1. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 1 Millennium Babies & More by Dianne M. Durkin Loyalty Factor™, LLC dmdurkin@loyaltyfactor.com (603) 334-3401

2. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 2 We come from different backgrounds, beliefs, cultures, races, creeds, ages and experiences.

3. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 3 Value and Promoting Differences creates a better place to live and work.

4. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 4 Understanding the Various Generations Each generation has its unique values and needs Understanding these unique needs you can: –Prevent misunderstandings and meet the needs of each generation –Become a bridge between competing values –Demonstrate leadership by bringing the various generations together with a common purpose –Create a conducive environment

5. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 5 How People Work Values –Create the foundations for our beliefs Beliefs –Fuel our behaviors Behavior –An expression of our beliefs

6. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 6 The Four Generations in the Workforce Veterans (1922 - 1946) - Boomers (1946 - 1962) - Xers (1963 - 1980) - Milleniums / Nexters / Gen Y (1980 - 2000) - 52 million 10% of workforce 73.2 million 45% of workforce 70.1 million 30% of workforce 69.7 million 15% of workforce

7. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 7 Those born of the Boomers and the optimistic, upbeat early Xers. Raised in our current high-tech, neo optimistic time. Millennium / Nexters / Gen Y Values shaped by: Technology (Internet), Terrorism, Global Economy, School Shootings. Sophisticated Consumers and poised to be the most demanding generation in history. Strive for Balance in Life and Work Socially Conscious and Volunteer Minded. True “Global Citizens.”

8. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 8 One (1) in four (4) come from single parent homes Three (3) in four (4) have working mothers Forget “children were seen and NOT heard” They have their own: –Cell phones –Credit cards –Ipods/Blackberries Overscheduled by parents trying to keep them out of trouble and make up for working parents Millennium / Nexters / Gen Y

9. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 9 Questioning Generation: –What can I learn today? –What value can I add today? –What will you offer me today? –How will I be rewarded today? They like to shop, volunteer and instant message They expect to work hard, get rich and help others Millennium / Nexters / Gen Y

10. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 10 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Values Morality Street smarts Diversity Pragmatic & Idealistic Family & religious values are central Don’t believe security is guaranteed Optimism Civic minded Very giving Confidence Achievement Highly motivated to get the job done and honor obligations to families

11. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 11 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Assets Collective action Optimism Tenacity Heroic spirit Technological savvy High tolerance for change Resilient Want to acquire new skills (now) Multitasking capabilities

12. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 12 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Liabilities Social skills Need for supervision and structure Inexperience, particularly with handling difficult people issues

13. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 13 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Business Traits Respect for authority and follow directions Curious-they want to know why Always seeking numerous mentors Manners are key (please, thank you, etc.) Potentially very demanding as they are accustomed to feeling wanted and needed and getting what they want

14. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 14 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC View of Work “Learning what works” Goal focused Can-do attitude Believe that hard work and goal setting are the tickets to achieving their dreams Hardworking, and ready to sacrifice personal pleasure for the collective good Optimistic about the future and realistic about the present Not lured by climbing ladders, paying dues or cashing out at retirement

15. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 15 Millennium / Nexters / Gen Y 1980 - 2000 All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Working on Teams Very effective on teams if there is a strong leader to guide them Be sure there are well-defined goals. Nexters want to know they will be producing concrete results that meet immediate needs. Provide structure and direction

16. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 16 Millennium / Nexters / Gen Y 1980 - 2000 Assets Collective action Resilient Optimism Want to acquire Tenacity new skills (now) Heroic spirit Multitasking Technological savvy capabilities High tolerance for change Liabilities Social skills Need for supervision and structure Inexperience, particularly with handling difficult people issues Working on Teams Very effective on teams if there is a strong leader to guide them Be sure there are well-defined goals. Nexters want to know they will be producing concrete results that meet immediate needs. Provide structure and direction View of Work “Learning what works” Goal focused Can-do attitude Believe that hard work and goal setting are the tickets to achieving their dreams Hardworking, and ready to sacrifice personal pleasure for the collective good Optimistic about the future and realistic about the present Not lured by climbing ladders, paying dues or cashing out at retirement Business Traits Respect for authority and follow directions Curious-they want to know why Always seeking numerous mentors Manners are key (please, thank you, etc.) Potentially very demanding as they are accustomed to feeling wanted and needed and getting what they want Values Optimism Morality Civic minded Street smarts Confidence Diversity Achievement Pragmatic & Idealistic Don’t believe security is guaranteed Highly motivated to get the job done and honor obligations to families Family & religious values are central

17. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 17 A fun work environment High quality leadership & management Growth opportunities Competitive salaries A wide range of projects What They Are Looking For From Employers Millennium / Nexters / Gen Y Travel opportunities Flexible work schedules Great benefits (healthcare, profit sharing, 401K)

18. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 18 Be candid Recruit to the culture Upgrade internship programs Use your website Mind your Candidate Relationship Management (CRM) Recruiting Millennium / Nexters / Gen Y

19. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 19 Great Leadership, Management and Relationships Continual Growth and Development Frequent Feedback Recognition Collaboration and Teamwork Access to Information Keeping the Nexters

20. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 20 Allow plenty of time for orientation Clearly articulate the future vision Define measures to reach the vision Link individuals to the vision and establish performance measurements Grow your training departments Establish mentor / internship programs Install the most up to date technology Preparing for the Nexters

21. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 21 Be open and receptive to creative innovation Reward innovation and risks Allow individuals to define problems, develop solutions, and produce results Increase your soft-skills, business and leadership/management training Build a Culture that Drives Innovation

22. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 22 94% believe saving is important 62% do not believe social security will be there for them 37% will start saving before the age of 25 70% of those eligible contribute to 401(K) plans 49% say retirement benefits are very important Financial Considerations Sources: Wall Street Journal – September 26, 2005

23. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 23 High expectations of self High expectations of employers On-going learning Immediate responsibility Goal oriented with tight deadlines Recognition and rewards Summary

24. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 24 The older generation thought nothing of getting up at five every morning – the younger generation doesn’t think much of it either. John J. Welsh Generational Views

25. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 25 Praise the young and they will make progress. Irish Folk Wisdom Generational Views

26. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 26 What Other Companies do

27. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 27 Invest in Leadership Promote change agents and communicators Replace “outdated management styles” Teach leadership and management

28. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 28 The Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. To Our Employees We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

29. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 29 Hires and screens for culture fit Trains everyone very well Employees can move across the organization Offers countless small rewards Offers stock purchase plan and profit sharing Lower than market wages; move up quicker than competition

30. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 30 Business Results 31 years of profitability Highest employee satisfaction in the industry

31. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 31 Employees are called “partners” Medical benefits and profit sharing for full and part-time employees “Bean Stock” program for full and part- time employees Health benefits for same sex partners

32. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 32 Golden Rule: Treat others as you would like to be treated. Staff members: called Team members Motto: Whole Foods, Whole People, Whole Planet.

33. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 33 Business Results January 2004, Fortune “100 Best Companies to Work for” for the 7 th year in a row On average, each store increased sales by over 40% between 1999 and 2003 May 2004, Forbes “Among the most attractive healthy living stocks…It’s products are healthy, environmentally friendly and highly profitable.”

34. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 34 Wegmans treats its customers really well and it treats the employees even better. #1 this year on Fortune’s list of Best Companies to work for.

35. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 35 Articulates a shared vision Recruiting –Hire for the values of caring and trust –Live those values every day Philosophy of the more we invest in training, the more it comes back to the bottom line The company spent 1mm dollars in training for 2 new stores in VA

36. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 36 “Everything is a Learning Event for our employees. It’s just part of doing business.”

37. All Rights Reserved  Copyright 2005Loyalty Factor TM, LLC Loyalty Factor TM, LLC 37 Thank you! Thank you! Thank you!

38. Loyalty Factor TM, LLC The Loyalty Advantage: Essential Steps to Energize Your Company, Your Customers, Your Brand By Dianne Michonski Durkin