Motivating and Leading an Intergenerational Workforce

Content of this eBook is based on the Ceridian Connection webinar held July 30, 2013.NEXT >>

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About the Author Lisa Bull is a Baby Boomer that has been with Ceridian for more than a decade. She wears many hats within Ceridian including designing, building and delivering training for Ceridian employees and for Ceridian LifeWorks services. Her specialties include counseling psychology, employee assistance programs, health and wellness. She also has a master’s degree in Counseling Psychology from the University of Calgary.

Prior to Ceridian, Lisa held roles at the University of Calgary and Rogers Broadcasting.

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Introduction For the first time in modern history, there are four distinct generations in the workplace. It’s not uncommon for teams to have a 20-year-old working side by side with a 58-year-old. In my own organization, I have a mother and daughter who work together — the daughter is 22 and the mom is just retiring. They’ve been successfully working together for a number of years now.

Generational differences require a different management approach in order for the employees within those groups to really work well together as a productive, innovative and cohesive team. There is value in trying to understand these differences so that we can develop the best strategies for working together.

It’s also really important for us to focus on this topic because conflicts and clashes between the different generations sometimes present real challenges for us as managers. Research done by Lee Hecht Harrison in 2005 found that more than 60 percent of employers were experiencing some kind of intergenerational conflict within the workplace. It might not be big issues that bring these conflicts to bear — sometimes they’re small and subtle amongst the generations — but nonetheless there are differences, and we want to make sure that we understand them so we can hopefully avoid some of those conflicts.

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In this eBook you’ll learn

• Rationale for focusing on the impact of different generations on the workforce

• How to identify the unique values, preferences and behaviors of each generation

• How to dispel of the biases and myths regarding each generation

• Critical skills for motivating and leading each generation

• Issues which are important to all generations

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The Business Case for Understanding Generational Differences in the Workforce

Focusing and understanding intergenerational issues can really help us in a number of different ways because it impacts so many areas. For example, most organizations are concerned with employee engagement and building cultures where all employees feel engaged. In order to do that, we need to figure out how we create workplaces which value, reward and recognize employees across the generations. In other words, we can’t have an employee engagement strategy that’s one size fits all — we need to understand what motivates and inspires each of the generations.

Creating an enhanced awareness of intergenerational characteristics also builds understanding and fosters respect. The more we talk about the similarities and differences between generations, the more likely we are to create a healthy and supportive culture.

We can’t have an employee engagement strategy that’s one size fits all...

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Businesses that address generational issues also tend to see improvements in their ability to attract new employees and to keep those employees. If we’re really addressing the different needs of each generation, it’s not surprising that we’re going to attract workers to our workplaces because they know we really are getting and delivering against their needs. And similarly, we’re much more likely to retain the skilled employees that we have in place.

Finally, if our employees feel that we’re recognizing the unique needs of their generation we’re much better able to then provide that same kind of support and service to our customers. This understanding and generational adaptation translates to a much better experience for both internal and external customers.

...we need to understand what motivates and inspires each of the generations.

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Generation Defined A dictionary would define a generation as a 15-20 year period in time. But we also know that members of a generation tend to share a common time in history. Therefore, the age group or age cohort shares unique formative experiences.

We consider the formative years to be about the first 20-23 years of a person’s life. As a result of shared experiences and teachings, people within an age cohort develop a unique set of core values and attitudes that tend to be different from other generations.

Generational characteristics can influence a lot of the choices that we make in life. For example, they may impact the careers that we choose, influence the products we buy, and influence the kinds of lifestyle we need.

Factors that define a generation

• Parenting styles/guidance

• Peer group interactions

• Media and popular culture

• Historical and cultural events (e.g., moon landing, falling of the Berlin Wall, Hurricane Katrina)

• Societal values and norms

• Technology (e.g., transistor radio, advent of personal computers, smart phones)

• Leaders, popular icons or figures

People resemble their times more than they resemble their parents.Arab proverb

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While there’s not always exact agreement on the specific timeframes that each of these four generations fall into, there’s general agreement on the names used to describe each generation.

1. Veteran/Silent Generation or Traditionalists (born between 1925-1945)

People in this generation are currently between 68-88-years old. Because of the changes in retirement, more people are staying in the workplace longer. Currently, about 5 percent of the U.S. workforce is made up of people who fall within this generation.

2. Baby Boomers (born between 1946-1964)

Historically, this has been the largest generation and continues to be the largest population in the workplace today. People in this generation fall between 49-67-years-old. Upwards of 38 percent of our workplace today is represented by this generation.

3. Generation X (born between 1965-1980)

People in this generation are currently between 33-48-years-old. About 32 percent of our current workforce is represented by Generation X.

4. Generation Y or Millennials (born between 1981-2000s)

This generation is currently aged between 15-32-years-old. About a quarter of the workforce is represented by Millennials. However, it is estimated that by next year Millennials will account for nearly half of the employees in the world. And, in some companies in North America, Gen Y already constitutes a majority of the workforce.

Four Generations in the Workplace

Bureau of Labor Statistics, 2010

Percentage of each generation in the workplace

5%

38%Baby Boomers

32%Generation X

25%Millennials

Veterans/Traditionalists

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Here’s a handy summary of the four generations in the workforce and some of the high-level values and events that come into play.

Generation Names

Year of Birth Values Work-related

ValuesWorld Events/ Innovations

Veteran

Silent

Conservatives

Mature

1925-1945 Conformism

Thrift

Maturity

Obedience

Loyalty

Obligation

Security

Great Depression

World War II

Baby Boomers

Boom(er)

Me Generation

1946-1964 Idealism

Creativity

Tolerance

Freedom

Workaholism

Criticism

Innovation

Kennedy/MLK assassinations

Vietnam

Moon landing

Counterculture movement

Generation X

Xers

13th generation

1965-1980 Individualism

Skepticism

Flexibility

Learning

Entrepreneurial spirit

Materialism

Oral contraceptives

The Cold War

Generation Y

Millennials

Generation Next

1981-2000s Moralism

Confidence

Positivity

Environmental consciousness

Passion

Balance

Leisure

Security

Internet

MTV

9/11 attacks

Fall of the Eastern Block

Managing the Multigenerational Workforce Delcampo, Haggerty, Haney, Knippel.

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It’s pretty common to feel most comfortable and confident about the generation that you fall into. As you continue through this eBook, reflect upon your own team and its intergenerational makeup. As you gain a bit more information about each generation, you should start to feel a bit more comfortable.

I also want to remind you that good management practices are critical for all generations. One size doesn’t necessarily fit all, so we want to look for the subtle but important differences across the generations so that we know how to best apply our strong management practices.

What generation do you feel you know the least about?

19.7%Veterans/Traditionalists1927-1945

5.4%

18.4%Generation X

1965-1980

56.5%Generation Y

1980-1998

Baby Boomers1946-1964

Source: 325 participants of Ceridian Connection webinar July 30, 2013

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Generational Myths, Realities and Best Practices Let’s start by having a look at some of the myths that exist about the Traditionalist generation.

Research dispels each of these three myths about the Traditionalist generation. One of the things that sometimes gets suggested is that as people age there can be occasional cognitive declines that happen. However, what we have seen and what the research shows us is that when you combine strong experience with a mature worker you will often offset any kind of cognitive declines.

MYTH

MYTH

MYTH

REALITY

REALITY

REALITY

Older workers can’t learn technology.

Older workers get sick more often than younger workers.

Older workers are not as productive.

When training is done in a respectful and low-stress environment, older adults are willing students.

Mature workers are less likely to have dependent children/care responsibilities and use less time for short-term illnesses.

Research suggests no significant relationship between age and productivity.

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Motivating Strategies for Veteran/Traditionalist Generation:

“Your experience is respected here.”

Employees in this generation want to know that what they bring to the workplace is respected, and that we look at experience as an asset and not a liability. We respect the fact that they’ve worked hard for many years and that they’ve persevered in a career.

This generation is one that prefers a personal touch. When possible, a face-to-face meeting will go a long way. They like to be asked what’s worked well in the past. Draw on their experience and provide them with opportunities to share that experience. Many organizations set up mentoring programs where they pair a more senior member of a team with someone who is newer to the team. This is a great way to bring the new team member up to speed while providing the Traditionalist with an opportunity to share the rich body of learning that they have.

From a communication perspective, this is a generation that in general would prefer things like memos, letters, and personal notes. If you’re thinking about rewards and recognition, any kind of tangible symbol of loyalty and service, like plaques and certificates, help demonstrate that you appreciate their loyalty and experience.

There are some things you should avoid with this generation – touchy-feely approaches, trendy or experimental management styles, profanity or slang. Traditionalists may be uncomfortable with conflict and can sometimes struggle with adaptability. There may be some reluctance to “buck” the system or to do things differently than the way they’ve always been done. This is a generation that values consistency, organization and structure. So, if you as a manager or a leader are appearing inconsistent or disorganized in your approach, that’s something that is probably going to be demotivating for this group.

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Now let’s review some of the myths surrounding Baby Boomers.

A primary myth around Baby Boomers is that they are a very self focused generation, when in fact many Boomers are committed to finding meaningful work in areas such as education or social services. As with the other two myths, the reality is often very different for this generation.

MYTH

MYTH

MYTH

REALITY

REALITY

REALITY

Baby Boomers are workaholics.

Baby Boomers are self-focused.

Baby Boomers have quit learning.

Boomers report being committed to a slower pace and simplification.

Research suggests that 58% of Boomers are interested in finding work that “contributes to the greater good.”

One research study shows that Boomers are enrolling in learning programs at record rates.

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Motivating Strategies for the Baby Boomer Generation:

“Your opinion is valued.”

This is the slogan we’d embroider on a t-shirt or put on a bumper sticker to inspire and engage Boomers. It’s highly important to this generation to feel that their opinions and their input is valued and heard.

Since some of this generation may be beginning to retire, flexible work arrangements and schedules are desirable. Many people in this generation also find themselves in what has been called the Sandwich Generation — responsible for children at home/college as well as older family members. And so this generation is motivated by a workplace that provides them with the opportunity to tend to those caregiving needs.

Boomers are looking for challenging work opportunities; ways to get involved and make a difference. They are looking for opportunities to take a phased approach to retirement. Being able to go to a part time work schedule and ease into retirement, fulfill this generation’s desire to contribute as well as to meet financial needs.

One of the things that can be very motivating for Baby Boomers is when we’re able to offer incentives that include things like health and wellness programs that allow them to focus on their overall well-being. Staying healthy can be particularly important for those who have caregiving responsibilities at both ends of the age spectrum.

Your opinion is valued.

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From a communication perspective, picking up the phone works well with Baby Boomers as does any other personal interaction. Rewards and recognition for strong work ethic and long hours are typically well received.

Potential liabilities to watch for with Boomers include lack of budget focus, reluctance to go against their peers, and putting process ahead of results.

As a manager or a leader of this generation, it’s really important to be open and listen to input and opinions. Any kind of bureaucratic red tape — anything that’s going to slow down process — is something to avoid. An attitude of disinterest is something that can be off-putting for employees within this generation.

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Often when we’re thinking about working with our employees, we tend to fall back on the things that motivate us and assume that it’s the same for all groups. Keep in mind the “titanium rule” (a little bit different than the golden rule) which is to “do unto others keeping their personal preferences in mind.” Again, we need to recognize that what is motivating to us might not always be motivating for employees from a different generation.

Source: 325 participants of Ceridian Connection webinar July 30, 2013

What motivates you the most?

Flexible work schedule

An opportunity to share your experience with others

Regular/on-going feedback

Autonomy

46.2%

15.4%

17.5%

20.8%

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Now here are a couple of common myths about Generation X.

Movies have been made around GenX (remember Reality Bites?) that highlighted a couple of these myths. This generation is often considered to be “slackers” that aren’t willing to work hard. Research dispels this myth finding that Gen Xers often devote more hours at work than the average. The survey found that 86 percent of Gen Xers were employed and about 70 percent of them were devoting 40 or more hours of work each week. One of the things that Gen Xers say about themselves is that they are willing to work hard; they’re just not willing to work a 60 hour week for 40 hours worth of pay.

Instead of thinking of Gen Xers as negative cynics, this generation would prefer to be considered pragmatic. They argue that they bring a more realistic perspective to the workplace. And Gen Xers are far from disconnected — 95 percent of those surveyed report talking with friends or family on the phone at least once per week. In fact, one in three Gen Xers reported they were an active member of a church or a religious order. This generation does believe in positive, hopeful things in a practical way.

MYTH

MYTH

REALITY

REALITY

Gen Xers aren’t willing to work hard.

Gen Xers are cynical and disconnected.

This generation will work hard – devoting more hours at work than average.*

This generation prefers “pragmatic” as a description saying that they bring a realistic perspective to the workplace.

*The Generation X Report University of Michigan’s Longitudinal Study of American Youth. (2011)

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Motivating Strategies for Generation X:

“Do it your way.”

What this generation is looking for is a workplace that provides them with a lot of different options for their workplace schedule and approach. While it may seem unconventional, letting this group come up with what works for them to get the job done can be very effective.

This is also a generation that is comfortable with and likes to work on their own. It’s a group that likes crisp, fast feedback. (FAST being the acronym for Frequent, Accurate, Specific and Timely feedback.) So, provide your Gen Xer with data on what they’re doing right and make sure you’re following the FAST model.

It’s important to note that while pay is more important to this generation than any other, it’s still not one of the top drivers of employee engagement. About 16 percent of Gen X indicated pay was their number one motivator in the workplace compared to about 10 percent for the other three generations.

Preferred communication for Gen X includes quick, easy channels such as voicemail or email. Effective rewards and recognition include additional free time, upgrades to resources/technology, and any career opportunities or certifications.

Potential liabilities to watch for with Gen X include enhanced skepticism and distrust of authority. As a manager or leader, avoid micromanaging this group. They really like to focus on outcomes, so don’t become too hung up on process. Being genuine is highly valued by this generation, so anything that appears disingenuous or looks like “schmoozing” should be avoided.

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To complete our analysis of generational myths, realities and best practices, we’ll focus on the Millennials.

Lots of myths abound for this generation of our newest workers. The primary rap against Millennials is that they have a sense of entitlement. However, recent research dispels this myth with the finding that this group self-identifies as entrepreneurial. They are prepared to work hard, but not at the expense of balance. Millennials want to be able to do what matters to them outside of work, and this may be misread as entitlement.

MYTH

MYTH

MYTH

REALITY

REALITY

REALITY

Millennials have a sense of entitlement.

Millennials are self-focused – just in it for themselves.

Millennials have a lot in common with Gen Xers.

One study of U.S. employees found that Millennials have an “entrepreneurial spirit.”

Research indicates that this generation has the highest levels of social concern/responsibility since the 1960s.

This generation actually has more in common with Baby Boomers and Traditionalists.

2013 Millennial Impact Report http://www.themillennialimpact.com/2013research

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As the Millennial Impact Report uncovered, this generation has high levels of social concern and responsibility. In fact, 83 percent of Millennial survey respondents made a financial donation in 2012 and 63 percent reported volunteering for a nonprofit. Millennials express a real commitment to making a difference in the world, and that’s not just about work but about giving back to the community.

Millennials also share some common values, such as security, contribution and collaboration, which align them more closely with the Baby Boomer and Traditionalist generations than they do with Generation X.

In the U.S., about 20 percent of people between the ages of 25-34 currently live in multigenerational homes.]

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Motivating Strategies for Millennials:

“You’ll be working with other bright and creative people.”

Millennials have a strong desire to be in a vibrant work environment. This is a generation that craves constant and ongoing feedback. I see this illustrated in my current work team. One of my Millennial employees said to me the other day, “My mom tells me not to keep asking for feedback, but I really want it. So, how am I doing?”

Millennials are engaged when they receive guidance and coaching around career opportunities. So it’s really important to help them understand what the future holds and what’s in store for them in terms of their career.

As managers and leaders, anything we can do to help Millennials connect to work that’s personally fulfilling and meaningful is impactful. Any kind of training, particularly training around how to advance their career, is also valued.

This generation wants to work for an organization that values some sort of personal and work-life balance. In PWC’s 2012 NextGen Study, they found that the number one engager for this group was work-life balance.

This is a group that grew up with technology — many of them were using computers when they were five years old. So, it’s no big surprise that this generation prefers communications such as instant messaging, texts, emails, and blogs. In terms of reward and recognition, certificates or other tangible rewards are motivating as evidence of credibility.

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Because Millennials may not have much depth of experience, they do tend to need supervision and structure. This lack of experience can really come into play as Millennials deal with difficult people issues, so they may need extra coaching and mentoring to help them address some of these situations.

As leaders and managers, you need to treat this group with respect. Just like the Traditionalist generation, Millennials value politeness and good manners — it just may sound and look a little different. It’s important not to come across as cynical, sarcastic or condescending. This is devaluing their skills and experiences which can be highly demotivating for this group.

Avoid being threatened by the tech savvy that this group brings to our teams. Instead, take advantage of this technical expertise and comfort and learn from it. As a Baby Boomer leader, I reach out to my Millennials on a regular basis and ask them to show me, help me and teach me.

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Managing Across the GenerationsIn this eBook we’ve covered the specific and unique characteristics of each of the generations. But what do these generations have in common? We know that good management practices cross all generations, so what are some things that are important to all groups?

Personal fulfillment and satisfaction at work

Supportive environment

Feeling valued at work

Employees of all ages and generations see work as more than just a paycheck. They see their job as a way of getting personal fulfillment and satisfaction.

• Pay/money is not the top indicator of job satisfaction; it falls in the top five indicators.

Employees want to work in an environment that is supportive and where they are recognized and rewarded for their efforts. While the way we reward and recognize may vary across the generations, everyone wants to feel appreciated.

• More than 70 percenti rate a supportive environment as important.

The highest indicator of job satisfaction is when an employee can say, “I feel like what I do matters. I think the work that I do is valued here.”

iLeading a Multigenerational Workforce, AARP 2007

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Flexibility

Career development

The theme of flexible work environments cuts across all generations.

• More than 70 percentii of workers would like to set their own hours.

To feel engaged, the majority of employees want some level of career development and growth. Managers can support this priority by having discussions with employees about their goals and by providing opportunities to strengthen their skills and experiences.

• Nearly 75 percentiii of all employees rate career development as a high priority.

iiLeading a Multigenerational Workforce, AARP 2007iiiLeading a Multigenerational Workforce, AARP 2007

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Conclusion and Next StepsWhile understanding what makes each generation “tick” can be useful context in the workplace, it shouldn’t replace best practice communication and management principles.

Taking the tools provided in this eBook, think about the generational makeup of your team and your current management/motivational approach:

Remember, we each approach our work environments with different perspectives that may be influenced by our own generational group. Avoid stereotyping your team members based on their generation. Instead, embrace the unique values and experiences each employee brings to the team.

The value of having this generational information and data is using it to enhance your empathy and understanding of others. When we become better listeners and improve our communications on our multigenerational teams, our teams will ultimately become more effective.

What is one thing you can start doing differently right away?

What is one thing that you can stop doing or change right away?

What are you currently doing well that you will continue to do?