10 Ways Millennials Are Creating The Future Of Work

Millennials are going to make major shifts in corporations over the next decade and most people aren’t ready for the amount of change that’s coming. By 2025, millennials will account for 75% of the global workforce and by next year, they will account for 36% of the American workforce. At some companies like Accenture and Ernst & Young, they already account for over two thirds of the entire employee base.

Relative to boomers and Gen X’ers, millennials have a different view of how work should get done and come into the workforce with a different set of expectations. We are already see changes happening as companies try to prepare for this emerging demographic and it’s just the beginning. Here are 10 ways that millennials are creating the future of work:

1. They will force companies to be transparent. Transparency is one of the top four qualities that millennials look for in leaders so it’s no surprise that when they become leaders that is something they will focus on. They don’t trust CEOs and politicians because they don’t feel like they are honest, especially how they are portrayed in the media. They want to create honest and open culture where there aren’t barriers between workers of different levels and everyone knows what’s going on in the company. As social networks penetrate the workforce, they will help open up companies even more.

2. They will choose corporate culture and meaningful work above everything else. 30%of millennials say that meaningful work is important versus only 12% of managers. Furthermore, only 28% of millennials feel that high pay is important versus 50% of managers. They want to know that the work they are doing is having an impact on their co-workers, on their manager and on the company at large. They won’t stay at a company long if they are doing busy work the whole time. When they become the leaders of organizations, they will try and align projects with employees better.

3. They will build a collaborative organization. Millennials like to work in teams, on projects to accomplish goals. It’s less about what company they work for and more about who they are working with and the types of projects they work on. In a recent study by IdeaPaint, they found that 38% of millennials feel that outdated collaboration processes hinder their company’s innovation and 74% prefer to collaborate in small groups. They are used to using wiki’s, social networks and other technologies to share ideas and innovate so when they become leaders, they will take those behaviors with them and spread them across their organizations.

4. They will make working from home the norm. In the next 9 years,41% of the workforce will be working from home and currently over 13.4 million people work from home in America alone. While some employers are hesitant to allow their employees to work from home, Gallup reports that remote workers log more hours and are more engaged. In a study I did withoDesk, we found that 92% of millennials want to work remote and 87% want to work on their own clock, instead of the confined of a 9 to 5 workday. I know many millennials that would rather work from home than receive higher salaries. They value work life integration, not separation like older generations. When they are leading companies, everyone will be dispersed yet highly connected through the technology they are already using regularly.

5. They will recruit based on results over degrees. Currently, if you don’t have a degree it’s almost impossible to get a job at brand name companies because they filter you out in their HR databases if you don’t. Smaller companies are starting to review your online presence over your resume and startups care more about work ethic and experience over education. currently, college degree holders have a 5.2% unemployment ratecompared to 10.3% for those who only have a high school diploma. Over the past few years, we’ve seen more college alternatives, from Udemy.com to Coursera to Khan Academy. Millennials are graduating college with $45,000 in debt, totaling over $1 trillion overall and that number keeps increasing. Millennials care more about what you achieve than your education level. When they are in leadership positions, they will recruit based on the results that person has achieved rather than the classes they took.

6. They will change the meaning of “face-time”.  Older managers prefer in-person meetings over everything else when it comes to communication. That’s how they grew up and were originally trained so it’s what they are comfortable with. Millennials, on the other hand, grew up with technology and graduated college with social network profiles. There is no doubt that millennials will redefine “face-time” as more work from home each year and fewer want to pick up the phone or go into an office. This year, Cisco did a study of millennial executives and found that 87% believe video has a significant and positive impact on an organization. Millennials will embrace video conferencing over face-to-face interactions in the future, especially as video conferencing technology becomes better. Of course, if technology is going to facility the majority of interactions it will further hurt their soft skills, but there are always drawbacks to any major workplace shifts.

7. They will encourage generosity and community support. While millennials are often stereotyped as being selfish and narcissistic, the story that goes untold is their involved in supporting their communities. This trait will end up benefiting the image of corporations and force them to have a “why” instead of just a “how”, as Simon Sinek would say. Currently, millennials shun corporations and as a result, 60% of college students aren’t considering a career in business. They view corporations as being greedy, having no equality (especially at the CEO level where only 5% of CEOs are women), and at fault for causing the financial crisis. Deloitte found that 92% of millennials believe that business should be measured by more than just profit and should focus on a societal purpose and 83% of millennials gave to charities in 2012 (up from 75% in 2011).

8. They will eliminate the annual performance review. In a study that I did with American Express, we found that only 48% of companies give an annual performance reviews. Millennials often ask “why do I have to wait a whole year to get feedback?” They want feedback to be given in real-time just like they receive tweets from those they follow. It’s the instant gratification and learning that drives them and pushes them to improve. Adobe took a stand last year and abolished their annual performance review system. They now have check-in conversations that encourages ongoing feedback. To date, they’ve saved over 80,000 hours of their managers time by removing the annual performance review from their regular procedures.

9. They will turn work into a game instead of a chore. Millennials grew up playing video games and with their parents complaining about their jobs. They don’t want to settle and don’t want to work in an environment that isn’t fun and exciting (can you blame them?). One of the big trends that reflects this is the rise of gamification application. In a recent interview I did with Adam Penenberg, he explained the growth of gamification and how companies are using these applications and techniques to engage millennials (and the entire workforce). Gartner predicts that by 2014, more than 70% of companies will have at least one gamified application. As Penenberg notes, Cisco developed “myPlanNet”, an application where employees become CEOs of service providers to enhance its vitual global sales meeting and call center.

10. They will level corporate hierarchies. While older generations view organizations in the context of hierarchy, millennials are more focused on collaboration and equality. At the 2012 SHRM Annual Conference, Malcolm Gladwell said that millennials are more about “the network” than “the hierarchy”. They care less about titles, status and salaries. They are more drawn to projects that connect with their strengths and abilities and favor managers that support them through training and development. Menlo Innovations has built a strong culture in part because they don’t have managers, only leaders and thus have eliminated the “command and control” environment that millennials dislike.

Dan Schawbel is a workplace expert, keynote speaker and the New York Times bestselling author of Promote Yourself.

source: forbes.com

Forbes: The World’s Biggest Companies

One world: one gigantic market place. This year, 63 countries have Global 2000 entries vs 51 in our inaugural list in 2004. Forbes Global 2000 are the biggest, most powerful listed companies in the world. Our justification for using a composite ranking is simple: One metric alone can give a false impression about corporate size. Our ranking of the world’s biggest companies departs from lopsided lists based on a single metric, like sales. Instead we use an equal weighting of sales, profits, assets and market value to rank companies according to size.

In total, the Global 2000 companies now account for $38 trillion in revenues (up 6%), $2.43 trillion in profits (down  7%), $159 trillion in assets (up 7%) and $39 trillion in market value (up 7%).  These firms also employ 87 million people worldwide. All metrics are up from a year ago, except for profits.

Full List: The Global 2000

This year’s list again reveals the dynamism of global business. The rankings span 63 countries, three countries less than last year. The U.S. (543 members) adds 19 firms, bucking its declining presence since 2004 and registering its highest total since 2009. Japan (251 members) again has the second biggest presence on our list despite losing seven more members from last year. Mainland China (136 members) checks in as the third largest country in terms of membership with same number of firms from a year ago.  This is the first year since our inaugural 2004 list that China has not increased its number of Global 2000 companies. There are eleven countries with only one firm, including New Zealand, the Czech Republic and Vietnam.

Countries standing out in terms of growth across all four metrics are Singapore, Thailand and Malaysia. Belgium, Turkey, and the United Arab Emirates saw the biggest increase in company market values, all with double-digit growth from a year ago. The current economic crisis in Spain and Greece took its toll on their firms’ profits with each showing a country showing a combined deficit this year. You can also throw Italy in the mix as their firms show a decline in all four metrics this year.

In our tenth annual ranking, government-controlled Chinese bank ICBCunseats Exxon Mobil as the world’s biggest company this year and  takes the number one spot for the first time. Another Chinese bank, China Construction Bank, moves up 11 spots to No. 2 on the list.  Each company’s bump up in our ranks stem from double-digit growth in both sales and profits in 2012. Although profits are still growing for both banks, 2012 was their slowest annual growth rate since each went public.  Most analysts don’t expect a banking crisis in China, but rising defaults and shrinking loan profitability are serious threats to the country’s banking system. JPMorgan Chase, the world’s biggest company in 2011, moves down one spot from last year to No. 3, with a small decline in sales. Also moving down a spot this year is conglomerate GE, the No.4 company overall. Rounding out the top five is last year’s biggest company, Exxon Mobil.  Despite being the world’s most profitable company for the second year in a row, the oil & gas giant was knocked off its No.1 perch after a one-year reign.

Apple (tied at No. 15) is again the world’s most valuable company, even after it took a 24% haircut in market value since last March. Wal-Mart Stores (tied at No.15) returns as the word’s sales leader with 5% growth, reclaiming the top spot from Royal Dutch Shell. Germany’s Allianz, Korea’s Samsung Electronics, and U.S.based AT&T broke into the elite 25 this year, with Allianz gaining the most ground, up from No. 50 a year ago to No. 25.

If you are looking for big jumps in rank on this year’s list, you can start with German utility firm E.ON (No.99 vs. No. 409 in 2012), which returned to profitability in 2012 assisted by several factors, including the successful renegotiation of gas-supply contracts from Russia and Norway, a lack of previous negative one-off effects and Germany’s decision to phase out nuclear power. U.S.-based health care company, Express Scripts (No.170 vs. No.381 in 2012) jumped 211 spots with its $29.1 billion acquisition of rival Medco Health Solutions.  Japanese beverage company Kirin Holdings (No. 467, vs. No. 733 in 2012) saw a big increase in profits and a 31% gain in market value.

Looking at big drops in rank, these firms are showing declines in all four metrics from a year ago.  There is U.S.-based PC giant Hewlett Packard (No. 438, vs. No. 67 in 2012), which wrote down $8.8 billion of the value of U.K. software firm Autonomy, a year after its disastrous $11.1 billion acquisition. Mining giant Rio Tinto (No. 435, vs.m No. 69 in 2012) recorded a net loss after impairments of $14 billion, primarily relating to aluminum businesses as well as coal assets in Mozambique. Another company’s fall from grace is Brazil’s energy giant, Eletrobrás (No. 935, vs. No. 320 in 2012), posted a net loss in 2012, due to the impacts of a government order to cut energy electric rates.

There are 162 newcomers to this year’s Global 2000.  The biggest newcomers immediately land on the list by way of initial public offerings or spin-offs of major subsidiaries of their former parent companies, who are also on our list.Phillips 66 (No. 130), was spun-off from ConocoPhillips (no. 73) in May of last year. AbbVie (No. 257) is the research-based pharmaceuticals business ofAbbott Labs (No. 123) that started to publicly trade as an independent company in January of this year when the company officially separated into two public companies. At press time, Abbott Labs did not release 2012 historical figures as a new stand-alone company, so its sales, profit and asset figures and ranks are based on consolidated figures prior to the separation.Kraft Foods Group (No. 360), the North American grocery business was spun-off in October of last year by Mondelez International (No. 182). Chinese insurer People’s Insurance Company of China (PICC- No. 226) went public in a $3.1 billion November 2012 IPO.  German insurance firm, Talanx, the majority owner of Hannover Re, pulled its IPO plans in mid-September 2012, but then went ahead with a $602 million IPO in October 2012.

Banks and diversified financials still dominate the list, with a combined 469 (down 9 from last year) companies, thanks in large measure to their sales and asset totals. The next three biggest industries by membership are oil & gas (124 firms), materials (122 firms) and insurance (109 firms).  The industry growth leaders over the past year for each metric: health care companies, primarily services, lead all sectors in sales (up 15%); household products and services lead in profits (up 22%); Semiconductors lead in asset growth (up 24%); and media, getting a big boost by broadcasting and cable companies, lead all sectors in market value growth (up 20%).  The materials sector, including metal and mining companies, lagged all industries with a 55% drop in profits and 19% decline in market value.

We break our list into four regions: Asia-Pacific, (715  total members), followed by Europe, Middle East & Africa-EMEA (606), the U.S. (543) and the Americas (143). Only the U.S. grew across all four metrics from a year ago. Asia-Pacific, the biggest region, has the most members for the sixth year running.  They also lead all regions in sales growth (up 8%) and asset growth (up 15%) .  The U.S. leads in profit growth (up 4%), earning an aggregate $876 billion in profits and market value growth (11%), with an aggregate value of $14.8 trillion.  U.S.-based companies are the most profitable and most valuable of all regions. The EMEA generated the most sales, a combined $13.3 trillion, and holds the most assets with  $64 trillion.

source: forbes.com

10 Best Countries to do Business

Ever wonder where the best places to do business are? The top ten are provided below based on 2011 proxy statements.

Rank Name GDP Growth (%) GDP/Capita ($) Trade Balance as % of GDP Population (mil)
1

Canada

3.1 39,400 -3.1 34.0
2

New Zealand

1.5 27,700 -2.3 4.3
3

Hong Kong

6.8 45,900 6.6 7.1
4

Ireland

-1.0 37,300 -0.7 4.7
5

Denmark

2.1 36,600 5.5 5.5
6

Singapore

14.5 62,100 20.8 4.7
7

Sweden

5.5 39,100 6.3 9.1
8

Norway

0.4 54,600 12.9 4.7
9

United Kingdom

1.3 34,800 -2.5 62.7
10

United States

2.8 47,200 -3.2 313.2

source: www.forbes.com

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