Tag Archives: Millenials

When Change Can’t Meet Change: Oxford and SAP on Millennials in the Workforce

In a study released two weeks ago, Oxford Economics and SAP discussed their findings on the SAP_grad_R_prefcurrent state of companies and the future state of the workforce. The research focused on the unique and fluid nature of today’s eligible employees, and the inability of companies to adapt. The study was so relevant—especially for organizations looking for the next step in business efficiency—that PayStream Advisors wanted to share the findings with our own readers.

According to the study, the global business world is facing a more diverse work environment than it has ever seen before, and this diversity has arisen from several generations in one workforce, multiple geographies, and the combination of unique skills, experiences, and work habits. An increase in freelancers and long-term contractors is also prevalent, changing the way companies hire. Oxford Economics and SAP say that although these changes point toward a major opportunity for productivity, talent development, and employee engagement, “most companies are unprepared to capitalize on it.”

Workforce 2020, an independent, global study by Oxford Economics with support from SAP,, reveals that most companies do see that they should change to meet the change of an increasingly international, diverse, and mobile workforce, but the majority of those companies don’t have the strategy, culture, and solutions to put that change into action. The research even shows that many companies that actually have future business objectives are failing to successfully carry out those initiatives.

Why are there so many barriers between the old way and the new? According to Edward Cone, managing editor of Thought Leadership at Oxford Economics, “the C-suite is out of touch with HR on business strategy and priorities, and workers are not getting what they want from their employers in terms of incentives, benefits and training.” More specifically, the study provides six workforce issues companies are facing today—issues that are said to challenge the prevailing opinion on HR in the business sphere.

Some of these issues stuck out to PayStream screen-shot-2010-06-30-at-3-37-16-pm1especially; one of which was the fact that millennials are misunderstood in today’s workforce. Many companies with an influx of millennials are not changing their strategies to adjust to the wants and needs of these new hires, and this is in large part due to generational misunderstanding. However, the study also shows the opinions of millennials and non-millennials are actually very similar: the two groups show close sentiments toward compensation, company loyalty, and career and income goals.

“Millennials are a major challenge for companies. As the single largest and most tech-savvy workgroup, they also represent a significant opportunity,” said Mike Ettling, president, HR Line of Business, SAP/SuccessFactors. “Companies that can excite millennials about work, train them to fill in gaps on experience and adapt to their style of working can build a workforce that can successfully execute on the objectives of today and adapt to drive advantage for the business of tomorrow.”

Another issue that was especially noteworthy was the notion that the talent gap is widening among today’s businesses. Companies are requiring more technology in their business models, but are not providing the proper training and development for their employees to utilize this technology—in short, they seem to be setting themselves up to fail.

An important thing this Workforce 2020 study has revealed is that today’s businesses’ inability to change is often due to a reluctance to change. This trend has been seen in PayStream’s own research, as the number one reason organizations show hesitation towards an automated AP process is the belief that current processes work. However, evidence shows that manual financial processes do not work, and are instead only outdated and inefficient methods that have no place in today’s business world. The study has confirmed this: if the world’s business environment is rapidly changing and if companies do not rise to meet the change, they will fail to thrive in the global sphere.

In a PayStream Advisors online piece on millennials in the workplace published earlier this year, we strove to answer the question of how P2P departments could adapt and reorganize to fit the millennial generation in their organization. The answer: it starts with being open, honest, and realizing that change is inevitable. The Oxford and SAP study reiterates that point, and offers important advice to companies looking for the next step in innovative corporate strategy and optimized business processes. It’s not just about employing the next-generation technology to propel a company to greater success, it’s also about employing—and supporting—the next-generation workforce.

“When it comes to preparing for the future of work, knowledge is power,” Ettling said. “Tomorrow’s workforce will be more diverse and work differently. Companies must understand this and develop new strategies that support diversity and foster a new level of employee engagement and collaboration — or they will ultimately remain stuck in the past.”

 

P2P in 2020: Millenials & Adapting to a Changing Workforce

This blog is part of a series detailing the projected outlook for purchase-to-pay (P2P) in 2020. Increased adoption of automated processes, a changing workforce, and increased government regulations all present challenges in the near future for many AP departments. Preparing for these challenges and meeting them head-on is essential to ensuring sustainability and profitability for any organization.

In our last submission to this series we identified perfect processing in the next 5 years: seamless collaboration between buyers and suppliers that ensures timely payments that capture the highest discounts and rewards. Next, we need to look at what the subsequent generation’s AP department will look like.

Today the average age of AP staffers is 48, while twenty years ago it was close to half that. The reason—it’s simple—today’s college graduates, generation Y or “Millennials,” shun manual data entry jobs. Millennials are very different from their baby boomer or Gen-X parents. In fact, in many ways, they’re polar opposites.  Millennials have a need for constant feedback and this is often seen as a bid for attention or a lack of know-how. In actuality, this is often just a result of being eager to please and having access to instant confirmation via the Internet and social networks most (if not millennials_0all) of their life. Whereas the baby boomer generation fully accepted a hierarchical structure and a “work-your-way-up” philosophy, Millennials crave immediate gratification. They are data-driven, not concerned with emotion, and are used to dealing in hard facts. They desire equality and an equal say more than a formal pecking order. Millennials are action-oriented, self-motivated, and eager to achieve goals. Positions that don’t offer advancement and creativity will leave Millenials feeling restless and they will quickly move on. So the question remains, how can P2P departments reorganize to attract the new generation?

MillennialsIt starts with being open, honest, and realizing that change is inevitable. An automated P2P process is a necessity in today’s market. P2P managers need to communicate an automated vision with their staff and truly listen to their feedback. Holding face-to-face meetings individually with staff members is an essential component with Millenials because it gives them the opportunity to articulate their goals and find a common direction that will lead to productivity and innovation. Employees need to be energized to drive successful transformation to automation.

Implementing an automated P2P process will facilitate a realignment of staff and roles. Managers can take full advantage of this opportunity to redeploy their staff in the most effective way possible. Roles should be aligned with business units and existing employees should be able to self-select their new roles. Processing, analytical, and customer support staff should also be involved in the interview process since they will be working side by side with new hires as well as expected to collaborate with them on team projects.

For many, the biggest hindrance to a successful eInvoicing implementation is supplier adoption. Persuading suppliers to change their processes to align with buyers’ needs can be a costly and time-consuming process and success depends largely on the buyers’ ability to present a compelling value proposition to suppliers.

One of the best things that can be done for this is to keep them involved from the moment it is decided to make the transition. In doing so, an organization will likely gain higher adoption rates than if they autocratically demanded it after the fact. Another proven method to increase supplier acceptance of eInvoicing is to give suppliers the ability to conduct purchase order (PO) flips. The more accurate and timely an invoice, the quicker a supplier will get paid, and thus the more likely they are to adopt an eInvoicing payment method.

The steps taken today to automate invoicing and adopt P2P best practices will ultimately determine an organization’s future adaptability and success in attracting talented workers.