According to research by PwC, Generation Y (people born in the 80s and early 90s) will compose half of the workforce in 2020.
However Generation Y (a.k.a. Millennials) are already quite established in the workforce today. And with startups and larger established corporations compete against each for the best talent – it’s important to know what exactly makes them tick. Not only for attracting talent to come work for you, but to also keep them with your company.
[Tweet “”Generation Y will compose half of the workforce in 2020.””]
A lot has already been published on the topic, not only from a human resources perspective but also how to sell to millennials. However in this post we want to share some key findings why Generation Y choose the startup life.
40 percent want to work for a startup
In a recent study by the Institute of Journalism and Communication Research in Hannover, 778 students were interviewed from 45 universities in Germany and asked whether they preferred working for a startup or in an established company.
According to the study, a massive 40% of respondents said they would choose the startup life after graduating. Among the reasons they stated was that they want to work in an innovative environment, and to have the opportunity to be more directly involved in the growth of the company.
Additionally, in Sarah Sladek’s book, Knowing Y: Engage the Next Generation Now, 61% feel personally responsible to make a difference in the world.
[Tweet “”Research: 40% of students said they would choose the #startup life””]
The study also found that students have high demands for where they choose to work. Social activities, flexibility and a good work-life balance are highly valued by them, which is what they expect from a startup – whereas students consider large corporations to be rigid and bureaucratic.
Universities encouraging entrepreneurship
Interestingly, the study also highlighted 25% have already gained experience working in a startup and 18% of respondants said they imagined themselves starting their own business.
Universities are also getting in on the act of encouraging entrepreneurial activity. For instance the Centre for Innovation and Business Creation at the Technical University Munich (TUM) has several initiatives to support technology entrepreneurs and connect students with startups.
Just last week we hosted an event from TUM for their TechTalents programme where students visited our HQ to find out more about life in a fintech startup.
During the event we spoke with Vadim, a student who’s a backend developer and asked him how he imagined his perfect employer after graduating, “Not in a big mature company, (like Microsoft, Siemens – maybe for Google an exception). I want to build meaningful things and test them right away and see how they work. I think I cannot do it in companies with mature processes, that would never work,” explained Vadim.
While the results in the survey and the finding from last week’s event don’t represent a consensus among Generation Y, they do provide an indication of what Generation Y looks for in their next workplace, and possibly Generation Z too in the future.
As always we’re always on the lookout for talented individuals at PAYMILL. For more information about opportunities here, head over to: PAYMILL Careers