There are many reasons this frightens me, but maybe the biggest is that, if businesses are slow to adapt strategy for selling their product, how slow do you think they will be in adapting to retaining new talent?! I might also submit that marketing to Gen Y will be made infinitely easier and more successful if there is a plan in place to attract and retain this cohort as employees. A business cannot truly understand its consumers’ needs if it can not even understand its employees’ needs.

I do not think it is a stretch to say these two key success factors, marketing and talent management strategies, go hand in hand. Success will depend on alignment throughout the organization.

It is a global marketplace.

By 2025 nearly 75% of the world’s workforce will be Gen Y. This is not just a North American trend….it is a GLOBAL issue. Not only will organizations need to adapt their leadership styles to attract and retain the best talent, marketing departments will need to adapt their messages to attract and retain Gen Y consumers. It stands to reason that if 75% of the working population is Gen Y, then this cohort will also be the largest consumer group. When the last of the Baby Boomers are 61 (in 2025) the last of Gen Y will only be 30.

Gen Y already realizes it is a global market place. They have been buying imported goods their entire lives. The current economy is trying to grow while every G-20 country’s exports are shrinking. This is a very difficult equation to overcome….no country really has enough consumers to sustain its’ economy with just a domestic market. (China may be the exception, but Chinese consumers are historically frugal and save vs spend). The question companies should be asking themselves is “what products will resonate with Gen Y?”

Gen Y will gravitate to products that are good for, or at least do not harm, the environment. Over the top luxury goods will not resonate with Gen Y. Why drive a luxury car that gets 14 miles to the gallon? That is not a statement Gen Y wants to make. Are the products made humanly? Are human rights respected in the manufacturing countries? Does the manufacturer give back to the community and world at large? Gen Y will begin to pay even more attention to these questions as they move farther along in their careers and as consumers.

Volunteerism as economic engine

Gen Y already volunteers at rates never seen before from previous generations. As they age and move deeper into their careers, I do not see this changing. I believe Gen Y will begin to have this built into their employers’ policies to allow for continued time off, even without pay, to volunteer for causes. In my travels it is rare to find a roomful of ’20-somethings’ where no one has studied or volunteered abroad. In fact, it is more common that the majority of the room has spent some time in very serious volunteer activities, both in the US and in another country.

More focus on social causes will not only make the world a “better place” in the short term, but it will lead to more economic development in the long term, just look at what Charity:Water is doing in Africa right now. By providing clean water to the residents of those areas, they are able to begin to build a more normally functioning society, without being crippled by the diseases and daily demands that they faced in the past. This leads to further improvements in infrastructure and greater life expectancies, both of which position these areas as a destination for inward investment.

Gen Y’s volunteer activities are not just a feel good exercise. The intent is to change the world. While part of that is purely altruistic, the other part is also commercial. Gen Y has been consumers their entire lives and they know the power of money and purchasing decisions. Through their efforts in making the world a better place, they will also shift the world’s economic forces.

By 2025 this group, making up 75% of the worlds work force, will be well on their way of achieving their collective vision of making the world a better place.

While this is a good idea, Gen Y is not in a position to replace boomers when it comes to $75,000 cars. While Gen Y loves luxury goods and services, Gen Y will not be able to make these big ticket purchases for quite some time. A luxury marketing strategy for Gen Y will need to focus on “affordable luxury”, not on true high end products. Things like massages and upscale restaurants may be pricey and a luxury, but at least Gen Y can save up and afford the indulgence.

A bigger concern I have is for businesses whose TARGET market is Gen Y. There is a subtle shift in Gen Y’s buying habits that should not be ignored. Gen Y has shifted their focus to more value based purchases and are making more conservative buying decisions. Why? The high unemployment rate among Gen Y is only part of the answer, not the entire answer.

Gen Y is a VERY aware group. While one of the prejudices against them is that they are self centered, the opposite is actually true. Gen Y does not believe it is “all about me”. Most (if not all) Y’ers know someone looking for work and struggling. They are AWARE or what is happening, at a very deep level. Even if they can personally afford a certain purchase, Gen Y will hesitate simply because they know that times are challenging. The purchase must not just satisfy their personal need, it must also contribute to some sort of greater good.

This is why I believe marketers who are emphasizing value, versatility and support of causes that will affect positive change will have an edge. One such example is the Thermos Hydration for All campaign that benefits charity: water. Gen Y will not spend their disposable income just because they can. In fact, Gen Y looks to boomers and X’ers for leadership. If these groups are making more conservative buying decisions, Gen Y is likely to follow.