Generational Differences in the Workplace – implications for career development The workforce are getting older and with four generations concurrently in employment, it is not surprising that employers find it difficult to manage a ‘one size fit’s all’ approach when it comes to attracting and retaining staff. Varying motivations and expectations in an age diversity workforce challenges managers daily. Each generation assumes the following generations will define success in the same way they have. Each Generation assumes the following generations should ‘pay their dues’ in the same way in order to achieve success with few exceptions. Each generation thinks the following generation has had it much easier. This summary document aims to raise your awareness about generational differences in the workplace to enable more effective communication with your work colleagues. For example, if as a Gen-Xer, you may find yourself with a Baby Boomer manager …how will you influence him/her to grant you a sabbatical? Even within a generation the existence of a single homogeneous group with common aspirations cannot be assumed. For example, numerous studies have shown that women’s career needs and drivers are quite different from those of men, with women tending to rate career success in terms of internal criteria, while men continue to pursue position, pay and status. Read on and learn why your work colleagues might have different views and opinions to career management from yours. Veterans (born between 1925 - 1945) – *9% of total UK employed Veterans are generally characterised as being loyal to employers, believing in hard work, believing in the status quo and having respect for authority figures. Veterans believe in the intrinsic value of hard work and have a work ethic that hinges on loyalty, dependability at a ‘stick to it’ mentality. They obtain job satisfaction from the work itself and from doing a job well and do not necessarily need the work to have particular meaning. Despite the recent introduction of age discrimination legislation in the UK and changes in legal retirement age, Veterans are aware that they (and Baby Boomers) are the generation most likely to be culled in an economic downturn. Certainly they are aware that they will find it more difficult than earlier in their careers to change jobs internally or obtain new employment if made redundant due to the continuing barriers maintained by inherent ageist attitudes in the workplace. * Figures from Labour Force Survey (2007) Baby Boomers (born between 1946 – 1964) – *36% of total UK employed If you were around during the Vietnam War and were a ‘flower power’ child of the 60s, then you are classified as a Baby Boomer. It is predicted that there will be a shortage of labour and skills in the coming years as the boomers start leaving the workforce. But not all Baby Boomers are ready to start pottering around the garden all day and becoming champion lawn bowls players. Many are expected to continue to work well into their sixties and are currently interested in changing, rather than ending, their careers. There are many stereotypes surrounding mature age workers – they are expensive, difficult to manage, won’t learn new skills, resist change and aren’t up to date with new technology. These generalities can make it difficult for mature age workers who are seeking new work or who aren’t quite ready for retirement. Glennis Hanley, from Monash University’s Department of Management, believes that Baby Boomers are vital to the workforce today and should be encouraged to stay in the labour game as long as they can. ‘Businesses need to employ the broad-based business experiences of Baby Boomers to foster and transfer cross-generational knowledge,’ says Hanley. In the UK, companies like B&Q have harnessed this group in the employment market. Boomers are committed, hard working and career focused – which has caused them to be tagged as workaholics by Gen X and Gen Y. The Baby Boomer work ethic is also characterised by dedication, loyalty and a willingness to stay in the same job for a long time. They have a lot to offer businesses with their work and life experience, skills and knowledge that many younger people can’t offer. They tend to work longer hours – and respect is paramount when managing a Baby Boomer. Boomers regard ‘career’ as a linear series of upward moves, largely employercontrolled, however, reality has partly mitigated this view: this generation witnessed or was involved in the redundancies of the 1980s and early 1990s and thereafter has directly experienced the fallout resulting from increasing globalisation of employing organisations and the flattening of internal hierarchical organisational systems. This has damaged the Boomer perception that with seniority came security. Many long serving Boomers employees in the late forties or fifties are likely to find themselves stalled or plateaued and facing a situation of no further upward promotions or pay increases. This may present difficulties in terms of motivating older employees who may ve facing limited new challenges and a declining sense of value. The situation also frequently creates a ‘log jam’ effectively preventing the further upward promotion of Gen-Xers. This situation is likely to worsen as Boomers continue to work longer. Boomers respond well to traditional methods of career development and to formal career advancement schemes linked to pay. * Figures from Labour Force Survey (2007) Generation X (born between 1965 – 1981) - *35% of total UK employed Gen X encompasses the lucky group of individuals born in the late 60s but before the 80s really got started. They represent the pop culture of the 70s and are often referred to as ‘latch-key’ kids (often left alone at home because both parents were working) – which explains their independent, resourceful and adaptable approach to work. They possess an entrepreneurial spirit, a do-it-yourself attitude and, in contrast to the generations before them, embrace change in the workplace. They are careeroriented but place a strong emphasis on family time and strive for a good work–life balance. They enjoy freedom and autonomy – they work to live rather than live to work, which is often frowned upon as slack and difficult to manage by the Boomers, who prefer to do the long hours. A flexible workplace is a must for a Gen X-er and they value constructive feedback – which both need to be taken into consideration when managing Gen X. Gen X-ers are seen to be in the best position in the job market at the moment as they are set to step up to the plate and fill the leadership roles when the boomers retire. Where boomers have the experience, Gen X-ers also have the qualifications to go with it. Brought up in an era of technological and social change, Gen-X is tech-savvy and open to change. They possess a different work ethic to the boomers – Gen X thrives on diversity, challenge, responsibility, honesty and creative input, compared to the boomers’ preference for a more rigid, work-centric approach. Having seen their parents’ loyalty to their employer rewarded in the 1980s with losing their jobs through redundancy, tend to change jobs regularly and frequently based on the available job opportunities and rewards. They expect promotions or at least lateral moves frequently because the get bored quickly and will want to move on, either within the same company or to another. Because Gen-Xers have not experienced job security, they see jobs as stepping stones to something else and therefore, may seek greater satisfaction elsewhere. Generation X are seen as loyal only to themselves and their personal goals; they will develop skills and apply them effectively, for which they expect their employer to listen to their needs, create an enabling environment and pay them fairly. Like Generation Y, Generation X are focused on achieving balance in work and life, individualising success and shaping one’s own definite of success from a range of factors. Hence, employers will need to move away from the traditional view of career development as advancement and adopt a more broad-based view that acknowledges subjective, as well as objective, goals and the likelihood that employees will nto be with the organisation for all of their careers. Both X and Y Generations value informal learning opportunities such as seeking out challenging opportunities and taking the initiative on new projects. They also value networking and work-life balance. They may respond well to peer groups or mentoring. * Figures from Labour Force Survey (2007) Gen Y (born between 1982 – 2000) - *20% of total UK employed Known as the technological whiz kids in the generation world, this generation were born in the early 80s through to the 90s (some sources even say right up until 2003). They are predicted to occupy almost half the working population by 2020. Practically born with a mobile phone strapped to their ear and a laptop in their cradle, this generation are totally comfortable with digital technology. Excellent multi-taskers – they’ve had to juggle school, soccer training, dance class, computer games and other social interests, all whilst sending text messages – they are impatient and require instant gratification as they have always had all the information they need at their fingertips via the Internet. Where boomers prefer ‘face time’, Gen Y prefers to communicate through platforms such as email, Instant Messaging (IM), blogs and text messages, rather than on the phone or face to face. Gen Y also prefers cybertraining, web-based delivery systems and telecommuting rather than traditional lectures or training. The typical Gen Y is smart, creative, productive and achievement-oriented. They seek personal growth, meaningful careers, and mentors or supervisors to encourage and facilitate their professional development. They have been constantly surrounded by choice and therefore don’t tend to stay in one job for very long. They require constant stimulation and the opportunity to develop their skills – if they don’t get it, they will walk out the door and find another company quicker than you can say ‘Gen Y’. According to demographer Bernard Salt, the financial sector was seeing a 25 per cent turnover of Gen Y staff each year. However, the global financial crisis has forced them to stay put in their jobs a little longer. With their ‘what’s in it for me?’ attitude, Gen Y focuses on entitlements, rewards, promotions and development, which has often led to ‘gen Y bashing’ over recent years. Other generations see them as arrogant, selfish, lazy and unethical. However, provided with rewards, access to training and inspiring leadership, this generation will thrive and be the one to take business through to the future. The Generation Y cohort make up almost 75% of the McDonald’s workforce. Offering a bespoke training and development programme is a key initiative to achieving high levels of engagement in 90% of their employees. So what about Gen Z? Experts predict that with Generation Z there will be a return to values such as respect, responsibility and restraint. However, with the way technology is heading, most of the jobs that Gen Z will be filling have not even been created yet. The mind boggles. * Figures from Labour Force Survey (2007) Reflection points To what extent do you fit into one discrete generation? Which, if any, characteristics or opinions that you have, come from a different generation? How are these characteristics and views attended to in the workplace in terms of your career development needs? Which of your colleagues’ career aspirations differ to yours and are you able to better understand them having read the proposed profiles for the different generations? If you are a manager, are you able to adjust your approach to accommodate the differing career development needs of your team (assuming generational diversity)? How well have your managers empathised with your career development needs. Did you experience any conflict with any of them and could this have been explained by generational difference? References Parry, E. & Unwin, P (2009) Tapping into Talent: the age factor and generation issues CIPD, London Cam Marston – Motivating the ‘what’s in it for me?’ workforce ISBN 0-9766464-1-2 Harvard Business Review article – ‘its time to retire, a time’ March 2004 KPMG Report – Beyond the baby boomers the rise of generation Y - 2007 * Figures from Labour Force Survey (2007)