Have you heard the buzz about consumerization lately?

Making it to their list the next year too!

It’s one of the biggest HR challenges today.

We’re going to take an in-depth look at what it means, where it comes from, and—most importantly—how employers can turn a challenge into an opportunity.

Consumerization

“I always tell companies that your most important boss is your customer,” says Toby Goldstein, staff development trainer and founder of Bite Size Workshops.

The shift to a customer-centric, customized business model is called consumerization. While it was always a driving force in business, in 2020, it may be THE factor that determines if a company sinks or swims.

Why?

• Millennials (the generation born between 1980 and 1996), now 24 – 40 years old, are making more buying decisions than ever. They prioritize value and convenience over brand loyalty.
• Today’s consumers, led by tech-savvy Millennials, have the world at their fingertips to see how your brand measures up against the competition. Social media, influencer marketing, and other social proof play a large role in the dynamic.

• Customer-centric brands like Amazon build up customer expectations across the board.

Consumerization in the Workplace

The consumerization trend exists in the employee-employer relationship, too, driven by the increasing numbers of Millennials in the workforce.

In fact, Millennials already make up 50% of the workforce, and that percentage is rising.

Millennials and Gen Z’ers, who are also coming of age, have different priorities than the Baby Boomers and Gen X’ers who came before them. Bob Moritz, US Chairman and Senior Partner of PriceWaterhouse Coopers, describes five areas where Millennials differ from previous generations:

1. Greater input – While Baby Boomers were raised to accept authority without questions, Millennials want, and perhaps expect, input on company decisions.

2. Career paths – Many older employees expected to (and did!) stay at a job for decades. Younger employees see career paths as fluid and flexible. They don’t hesitate to leave one job for another.

3. Appreciation – All employees want to be paid well. But newer generations place a similar emphasis on support and appreciation. If those emotional needs aren’t being met, they may look for a job elsewhere.

4. Corporate values and responsibility – Millennials take social responsibility seriously. They’ll react negatively to any contradiction between a firm’s values and its actions.

5. Work/life balance – In Moritz’s words, “What has changed is the definition of commitment. It no longer encompasses sacrificing health or throwing work/life flexibility out of whack. . .”

These differences aren’t right or wrong, but they reflect a mindset shift that needs to be addressed.

Consumerization in 2020

Millennials in the workforce are not new, and the trend towards consumerization has been building slowly. But it’s taking a leap at the end of 2020.

Financesonline, a business research platform, recently published its “20 New HR Trends & Predictions for 2020/2021 You Should Be Thinking About.”

#2 on the list?

Consumerization in the workplace.

“With unemployment rates at an all-time low, people aren’t content with employment alone. People look for a specific employment experience that empowers them to make their own choices when it comes to their tasks and goals. Simply put, people now bring a customer mentality to their workplace.”

In other words, if you weren’t taking employee consumerization seriously until now, it’s time to start.

HR Response

So, what’s HR to do?

Financesonline recommends that HR teams be more flexible in responding to employees’ individual preferences. That can play out in:

• Individualized Schedules
• Diversified Benefits
• Personalize role content
• Collaborative management

Change is hard, and it may be tempting to complain about Millennials: Spoiled… self-centered… disloyal.

But that’s missing the point, explains Toby Goldstein.

“Employers should embrace the benefits of consumerization,” says Toby.

How? Your young employees WANT a positive culture. They WANT teamwork and collaboration. They WANT communication.

Use this opportunity to tap into their creativity and create a fantastic team-building culture that will benefit everyone in your organization.

Breaking out of decades-old patterns will propel a business to move forward and grow. New ideas and a fresh approach will only help a business stay competitive and relevant.

No Complaints

But what if an employer has legitimate complaints about younger employees’ performance?

Remember that you’re the boss. You set the tone and expectations in your organization. Before you complain about your employees’ work ethic, ask yourself:

• Are you cultivating a work ethic?
• Are you modeling communication?
• Are you building resilience?
• Are you providing adequate training and onboarding?

Use your employees’ experiences as a spotlight on necessary changes and improvements.

Consumerization and Health Benefits

And how does embracing consumerization play out in health benefits?

Jenna Obrvcki Upgren, on Forbes.com, predicts that “more employers will embrace better plan design based on the tenets of personalization, choice, flexibility and cost certainty.”

The days of “one-size-fits-all” benefits offerings are gone. Employers are offering economical plans that provide multiple benefits to accommodate the needs of their diverse staff.

New plans like Pet Benefit Solutions’ Total Pet Plan, for example, are the wave of the future. Total Pet offers complete coverage and includes something for every pet family. Coverage includes discounted pet prescriptions, discounts on veterinary care, a 24/7 pet telehealth line, and a lost pet recovery service.

And when offered with Pets Best pet health insurance, Pet Benefit Solutions gives the full personalization that employees are seeking.

Change in the workplace (and in life!) is inevitable, finishes Toby. You can choose to fight it—or embrace it and grow.

It’s in your hands.

Join us as we continue to revolutionize the pet benefits marketplace.