2017 scce keynote prague generations copy€¦ · •cost of replacing experienced workers = 50%...

Generational Ethics:A Battle of the Ages

Paul Fiorelli, J.D., M.B.A.Professor of Legal Studies

Co-Director, Cintas Institute for Business EthicsXavier [email protected]

AGENDA

• Discuss Generational Conflicts and Opportunities• Analyze the Impact of Employee Engagement• Discuss Events that Shaped Four Generations• Analyze Each Generations Perception of Ethics

Pressure FeltObserved MisconductReported MisconductRetaliation Perceived

• Recommendations

The Traditionalist - born before 1944The Boomers - born between 1944-1964

Gen X - born between 1965-1980Millennials - born between 1981-2000

Generations

• A generation is a group who shared common experiences at the same time in history

• Shared experiences do not mean common attitudes

• Not meant to stereotype or “pigeonhole”

• Use this information to develop context, empathy and understanding

HBR Motivating Across Generations [p.3] “Members of each generation acquire their own unique motivations, attributes and world view as they live through a shared set of watershed events and conditions. Common experiences doesn’t dictate common attitudes among all members of a given generation. But it does mean that people of like age tend to carry similar influences with them through their lives and careers. “Thus managers can be led astray by one of their most frequently used methods of figuring out how to motivate younger people. ‘We think back to what we wanted when we were their age. That’s more than unproductive, it takes us in the wrong direction. Your own experience as a manager is important, but you need to realize that it has been crucially shaped by generation specific events.

A helpful analogy may be that of a forest. Each tree in a forest isunique, with its own colour, height, growth rate and health. To know how a specific tree will grow, you need to analyse that specific tree. However, you can take a group of trees together in a certain part of the forest and make general comments about them. They will receive the same rainfall, grow in the same richness of soil, and receive similar amounts of sunshine… This is what generational theory can help you to do – to know where to start looking for defining characteristics within a small group of people, such as a team, office, home or church.

Dr. Graeme Codrington, Generations and Culture Around the World, Tomorrow Today, December 2009, 4

Why Do We Care?• 2005 AARP survey - finding skilled employees tops the list in the

most important issue facing business.

• Cost of replacing experienced workers = 50% -150% of their annual salaries (including recruiting, orienting and training)

• Median age of workers in 2015 was 42.3, highest in history.

• Oldest “Boomers” have retired or near retirement.

– Avoid “brain drain” and encourage intergenerational transfer of institutional wisdom

• Commitment to “age diversity” can make a company an employer of choice

• Lee Hecht Harrison survey found 60% of employees experiencing intergenerational conflict.

“Engaged” Employees?• Companies with “highly engaged” employees have a strong tendency

to outperform organizations with “less engaged” employees.

• Managers understanding what motivate employees within different generations more effectively keeps them engaged.

–Higher retention, lower turnover, increased loyalty from employees of all generations

• Engaged employees defined:

–Employees who are willing and able to contribute to organizational success.

–Tend to thrive in inclusive work environments

• value, reward and develop employees from all generations

• Cost of “disengagement”

–2013 Gallop poll estimates cost of employee disengagement at $450 billion per year.

THE “TRADITIONALISTS”

Approximately 4%

Engaging and Integrating a Global Workforce2015 SHRM at 16.

1925 Timeline impacting this Generation?


1945

Name Events that shaped this

generation

Traditionalists around much of the world shared the experience of becoming teens in the midst of major, in some cases cataclysmic, changes in their local environment. For many, the defining event was World War II. The conditions of the post-war world encouraged the abandonment of colonial policies and the emergence of new states, among them India. China ended its long civil war, and transformed into the Communist People’s Republic of China. The Kingdom of Saudi Arabia was in its infancy, having just been formed through the consolidation of the local tribes in the Arabian Peninsula. Brazil was ruled by a dictator.

Traditionalists in the U.S., the U.K., and other countries on the Allied side in World War II exhibit strong characteristics as “joiners.” Most were eager to participate in the post-war boom that created a promising economic climate. This generation experienced the rapid evolution of a middle class that dominated and drove these economies. These members of this generation tended to enter the workforce and advance through affiliation with successful organizations. Most held a strong respect for authority, rooted in their early observations that those in positions of leadership were doing admirable things and warranted respect.

In contrast, many other parts of the world experienced significant economic hardship, either from the aftermath of the war (Russia and East Germany) or from the policies of the then-leaders (Brazil, China, and India). In many cases, leadership demanded compliance, promoting risk-aversion and compliance, rather than respect. Traditionalists reared in these areas retained strong ties to traditional customs and family practices.


• Generations Across the Globe, Tammy Erickson, Harvard Business Review, April 4, 2011

How does this generation view ethics?

36% viewed misconduct at work

39% reported that misconduct

They have a positive impression of the workplaceConfident they can speak up honestly to management, without fear.22% say they would turn a “blind eye” to misconduct that is intended to avoid layoffs and reduce benefits.


Approximately 17%

THE “BABY BOOMERS”


1946 Timeline impacting this Generation? 1965


generation


Perhaps the factor shared most widely by Boomers around the world is simply the sheer size of the cohort. In many parts of the world, birth rates increased during the 1940s and 1950s, producing a large “boom” in the number of adolescents of the 1960s and 1970s. However, within this large cohort, the formative experiences of Boomers differed substantially around the globe.

In the West during their teen years, progressive social values, such as increasing political involvement, civil rights for individuals of different races, and the political and economic liberty of women became popular. In the 1970s, these values extended to opposing the Vietnam War and nuclear weapons, advocating for world peace, and hostility to authority. The environmentalist movement grew dramatically during this period. Boomers tend to share a desire for change, idealism, and anti-authoritarian values.

Members of this generation growing up in other parts of the world, however, experienced very different conditions. The military coup in Brazil produced a generation with anti-authoritarian views, but limited ability to speak out. Similarly, conditions in East Germany and the Soviet Union did not allow for the development of strong generational solidarity against the existing authority. In Saudi Arabia, the rapidly expanding wealth from the oil economy produced a generation that was deeply grateful to those in authority.

Educational opportunities were a key differentiator for this generation globally. The Cultural Revolution in China shaped a generation that is perhaps more different than any other in this age cohort because of the nearly complete lack of educational opportunities available to members during their teen years. Educational opportunities were limited in India, although those who were able emigrated to other countries for advanced education and work opportunities. In the Soviet Union and East Germany, education became a key differentiator among members of this generation, as the best and the brightest were able to excel in the communist system. Education was an important goal for Boomers in Western countries during these years.



44% observed misconduct

64% reported misconduct

Ethics Resource Center, Generational Differences in Workplace Ethics: A Supplemental Report of the 2011 National Business Ethics Survey. 2013 (USA). at 6, 8, & 22. available at ethics.org.



Need to believe the compliance program is implemented well.Need to use company standards of conduct, when confronting questionable activity.Need formal systems to incentive ethical conductEncouraged to use formal channels to provide guidance.Need to feel prepared to deal with problems, as they occur.Boomers are in search of ethical leadership by management.

Approximately 20%

GEN “X”




generation

GEN “X”

For Generation X, the state of the local economy during their formative years had major implications for their outlook on life today.

In many parts of the world, the economy struggled. In the U.S., the 1981 recession prompted a major wave of layoffs. In Brazil, the arduous transition from a military dictatorship to civilian rule, along with growing exposure to foreign trade, weakened the local economy and intensified the country’s financial crisis. In Germany, the integration of East Germany came at significant financial cost. In Saudi Arabia, steeply declining oil prices created government deficits for the first time. These different underlying factors all contributed to shaping individuals who value self-reliance. X’ers in these areas tend not to rely on institutions for long-term financial security.

Members of Generation X in China and India had very different formative experiences. In both countries, sudden reforms brought the promise of new economic opportunity. In India, loosened business regulations and restrictions on foreign investment and imports, along with reductions in bureaucracy spurred a boom in economic activity, including a major expansion of the telecommunications industry and space program and the birth of the software and information technology sector. In China, post-Mao economic reforms de-collectivized the countryside, decentralized government, legalized private ownership, and created Special Economic Zones for capitalist investment. China was exposed to American pop culture, cinema, nightlife, and brands and to a cultural renaissance, the return of traditional Chinese culture, Buddhism, Taoism, and Confucianism. Living standards, life expectancies, and literacy rates rose, along with a growing urban middle class. X’ers in these countries were eager to join the growing economy and willing to compete for still-scarce educational slots.

GEN “X”


45% observed misconduct


Ethics Resource Center, Generational Differences in Workplace Ethics: A Supplemental Report of the 2011 National Business Ethics Survey. 2013 (USA). at 6, 8, & 22 available at ethics.org.

GEN “X”


Less likely to report without opportunity for formal adviceDo they know if there’s a helpline/hotline, ethics or compliance officer?Can they report to the legal department? HR? Internal Audit?Need to publicize ways of getting important information to the company.

Approximately 30%

GEN “Y” - “Millennials”




generation


Members of Generation Y around the world had the greatest number of shared experiences of any of the generations profiled. Technology, of course, is at the core: in most countries, Y’s have had almost lifelong access to digital technology and, because of that technology, they have developed a shared awareness of many events and a unique always-on connection with one another.

One of the key differences among Y’s around the world is the degree to which their immediacy translates into a strong desire for financial success; this financial value is strongest in the BRIC countries and others in which the economy is expanding rapidly for the first time. In many Western countries, the sense of immediacy encompasses a broad set of considerations: whether the current work is challenging and important, as well as financially beneficial.

Of the countries profiled in this research, Saudi Arabia’s Generation Y is probably the most different from others in this age cohort. In Saudi Arabia, Y’s tend to be more religiously conservative than previous generations and more mistrustful of those in authority, while in most other parts of the world, Y’s are both progressive and trusting of authority. Throughout the Middle East, Y’s struggle to find balance between tradition and modernity. As recent events show, this generation’s large size gives them a strong voice in the future of this region.



49% observed misconduct- An unfavorable result


Ethics Resource Center, Generational Differences in Workplace Ethics: A Supplemental Report of the 2011 National Business Ethics Survey. 2013 (USA). at 6, 8 & 21. available at ethics.org.



Need to feel prepared to handle the situation.Without effective training, less likely to report.Best training allows interaction with colleagues.Need to know the resources for seeking advice.



generation

GEN “Z” - “Plurals”

28

GENERATIONAL COMPARISON

Ethics Resource Center, Generational Differences in Workplace Ethics: A Supplemental Report of the 2011 National Business Ethics

Survey. 2013 (USA). at 6. available at ethics.org.

2017 Deloitte Millennial Survey

Business Behaves Ethically

Valu

e Ax

is

0

17.5

35

52.5

70

2015 2016 2017

30

37

44

65

5852

Agree Disagree


Leaders Committed to Improve Society

Valu

e Ax

is

0

17.5

35

52.5

70

2015 2016 2017

32

3944

6257

53

Agree Disagree


Managing Generations - Business• Have open conversations about generations

– Respect longevity, but reward productivity

– Develop ways to transfer knowledge (institutional wisdom) from one generation to another (mentoring, reverse mentoring)

• Ask employees about their needs and preferences

– Job rotations and horizontal movements to improve skill sets

– alumni programs to welcome back returning employees

• Offer options

– Consider “phased retirements” - reduced capacity for a few years

– Long-term care policy may be important to one group, tuition reimbursement and child care to another

• Pursue different perspectives - do more than tolerate differences, embrace it and use it as a competitive advantage for recruitment, retention, career development, client marketing and customer satisfaction.

Managing Generations - Ethics

• Targeted Training for Younger employees

– Help identify and address common ethical issues

• Supervisors help develop younger employees professional ethics standards

– Provide support & guidance

• Develop Millennial’s appreciation for confidentiality

– Explain policies about information sharing and intellectual property

CLOSING THOUGHTS

We need diversity of thought in the world to face the new challenges.

Tim Berners-Lee (British Physicist)

Posterity: you will never know how much it has cost my generation to preserve your freedom. I hope you will make good use of it. John Quincy Adams

Few will have the greatness to bend history itself; but each of us can work to change a small portion of events, and in the total; of all those acts will be written the history of this generation. Robert Kennedy

References• Motivating Across Generations, David Stauffer, Harvard Business Review, 2003

• https://hbr.org/product/motivating-across-generations/an/U0303B-PDF-ENG

• Generational Differences in Workplace Ethics: A Supplemental Report of the 2011 National Business Ethics Survey, Ethics Resource Center, 2013

• https://rsp.uni.edu/sites/default/files/ERC%20Generational%20Differences.pdf

• The Deloitte Millennial Survey 2017

• https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html


• https://hbr.org/2011/04/generations-around-the-globe-1

• Generations and Culture around the World, Dr. Graeme Codrington, Tomorrow Today, December 2009.

• http://tomorrowtoday.uk.com/articles/pdf/TomorrowToday_generations_culture.pdf

• Engaging and Integrating a Global Workforce, SHRM, February, 2015

• https://www.shrm.org/foundation/ourwork/initiatives/preparing-for-future-hr-trends/PublishingImages/Pages/Engaging-and-Integrating-Global-Workforce/6-15%20Theme%202%20Report-FINAL.pdf

2017 scce keynote prague generations copy€¦ · •cost of replacing experienced workers = 50%...

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