Dear Readers, please allow me to introduce you to Generation Y (1982-1995*). Believe me when I say that knowing Y and what inspires them to join and engage will likely determine your club’s long-term success.
Generation Y, also known as Millennials, are the children of the Baby Boomers. In fact, at 80 million Americans they outnumber the Boomer generation. According to the U.S. Census Bureau, by 2015 Baby Boomers will cede the majority of the workforce to Generation Y, marking the largest shift in human capital in history.
In 2015, when this generation becomes the majority workforce, they will be between the ages of 20 and 33. This means the majority of our workforce will be 20-something years old.
This demographic poses a great threat—and opportunity—to nearly every industry sector, government entity, nonprofit and private club, which are still managed, governed and supported almost entirely by Baby Boomers.
Every year for the next 15 years, 10,000 Boomers will retire everyday in the U.S. alone. This demographic shift is mirrored in developed nations throughout the world. In Australia, there are 6 million Gen Ys in comparison to 5 million Boomers. Gen Y in India is a whopping 426 million (six times larger than the U.S.) and in China 218 million Gen Ys were born in a single decade (1980-1990).
Private clubs are ill prepared for this shift. The arrival of the Y generation will be revolutionary for clubs, much like the arrival of the Boomer generation revolutionized the world. In that regard, history is repeating itself.
However, the arrival of Gen Y isn’t just about a young demographic coming into power. It’s not just their age that defines this generation, nor their size that makes them capable of revolution. This generation is actually introducing an entirely new value system to the marketplace.
Who is Gen Y?
Often dismissed as entitled, self-centered, attention-deficit, immature and incapable of interpersonal communication, few leaders and organizations have taken the extra step to delve into what motivates and inspires Generation Y and influences their decision to engage.
Think you know Y? Think again.
This tech-savvy, globally minded generation isn’t joining, buying, networking, learning or engaging like other generations. This generation has been difficult to engage because the traditional membership doesn’t meet their values and therefore falls drastically short of meeting their expectations.
For example, this generation:
- Hates to be sold anything;
- Has always been rewarded for participation and not achievement;
- Doesn’t seek to acquire “stuff”—including memberships;
- Can self-organize their friends for grassroots activism;
- Trusts their peers first and their parents second;
- Actively researches prices and reads reviews before making a purchase;
- Is driven by a desire to make a difference;
- Expects exceptional service, like Amazon.com which suggests products they might like;
- Seeks to do business with ethical, trustworthy organizations;
- Values customization, customizing everything from their music to shoes and M&Ms; and
- Remain detached from institutions but closely networked with friends.
Further exploration of Generation Y’s shifting values reveals that as this generation has aged, many club cornerstones are losing their value.
Here’s a snapshot of some of the most dramatic shifts:
- Ownership vs. Access
After defining ourselves for centuries by possessions—cars, houses, books, china patterns, stocks, boats, land and jewelry—what matters to a growing number of young people is not so much ownership as access. The pressure is on clubs to deliver continued, quick and easy access to new information, valuable services and products, meaningful relationships and experiences that deliver a real return on investment. In fact, clubs may need to move away from the concepts of ‘joining’ and investing in a year-round membership, both of which are ownership traits.
- Loyalty vs. Relationships
Generation Y is more apt to move from one opportunity to the next, garnering them a reputation for having a lack of loyalty. It’s not that younger professionals don’t embody loyalty. Ys are very loyal—they’re just not loyal to institutions; they are loyal to people. Effective and inspirational leaders or mentors are frequently cited as the primary reason Gen Y will first engage with an organization. Gen Y commits when meaningful relationships and great experiences are actively present. To them, loyalty is not something you do “just because”; it is something that is earned.
- Community vs. Globalization
Members of the older generations are more likely to define community as knowing your neighbors and participating in club events. Generation Y thinks of community as having access to and interacting with a global network via social media. Globalization is something earlier generations could only consider in abstract terms; Generation Y has always lived it. As a result, some people in this age category won’t see the need to be organized by geography or physical location and will desire the option to be organized by common interests instead.
- Status vs. Inclusion
Leadership is not synonymous with years of experience. No longer is all the wisdom and experience contained within the eldest, predominantly white, male population. This hierarchical, homogenous model survived for centuries, but it is no longer relevant or sustainable. Generation Y is the most racially and ethnically diverse generation in history, the most tech-savvy and entrepreneurial, the most educated, and the first to have more women than men obtain postsecondary credentials. In the corporate world, there is ample evidence that companies with inclusive, diverse leadership are considerably more profitable than companies with homogenous leadership. Clubs need to take note and reformat their boards of directors to allow for the participation of members from all ages and backgrounds.
- Jobs vs. Entrepreneurs
It used to be that you would choose a career, get a job, and work for that industry—sometimes for the same company—until you retired. In recent years, we’ve seen the emergence of the “Gig Economy” in which more workers detach from conventional jobs to take on contract work and other short-term gigs. Add to that the widespread demand for flextime, increased demands for skilled labor, Gen Y’s desire to quickly move up or across, and the fact that Ys have launched a record number of start-up businesses, one can quickly surmise that the world of work isn’t about working 9-5 anymore. The entire workforce is moving into an entrepreneurial mindset both figuratively and literally. This is likely to require clubs to reconsider their member benefits as well as the length of membership. After all, if you juggle responsibilities or change jobs every year or so, you may not have the time or affinity to a profession to want to join a club.
- Recruitment vs. Referrals
Clubs spend a considerable amount of time and resources on membership recruitment. Generation Y is turned off by anything resembling a sales pitch, so crystal-clear, no frills communication that helps them understand how your club makes a difference in their lives and the lives of others is key. They would rather establish a meaningful relationship, so member referrals are the way to get there—along with providing exceptional service. Ys want personalized, knowledgeable human interaction when they interact with your club. They want to see that the club is connected and responsive to their specific needs. They want to feel appreciated, valuable and important. Ys are very smart, savvy consumers and they will do their homework before they purchase anything. Ys will want facts about your club. This will likely mean clubs will need to rely on current members to bring in Ys and shift their focus from recruitment to relationship building. Because when it comes to membership development, it’s really about the relationship.
- Control vs. Freedom
Clubs were founded on the premise that certain rules needed to be followed (bylaws) and traditions upheld. Year in and year out, clubs offer many of the same amenities, services, events and member benefits. Members could “pay their dues” literally and figuratively, eventually gaining enough experience to serve on a committee or the board of directors. This fostered more of a command-control environment—everything ran according to expectations, process and hierarchy. This left little room for innovation or change. However, there’s been more technology developed in the last five years than the last 50. From a technology perspective alone, we can conclude that clubs have to forego operating in a controlled environment and be open to new ideas emerging everywhere, from everyone.
Critical to that last point is the fact that clubs will be challenged to innovate not just a little bit or once, but significantly and diligently, without pause. More than 100 Gen Ys were surveyed and interviewed in the process of researching Knowing Y: Engage the Next Generation Now and the relentless pursuit of innovation was a common theme throughout the responses.
How to Engage Gen Y 
Knowing how to engage Generation Y begins with knowing why this generation is unlike any other. It’s equally important to know why engaging this generation will be the best business decision your club will make.
Take note: The behaviors and choices of younger generations have historically been an indicator of future workplace, consumer, and economic trends.
The same is true for membership right now.
The trends and influences introduced and shaped by Generation Y are having a “trickle-up” effect—changing the value of membership and expectations of the membership experience for every generation. Trickle-up effect, also known as bubble-up effect, is a term that has been used to describe the flow of wealth and fashion trends. In both cases, as in this case, movement is from the bottom up and eventually influences the majority.
In other words, if membership is declining in value for Generation Y, soon it will decline in value for all generations.
This would seem like “The End of Membership As We Know It,” but it actually marks the beginning of unparalleled opportunity for those clubs willing to embrace change and innovate.
In the association industry, the Air Traffic Controllers Association shifted its focus onto Generation Y in 2011, resulting in a 30 percent membership increase and 25 percent increase in event attendance of all generations of members. Equally impressive, the association’s bottom line emerged from losing $300,000 per year to establishing a healthy and growing financial reserve.
Another example is the Marine Retailers Association of the Americas, which launched a Young Leaders Advisory Council in 2009, and observed a 200 percent membership increase and $100,000 revenue increase.
These are two examples of the trickle-up effect at work. Focusing on the successful engagement of a Generation Y membership significantly improved engagement and revenue for the entire membership.
Now you have a choice.
You can choose to dwell on the challenges that lie ahead and the unprecedented and significant shifts leading to irrelevance, or you can dwell on the opportunities and create something of unprecedented and significant relevance.
You can lament the potential loss of a disengaged future majority, or you can envision the potential impact of an engaged future majority.
One thing is certain—whatever choice you make from here on out, it will begin and end with Y.
*Editor’s note: There is not consensus about the dates for Millennials—some, like NCA, use the span from 1980 – 1999 to represent the Millennial demographic.
Sarah L. Sladek is the CEO of XYZ University, the only management consulting company in the U.S. focused on helping organizations engage younger generations. She is a renowned speaker on the topic of generations and has authored several white papers and books on the topic. Her latest book, Knowing Y: Engage the Next Generation Now (Association Management Press), hit the shelves in August 2014.