Engagement/Culture Employee Engagement in a Multigenerational Workplace Javeria Nazim, MILR 2017 Sabina Shibalayeva, MILR 2017 Jiayu Tao, MILR 2019 Justin Taylor, MILR 2018 Employee Engagement can be defined as ‘The state of emotional and intellectual involvement that motivates people to do their best work’, (Daryle Roberts, Aon Hewitt). The Gallup organization defines engaged employees as those who “are involved in, enthusiastic about, and committed to their work and who contribute to their organization in a positive manner.”1 Many studies have found direct links between increased engagement and better customer service, and higher revenue growth2. Unfortunately, companies have not been very successful in keeping their employees engaged. Gallup reports that only 30% of US employees are engaged at work, and only 13% of employees are engaged world-wide. Furthermore, according to Deloitte University Press’s Global Human Capital Trends 2016 report, “employee engagement is a headline issue throughout business and HR.” Fully 85 percent of survey respondents ranked engagement as a top priority, yet only 46 percent reported that they were prepared to address engagement challenges. Overall, Gallup reports that disengagement costs the U.S. around $500 billion annually. Engagement becomes even trickier when companies try to engage employees who belong to multiple generations. Today, many workplaces are in the position of having five generations working together, side-by-side. In response to the trend, there is one important consideration-making sure your company’s new ways of thinking and working suit all your people, so you can harness the full potential and power of your multi-generational workforce3. High engagement can lead to4: Defining Generational Identities The five generations populating the current U.S. workforce of nearly 160 million span more than 70 years, from about 1945 until today. While it is well understood that all employees seek meaningful and flexible work, work/life balance, learning and development opportunities, and competitive compensation, each generation is characterized by unique identifiers and behavioral traits. As younger generations work alongside more senior employees, some conflict is to be expected. While each generation has a different set of values and views, awareness of these traits can help organizations optimize the strengths each group brings to the workplace. Generational Strengths and Weaknesses5 Born Born Born Born Born Before 1945 1945-1963 1964-1980 1981-1995 After 1995 Baby Boomers Generation X Millennials (Gen. Y) Generation Z Traditionalists Loyal Hardworking Look to build a Highly productive lifetime career with one employer Want to make last- ing contributions Believe in conform- ity, authority, rules, logic, discipline, and strong morality Dislike conflict Detail oriented Might prefer working fewer hours Effective managers Achievement oriented Great revenue Perfectionists Less proficient at adaptability Excellent mentors Believe seniority matters Strive to make a difference generators Strong adaptability, problem-solving and collaboration skills Entrepreneurial Skeptical Prefer to work alone Harbor some distrust Think they are solely responsible for determining their career paths Deep knowledge Can leverage opportunities Enjoy working collaboratively Raised in an environment in which they were recognized for nearly every accomplishment Seek development opportunities Want to be recognized for their contributions Believe performance should trump seniority Entrepreneurs and self-starters Pioneers Realistic May seem some- what cynical Value honesty Well prepared Tech experts Multi-taskers Strive to boost their people management skills Managing Engagement Across Generations As already noted, employees belonging to different generations have different strengths and weaknesses, and require different things from their jobs. They also have different working styles. It can therefore be difficult for organizations to target their engagement initiatives at all the generations at the same time. Even for organizations that are making significant investments in engagement-specific initiatives, the results are not very fruitful and engagement scores remain low on average6. In addition, measurements of organizations’ ability to address the issues of engagement and culture has decreased by 14% compared to just last year, owing to the work environment becoming more complex7. Therefore, it is clear that engagement efforts are not delivering results, and that there exists a need for organizations to go above and beyond traditional engagement strategies in order to keep their employees committed and motivated, and to use that commitment to achieve business results. This is where the concept of Employee Experience comes into picture. Employee Experience Employee experience is a relatively new phenomenon and has been gaining popularity over the past few years. In its simplest terms, employee experience refers to the practice of putting employees at the center. So, instead of forcing employees to change themselves to fit with the organization’s obsolete practices, employee experience focuses on redesigning the organization to be in alignment with employees’ needs and re-quirements6. Employee experience emphasizes on treating employees as internal customers and encourages organizations to adopt similar practices that they do when dealing with customers 8. For instance, it is quite common for organizations to take customer feedback, or in many cases, work together with customers to come up with solutions that best fit their needs. Similarly, companies focusing on employee experience should work together with their employees to know and understand their needs and then come up with organizational practices that best fulfil those needs. Another term that is commonly being used in relation to employee experience is design thinking, which is defined as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Research shows that employee experience can be better improved by the use of design thinking—by making use of technological interventions, apps, and streamlined processes to make work more enjoyable for employees9. 8 out of 10 executives rate employee experience to be very important (42%) or important (38%). However, only 22% reported that their companies were excellent at building a differentiated employee experience. Source: Deloitte Human Capital Trends 2017 The Employee Experience Equation Employee experience is not overly complicated; it is shaped by three factors, that are well-known to all organizations in the contemporary world: Culture: Organizational culture has been defined in many ways. It has been ex- These are: get things done. This could include plained as “something to do with the 1. Sense of pride for the company people and the unique quality and 2. Sense of community and belongstyle of an organization,”10 “the exing with colleagues pressive non-rational qualities of an 3. Honesty and ethics in organization,”11 or “the way we do all the software, mobile apps, devic- things around here.”12 However it is When organizations focus on this defined, culture is something that employees ’feel’ at work; it is the vibes that they get when they walk into their workplaces, and the sense of purpose that they feel while doing their work. Even though culture isn’t written, it is a critical element in the design of employee experience. While it may seem difficult to de-sign a culture that would be favored by multiple generations, it is actually leadership Another survey of 183,454 employ- es, websites, etc. that organizations made use of for different purposes like promotions, internal/external communication, work efficiency, etc. aspect of the employee experience, ees in 22 companies14 also mentions they need to ensure that the technoflexibility fit as a strong predictor of logical tools and devices that they engagement for all generations. Hence, if companies divert their attention to these aspects of their organizational culture, they are more likely to engage employees belonging to all generations. Technology: are utilizing are in line with the needs and wants of their employees. Thus, instead of focusing just on organizational needs, the needs of employees also need to be taken into consideration. All technology used should be user- friendly and organizations should An organization’s technological envi- take input from employees before people belonging to different genera- ronment can refer to the tools and implementing anything. techniques that the company uses to tions actually want very similar not very hard. Research shows that things from their organizational cultures. A study that surveyed around 230,000 employees belonging to about 620 organizations13 re-vealed that employees from all generations want a few things from their organizations. Organizations could take on several tions (Y,Z) usually prefer open, inter- approaches to managing technology active workspaces where they can Company Case Studies on Increasing Engagement in line with generational needs. For move about easily and communi- instance, studies have shown that cate with col-leagues. On the other the younger generations prefer us- hand, older generations (Gen Y, Ba- Lockheed Martin noticed genera- ing their smart phones, while the by Boomers) are used to having tional differences in learning styles older ones are more comfortable their personal desks/offices, that when Baby Boomers were asked to with their computers16. Organiza- they can customize with mementos, pass on their expertise to Millenni- tions can, in such cases, provide like family pictures17. Organizations als. When the Boomers used Power- flexibility or choice in the mode of should hence communicate with Point presentations, the Millennials communication/technology that the and understand the needs of their told them they could learn better employees want to work on. So for different employees. Then they from more interactive methods. As instance, they could introduce a should make efforts to accommo- a result, Lockheed offers workshops smart phone app for, say, internal date those needs. For instance, if for managers on generational diver- communication, but also a soft-ware the office setting is open and the sity, emphasizing the ways learning version of the same app to be used older generations are having a hard styles differ between generations. on computers, so that the older em- time concentrating on work because ployees also feel comfortable using they are used to quieter, private the technology. Initiatives like this spaces, companies could provide can help companies deal effectively sound-masking with white noise with the challenge of managing the (which is done in the New York technological needs of multiple gen- Times building), to minimize distracerations. tions for those employees. If space Physical Workspace: allows, organizations could also of- The physical workspace of an organization includes the things that the employees see around themselves; their desks/offices, the office design, the wall paintings, cafeteria, etc. While some organizations may not think so, physical workspace can play a big role in improving employee experience. Employees belonging to different fer multiple kinds of workspaces for different employees, like a large space for ’hoteling’ for younger employees, and more private office/ cubicle spaces for older ones. Re- search has shown that while physical space requirements differ among generations, all generations value privacy and the virtual environment18; organizations just need to involve their employees in the generations prefer different kinds of workspace redesign to know and workspaces. The younger genera manage their preferences well. Randstad USA offers training for leaders on how to communicate more effectively with younger generations. They report that this training has resulted in a reduction of first-year turnover from 50 percent to 30 percent. At Kimberly-Clark, the consumer products multinational based in Irving, Tex., senior leadership was concerned that it didn’t have a glob- al perspective on its top talent. To remedy that, the company instituted a reverse mentoring program in which millennials were teamed up with senior executives to help them understand what would best engage their younger employees. Additional Tips for Engaging Multiple Generations In addition to employing the afore-mentioned practices of improving the employee experience, organizations could also make use of some of the following tips19 for in-creasing engagement among employees from multiple generations. 1. Communicate, Communicate, Communicate: Communication is key to understanding differences and respecting them, so make communication a priority in the organization. 2. Accommodate Different Learning Styles: Do not force one style on all employees; understand different needs and work accordingly (e.g. PowerPoints/lectures for Gen X, interactive apps for Gen Y,Z). 3. Train for eliminating stereotypes: Hold training sessions to remove misconceptions about different generations and in-creasing tolerance. 4. Be Flexible: When managing different generations, organizations should be ready to pro-vide multiple options for employees to choose from, e.g. Multiple working options. 5. Facilitate Mentoring: This is one of the best ways to improve relationships among employees from different generations since it encourages communication and teamwork. Managing and Measuring your Engagement Initiatives Because engagement can be a very personal thing, and not everyone will be engaged in the same way by the same initiatives, it is important to measure and manage the impact of your engagement strategies. Implementing your initiatives with analytical best practices in mind can help improve the fit and quality of your analytics later. It can also greatly improve the future outcomes of your initiatives as you continue to refine your processes based on meaningful findings. As the cornerstone of building your engagement analytics, note that measures of employee engagement have low to moderate incremental validity over existing individual measurement methods of job attitudes (such as job satisfaction, job involvement and organizational commitment) when predicting employee effectiveness. Employee engagement measures also have low incremental validity over higher order constructs that combine the aforementioned individual measurements.20 This suggests that measuring employee engagement is an effective and concise predictor of higher level employee effectiveness. Keeping this in mind, you can save time and energy in your quest for optimizing employee effectiveness by focusing on creating predictive engagement models rather than searching for significant tests that assess individual job attitudes. Best Practices: Engagement Measures and Performance Indicators As you consider engagement measures that fit the Now, measuring engagement has limited value if you needs and nuances of your employee demographic can’t create significant links between engagement and 21 mix, there are three key buckets to be mindful of the performance you hope to gain from your engage- when building your engagement model. ment initiatives. So, begin with the end in mind and con- Say: This bucket contains metrics that seek to determine if people are consistently speaking positively sider the following four categories of performance indicators, as these will help you to determine the outcome about the organization to co-workers, potential variables to use when testing for statistical and predic- employees, and customers. This scope is important as the three measures ensure there is a focus on both internal and external factors. employee turnover, Customer metrics look at measures Stay: These measure feelings of an intense desire to belong to the business, and should lead to predictions of employee retention. tive significance. People metrics capture outcomes like like customer satisfaction, Operational metrics consider important business process objectives like safety, and Financial metrics include information like sales growth. Not every category will be meaningful to your unique business strategy, so keep in mind that this should only Strive: This measures an employee exerting extra effort function as an effective way to structure your thoughts and engaging in behaviors that contribute to business as you consider what success means to your business success. unit, and how you hope to benefit from increasing employee engagement. Engagement Analytics Toolbox Once you have an idea of what type of information you want to collect, and the outcomes you hope to influence through your engagement initiatives, consider using the following measurement strategies as they fit within your given situation and culture: Quarterly Pulse Checks The more recent your data is, and the faster you are able to act on it, the more meaningful your conclusions and effective your initiatives will be. Pulse checks can be a good way to reduce your data collection and process implementation turnaround time22. Additional Considerations Design Thinking This approach can help spur creativity and innovation in your engagement strategy. It may also uncover unasked questions, as you put yourself in the mindset of the people you want to impact. Internal Digital Crowdsourcing Traditional Printed Surveys Less targeted and precise than static surveys While many companies are and pulse checks, internal crowdsourcing al- moving away from paper sur- lows for greater variation that may lead to veys, these are still a viable novel ideas and a more organic engagement method of data collection. strategy. There are many things to consider Printed surveys are especially when implementing this type of data collec- effective among the less tech tion strategy, however, so it should not be savvy population, or those that done haphazardly. don’t always have access to electronic and internet connected devices. However, remember Live Focus Groups that the frequency of interacSimilar to digital crowdsourcing, creating a tion and intervention immediacy live focus group can spur creativity as people is key to using surveys as part build on the ideas of others within the group. of your engagement strategy, This method can allow for more nuanced data so make sure these papers collection than online data collection as in- don’t get filed away as a mana- person interactions can reveal unspoken gerial “to do” years down the queues that you won’t be able to collect out- road. side of this context. References 1. Gallup. (2013). ‘State of the Global Market Place: Employee Engagement Insights for Business Lead-ers Worldwide’. Retrieved from http://www.gallup.com/services/178517/state-global-workplace.aspx 2. Medallia Institute, “You Say You Want a Revolution: Build a Customer-Centric Culture” 3. Jeffrey, H. (2015). ‘Fast Take on Talent Innovation-Today’s Multi-generational Workforce’, PwC. Re-trieved from https:// www.pwc.com/us/en/people-management/assets/pwc-multi-generational-workforce.pdf 4. Jeffrey, J. (2015). ‘2015 Employee Engagement Landscape Study: Championing Greatness or Captur-ing Mediocrity’, PwC. Retrieved from https://www.pwc.com/mt/en/publications/people-and-organisation/pwc-hrs-employee-engagement -landscape-2015.pdf 5. Engage2Excel. (2016). ‘Embracing the Diversity of Today’s Multigenerational Workforce’. Retrieved from https:// www.engage2excel.com/wp-content/uploads/2017/01/E2E_GenWorkforce_WP3.V3.0_EMAIL-3.pdf 6. Morgan. J. (2017). ‘3 Things to Know about Employee Experience’, SHRM. Retrieved from https://www.shrm.org/hrtoday/news/hr-magazine/0317/pages/3-things-to-know-about-employee-experience-.aspx 7. Bersin, J. et al. (2017). ‘The Employee Experience: Culture, Engagement, and Beyond—2017 Global Human Capital Trends’, Deloitte. Retrieved from https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2017/improvingthe-employee-experience-culture-engagement.html 8. Scott, R. (2017). ‘Employee Engagement vs Employee Engagement’, Forbes. Retrieved from https://www.forbes.com/ sites/causeintegration/2017/05/04/employee-engagement-vs-employee-experience/#129d95937883 9. Ammatuna, G. (2016). ‘The Employee Experience Takes Over’, Association for Talent Development. Retrieved from https://www.td.org/insights/the-employee-experience-takes-over 10. Peters, K. and Lewis-Kulin, S. (2016). ‘How to Create a Culture that Works for All Ages’, Fortune. Re-trieved from http:// fortune.com/2016/06/28/company-culture-all-ages/ 11. Pitt-Catsouphes, M. and Matz-Costa, C. (2008). ‘The Multigenerational Workforce: Workplace Flexi-bility and Engagement’, Community, Work & Family Journal, 11(2), pp.215-229. 12. Cahill, T.F. and Sedrak, M. (2012). ‘Leading a Multigenerational Workforce: Strategies for Attracting and Retaining Millenials’’, Frontiers of Health Services Management. 29(1), pp.3-15. 13. Zickuhr, K. (2011). ‘Generations and their Gadgets’, Pew Research Center. Retrieved from http:// www.pewinternet.org/2011/02/03/generations-and-their-gadgets/ 14. ‘Five Ways to Redesign Workforce for All Generations’. (2014). Forbes. Retrieved from https://www.forbes.com/sites/ nextavenue/2014/04/09/5-ways-to-redesign-work-for-all-generations/2/#60336d7c5408 References, cont’d 15. Rothe, P. et al. (2012). ‘Work Environment Preferences—Does Age Make a Difference?’ Facilities, 30(1/2), pp. 78-95. 16. ‘How to Manage Different Generations’, The Wall Street Journal. Retrieved from http://guides.wsj.com/management/ managing-your-people/how-to-manage-different-generations/ 17. Mackay M. Allen J. Landis R. (2017) 'Investigating the Incremental Validity of Employee Engagement in the Prediction of Employee Effectiveness: A Meta-Analytic Path Analysis', Human Resources Re-view, (27), pp. 108-120. 18. Roberts D. (2013). 'Using Engagement Analytics to improve Organizational Performance', Employee Relations Today. 19. Bell J. (2017) 'Take My Pulse', Workplace Rx. TD: Talent Development . Additional Resource: ‘Engaging the Best Talent of All Ages—Transforming Multigenerational Workplaces into Intergenerational Workplaces’, Metlife Mature Market Institute. Retrieved from http://www.gu.org/LinkClick.aspx?fileticket=EvG_frpZj6k%3D&tabid=157&mid=606