The Art and Science of Talent
Management:
The Future is in Understanding the Next Generation
The Generations Collide…
When does intergenerational
conflict in the workplace occur?
What causes it?
A New Lens of Diversity:
Generational Differences
• Managing generational differences is a critical part of your
Talent Management Strategy.
• These differences impact recruitment, engagement, and
retention.
• It’s time to reduce the focus on generational conflict and
focus on common ground issues that will make a difference.
Are you a Gen Savvy Leader?
Gen savvy leaders are those
who understand generational
differences and are able to
make these differences
become a workforce asset,
not a problem to be solved.
Connection Activity
• Let’s discuss the following questions:
“How do you see generational differences showing up
in your company?”
“What are your experiences with this topic?”
Why Is This Perspective Important?
A seismic shift is occurring in the US labor
market.
– By 2012, 40% of the US workforce is now 40+
– In US manufacturing, the average age is now 50+
– Federal workforce (1.6 million civilians): half can retire
within 3 years, 70% of supervisors
– NASA scientists and engineers: Those over 60 outnumber
those under 30 3:1
Changing US & World
Demographics
•
Between 2004 and 2015, over half of net workforce growth
in the US will come from Asians and Hispanics
•
Between 2020 and 2050, they will account for all net
workforce growth.
•
This isn’t just a US issue:
– Germany’s workforce will be 25% smaller by 2025
– Italy’s population will drop 28% in the next 50 years.
– Japan’s Working Support Ratio (the number of working age
people, 15-64, relative to the # of elderly) is one of the world’s
lowest.
Let’s Meet Five Generations
• Civic / GI (1922-1931)
• Adaptive / Mediating (1932-1945)
• Baby Boomer (1946-1964)
• Gen X (1965-1981)
• Gen Y / Millennial (1982-2000)
Civic/GI Generation (1901-1931)
• The “Greatest Generation”
• Shaped by the Depression & WW II
• Mostly gone from the workforce, but still a
powerful presence in many orgs.
• Practical, dedicated, loyal, hierarchical
• Examples: GHW Bush, Warren Buffet,
Frank Sinatra, Sandra Day O’Connor
Adaptive/Mediating (1932- 1945)
• Pioneers in new attitudes about retirement,
aging, and health
• Leading the way for what’s coming
– Staying in the workforce
– Leaving the workforce and “ReFiring®”
• Still providing leadership in the workplace and
beyond.
Examples: John McCain, Gloria Steinem, Dick
Cheney, Elvis, Jesse Jackson, Tina Turner, Joe
Biden, Colin Powell, Jane Fonda
Boomers (1946 – 1964)
• Largest cohort, 76 – 85 million
• So used to being the center of the universe; the “pig in
a python” generation
• Expect fulfillment in all areas of life
• Want to keep working, but do something different
• What’s next?
• Examples: Oprah, Bill & Hillary Clinton, GHW Bush,
Bruce Springsteen, Bill Gates, Barack Obama, Sara Palin
(cusp)
Gen X
•
•
•
•
•
•
(1965 – 1981)
Work to live, not live to work
Company loyalty doesn’t pay off
Wish that Boomers would get out of the way
Very media savvy—skeptical
Want flexibility in their work
Examples: Tina Fey, Larry Page & Sergey Brin
(Google), Bart Simpson, Tiger Woods
•
•
•
•
Gen Y / Millennials (1982-2000)
Very high expectations!
Team/group oriented
Often received “stuff” instead of time from their parents
Technology is like breathing—
multi-tasking is the norm
• Troubling attitudes about fame and
becoming rich*
• Ex: Lindsay Lohan, Daniel Radcliffe (Harry Potter), Luke
Ravenstahl (mayor of Pittsburgh), Venus Williams, America
Ferrera (Ugly Betty)
*
Source: Pew Research Center Study on Generation Next, January, 2007
Gen Y in the World
• Most tolerant on social issues such as immigration, race, and
homosexuality
• Maintain close contact with parents and family—8 in 10 have
talked with their parents in the last day.
• About half have a tattoo, an “untraditional” hair color or a
body piercing other than in their ear lobe.
Source: Pew Research Center study on Generation Next, Jan. 2007
People Entering the Workforce
Right Now…
• Are too young to remember the space shuttle
blowing up on liftoff.
• Have always had an answering machine.
• Cannot fathom not having a remote control.
• Have always cooked popcorn in a microwave.
• Have never taken a swim and thought about Jaws.
• Bottle caps have always been screw-off and plastic.
Oh Yeah, Those Boomer Parents
• Gen Y carries the Boomer’s high expectations, hopes, and
fears
• Who bought them all that stuff?
• Impact of the self-esteem movement
• Team/group orientation has positive and negative
consequences
• The extreme: helicopter parents
Impact of Generational Differences
• Values
• Attitudes towards work
• Work styles
• Job satisfaction criteria
• Levels of commitment to the organization
The New Economy Organization
21st Century
1950 – 2000
•
Hierarchy
•
Flattened structures
•
Different levels by age
•
Fewer levels bring generations
kept generations apart
together
•
Job security
•
Free agency
•
9–5
•
24 x 7
•
Face time in the office
•
Virtual work, virtual teams
Source: Diane Pitkialis, the Conference Board, 2007
Generation Gaps at Work
• 75% of workers 55+ say they relate well to
younger coworkers.
• Only 56% of younger employees relate well to
older workers.
Source: Ransdsat USA 2006
Flashpoint Issues
• Dress/appearance
• Work hours/work ethic
• Technology
• Expectations for advancement
• Communication
• Lack of respect
• What do notice about generational conflicts
in your Organization?
– What are the flashpoints of misunderstanding or
conflict?
– Do you see examples of rolled eyes and blind
spots?
• What specifically could/should managers do
to address these issues?
The Risk for Employers*
Disengagement
• Poor productivity
• Low morale: “they just don’t get it”
• High turn-over
• Poor recruitment results
* Generational differences are not the only cause of these employer risks, but are a significant
contributor
Workplace Current State
• Executives: mostly in denial, but becoming more concerned
about generational issues
• Confusing messages about the impacts of:
– Immigration.
– Technology.
– How long the Boomers will stay.
– The current economic situation
More Than a Labor Shortage
• Labor:
• Skill:
fewer workers in the labor pool
shortage of high-skill workers
• Knowledge:
loss of critical knowledge in
all sectors of the economy
Source: David W. DeLong, “Lost Knowledge”, 2004
What Do They Want?
Boomers:
– Phased retirement (80% say they want it)
– Flexibility in work hours and benefits
– Opportunities for continued growth,
including training and education
– Rewards for their work ethic and long
hours
What Do They Want?
Gen X:
– A chance to show what they can do:
equality and fairness
– Flexibility in work hours and benefits:
fewer rules
– A fun and informal work environment
– Career development opportunities
– Cutting edge technology
Gen Y:
What Do They Want?
– Interesting, challenging work with
fast upward mobility
– Mentoring, feedback, access to
opportunity. Now.
– Career development
– Work in teams
– Respect
– Newest technology
Common Ground for the
Generations
•
•
•
•
Workplace flexibility: schedules and location
Coaching approach to leadership
Desire for development
Respect
• Dress code:
Benchmarks: What do other
companies
do?
“You must wear clothes”.
• An organization that is flat, transparent, and non-hierarchical.
• A company-wide rule that allows developers to devote 20% of their
time to any project they choose.
• “Keep the bozos out” and reward people who make a difference.
• Employee services that make it easy to balance work/life
Source: Gary Hamel, “Management à la Google,” WSJ, April 26, 2006.
Image: http://flickr.com/photos/myklroventine/2372327933/
Benchmarks: What do other
companies do?
• Basic organizational unit = team, not store
• High autonomy, high accountability
– Product Selection, Promotion, and Hiring
– Every four weeks, Whole Foods calculates the profit per labor hour for
every team in every store.
CEO John Mackey:
“We don’t have lots of rules that are handed down from headquarters in
Austin. We have lots of self-examination going on. Peer pressure
substitutes for bureaucracy. Peer pressure enlists loyalty in ways that
bureaucracy doesn’t.”
Source: Charles Fishman, “The Anarchists Cookbook,” Fast Company, July 2004.
1. What should your organization do to create a more “gen
friendly” workplace?
2. What should individual leaders/managers do?
Individual reflection and goal setting:
2. What can YOU do?
How can you integrate the common ground factors into these
solutions?
Summary
• The key for working well across generations?
– Respect (defined by whom?)
• Look through the lenses of other generations
— it’s a different perspective!
Korn/Ferry International
Nick Huck
2000 Corporate Ridge Drive
McLean, VA, 22102
703-547-0500
Nick.Huck@KornFerry.com
www.KornFerry.com