s desire for unique products tailored specifically to their needs and preferences. Personalization makes them feel valued as individuals.
Quality and Convenience
While frugal in some ways, Gen Y is willing to pay more for quality products and services that save them time or simplify their lives. Convenience is highly motivational.
Tech-Enabled Experiences
Digital connectivity and frictionless experiences are expected by tech-savvy Gen Y consumers. Smartphones are their preferred devices. Mobile apps, cashless payments, and online shopping meet their digital needs.
Reviews and Recommendations
This generation relies heavily on peer reviews and social influence in making purchasing decisions. Ratings, online testimonials, influencer endorsements, and friend recommendations hold more weight than traditional advertising.
Brand Storytelling
Generation Y feels connected to brands with compelling stories. Companies embracing transparency and showing their values resonate emotionally with Millennial consumers.
Key Statistics on Generation Y’s Motivations
Here are some noteworthy statistics on what drives Gen Y’s behaviors as employees and consumers:
| Motivation | Statistics |
|---|---|
| Meaningful Work | 87% of Gen Y says a job where they can make an impact is important to their happiness. (Cone Communications) |
| Work-Life Balance | 75% would turn down a job that didn’t offer flexible work options. (FlexJobs) |
| Career Advancement | 93% say professional development and career growth opportunities are top priorities. (Gallup) |
| Collaborative Culture | 80% want employers with flat organizational structures. (IBM) |
| Meaningful Rewards | 55% say they would take a pay cut for more vacation time. (Aon Hewitt) |
| Positive Company Culture | 64% won’t take a job if company values don’t align with their own. (Deloitte) |
| Unique Experiences | 70% say they value experiences over material things. (Harris Group) |
| Supporting Causes | 81% expect companies to make a public commitment to good causes. (Cone Communications) |
| Personalization | 73% find personalized shopping experiences appealing. (Infoscout) |
| Quality/Convenience | 60% are willing to pay more for convenience. (Walker Sands) |
| Tech-Enabled Experiences | 81% prefer to shop on smartphones over desktops. (Leanplum) |
| Reviews/Recommendations | 92% read online reviews before making a purchase. (BrightLocal) |
| Brand Storytelling | 64% will research a company’s commitment to social responsibility and ethics. (Sprout Social) |
Conclusion
Understanding Generation Y’s motivations provides invaluable insight for employers looking to recruit and retain these workers, as well as brands aiming to appeal to these consumers. While financial incentives are still important, Gen Y places high value on finding meaning, work-life balance, advancement, culture, experiences, causes, personalization, technology, and storytelling.
By keeping these key drivers in mind, companies can tailor their workplace policies, cultures, products, and marketing to have maximum resonance with Millennial preferences. The organizations that successfully motivate this generation gain a competitive edge in talent acquisition and customer loyalty.