I’ve talked before about the mix of generations in today’s workforce. For the first time in history we have four generations (Traditionalists, Baby Boomers, Generation X, and Generation Y) in the workplace at the same time.

As time marches on we will see the Traditionalists completely exit the workforce, Baby Boomers will continue to exit as they reach retirement, and a new generation (the Millenials, born after 2000) will begin their careers. One of the challenges for business leaders will be to manage the unique needs and requirements of each individual group, while still building a single corporate culture and team.

Generation Y is the newest generation in the workforce. The leading edge of this group, born in the period between 1981 and 2000, are now beginning their corporate careers.

Following are some traits of Gen Y that might make you think twice about the preconceived notions you have about those young upstarts in the workplace:

Gen Y is fundamentally conservative.

This is not a rebellious generation. This is a group that chooses to move back home with their parents after college, something a Baby Boomer would never think of doing. Many in Generation Y had involved parents (the proverbial helicopter parent). They let their parents help choose their college and their clothes. And when it’s time to get a job, they want their parents guidance on what job to take and how to negotiate their salary.

One of the things that makes this generation look like big risk-takers is their propensity to switch jobs. People in their 20s change jobs every 18 months. But the impetus for their constant job-hopping is a desire for continuous learning and the need for constant intellectual stimulation: Their parents drilled into their kids that learning is the most important thing they can do with their lives. Don’t forget, this is the generation that is steeped in SAT tutors, Spanish tutors, and private soccer coaching. So they expect to be learning every step of the way for the rest of their lives. This is also a generation that grew up with video games and the internet, they are the “always on” generation that would rather send a text message than pick up the phone. When Gen Y sees they are no longer learning a lot at work, or they are bored, they leave.

Gen Y is full of great team players.

This generation grew up on sports teams, where everyone is a winner and no one is a star. School taught these kids on the playground that everyone plays, which they’ve translated into the workplace where they expect everyone to play together.

Today’s executive teams understand that work environments that use teams well always outperform those that don’t; however, older generations are more often leaders and loners, not necessarily great teammates. Gen Y is appalled by a lack of team structure at work, and often they feel like they are not accomplishing anything until they are working as part of a team. Gen Y is so team-oriented that the place they really need help is in learning how to be leaders. Ironically, leadership something that comes so naturally to Baby Boomers that many don’t realize they need to teach to teach it in such a fundamental way as Gen Y needs.

Gen Y women have more power than men.

60% of new college graduates are women. For the first time in history, women in their twenties are out-earning men. This is true in every major city in the U.S., and the disparity persists up until the time women have children and exit the workforce, at which point men earn more. Other generations might leap to cry sexism, but this generation understands that women have power to make their own decisions, and women are deciding on their own to “downshift” their careers when they have kids, which means they are making an intentional reduction in earning power. Women in Gen Y feel empowered to get what they want in life, and they feel secure enough at the office to know that work/life balance is fine.

Gen Y is more productive than everyone else.

I mentioned earlier that Gen Y would rather text someone than call them on the phone, or even talk face-to-face. Another aspect is their ability to use technology to their advantage. They are able to hold several conversations at once by texting, while listening to their iPod and perhaps even watching a video. Try that on the telephone!

Another interesting observation: While Baby Boomers are using their email in-boxes as a to-do list, Gen Y is largely bought into the idea of an empty in-box. And while the idea of a constantly empty inbox might not seem defining to some, it is: For one thing, it means that Gen Y has more control over their priorities than everyone else because they are not choosing what to do by what is coming into their inbox, but rather, what their goals for the day are.

Clearly, the evolving workforce leaves every generation of corporate leader with much to learn. One thing is clear: as the economic climate begins to settle, and as the war for talent continues, those companies that figure out how to harness the power of the flexible workforce and leverage the unique strengths of all the generations in the workforce will be in the best position to win.

A recent GfK Roper Consulting survey asked consumers what leadership traits they find most appealing. These traits, as measured through a consumer lens, are ranked in importance as follows:

• Accountable 85%
• Knowledgeable 82%
• Honest 81%
• Effective 78%
• Integrity 78%
• Good listener 76%
• Flexible 72%
• People person 69%
• Visionary 68%
• Inspiring 62%
• Intelligent 59%
• Creative 57%
• Experienced 55%
• Strong 49%

What is interesting about this study is that it is a view into executive talent from a non-corporate perspective. Surprisingly, delivering results is something consumers did not identify as a valuable leadership trait. I think most business leaders would have that at or near the top of their lists!

Despite this oversight, these traits are helpful for employers and external recruiters to drill down to the most essential elements of a leadership role and the character dynamics they require to drive personal and organizational performance. At M Squared Consulting we always look for these leadership traits in our consultants. In addition to being subject matter experts, our consultants must have project leadership skills in order to deliver results for our clients.

A recent Yahoo! HotJobs survey shows pockets of significant hiring activity among employers eager to grow despite their concern about broader economic challenges. “There are geographic hiring hot spots, companies hungry for talent, and stable industries that are growing in spite of the economy,” says Yahoo! HotJobs’ Tom Musbach.

Location, Location, Location

As in real estate, the job market has hot spots and the survey data reveals California is feeling the effects of many job openings. Six of the top locations for finding a job are in California. Southern states are also strong for job seekers. Here are the top geographic areas:

• New York
• San Francisco
• San Jose
• Houston
• Atlanta
• Oakland
• Los Angeles
• Phoenix
• Sacramento
• San Diego
• Dallas
• Las Vegas
• Denver
• El Paso, TX
• Philadelphia
• St. Louis

Industry Focus

The survey also revealed data that lists the hottest industries (from a hiring perspective) as follows:

1. Healthcare
2. Retail
3. Services
4. Technology
5. Finance & Accounting
6. Telecommunications
7. Manufacturing & Operations
8. Government & Military

Conclusions

Despite the continued bleak reports on the current U.S. employment situation, this research reinforces the notion that in today’s knowledge economy we are still in a war for talent. Within certain geographic areas (like most of the business centers in California) and stable industries there are many companies hungry for the talent they need to grow. Within these geographic areas and industries there will be opportunities for highly skilled full-time knowledge workers but also a large number of interim and consulting positions.

Another generation has begun to join the work force alongside the Traditionalists, the Baby Boomers and Generation X. While Generation Y (born between 1981 and 2000) shares the core values of integrity and honesty with the older generations, they often have very different secondary values such as blending personal life with work and loyalty to colleagues.

That preparation is vital given today’s workplace demographics and the war for talent. The workforce is maturing, and researchers agree that there will be fewer workers taking the place of those who are retiring. Companies that recognize each generations’ different work styles and foster respectful communication among them enjoy a more productive and efficient workplace. Additionally, understanding how younger workers actually work is essential for success.

Take, for instance, the way young adults communicate today. Text messaging, instant messaging and posting comments on social networking sites such MySpace and Facebook often serve as the accepted substitute for traditional “face-to-face” communications.

Consider also that young workers have been bombarded with so many stimuli from an early age–television, Internet, cell phones and MP3 players–that they have developed strong multitasking skills. Text-messaging during work hours may be perceived as slacking off by some from the earlier generations, but these young workers often times do it to get their work done.

These interactions aren’t necessarily better than the face-to-face meetings of yesteryear; personal relationships still carry significant weight. Nevertheless, the lesson for all organizations is that each generation has preferred methods of doing business, and each method has its benefits. Just because someone can do something instantaneously doesn’t mean they aren’t as serious or detailed oriented as someone who takes two to three hours to complete the same task. It is equally true that taking the time to talk with someone isn’t necessarily an inefficient use of time, even with today’s “speed of light” interactions.

Instant communication is just one way today’s young workers differ from their more experienced colleagues. While generation Y is goal oriented, their goals may differ from others in the workplace. Career advancement and work/life balance are critical factors in their lives. They are as likely to ask, “What is my next challenge?” and “Can I work remotely?” as they are “How much money can I make?” Therefore, offering a flexible work environment and a clear path to new responsibilities are a few ways to appeal to the younger generation.

In addition to being the next generation of corporate leaders, I believe many Generation Y knowledge workers will be attracted to management consulting because it offers them the combination of stimulating and exciting work, rewards for performance, team interactions, all balanced with the flexibility they desire.

These are trying times. Seemingly not a day has gone by in the past two months without some significant economic news that negatively impacts the U.S. economy.

But against this negative backdrop, the reality is that business must still go on. The global economy stops for nobody. No company has the luxury of sitting on the sidelines in their market to ride out the storm…to do so would almost certainly mean they will be left behind when the market recovers, which history tells us it will. In every industry there are aggressive competitors ready to take market share.

We are seeing many clients reviewing their strategies, carefully examining their budgets and spending plans for the upcoming year. Some are instituting cost-control measures such as hiring freezes, and others are making modest cuts. This, frankly, is prudent business management. Every executive has a fiduciary responsibility to their constituents to do this. The risk in a situation like this is that you cut off the limb you’re sitting on. History has many examples of over- reactions like massive layoffs, cutting marketing, and slowing research and development. All of which fundamentally weaken a company’s ability to grow.

The challenges we all face are an opportunity to make us stronger. Let me share an example from our business: In the past year M Squared Consulting recognized the evolving marketplace and took proactive steps to realign our business with our clients and our consultants. One powerful outcome of this is our organization into Practice Areas which are focused on industry verticals. For example, M Squared Consulting now has practice areas in: Financial Services, Technology, Healthcare, Life Sciences, Retail, Energy, Media & Entertainment, Consumer Goods, and Government/Labor/Education. We are still doing the same work for clients (and delivering the same value!) but now each practice area has a go-to-market plan that will enable us to build richer and deeper relationships with our clients, prospects, and consultants in each industry vertical.

In the middle of this current economic storm, instead of battening down the hatches and bailing out water, we are continuing to invest in building relationships and promoting our unique business model to the marketplace. This will build the foundation for a new level of growth once the economy recovers. Because of the extraordinary value M Squared delivers to clients (world class experts, delivering results, cost effectiveness, flexibility to name a few!) we are also growing our business in midst of the storm.

The water is turbulent and our opportunity to become skilled sailors is now. The management consulting industry is not unique in this regard…it applies to every company in every industry within this global economy. Are you up for the challenge?

Many companies use interim executives as a vital component of their overall workforce strategy. Sometimes these companies need a seasoned executive to fill a gap quickly during leaves of absence or sudden departures, or when a long-term search leaves a key position open.

Typically, companies utilize interim executives when they:

1. Need a specific skill and do not have it in-house
2. Have a vacant senior role with an active search, but they cannot afford to wait for the full recruitment process to take place
3. Need to keep a mission critical role staffed during a planned or unplanned employee leave of absence.
4. Know their in-house management team is unable to take on additional responsibilities
5. Urgently need an injection of real business expertise
6. Need someone who can drive significant business change or lead a transition
7. Have a business-critical project that needs experienced, accountable management which has “done it before”
8. Need to depend on an executive to remain exceptionally focused on agreed objectives
9. Need an executive to deliver value from day one, someone who can “hit the ground running”
10. Want the flexibility to release an executive from a role once the job has been completed and objectives have been met
11. Need someone who can be a mentor and also leave behind a legacy of their skill with the other members of the team.

Interim executive leadership typically provides the following benefits:

• “Been there, done that” experience
• A focus on delivering results
• Immediate impact and value
• Full accountability
• Execution and knowledge transfer
• Flexibility in deployment

Although the majority of our work at M Squared Consulting is project based, some of our clients come to us when they need interim executives to support their business. Because of our robust Consultant Network we can often quickly provide a “perfect fit” executive to fill a crucial interim role. Many of our consultants are former executives who have deep experience in their fields and can ramp up quickly during these critical periods. Sometimes, clients even choose to hire these executives as full time employees.

In late August, the U.S. Securities & Exchange Commission (SEC) approved a proposed “roadmap” that will eventually lead to U.S. firms switching from the U.S. Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standard (IFRS).

Given that we are one of the last countries in the world not using IFRS it is not a question of if, but rather when U.S. companies must convert their financial reporting from GAAP to IFRS. This is the price we must pay for participating in a global economy.

The problem is that, up until now, very few business schools have taught IFRS. Furthermore, only multinational U.S. companies have had any practical experience with it. As a result, many finance and accounting professionals will need to quickly come up to speed on the topic.

Like all early markets, at this stage there is much uncertainty about what it all means and how best to implement IFRS. Frankly, it is catching the financial profession a bit flat-footed. In some ways, IFRS is like Sarbanes-Oxley was 10 years ago. Industry will be forced to quickly learn the basics, then apply it to their unique business situation.

This dynamic is creating its own cottage training industry. Accounting firms, universities, self-help advisers, and magazines are pitching a variety of courses on how to deal with IFRS.

There is no question that in addition to training, companies will be in need of seasoned experts with practical knowledge of IFRS who can come in on a project or interim basis to help make the conversion.

The title of this post is an oft-repeated expression in Silicon Valley. Its origins are from electrical engineering where it is defined as the ratio of a signal power to the noise power corrupting the signal.

In less technical terms, signal-to-noise ratio compares the level of a desired signal (such as music) to the level of background noise. The higher the ratio, the less obtrusive the background noise is.

Informally, “signal-to-noise ratio” refers to the ratio of useful information to false or irrelevant data. In other words, it is a proxy for clear and concise communication. Higher “noise” results in a less clear “signal.” One common source of noise in our communications is the use of clichés.

A recent survey by Kelton Research (http://www.keltonresearch.com/home.html) asked over 500 office workers which business clichés were used most often, and which one workers found to be the most annoying.

The most commonly used clichés were:

• Team player
• On the same page
• Touch base
• Up to speed.

The most annoying office clichés were:

• Think outside the box (22%)
• Team player (20%)
• Shoot me an email (19%)
• Create synergy (18%)
• Face time (17%)
• Paradigm shift (17%)
• Hit the ground running (16%)
• Behind the eight-ball (15%)
• On my plate (14%)
• Take ownership (14%)
• Move the needle (12%)
• Spearhead (11%)
• On the same page (11%)
• Up to speed (11%)
• Touch base (10%)

This is a good communications reminder to be clear and concise in our communications, and avoid using tired jargon or trite clichés when more direct or common language will suffice. This is particularly true for those of us in the consulting industry, where it seems these terms are used with a high degree of regularity.

Executive job satisfaction levels are on the rise as companies begin to realize that one of the best ways to survive the war for talent is to keep the talent you already have. Despite this fact, a recent survey conducted by ExecuNet reveals that not all members of the C-Suite share the same level of professional fulfillment.

According to the survey of 1,597 employed executives with an average annual salary of more than $206,000, 61 percent report they are satisfied or very satisfied with their current job, up significantly from 52 percent one year ago. Among the 39 percent of corporate leaders not happy at work, boredom and a lack of advancement are the most frequently cited sources.

“The increase in job satisfaction among corporate leaders is particularly striking when you take into consideration the demands and challenges executives have faced during the past 12 months,” said Dave Opton, CEO and founder of ExecuNet. “Clearly, sustained job growth at the top of the employment market has many companies rethinking their approach to executive retention.”

While more executives are happier with their jobs, the survey revealed that satisfaction levels do vary across professions:

% of Executives Satisfied with Current Job (By profession)

• CFO/Controller (68%)
• HR (65%)
• Marketing (63%)
• General Management (61%)
• Sales (54%)
• MIS/IT (53%)

Across all functions, the top reasons executives are dissatisfied with their current jobs include:

1. Limited advancement opportunities
2. Lack of challenge/personal growth
3. Compensation
4. Stress level
4. (tied) Job security

“While stress and job security concerns are mounting, boredom and a shortage of opportunities for advancement remain key drivers of voluntary executive turnover,” stated Mark Anderson, president of ExecuNet. “Given the current outlook for the executive employment market, companies capable of keeping their leaders engaged will be well-positioned for sustained growth.”

It has been our experience at M Squared Consulting that many executives who are bored, or looking to make a career change, or desire greater flexibility in their work-life, choose to become management consultants or take on interim management roles.

It is ironic, but the war for talent will not be easy for employers or employees.

In what promises to be a reoccurring theme in the era of talent shortages, a recent survey concluded that both employers and potential employees face challenges in the current market. There is no doubt that these dynamics are exacerbated by the tough economy.

The survey was released by Careerbuilder.com and Robert Half International Inc. (NYSE: RHI) and includes responses from more than 500 hiring managers and 500 workers.

“Job seekers in some fields are competing aggressively for open positions, giving employers the edge in those segments of the hiring market,” said Max Messmer, chairman and CEO of Robert Half. “At the same time, however, companies continue to face a shortage of highly skilled professionals in fields such as technology and accounting.”

Employees ranked the level of challenge in finding a job at 3.56 on a one-to-five sliding scale. Employers rated the challenge in finding qualified candidates nearly identically at 3.47 on the same scale.

A few more interesting survey results:

• Fifty-nine percent of hiring managers cited a shortage of qualified candidates as their primary recruiting challenge, up from 52% in last year’s study. Thirty-one percent said more than half of the applicants they get are not qualified.
• Hiring managers reported it takes anywhere from four weeks to 14 weeks to fill open positions. And 56% said Generation Y employees (those born between 1979 and 1999) are the most difficult to recruit.
• Twenty-nine percent said high fuel prices and commuting expenses have hurt their ability to recruit some candidates.

It is only natural that in a labor market the size of the United States (not only in terms of total employment, but also industry diversity and geography) there will be spot markets of labor supply/demand imbalance resulting in a shortage or excess of job opportunities.

In addition to these market forces, high cost of living areas (like that found around most of the business centers of California) present another hurdle for companies that need to recruit and retain talent.

One thing is clear: for targeted skill-sets and experience there will be a steady supply of job opportunities. The most seasoned experts will remain in great demand. They will naturally seek the most rewarding and interesting work assignments. Many of these knowledge workers (secure in their abilities and marketability) will choose to become free agents, going from one interim management or consulting assignment to the next.

The war for talent continues.