Generational Issues

General Issues In the workforce

and

HRrsquos role in managing them

Presented by

lt Connie Jeff Sarbani Jinman gt

Team Presentation April 7 2008Presentation April 7 2008

Aging Boomer Population and How HR practitioners can adapt to their unique needs 11

Hiring and Retaining Millennials 22

Facilitating Information-Sharing Among Generations 33

Generational Issues and Culture44

Contents

Defining the Generations in the USDefining the Generations in the US

Born before 1945 ldquoVeteran Generationrdquo 48

Between 1945 ndash 1964 ldquoBaby Boomersrdquo 78

Between 1965 ndash 1980 ldquoGeneration Xrdquo 49

After 1980 ldquoGeneration Yrdquo 735

or ldquoMillennialsrdquo

Born before 1945 ldquoVeteran Generationrdquo 48

Between 1945 ndash 1964 ldquoBaby Boomersrdquo 78

Between 1965 ndash 1980 ldquoGeneration Xrdquo 49

After 1980 ldquoGeneration Yrdquo 735

or ldquoMillennialsrdquo

Millions

Impact of ldquoBoomersrdquo on the WorkforceImpact of ldquoBoomersrdquo on the Workforce

Labor Shortages The Employment Policy Foundation

projects shortage of 10 million workers by 2015

35 million by 2030

Leadership Vacuum and Knowledge Gap

Economic Burden of Retirees

Labor Shortages The Employment Policy Foundation

projects shortage of 10 million workers by 2015

35 million by 2030

Leadership Vacuum and Knowledge Gap

Economic Burden of Retirees

Practices for Managing the ldquoBoomersrdquoPractices for Managing the ldquoBoomersrdquo

Establishing a Motivational Culture for Boomers

Recruiting Baby Boomers

Career Management for an Older Workforce

Programs Addressing WorkLife Balance

Flexibility in Phasing Retirement

Establishing a Motivational Culture for Boomers

Recruiting Baby Boomers

Career Management for an Older Workforce

Programs Addressing WorkLife Balance

Flexibility in Phasing Retirement

SC Johnson Number One for Workers Over 50

AARP commended SC Johnson for creating a workplace of excellence by offering a variety of exceptional benefits including compressed work schedules paid sabbaticals summer hours and a December holiday shutdown

FOR IMMEDIATE RELEASEJanuary 17 2008

PARTNERSHIP FOR PUBLIC SERVICE AND IBM TEAM TO STEER BABY BOOMERS TO MISSION CRITICAL GOVERNMENT JOBS

Who are the MillennialsWho are the Millennials

Gen Y generally refers to those born after 1980 to

about 2000 Also known as ldquoNexters Millennials

Generation Me iGenerationrdquo Gen Y is the fastest-growing segment of the

workforce mdash growing from 14 of the workforce

to 21 over the past four years to nearly 32 million

workers

Gen Y generally refers to those born after 1980 to

about 2000 Also known as ldquoNexters Millennials

Generation Me iGenerationrdquo Gen Y is the fastest-growing segment of the

workforce mdash growing from 14 of the workforce

to 21 over the past four years to nearly 32 million

workers

Millennials are the biggest generation since the Baby Boomers

Tips on Hiring Millennials

Relationship recruiting

Candidate experience

Offer

Employment branding

Tips on Retaining Millennials

Onboarding

Mentoring

Feedback

Flexibility

Career-pathing

Promotes Technology

Flexible Work Schedule

Changes have trickled up through the company

Bridging the gap

Bridging the gap between generations by sharing information is the most important function of talent management at this point Or else itrsquos going to be a topsy-turvy situation the workplace resembling a battle ground

Statistics

Generation Type Number in USA Workforce

Seniors Veterans 42 millionBaby boomers 76 million

Generation Xers Twenty-somethings Baby busters

54 million

Millenials Generation Y s

Source Remson Triangle Consulting (2006)

75 million

Valuing Generational Differences Recognition Management Institute ndash Saunderson (2000)

Veterens Boomers Gen-Xers Millennials

LoyalHonorsRespects authorityFollows OrdersFormalRewards laterPracticalSacrifice

LoyalOptimisticResponsible and DedicatedTeam playerWorkaholic

Adaptable to changeTechno-literateSelf-startersGlobal mindsetInformal

Goal-orientedTechno-savvyCollaboration and Achievement importantOptimisticMoral mindsetSocial activism

Prefers structureTechnology-challengedSet in waysDifficulty with change

Enjoys much recognitionElder care absencesSelf-gratification

SkepticalFeel others owe themMotivationChild care absences

Requires supervision and

supportSociable

Significant attitude gaps among employees by age ( of favorable responses)

All 18-24 25-34 35-44 45-54 55-64In my organization employees are able to maintain healthy balance between their work and personal lives

47 64 48 48 43 47

I am able to take time away from my job to participate in training

52 67 48 53 52 50

My last performance review action was helpful in identifying actions I could take to improve my performance

55 73 60 56 51 55

My manager does a good job of being available when needed

56 75 59 61 51 49

t

The business case for technology Benefits of technology1048707consistency1048707process efficiencies1048707speed1048707management information

Could a diverse organisation of 77000 employees deliver this strategy using paper processes Size and scale of organisation-administration effort needed to manage paper processes Implementation-Managing consistency of paper processes-Is it being done-Timeliness of management information Strategic Management Information-Availability of key intelligence to drive business

Information sharing trends across generations Ways to remain connectedbull Trend 1 Continuous presencebull Trend 2 Multi-modal taskingbull Trend 3 Virtual Intimacybull Trend 4 Workflow learning

Introducing a new logo

Not Just Idle Chat

Instant Messaging -

Its Presence

as a Business tool

Recommendations

Management of technology gap through generation blend

Generational attitudes shape workersrsquo responses to technologies in the workplace

To avoid a generational clash and exploit the power of intergenerational collaboration and knowledge every organization needs to think differently

The baby-boomers should be willing to be trained to bridge the digital divide They in turn should share their knowledge and expertise with the younger generation

Start playing with gizmos NOW

Generational Issues and CultureGenerational Issues and Culture

-- General practices in Korea

-- Case of Korean company

-- Case of US company

-- General practices in Korea

-- Case of Korean company

-- Case of US company

In an aging society the employment rate of

aging worker is higher than the entry level

workerrsquos

However turnover rate of entry-level

workers is increasing

Source Korea National Statistical Office

Turnover rate in entry- level

0050

100150200250300350

93 - 96 yr 98 - 2001yr 2006 yr

Source Korea Labor Institute amp recruiting company (Job Korea)

Distribution ratio in employment

00

50

100

150

200

250

300

below 19 yr

20 - 29 yr

30 - 39 yr

40 - 49 yr

50 - 59 yr

over 60 yr

In an aging society the employment rate of

aging worker is higher than the entry level

workerrsquos

Distribution ratio in employment

00

50

100

150

200

250

300

below 19 yr

20 - 29 yr

30 - 39 yr

40 - 49 yr

50 - 59 yr

over 60 yr

However turnover rate of entry-level

workers is increasing

Turnover rate in entry- level

0050

100150200250300350

93 - 96 yr 98 - 2001yr 2006 yr

In an aging society the employment rate of

aging worker is higher than the entry level

workerrsquos

Distribution ratio in employment

00

50

100

150

200

250

300

below 19 yr

20 - 29 yr

30 - 39 yr

40 - 49 yr

50 - 59 yr

over 60 yr

However turnover rate of entry-level

workers is increasing

Turnover rate in entry- level

0050

100150200250300350

93 - 96 yr 98 - 2001yr 2006 yr

General practice in KoreaGeneral practice in Korea

When we see the situation specifically

Turnover rate of entry- level in Biz type

00

50

100

150

200

250

300

350

Conglo-merate

Smallerfirm

Venturebiz

Others Avg

Result of Top 855 company in 2006

In 2002 statistics among 355 US companies turnover rate of entry level employees

is the highest Turnover rate decreases with older generations

Why is turnover of entry-level employees high

Reasons of turnover in entry- level

00

50

100

150

200

250

300

350

400

Commu-nication

Interpersonalrelationship

Cultural differencebtw generation

Others

1 Communication difficulty between generation

2 Interpersonal relationship

3 Cultural difference between generation

Specifically due to reasons above around 70 of entry-level employees feel

dissatisfied with their current job

Source Career amp Job Korea (recruitment website) in 2006

However recently many companies have been making efforts to

decrease the turnover rate of entry-level by implementing the following methods

Mentoring system

Entry-level employee Caring Program

Incubating course

Direct-contact program with CEO etc

Case in KoreaCase in Korea

LG Electronics Entry-level Employee Caring Program Mentoring System etc

Doosan Heavy Industries amp Construction

Incubating course Mentoring System etc

clubs Incubating Course

one year (in basic) Hand-written mail from CEO to employee family Senior employee directly lead amp coach on the detail of job Consult private difficulties like sibling or family

clubs Entry-level Employee Caring Program

Opportunity to rotate through different job functions with mentor Sharing private difficulties with team members CEO sends hand-written mail amp attends party with employees and their family

Through these methods companies are endeavoring

to cut generation gap

to enhance communication among old amp young employees

to decrease the drawbacks of interpersonal relationship and

to reduce cultural difference with old amp young employees

In results turnover rate of companies using these methodshellip

Turnover rate in entry-level

00

20

40

60

80

100

120

140

Avgin conglomerate these companies

Case in USACase in USA

General Electric Reverse Mentoring Program

Intel Buddy Program (mentoring planning)

clubs Buddy program

On-line amp Off-line mentoring (On-line is more preferable) No limitation amp boundary (eg mentor is in USA and mentee is in Korea)

clubs Reverse Mentoring Program

A little bit difference with general mentoring planning Increase job-involvement amp communication between generations (Synergy eff)

IBM Shadow Program (mentoring planning)

Sources1) SHRM - Workplace Visions Generational Differences Myths and Realities 2)

httpwwwbusinessweekcomcareerscontentsep2007ca20070913_426598htmchan=careers_special+report+--+best+places+to+launch+a+career_best+places+to+launch+a+career

3) httpwwwbusinessweekcommanagingcontentsep2007ca20070918_595361htmchan=careers_special+report+--

+best+places+to+launch+a+career_best+places+to+launch+a+career 4) httpwwwusatodaycommoneyworkplace2005-11-06-gen-y_xhtm 5) httpwwwtimecomtimemagazinearticle09171164039500html 6) httpwwwmarkerconsultingcomarticles1032Attracting-and-Retaining-Gen-quotYquot---the-MillennialsPage2html 7) httpwwwyoutubecomwatchv=Kv52oVIcUKk -- clip from CBS ldquo60 Minutesrdquo

8) httpwwwhreonlinecomHREstoryjspstoryId=84159035 9) Gayeski D (2005) Managing learning and communication systems as business assets UpperSaddle River NJ PearsonPrentice-Hall10) httpwwwwileycomWileyCDAWileyTitleproductCd-0470193964html11)