HBR.

ORG

HOW I DID IT…

THE U.S. CHAIRMAN OF PWC ON
KEEPING MILLENNIALS ENGAGED
by Bob Moritz

The Idea
Young staffers don’t
make work their
main priority. Moritz
explains how his
ETHAN HILL

firm motivates them.

November 2014 Harvard Business Review 41

HOW I DID IT

S ometimes I wonder what my

reaction would have been if,
as a twentysomething starting
out at Price Waterhouse nearly three
decades ago, I had been magically
who are of the same generation. But
I didn’t realize how little I really knew
about these young people in the
workforce until PwC collaborated
with researchers from the University
As one Millennial in our study
put it, “The guys in my generation
want fast-growing careers. We want
everything now.” Another said, “I
think older generations think people
transported to today’s PwC. of Southern California and London spend their whole lives in one com-
I would have been stunned by how Business School in 2011–2012 on a pany, but younger generations do
much had changed. During most of study of Millennials and their levels not think that way. If the work doesn’t
my career at the firm, the rewards sys- of engagement. Although Millennials More from really interest you, you can quit in
tem focused more on quantity than have a lot in common with their older HBR on what two years or three years. It doesn’t
quality of work, although clients de- colleagues, the study quantified distinguishes really matter. You can change the
manded standards just as high then as some very real generational differ- Millennials place you work—liking your work is
the ones they do now. Bigger bonuses ences—differences that matter for any “Handing the more important.”
and promotions went to those who company trying to devise an effective Keys to Gen Y” Millennials are less willing than
by Vineet Nayar
sacrificed more of their personal lives, people strategy. (See the exhibit “Not May 2013
Boomers to make their work lives an
whereas our current HR policies pri- Your Father’s Firm.”) exclusive priority, even when offered
marily reward quality and value the “Mentoring the prospect of substantial future com-
work and life needs of every person. Mapping the Differences Millennials” pensation. They want job flexibility in
by Jeanne C.
The Millennials among my colleagues PwC’s workforce is strikingly young: Meister and the here and now, along with oppor-
emphasize finding satisfaction in their Because we recruit approximately Karie Willyerd tunities for training and mobility and
May 2010
jobs and are willing to be vocal about 8,000 graduates annually from col- better and more frequent feedback
what they want from a career and lege and university campuses, two- “How Gen Y and and rewards. Another common re-
a company. They’re also extremely thirds of our people are in their twen- Boomers Will sponse to the survey: “People from my
Reshape Your
globally oriented—they know and care ties and early thirties. We’ve always Agenda” generation [expect] their company to
much more about what’s going on all employed large numbers of young by Sylvia Ann give them time to have a personal life.”
over the world than I did at their age. people—historically, the assumption Hewlett, Laura This finding was particularly pertinent
Sherbin, and
And they’re adept at leveraging tech- has been that most hires will eventu- Karen Sumberg in the developed world. Although
nological advances to be more flexible. ally move on to other firms or other July 2009 Millennials working in every PwC firm
But most of all, I would have been careers, while a few will be promoted “Gen Y in the around the globe aspire to achieve a
astonished that PwC’s Millennials all the way up to partner. Built into Workforce” greater balance between their work
by Tamara J.
don’t only demand to know the or- this model was another key assump- Erickson lives and their personal lives, the
ganization’s purpose—its reason for tion: that our workforce accepted February 2009 survey showed that the issue has a
being—but are prepared to leave the the notion of making partner as the stronger bearing on turnover, com-
firm if that purpose doesn’t align with reward and justification for years of mitment, and job satisfaction in North
their own values. long hours in service to clients. But America, Europe, and Asia than in
When I was coming up, we knew our study revealed that the allure other parts of the world.
what we were doing, but we didn’t ask of someday becoming partner is no PwC’s leaders saw that we had to
why we did it. We didn’t give much longer enough to spark high levels respond to this research in a radical
thought to our, or the firm’s, role in of engagement. way. So we’ve turned our traditional
society. For me, that point crystallizes human-capital approach on its head,
the generational issues that PwC and
many other organizations are fac-
When I was coming developing a system of evidence-
based HR practices that address the
ing as they hire greater numbers of up, we knew what we shifting needs of our workforce. A
Millennials.
Fortunately, my education in this
were doing, but we greater emphasis on nontraditional
career models sometimes gives our
age cohort didn’t have to happen in- didn’t ask why we were clients pause, but we’ve learned the
stantly. It was a gradual process that doing it. We didn’t give benefits of sticking to our people com-
included spending time in our HR de- mitments. Over the past decade turn-
partment, observing and talking with
much thought to our over has decreased by about three
Millennials, and raising my children, role in society. percentage points—while employee

42 Harvard Business Review November 2014

 HBR.ORG

engagement has increased by three

NOT YOUR travel for work. In a previous era she
percentage points.
FATHER’S FIRM might have faced a choice between
accepting a no-advancement job and
Meeting Millennials’ At PwC, Millennials place more leaving the firm. Instead, she was
Expectations importance on being part of cohesive offered another role that required less
We’ve instituted several initiatives teams—and less on pay—than non- travel. We also have a program called
Millennials do. And they readily speak up
in response to the results of our en- Full Circle for people who need to
about their career goals and concerns.
gagement study: stop working for a while for personal
Greater input. Our research reasons; it enables them to stay con-
showed that Millennials want every nected to the firm and reengage when
More of them say that
action the firm takes to represent they’re able. Our Flexibility2 Talent
workplace demands interfere
their values, and they are more eager Network allows people to work for the
with their personal lives.
than others to be asked for input on firm during our busiest few months
71%
important issues. To respond to those (January through March) and then
MILLENNIALS
desires, we’ve implemented programs pursue other interests for the rest of
to engage all our people, so they know the year. For example, one individ-
what the firm is doing and why, and so ual left to attend medical school but
they can have a voice in where it’s go- 63% returned to work for PwC during a
ing. For example, we’ve asked them for NON-MILLENNIALS break between courses.
ideas on how to invest in human capi- Appreciation. These young
tal and what the firm’s next $100 mil- people have a greater expectation
lion idea should be. Some of their sug- A greater number say they prefer than previous generations had that
gestions were pretty compelling, but to be rewarded or recognized for they’ll be supported and appreciated,
what was even more important to us their work at least monthly. and financial rewards don’t always fill
was that 70% of the organization took 41% the bill. We’ve found that Millennials
part in the ideation process. We’ve also tend to be looking for something
expanded choice in many areas—in- instead of or in addition to money—
cluding bonuses: People may receive rewards that will benefit them in
their rewards as cash, gift cards, prod- 30% life- or career-enhancing ways. So
uct packages, or even matched chari- we decided to implement a number
table contributions. We’ve increased of nonmonetary rewards for staying
transparency in our compensation with the firm. For example, after a
They are more likely to say they
program, and we’ve become more ex- certain number of years we’ll send
would like overseas career
plicit about what our people can look someone to California for a few days to
opportunities with PwC.
forward to as their careers progress. 37% receive life skills and leadership train-
Career paths. Millennials are ing. After a few more years people are
inclined to want and expect the free- eligible for a four-week sabbatical dur-
dom to move from one career path to ing which they can pursue an interest,
another. We think that’s laudable, and 28% travel, volunteer, or stay at home with
we don’t want them to have to leave the family.
us in order to make such moves. So Corporate values and respon-
we’ve instituted a policy of breaking sibility. Businesses need to create an
down artificial barriers within the or- More of them expect not to environment that allows people to
ganization. After a member of our staff work at one place for nine give back and excel both at the of-
has been on board a certain number of years or more. fice and outside it. At PwC we see
years, opportunities to try new things 38% greater retention and higher perfor-
increase dramatically. mance when people are engaged in
For example, personal circum- corporate responsibility programs.
stances limited the ability of one For example, those who participated
director in our consulting practice to
30% in more than one CR activity had an

November 2014 Harvard Business Review 43

HOW I DID IT HBR.ORG

average tenure of 7.4 years, while Millennials are often stereotyped

those who participated in none as self-absorbed, quick to shift their PwC Facts &
stayed with the organization an loyalties, lazy, and uncommitted Financials
average of 6.3 years. Our Project Belize to work. We’ve all heard these un-
FOUNDED 1998 (through a
program, which is part of Earn Your founded myths, and that’s exactly
merger of Price Waterhouse
Future, a $160 million commitment what they are. At PwC we’ve used
and Coopers & Lybrand)
to increasing the financial literacy of education to address assumptions HEADQUARTERS London
students, provides another example. like these. We’ve helped Boomers WORKFORCE 184,235
Only 8% of the staff members who see that although Millennials may be Global revenue (in US$T)
participated in Project Belize left the more aware of the ill effects of stress, 32.1
30.9
firm in the subsequent year, compared and may value nonwork interests 28.6
with 16% of nonparticipants. and activities more than Boomers do, 26.4 26.4

they’re every bit as committed to the

Millennials are quick to success of the firm. They’re simply not

prepared to sacrifice their health and
react negatively to any well-being for it.

perceived disconnect To reinforce the value of work/life

flexibility, a year and a half ago we
between the firm’s made a point of stressing it for manag-
words and its actions. ers. Before a manager starts a new job,
FY09 FY10 FY11 FY12 FY13
he or she is asked how team members
If they don’t believe us, will be enabled to shift work hours,
SOURCE PwC

they leave. for example, or to work remotely. We

also want managers to model flexible That’s why it’s important for us
behavior, which doesn’t come easily to explain to clients up front that
Millennials are quick to react to some of them, and we make sure to although we understand their high
negatively to any perceived discon- reward it in our compensation process. expectations, and we intend to re-
nect between the firm’s words and its Last year we created a contest to solicit act quickly to their needs, we’ll pro-
actions. If they don’t believe us, they ideas for a flexibility plan for our busy vide a team that’s going to be there
leave. That’s a challenge for anyone in season. Submissions came in from 24/7—not an individual. We achieve
a managerial position, and social me- more than 1,800 teams, engaging that by overstaffing our teams so
dia have raised the stakes. I’m acutely more than half the partners and staff- that no one person has to be unduly
aware that if I were to say something ers in the firm. burdened for the sake of a deal.
that appeared to conflict with PwC’s Contests have proved to be a popu- Some observers might see a certain
stated values, it could go viral, and my lar way to boost engagement as well as irony here: In an era when young peo-
credibility would be shot. bring in new ideas. In another contest ple seem less team-oriented and more
that was centered on work flexibility, individualistic than ever before, we
Helping Managers Adapt a number of people suggested that we are protecting individuals by relying
Another part of improving the work involve clients in our efforts. That was on a team approach. But Millennials
experience for Millennials is chang- a great idea, because it often seems well understand the value of the team
ing managers’ attitudes toward them. that the concept of work/life flexibil- and are just as committed to their
It’s not uncommon for our longer- ity runs counter to clients’ interests. units and to the firm as previous gen-
term partners and staff to believe that For example, a company that’s em- erations were. What has changed is
working hard is, or should be, a badge broiled in a merger might well expect the definition of commitment. It no
of honor. So if someone relieves stress the people it’s working with at PwC longer encompasses sacrificing health
by getting up and walking around, go- to be available around the clock. But or throwing work/life flexibility out of
ing out to grab some coffee, or tak- Bob Moritz deals can take weeks—even months. whack, but it still includes what really
ing a yoga class in the afternoon, the is the U.S. Burnout has been an issue in the past, matters for business outcomes: a de-
chairman and
Boomer’s impulse might be to tell her a senior partner and we’ve had some tough conversa- votion to the missions of the client and
to sit back down and keep working. of PwC. tions with clients about it. the firm. HBR Reprint R1411A

44 Harvard Business Review November 2014