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THE
AGE OF CHANGE: MULTIPLE GENERATIONS IN THE
WORKFORCE
by PJ Forman and Lynn Carlin
The American workforce is much more diverse
today than ever before in history. One of
the aspects of that diversity, among several
others, is the age of the workers. More generations
interact in the workplace than has ever been
the case previously. Workers are living longer,
are generally healthier, and some have financial
considerations that are keeping them in the
workforce much longer. The age range of our
workforce spans approximately 60 years and
is usually broken out into the following categories.
Mature (Veterans, Silent Generation): Born
1909-1945; 16%
Baby Boomers: Born 1946-1964; 26%
Generation X (Xers): Born 1961-1981; 22%
Generation Y (Millennials, Echo Boomers):
Born after 1981; 36%1
Much has been said about the generational
differences in the workplace. Some say the
differences in ages, and therefore the norms
and values, of a multi-generational workforce
are going to cause major problems and that
the generations are on a collision course
with each other. An impending shortage of
workers and brain drain have been forecast
as the Boomers retire since they are such
a large part of the workforce. Others say
there will be fiercer competition for jobs
as Generation Y (who are now of age to begin
graduating from college) competes for entry-level
jobs.
When discussing generation differences in
the workplace, many questions can be raised.
To answer these questions and form strategies
for overcoming and leveraging generational
differences, we have to understand what those
differences are. The experiences of the generational
groups have formed their various outlooks
on life, their values, and their preferences.
(As you read the following descriptions,
keep in mind that they are generalizations
only. They are not meant to be stereotypes
since individuals vary widely in their personal
preferences and experiences, especially those
who fall on the cusp of two generations.)
Mature Workers
Most Mature workers were born before WW II.
Many have lived through the Great Depression
or their parents did. They may have seen wars
in Korea and Viet Nam. They remember the big
band era and jazz. Most of them experienced
the prosperity of the late 1940s and 1950s
after they became teenagers or adults.
Characteristics that may define Matures are
teamwork, commitment, sacrifice, discipline,
financial and social conservatism, and loyalty.
They are often mechanically savvy but may
not be literate in today’s technology.
Baby Boomers
The Boomer generation was the first to be
raised with television. The oldest among them
grew up during a period of peace and prosperity
in the United States and then a period of
civil unrest and change, followed by inflation
and corporate downsizing. They remember Ozzie
& Harriet, Viet Nam, Watergate, Woodstock,
hippies, free sex, drugs, flower power, hot
pants, antiestablishment politics, environmental
protest groups, the Civil Rights movement,
and music that spans rock and roll, folk,
hard rock, and disco.
Characteristics that may define Boomers are
idealism, individualism, self-improvement,
and high expectations. They built the
first computers and wireless communications
devices.
Generation X:
The Xers are often said to be the Me generation,
the generation of status-seekers. They were
exposed to fast food, designer clothes for
children, the war on drugs, the fight against
AIDS, the Space Shuttles, human genome research,
the falling of the Berlin Wall, the first
woman Supreme Court Justice, and the first
female and first black presidential candidates.
Their music ranges from pop, rock, country,
punk, and rap. They saw their parents divorce
in ever-greater numbers, became the first
generation of latch-key kids, and watched
their parents reinvent themselves because
of jobs lost in hostile takeovers and corporate
downsizing. This is the first generation to
have been shaped by the mass media. It is
also the first generation that may fail to
match or surpass the economic status of their
parents.
Characteristics that may define Xers are pragmatism,
conservativeness, diversity, entrepreneurial
spirit, and appreciation for the quality of
life and work/life balance. They are a
generation who is usually technologically
savvy, but because they may have diminished
expectations, they may feel alienated, cynical,
and detached, leading to a value of self-reliance.
Generation Y:
The Millennials have been influenced by the
electronic age more than any of the other
generations. They are the first generation
of children to do their homework on desktop
computers, to carry their own cell phones,
download music to iPods, and do their shopping
online. They are influenced by wars in the
Middle East, the destruction of the World
Trade Center, a booming economy, a more diversified
society, casual dress codes in business settings,
Ritalin, the debate about gun control, NAFTA,
reality TV, and distance education. Hip-hop
music remains popular for this generation,
along with R&B, country, and movie soundtracks.
Characteristics that may define Millenials
are neotraditionalism, ritual, optimism,
technological adeptness, and compartmentalized
work and life.
In summary:
The Mature workers lived through periods of
financial instability and war, followed by
an industrial boom. The Boomers experienced
periods of economic and political stability,
incremental change, and social order. Social
conditions for Generations X and Y have so
far been characterized by dramatic increases
in choices, greater flexibility, and more
revolutionary technological change than previous
generations had to deal with at the same point
in their lives.
While Mature workers may value hard work,
good attitude, attendance, practical knowledge,
sacrifice, and loyalty, more than any other
generation while both sets of younger workers
usually prefer diversity, technology, informality,
and fun. Boomers typically want personal gratification,
to work in teams, and to experience personal
growth. Boomers and Millennials (the two largest
groups) may share an optimism that the Xers
generally don’t understand.
What are some symptoms employers will notice
in the workplace that evolve from generational
differences? What do workers really want?
- All age groups are showing signs that
they want to work more flexible hours
or fewer hours. They seem to be increasingly
concerned with work/life balance.
- Younger workers may want more
time with family. More fathers may
want flexible hours, PTO, or other
allowances in order to be available
to their children. Time is often
more important than money.
- Mature workers may have health
issues or just want to enjoy more
free time for hobbies or families.
Many of them are winding down their
careers.
- Boomers, despite their need or
interest in staying in the workforce,
may want more free time to pursue
hobbies, fitness, have more family
time, care for aging parents, or
to start their own businesses.
- Younger workers are generally less
ambitious in the traditional sense understood
by their older colleagues. They are looking
for meaningful work and innovation. Lateral
moves may be more important to them than
moving up. They may care less about advancement
than about work/life balance, and may
be less willing to make sacrifices in
terms of overtime or overnight travel.
In short, these other benefits may be
more important than promotions or money.
- Generations X and Y typically bring
a consumer mentality to their employment.
Younger workers may see loyalty as a transactional
relationship based on whether a particular
company, product, service, or initiative
merits it. Loyalty may have to be earned
repeatedly depending on the circumstances.
What kinds of tensions really exist?
- In contrast to older workers, younger
workers are more connected to electronic
communication devices. This makes them
more accessible to work-related disturbances
during off hours. Combine this situation
with an insistence on work/life balance
and we may see a backlash against this
bleed-over of work into family life.
- More frequently, we are seeing the
phenomena of upside-down management2
where older workers are managed by younger
ones. One in five older workers may have
significant problems with their younger
bosses3.
Leadership skills are key. Young managers
need to understand their older colleagues
and be appreciative of their priorities,
preferences, experiences, and life skills.
- Younger workers may be impatient with
traditional organizational hierarchies
and want more democratic and diverse teams.
They often want to be a part of the decision-making
processes. They may question and challenge
authority since they may view the ‘chain
of command’ and the ‘pay your
dues’ philosophies as inefficient.
Younger workers are more apt to believe
that results should drive the team, and
that everybody should have access to everybody
else. Older generations, used to more
hierarchical structures, may be confused
or defensive by this new way of interrelating
in the workplace.
- Generation X, overall, is a fiercely
independent group. They are typically
good at processing a lot of information
simultaneously and most of them are technically
proficient. They expect to receive the
tools to do the work. They like flexibility,
a lot of resources, and minimal supervision.
This may cause tension in a working environment
that values and expects close supervision
and constant reporting.
- While the older generations value consistency
and loyalty, the younger ones value flexibility,
innovation, openness, and choices. This
difference in work styles and values may
cause some friction.
- Younger workers are usually technically
savvy and attuned to the Internet for
information. They communicate and network
easily using email, Internet, video conferencing,
text messaging, instant messaging, etc.
In contrast, Mature workers generally
rely less on technology. They may prefer
a phone call or to meet people in person.
Younger leaders may consider the costs
(money, time, efficiency) of travel largely
unnecessary.
- An array of benefits must be offered
to meet the needs of this diverse workforce.
Older employees may put their focus on
retirement benefits, healthcare, bigger
401(k) contributions. Younger workers
may want more immediate benefits like
childcare, alternative work schedules,
or other work-life initiatives. These
benefits must be communicated in a variety
of ways to accommodate diverse communication
preferences of diverse age groups.
The good news is that the differences
among the generations aren’t as wide
as they may seem at first. In fact, the generations
may be more alike than different. Where there
are differences, generations can learn from
each other.
In fact, mixing generations makes good business
sense. Studies have shown that a diverse mix
of genders, ethnic backgrounds, and ages in
senior management teams corresponds to superior
corporate performance. A study with more than
1,000 executives found that organizations
that include senior managers under the age
of 40 show a greater success pattern than
those with exclusively older top executives.4
The impact of diversity issues has probably
helped to soften employer attitudes toward
making the workplace more flexible and accommodating
– and more fair – to workers with
many different values and priorities. The
retirement of older workers has probably increased
attitudes of tolerance among top leaders by
making room for younger executives with more
inclusive attitudes to rise to these influential
positions.
| “When
generations fail to communicate, it
can reduce profits, increase the cost
of recruitment, hiring, training and
staff retention, affect morale, and
lead to grievances and complaints.”
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The main thing to remember is that if generational
differences are not acknowledged and discussed,
and solutions are not supported by top leadership,
the resulting tensions may have a significant
negative impact on productivity. Once the
dialogue is opened, managing the various group
differences will be important so the differences
can be positioned to complement each other
rather than conflict. As with any other dimension
of diversity, each generation needs to respect
the others and appreciate (not merely tolerate)
their differences. Each generation has values
the others can learn from.
While all employees should be expected to
uphold the same standard of work performance,
today’s most successful leaders find
a way to let every generation be heard. These
leaders recognize that no one has all the
answers.5
There are many best practice solutions
that your company may appropriately apply
to foster a culture of positive interaction
for an intergenerational workforce, create
productive teams, and retain valuable employees.
No one-size-fits-all solutions can be offered
that will meet the needs of all employers
and employees, but some general best practice
suggestions can be made.
- Employers must strategize how to offer employees
aspects of the organization’s identity
in which they can see themselves and have
those aspects resonate as meaningful, useful,
and building employees’ self esteem while
not fragmenting the organization. Offer the
consistency needed by older generations while
responding to the shifting contemporary interests
of younger workers. It will be essential to
develop a structure that embraces change and
reacts quickly while simultaneously preserving
traditions and core values central to a business’s
identity.
- Provide mentors for workers of all generations
where needed or requested. Keep in mind that
younger workers today expect to have mentors.
Peer mentoring and reverse mentoring are often
extremely helpful strategies to help employees
increase or improve all types of skills.
- A study that explored the correlation
between job satisfaction, organizational
commitment, perceived job opportunity,
organizational communications, job search
behavior, and the intent to turnover in
IT professionals6
, found there was no evidence for a significant
generational difference in the way Boomers
and Xers perceived these factors. There
were strong correlations between organizational
commitment, job search behavior, and the
intent to stay or leave an organization.
Boomers however were interpreted as probably
being less open about their dissatisfaction
with their work as evidenced by hiding
their job search behavior while Xers were
more open about the search for other opportunities.
Employers should keep this information
in mind as they review their retention
efforts for all age groups.
- All age groups want timely and constructive
feedback.7
Provide leadership that incorporates frequent,
perhaps informal, reviews of progress
and development.
- All workers tend to want projects or leadership
positions that tap into their talents, opportunities
to enhance their skills, well-managed activities
and meetings that do not waste time, and a
sense of community with others that makes
their involvement meaningful and enjoyable.
- Employers should note the importance of
being empathetic to all employees’ needs.
Like older workers who may have worked very
hard to climb the corporate ladder, younger
workers, as flexible and innovative as they
are, haven’t had an easy time navigating
a career path. The platinum rule is a good
guide here.
With the imminent retirement of large groups
of older workers (as much as 40% of the
workforce in the next ten years 8)
transferring knowledge from older to younger
workers is becoming acknowledged as a priority
as organizations lose and replace this portion
of the workforce with younger workers.
- It will be important for employers to shift
standard policies and procedures to include
the expectations, preferences, and priorities
of the younger generations.
- Organizations will need more and better
communication between managers and employees.
They will need to review employee performance
more often and work harder on retention issues.
- Leadership development strategies should
provide young leaders with interesting projects
and the chance to make a difference immediately.
Young leaders may be less ambitious for a
climb to the top; however, they will not remain
in an organization if they aren’t encouraged
to participate or if their offers to do so
are rejected or ignored.
- Younger workers want to be judged on the
quality of their contributions without having
those contributions filtered through the lens
of age or years of experience. Strategize
involvement opportunities for younger workers
that allow them to apply creativity and innovation.
- Keep in mind that younger workers embrace
change. They are willing to take risks. What
may appear to older workers as instability
can also be viewed as flexibility. Younger
workers may prefer temporary assignments or
lateral promotions. These attitudes will have
to be both encouraged and managed for the
benefit of workers and organizations alike.
- Create new pathways that encourage younger
employees to step into more significant positions
of leadership. Make development opportunities
clear, and encourage internal transfers or
lateral promotions.
- Create a mechanism for timely and meaningful
feedback and appreciation. Despite an appearance
of self-confidence, young leaders still want
to feel appreciated for their efforts. If
appreciation is lacking, young leaders will
be quick to move on to a different opportunity
where they will receive more acknowledgement.
- Diversity and inclusion are important for
younger leaders. They will require it. Having
a sense of connection is important to them.
- The values that workers once held will be
dramatically changed. For all workers, the
premium on education, flexibility, foresight,
and technology has never been as great as
it will be in the years ahead.
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- Focus on benefits that fit younger workers’
needs such as time off and child care rather
than pension plans.
- Provide ways for younger workers to get
to know their colleagues. Older workers tend
to keep work and personal life separate, but
younger workers want to talk about their lives
outside work and get to know their coworkers.
- Younger workers like to have access to management.
Providing structured drop-in times may be
a good compromise between older workers who
like structure and younger workers who want
quality time with managers.
- Use an abbreviated communications style.
Younger workers prefer to read, watch a video,
or access information online rather than go
to meetings.
- Appreciate the diversity of younger workers.
They are more culturally diverse than older
workers and bring new issues to the workplace.
Remember that younger employees are reflective
of your customer base, so their diversity
can be an enormous asset.
- Maintain boundaries that reflect the expectations
of younger workers. These workers prefer short-term
relationships with clear mutual gains, almost
as if they are independent contractors building
their own business within your organization.
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- The younger generations are empowered, self-directed,
flexible, and technology literate. A large
percentage of them want to own their own businesses.
Leverage this desire by training the younger
generations, then trusting them, to settle
the new frontiers of your business.
- Remember that managers, professionals,
and other higher-earning employees in
the workplace may not present a particularly
attractive role model for younger employees
that companies are hoping to move into
the management pipeline. Negative role
models (those with an imbalance of work/family
life, for example), may hamper advancement
aspirations of the young. Younger workers
do not like job-to-home spillover, multiple
projects and multi-tasking, or interruptions.11
In conclusion:
How will organizations manage this shift
to the younger generations who have different
expectations, preferences, and priorities?
It is clear that the days of the standard
cookie-cutter employee are over. One-size-fits-all
solutions for hiring, teaming, advancing,
retaining, and issuing employee benefits
will no longer work. Choice and flexibility
will be key to managing these issues. If
managed well, age, gender, racial, and other
barriers to employment opportunities will
continue to melt away.
1.Figures
represent percentages of total population,
gathered from the U.S. Census 2000
2.“Acting Your Age,”
Sales & Marketing Management; Sep2004,
Vol 156 Issue 9, p89-90.
3.“Older Employees in the
Workforce,” an article based on a study,
National Study of the Changing Workforce,
prepared by the Families and Work Institute
for the American Business Collaboration.
4.Farren, Caela. “How to
eliminate the generation gap in today’s
work teams.” Employee Benefit News;
June 1999, Vol. 13, Issue 7, p34, 4p.
5.“Generational differences
in your workplace.” New Zealand Business,
Feb 2005
6.Sujdak, Edward Joseph, Nova
Southeastern U., US, Dissertation Abstracts
International Section A: Humanities &
Social Sciences. Vol. 63 (8-A), Mar 2003,
2940.
7.“Cultivating New Leadership,”
Association Management, January 2000
8.Green, Kelly, “Bye-Bye
Boomers?,” Wall Street Journal, Tuesday,
September 20, 2005, B1
9.Cufaude, Jeffrey. “The
Future Face of the Workforce,” Association
Mangement, Dec99, Vol. 51, issue 13, pF-1,
2p.
10.Corbo, Sally Ann. “The
X-er Files,” Hospitals & Health
Networks. Chicago: Apr 5, 1997. Vol. 71,
Iss. 7; gp. 58, 2pgs
11.Generations & Gender in
the Workplace, a National Study of the Changing
Workforce, prepared by the Families and
Work Institute for the American Business
Collaboration.
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