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Gen Up How Four Generations Work

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    JointSurveyReportSeptember2008

    GenUpHowthefourgenerationswork

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    ContentsIntroduction 4

    1 WhydoesGenerationalDiversitymatter? 5Whatisdifferentaboutthisreport? 5Whatresearchhavewedone? 5

    2 Whoarethefourgenerationsintheworkforce? 63 Attractingandengagingthedifferentgenerations 10

    Whatisimportantingenericvalueproposition? 10Areorganisationsgettingthegenericvaluepropositionright? 11WhoisgettingitrightinEurope? 13Generationaldifferencesinthevalueproposition 15Veteranpreferences 17BabyBoomerspreferences 18GenerationXpreferences 19GenerationYpreferences 20Creatingfairrecruitmentpractices 22

    4 Whydogenerationsmisunderstandeachother? 24Retentionandloyalty 24Drivingcustomerservice 27Performancemanagement 27Mobileandflexibleworking 29Internalcommunication 29Leadershipandmanagement 32Careerdevelopment 32

    5 Creatingawinningstrategy 35TopTenTips 36

    6 Acknowledgements 37Researchteam 37Participants 37Furtherreading 38

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    IntroductionPennaandtheCIPDsrespectiveclientsandmembersarestartingtocometotermswiththerealityandimpactofgenerationaldiversity,andarelookingforwaystobenefitfromtheskillsandmotivationsofdifferentgenerations.Wedecidedtohelpthembygaininganin-depthunderstandingofwhatindividualsintheworkplacewantfromtheircareersandwhatemployersaredoingtorespond.Thebusinesscaseformanaginggenerationaldiversityeffectivelyisclear:BroadertalentpoolsfromwhichtorecruitCreativityandinnovationfosteredfromgenerationalinteractionTheriskofnotmanagingthisdiversitycanbemisunderstandingbetweenmembersoftheworkforce,

    leadingtoconflictanddisengagement.Totakeadvantageoftheopportunities,employersmustembracegenerationaldiversityandensuretheyhavemeaningfulpeoplestrategiesandpracticesinplace.Ourstudyaimstoaddtotheexistingknowledge,helporganisationstogainagreaterunderstandingoftheirworkforceandultimatelytoimprovebusinessperformance.Weareverygratefultoalltheindividualsandorganisationswhohavecontributedtothisproject.

    GaryBrowning,CEOPennaDianahWorman,OBE,CIPDAdviser,Diversity

    4

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    WhydoesGenerationalDiversitymatter? 15Thespeedofcommunications,thepaceofchangetomeetmassmarkets,economicmigrationandmorerigorousPublicsectoraccountability,makethisauniquetimeintheworkplace.Thesehaveallplacedgreateremphasisthaneverbeforeontheneedfororganisationstobeagileandharnessdifferentcapabilities.Skillsindigitaltechnology,informationmanagementandentrepreneurialismaremixedwithlong-standingwisdom,changemanagementandcustomerserviceethos.Thefourgenerationsintheworkplacearebringingdivergentskills,learningstylesandexpectationsaroundreward.Thereareclearopportunitiestoharnesstheengagementandperformanceofeachgeneration.Yetitseemsfeworganisationsarerespondingtothediversityofattitudesandneeds.Sowhatarethosedifferencesandsimilarities?Whichsectorsaremostaffected?Aboveall,howcanorganisationsharmonisethegenerationstobringaboutsustainablehighperformance?Whatisdifferentaboutthisreport?Weaddressthelackofcurrentresearchthatconsidersthestrategicimplicationsofthefourgenerationsworkingtogether.PennaandtheCIPDhavecollaboratedtoconductacomprehensive,independentinvestigation.Ourresearchhasinvolvedbothindividualemployeesandorganisations,coveringeachofthefourgenerations.Weexplorethepracticalimplicationsforattracting,retainingandmanagingeachgeneration.Weexplorethefactorsthatdriverecruitmentdecisionsforeachgenerationwhatissimilaraswellaswhatisdifferentintheirchoices.Weexplorewhatdrivestheirengagementandperformance.Wehighlighthowwellemployersindifferentindustrysectors

    are

    being

    rated

    by

    their

    employees.

    We

    exploresomecasestudiesoforganisationsdoingitwell.Wethenconsiderwhatimplicationsthereareforleadership,managementandHRstrategy.

    ThisresearchexplorestheUKworkforcecontextthroughcomparisonwithotherWesternEuropeannations.ThevastmajorityofpreviousgenerationalresearchhasbeenUS-centric,however,theirdemographicmakeupisdifferenttotheUKswherethebabyboomhappenedaroundtenyearslaterthanintheUS.Giventhisdifference,therehasbeenascarcityofempiricalresearchtovalidategenerationaldifferencesintheEuropeancontext.Wehaveuncoveredseveralmisconceptionsaboutgenerationalexpectations,andthesearehighlightedinourreport.Whatresearchhavewedone?Researchhasbeenconductedwithbothemployersandemployees.Penna,inpartnershipwiththeCIPDandPeopleMetrics, hasconductedanonlinesurveyinfivelanguagesacrosssixWesternEuropeancountriesFrance,Germany,Ireland,Spain,Sweden,andtheUK.Over5,500employeesweresurveyedfromacrossindustrysectors,organisationalsizes,generations,managementgradesandpaygradesaspartofthisstudy.WealsoconductedfocusgroupsandinterviewswithseniorHRmanagersfromvarious

    organisations

    throughout

    the

    UK

    to

    explore

    theirchallengesasemployers,aswellasthepracticalactionstheyhavetakentoaddressgenerationaldifferences.TheresearchwasconductedfromMaytoJuly2008.ThiswasduringatimeofgrowinguncertaintyintheUKandECeconomies.IntheUK,FinancialServicesorganisationswerestartingtoshedjobsinordertorespondtotheglobalcreditcrunch.Therewasalsouncertaintyinthewidereconomyashousepricesstartedtodrop.

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    Whoarethefourgenerationsintheworkforce? 2 6Previousresearchhasdemonstratedthateachgenerationhasdifferentattitudestowardstheirworkandtheworkplace.Eachgenerationdiffersinviewofwhomtheyareloyaltoandhowtheyviewtheircareerprogression.Theirviewsaredefinedbytheirformativeyearsandthenatureoftheeconomywhentheyjoinedtheworkforce.TherearefourkeygenerationalgroupscurrentlyintheworkforceVeterans,BabyBoomers,GenerationXandGenerationY1.Thereisalsoanewgenerationsoontoentertheworkforce.GenerationZareunder16yearsoldandarestartingtojoinRetailandHospitalityworkforces.Astheeconomymovesintoarecession,thiswillbeakeyformativedifferencebetweenthisgenerationandtheonebeforethem(GenY)whohavebeenusedtoalongperiodofeconomicgrowththroughouttheirworkinglivestodate.Assofewofthisgenerationarecurrentlyintheworkforce,theyhavenotbeenexplicitlyincludedinthisreport.Sociologicalresearchhasshownthatthegenerationshaveclearlydifferentcharacteristicswhichdonotsimplyrelatetotheirstageinlife.Forexample,ateenagerin1908mayhaveexperiencedsimilarphysicalchangesandtheirassociatedanxietiesasateenagerdoesnowin2008.Yetitisclearthatateenin1908wouldhaveexperiencedfewerhealthcare,technology,educationandemploymentopportunities.Eachgenerationcreatesitsowntraditionsandculturethroughsharedattitudes,preferencesanddispositions.Suchdifferencescanbelifelongandareinfluencedbyacombinationof:societaltrendsaroundraisingand

    educatingchildren;

    traumatic

    social

    events;

    asignificantchangeintheeconomiccycle;theinfluenceofsignificantleadersand

    entrepreneursoradramaticdemographicshiftwhichinfluencesthe

    distributionofresourcesinasociety2.

    Webelievethateffectivediversitymanagementcanbeachievedbycreatingchoiceforpeople.Thefindingsinthisresearchcanbeusedtoensureinclusivenessratherthanexclusionthroughthepoliciesandpracticesinplace.Thisapproachcanbeextendedtomanagingacrossdifferentcultures,gendersandotherdemographicdifferences.Inourresearchwehaveprimarilyexploredage-relateddifferences,however,wehavefoundthattherearealsofurtherdifferencesbetweengendersandcultureswithineachgeneration.

    Aquickcaution:Thereisadangerwithareportongenerationstoreducethefindingstotime-honouredattitudes.GeorgeBernardShawoncesaid,Youthiswastedontheyoungandtheseingrainedgenerationaldifferenceswillalwaysbewithus.Technological, economicandsocialdevelopmentmeansthatanoldergenerationcanseetheyoungasprivileged,withtheyoungergenerationviewingtheireldersasoutmoded.Wewouldnotrecommendthatanorganisationtakestheevidencefromourresearchtothenlabelpeopleandmakeassumptionsabouttheirattitudes.Instead,werecommendusingthefindingsfromthisreporttoappreciatethevarietyofviewsintheworkforce.Ourresearchhasfounddiversitywithineachgenerationisassignificantasacrossgenerations.Wehavealsouncoveredmisconceptionsabouteachgenerationwhichcontradictsjudgementsmadeelsewhere.

    1Thereisvariationbetweencommentatorsonwhichyearsdefinethegenerations.Webelievethattheseagegroupingsarelooselydefinedandshouldbetreatedasgeneralguidance.

    2Wyatt(1993)

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    Attractingandengagingthedifferentgenerations310Byunderstandingwhatmotivatesitsemployees,anorganisationcandevelopacompellingvaluepropositiontoengageandrewardthem.Thevaluepropositiontakesintoaccountdifferentaspectsofthejobitself,thebenefits,careeropportunities,theworkingenvironmentandtheorganisationasapotentialemployer.Anydifferencesingenerationalmotivationsandattitudeswillinfluencethevaluepropositionthatpeopleseek.Ourresearchhasthereforeexploredwhethergenerationaldifferencesresultindifferentengagementdriversandattitudestoreward.Wheretherearegenerationaldifferences,thenaneffectivevaluepropositionwilladdressanydifferentneedsaswellasthesimilaronesofeachemployeegroup.Anorganisationmayhaveavaluepropositionthatmeetstheneedsforoneortwogenerations,butthismayresultindifficultiesretainingotheremployees.Wefoundnumerousemployerswhohavereportedthattheyarestrugglingtoattractandretaincertaingenerationalgroupswhileturnoverwasverylowinothergroups.Inthischapter,westartbyexplainingthesimilaritiesbetweengenerations.Thisinformationcaninformthegenericvaluepropositionthatorganisationsneedtogetrighttobeagoodemployerforallgenerations.Wethenexplorethedifferencesbetweengenerations.Thesefindingscanhelpinformtheactionthatorganisationscouldtakeiftheyhaveproblemsattractingorretainingaspecificgeneration.Whatisimportantinthegenericvalueproposition?Coretothegenericvaluepropositionistheneedtoofferacompetitivedealandjobsecurity.Only4%ofpeoplefeltthatnoneofthesefactorswereapartof

    their

    decision-making

    about

    apotential

    employer.

    Theseexpectationsareconsistentacrossdifferentindustrysectors3.SomeemployershaveobservedVeteransandBabyBoomersbeinginterestedinlong-termrewardpackages,whiletherehasbeena

    shiftforGenXandYtofocusingonshortertermpay/benefitsdeals.Thismaybearesponsetothelossoffinalsalarypensionschemes.Employersareofferingpensions,childcarevouchersandbuying/sellingholidaystomeettheneedsofthedifferentlife-stagesoftheiremployees.Havingagoodreputationasanemployerattractsandengages4employeesfromallgenerations.Agoodemployerwillofferjobswithasenseofpurposeandchallenge.Theyarealsoconsideredtotreatpeoplewithrespectandofferemployeesrecognitionandcreditfortheirachievements.Manyemployeesexpectanorganisationtoofferpersonaldevelopmentopportunitiesaspartofthevalueproposition.Withoutsuchopportunities,onlyVeteranswouldnotfeelinclinedtoleave.Thenatureofdevelopmentpreferencesvariesbetweengenerations.Forexample,BabyBoomersandGenXconsidertheseopportunitiestoincludeinternaljobmoveswithintheirorganisation.GenYismoreinterestedinbeinggivenspecialistskillstrainingandampleopportunitiestogrowonthejob.Thisislikelyareflectionofthegrowingemphasisonemployabilitymaximisingtheirvalueintheemploymentmarket.ThoseinthePublicandTMTsectorsweremoreconcernedaboutspecialistskillsdevelopmentthanthoseintheServicesector.

    3 Industrysectorshavebeengroupedasfollowsinthisreport: PublicsectorincludingCentralandLocalGovernment,

    Education,Health,andEmergency/Uniformsectors TMTTelecoms,MediaandTechnologysectors ServicesLeisure,Retail,Hospitality,Sales,CallCentres

    andPersonalCaresectors ProfessionalProfessionalServices,Bankingand

    FinancialServices,Pharmaceutical IndustrialEnergy,Utilities,Manufacturing,TransportandConstruction4 Employeeengagementhasbeenmeasuredusingfour

    indicators:intentiontostay,discretionaryeffort,recommendationtoothersandemotionalattachment.

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    11Themajorityofpeopleineachgenerationarelikelytoseekdevelopmentintheirspecialistareaofexpertise.Thereisalsosignificantdemandacrossgenerationsfor:peoplemanagementskills,differentusesoftechnology,leadershipdevelopmentandknowledgeabouttheirorganisationswiderbusiness.Areorganisationsgettingthisgenericvalue

    proposition

    right?

    Organisationshavealongwaytogotomeettheexpectationsofdifferentgenerationsasonly24%ofemployeesintheUKworkforcefeelsfullyengagedwiththeirorganisation.Howwellorganisationsareperceivedtomeetthesecoreexpectationsvariesbygeneration.Overall,PublicsectorVeteransandProfessionalsectorGenYsaremostpositiveaboutthevaluepropositionofferedbytheirorganisation.ForVeteransandBoomers,payisseentobemostcompetitiveinthePublicsector.ForGenXandGenY,thoseintheProfessionalsectorarethemostpositive

    about

    receiving

    competitive

    pay

    from

    their

    employer.WorkersintheServicesectoraregenerallylesspositivethanothersabouttheirdealmeetingtheirneeds.Althoughmanyseekjobsecurityfromanemployer,GenYismoreoptimisticthantheothergenerations.SixintenofbothPublicandFinancialsectorworkersfeeltheirjobissecure.ThisisexpectedfortheFinancialsector,giventhecurrentandeconomicsituation.However,thisisperhapsasurprisingfindinggiventhegeneralperceptionthatthePublicsectorofferssignificantjobsecurity.ThosefeelingalackofjobsecurityareactuallymorelikelytobeintheTMTsectorandPharmaceuticalsub-sector.

    Professionalsectorworkersaregenerallythemostpositiveabouttheirorganisationsreputationasaplacetowork.GenXintheServicesectorarealsolikelytofeelthattheirorganisationhasagoodreputation.Conversely,BabyBoomersarelesslikelytofeelthattheirorganisationhasagoodreputation,particularlyiftheyarebasedinthePublicsector.Theyarealsolessinclinedtofeelthatpeopleintheirorganisationaretreatedwithrespect.Aroundsevenintenworkersacrosseachgenerationfeelasenseofpurposeintheirwork.Employers

    in

    the

    Public

    sector

    seem

    to

    be

    doing

    bestwhenitcomestopersonaldevelopmentforallgenerations.PerhapsofconcernfortheProfessionalsectoristhatwhilsttheneedsofGenYseemtobemet,BabyBoomersareamongsttheleasthappyintheUKworkforceintermsofpersonaldevelopmentopportunities.

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    12Figure1Averageratingsofthecorevaluepropositionbygeneration

    Imfairlypaidformycontributiontomyorganisationssuccess39%40%41%35%44%Igetbackfromtheorganisationafairreturn(financialrewards,etc.)forwhatIgive(effort,performance)32%32%34%29%41%ImpaidfairlyfortheworkIdorelativetopeopleinsimilarpositionsinsimilarorganisations38%40%39%36%41%Ifeelsecureinmyjob56%60%56%53%55%SeniorManagementconsidersemployeeinputwhenmakingdecisionsthatimpactmyorganisation28%34%28%25%31%Mycontributiontomyorganisationssuccessisrecognisedbymymanager45%48%45%43%50%Myorganisationhasareputationasagoodplacetoworkintheindustry42%48%45%36%38%Ifeelabletousemykeyskills/expertiseinmyrole66%65%66%67%67%

    OverallIget

    asense

    of

    purpose

    from

    my

    work

    GenY69% GenX65%69% BabyBoomer72%72% Veteran

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    WhoisgettingitrightinEurope?OrganisationsinSwedenarethemostpositivelyratedemployers.Inparticulartheyarewellratedfortheirworkingenvironmentwherepeoplefeelpartofateam,feeltheyaretreatedwithrespect,arepersonallyvaluedbythosearoundthemandtheycanhavefun.Theyalsofeelthattheirorganisationdemonstratessocialresponsibilityandarepositiveaboutcommunicationwithintheorganisation.JobswithinSwedenarealsobetterratedforofferingasenseofchallengeandgivingpeopletheopportunitytostretchtheirskills.Peoplealsofeelencouragedbytheorganisationtofocusondeliveringcustomerservice.OrganisationsinFrancearebestratedforbeinggoodemployers.Peoplefeelenabledtogetthingsdoneandthattheyareworkinginateam-basedenvironment.FrenchworkersarealsothemostoptimisticinWesternEuropeabouthavingaccesstojobopportunitieswiththeircurrentemployer.InIreland,employeesarethemostpositiveinWesternEuropeaboutthecompetitivenessoftheirdeal.Theyalsofeelagoodsenseofjobsecurityandthattheycanachievegoodlife/workbalance.Theyarealsomoreinclinedtofeelthatgoodcustomerserviceisrecognisedbytheiremployer.

    13

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    14Figure2Averageratingsofthecorevaluepropositionbycountry

    Imfairlypaidformycontributiontomyorganisationssuccess28%38%50%29%29%42%Igetbackfromtheorganisationafairreturn(financialrewards,etc.)forwhatIgive(effort,performance)23%35%40%23%22%34%ImpaidfairlyfortheworkIdorelativetopeopleinsimilarpositionsinsimilarorganisations26%35%46%36%27%41%Ifeelsecureinmyjob53%62%65%61%58%53%SeniorManagementconsidersemployeeinputwhenmakingdecisionsthatimpactmyorganisation15%40%34%25%26%28%Mycontributiontomyorganisationssuccessisrecognisedbymymanager37%45%48%41%39%47%Myorganisationhasareputationasagoodplacetoworkintheindustry61%48%49%51%47%37%Ifeelabletousemykeyskills/expertiseinmyrole64%69%61%67%68%67%

    FranceIgetasenseofpurposefrommywork Germany78% Ireland66%66% Spain89% Sweden68%67% UK

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    15GenerationaldifferencesinthevaluepropositionSomeaspectsofthevaluepropositiondifferintheirimpactonengagementandintermsoftherelativeimportancethateachgenerationplacesonthem.Thesefactorsincludecertainaspectsofthejobrole,theworkingenvironmentandpersonaldevelopmentpreferences.Forexample,theemphasisoncustomerservice,work/lifebalanceandthedesireforteamworking.Inthissection,weoutlinethepreferencesofeachgeneration.Suchdifferencesinwhatgenerationsseekmeansthatcertainmessagesmaybemoreorlessattractivetocertaingroups.Someofthesepreferencesmayrelatetothecurrentlifestageofthegeneration.However,thefactthatorganisationsarefindinganeedtovarytheirpracticestoattractandretainyoungergenerations,indicatesthatthechangesaregenerationalandnotsimplyafactoroflifestage.Theemphasisonthevaluepropositioncriteriavariesbyindustrysector.IntheServicesector,recruitment

    messagesaroundteamworkingaremorelikelytoattractGenY,whiletheopportunitytobeofservicetocustomersmayworkbetterforBoomers.InthePublicsector,oldergenerationswillrespondbettertomessagesaroundautonomywhiletheyoungergenerationsrespondbettertomessagesaroundspecialistskillsdevelopment.IntheProfessionalsector,work/lifebalanceismoreimportantforGenXworkers.Theiryoungercolleaguesmayrespondtomessages

    around

    rapid

    job

    promotion,

    while

    older

    colleaguesrespondtobeingabletoservecustomers.Inthenextsectionsofthischapter,weexplorethepreferencesinthevaluepropositionthatwouldattractaparticulargeneration.AtBNPParibasScottishoffice,thereisasmallpooloffinancialservicesskillsintheemploymentmarket.Theyhavethereforesoughttoattractpeoplefromeachgenerationtoanewtrainingprogrammetoensurethattheyhavethecapabilitythattheyneed.

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    16 CaseStudy

    Multi-generationalAcceleratedGrowthProgrammeBusinesscase:BNPParibasaregrowingsignificantlyinScotland,wherethereisarelativelysmallfinancialservicesmarket.DuetocompetitionforasmallpoolofskilledFinancialServicesemployees,theyarefindingitdifficulttofindnewtalentinordertodevelopapipelineforfutureleaders.Whattheyaredoing:TheyhavelaunchedanewAcceleratedGrowthProgramme,whichwillbea2-yeardevelopmentprogrammefor15people.Thisisaimedatattractingpeoplefromaswideapoolaspossible-fromschoolleaversanduniversityleavers,toparentsreturningtoworkandolderworkerschangingcareer.Theschemeisgenuinelyabouttalent,withbehavioursandattitudesasimportant,ormoreimportant,thanqualifications.TheschemewillbepilotedinScotlandandthenrolledouttoothercountriesinEurope.Peoplewillstarton6thOctober.EveryoneontheschemewilltakeanIAQqualification,willhaveaseniormentorandwillundertake4x6monthplacementsindifferentpartsofthebusiness.Therewillbearangeofdifferentlearningmethodstoappealtodifferentgroups.Thisincludes:areadingandvideoclub;regulargettogetherstodiscusslearningsandpracticalapplications;developmentdayandtheopportunitytogetinvolvedinprojectworktogivethemahelicopterviewofthebusiness.Therewillbetheopportunitytoadapttheprogrammetodifferentpeople,tomakesurethatGenXgetassignmentsandGenYaregivenautonomyandplentyoffeedback.Impact:Consultationwithinthebusinessandseniorlevelsponsorshipoftheschemehasbeenverypositive.ToosoonforresultsasitonlylaunchedinJulybuttheyanticipateabroadgenerationaldiversityofparticipantsonthescheme.

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    17VeteranpreferencesVeteransplaceparticularemphasisonfeelingvaluedbythosearoundthem.Theyfeelmoreengagedifpeopletakenoteoftheiropinionsandideas.Theyalsodesiretoworkinorganisationswheretheycanserveotherpeople.Theirviewofwork/lifebalancevariesfromothergenerationsaswell.Veteransaretheonlygenerationwhoseretentionisnotsignificantlyinfluencedbytheirjobrole.Theywouldconsiderworkingbeyondretirementiftheycouldchoosethehourstheywork.Thereisclearlyanopportunityinofferingthesesoon-to-retireesalternativeflexiblecontractstoretaintheirwisdomwithintheorganisation.Atthesametime,fourintenVeteransareseekingtrainingtocoach,adviseandsupportothers.Tappingintothissegmentoftheworkforceoffersarealopportunity,especiallygiventhesmallerworkforceofthefutureandtheimpendingretirementofboomers.Currently,Veteransaremorelikelytodisplaydiscretionaryeffortthananyothergeneration.FemaleVeteransinparticulararealsomorelikelytorecommend

    the

    organisation

    and

    feel

    passionate

    aboutwhattheydothananyothergroupintheworkforce.ThePublicsectorseemstoofferthebestoverallvaluepropositionforthisgeneration.

    TheVeteranvaluepropositionVeteransseekjobsthatinvolvehavingauthoritytomakedecisions.Theyareusedtoclaritywithregardtotheirroles,responsibilities andhierarchies.Mostcurrentlyfeeltheyhaveauthoritytomakedecisions.Sixintenfeelabletogetthingsdoneandhaveaclearlydefinedroleorsetofresponsibilities.Veteranswanttobeofservicetotheircustomers.However,overhalfcurrentlyfeeltheirorganisationisnotfocusedongoodcustomerservice.ThoseinthePublicsectoraregenerallymorepositive.Theywanttofeelpersonallyvaluedbythosearoundthem.Theyexpectorganisationsandpeopletoreciprocatetheirloyaltyandrecognisetheirexperience.Theytendtobemoreengagedifpeopletakenoteoftheiropinionsandideas.Currently,nearlysixintenfeelthatthishappens.ThisishigherinthePublic

    sector.

    Theyseekpersonaldevelopmentopportunitiesaround:coachingandmentoringothersprojectmanagement.

    Veterans

    Retire?Me?Notlikely.

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    18BabyBoomerpreferencesTraditionallyseenasthepresenteeismgenerationthatworkslongofficehours,BabyBoomersnowdesirework/lifebalanceasmuchasanyothergeneration.AthirdofBoomersinthePublicsectorwouldonlyjoinanorganisationifitofferedflexibleworking.However,halfofBoomersinanysectorfeelthattheycanstrikethisbalancecurrently,somethingthatthoseintheProfessionalsectorfindespeciallydifficult.FewerBoomersthanVeteranswouldconsiderworkingbeyondretirementage.BabyBoomersarethegenerationleastinclinedtodesireteamworking.Infact,onlyhalfofBoomersfeelthatsuccessismoreeasilyachievedthroughteamsthanindividually.ThisiscontrarytotheexpectationinwhichGenXareseentobetheindividualisticgeneration.Notably,moreBabyBoomersthanyoungercolleaguesconsiderthedemonstrationofsocialresponsibilityasanimportantfactorintheirengagementwiththeorganisation.AnorganisationthatdemonstratessocialresponsibilityislikelytoattractandengagemoreBabyBoomersthananyother

    generation.

    Again,

    this

    is

    different

    to

    common

    beliefthatGenYvaluesocialresponsibilitymorethanothergenerations.Althoughmanyofthatgenerationdovaluesocialresponsibility,theirchoicesandbehaviourarenotdrivenbythis.BabyBoomersaremorelikelytostaywiththeircurrentemployerthananyothergenerationbut,atthesametime,arelessinclinedtorecommendtheemployertoothersorfeelmotivatedtodisplaydiscretionaryeffort.MaleBoomersarelesspositivethantheirfemalecolleagues.ForBabyBoomers,thePublicsectoroffersthebestoverallvalueproposition.Theyaremorepositiveabouttheaspectsofthepositionthattheirgenerationseeksfromanemployer.BabyBoomersintheTMTsectorarealsomorepositiveaboutthevaluepropositiontheiremployeroffers.

    BabyBoomersTheBabyBoomervaluepropositionBabyBoomersseekauthoritytomakedecisions.Sixintenfeeltheyareabletogetthingsdone.Iftheyhavechallengingwork,thenBoomersaremorelikelytofeelengagedwiththeirorganisation.Morethansixintenfeelsasenseofchallenge.ThoseinthePublicandTMTsectorsaremorelikelytofeelpositiveabouttheseaspectsoftheirjob.BabyBoomerswantwork/lifebalance.Halfwouldconsiderworkingbeyondtheirexpectedretirementage.Currently,halfofBoomersfeeltheirjoballowsthemtohaveanappropriatebalancebetweenworkandpersonallife.Theywanttofeelpersonallyvaluedbythosearoundthem,butcurrentlyunderhalfofthemdo.Justunderhalffeelpeopletakenoteoftheiropinionandideas.ThoseinthePublicsectorareslightlymorepositive.Boomersaremoreengagediftheirorganisationdemonstratessocial/environmentalresponsibility.Currently,fourintenfeeltheirorganisationdemonstratesthis,althoughthoseintheTMTsectorarelesspositive.Accesstopersonaldevelopmentengagesthem.Forexample,iftheyfeelabletobesuccessfulandthereareexcellentjobopportunitiesavailable.Onlyoneinfivearepositiveaboutjobopportunities,butthisishigherintheTMTsector.Thenatureofdevelopmentthattheyseekincludes:moreknowledgearoundotherpartsofthe

    organisation,especiallyintheTMTsectorleadershipskills,althoughthoseinthe

    Professionalsectorarelessconcernedaboutaccesstothisdevelopment

    inthePublicsector,howtocoachandmentorothers

    customerserviceskills- especiallyforthoseintheServiceandProfessionalsectors.

    Iwanttoworkforasociallyresponsibleemployer.

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    19GenerationXpreferencesThisgenerationisusedtoflathierarchies,dispersedworkingenvironmentsandcomplexorblurredreportingstructuresandaccountabilities.Manycurrentlyfeelthattheyhavechallengingwork,butsomemaybefrustratedthattheydonothaveauthoritytomaketheirowndecisions.Inallindustrysectors,flexibilityisstartingtobeseenaspartofthecoredeal.GenXcommonlyseekjobsthatfitwellwiththeirlifeoutsidework.Oneinfourcitesthisasakeydecisionfactorwhenseekingapotentialemployer.Thisdemandforflexibilityshouldnotbeseenasadesiretoworkfewerhoursashalfofthemwouldwillinglyworkmorehoursifflexibilitywasoffered.ThisisespeciallysointheProfessionalsector.GenXseestheworkplaceasaplacetosocialiseaswellastoworkandtendtofeelloyaltytowardspeoplewithintheorganisationratherthantotheorganisationitself.Organisationsthatofferasenseofworkplacecommunityarethereforemorelikelytoattractandengagethisgeneration.Traditionallydescribedasindependentandnotteamplayers,Gen

    X

    are

    actually

    the

    group

    most

    likely

    to

    be

    engagedwiththeorganisationiftheyfeelpartofateam.Onbalance,theProfessionalsectorcurrentlyseemstoofferGenXthebestvalueproposition.Inanysector,theyarelikelytofeelasenseofteamandchallengeintheirrole.However,theymayseealackofcareerdevelopmentopportunitieswithintheorganisation.TheseopportunitiesarefelttobemoreavailabletothoseintheProfessionalsector.Conversely,onlyoneinfiveintheTMTsectortendstofeelengaged.

    GenXTheGenerationXvaluepropositionGenXseeksauthoritytomakedecisionsandthrivesonfeelingchallenged.Currently,aroundhalffeeltheyhavetheauthoritytomakedecisions.Morethansixintenfeelsasenseofchallenge,althoughfewerfeelchallengedintheServiceandProfessionalsectors.Theywantwork/lifebalance.GenXhavereactedagainstthefacetimecultureandoftenlookformoreofawork/lifebalancewhichgivesthemflexibilityandfreedom.Theyaremoreconcernedwithoutcomethanprocess.Halffeeltheirjoballowsthemtohaveanappropriatebalancebetweenworkandpersonallife.Accesstowork/lifebalanceissimilaracrossallsectors.Theywanttobepersonallyvaluedbythosearoundthem,andtendtobemoreengagedifthereisasenseofteam.Sevenintenfeelpartofateam.Thislevelisconsistentacrosssectors.Currently,halffeelpeopletakenoteoftheiropinionandideasatworkandthistooissimilaracrosssectors.Theyvaluefeelingabletobesuccessfulintheirorganisation.Accesstopersonaldevelopmentopportunitiesincludeonthejobgrowthcombinedwithexcellentjobopportunitieswithintheirorganisation.However,onlyoneinfourfeelstheyhavejobopportunitieswiththeircurrentemployer.ThoseintheProfessionalsectoraremoreoptimistic.GenXseekdevelopmentthatfocuseson:moreknowledgearoundotherparts

    oftheorganisationleadershipskillscustomerserviceskills,especiallyinthe

    servicesectorprojectmanagementskillsintheTMTsectorhelpwithcareermanagement

    (inthepublicsector).

    Abitofteameffortoverme,me,meplease.

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    20GenerationYpreferencesAlthougheachgenerationplacesclearconsiderationonthecompetitivenessoftheirdealwhenseekinganemployer,itonlyaffectsGenYssubsequentperformance.ThiscombinedwithasenseofempowermenttogetthingsdonewillbemorelikelytoengageGenY.GenYcommonlyblursthelinesbetweensocialisingandwork.NearlysevenintenofGenYemployeesintheTMTandProfessionalsectorswouldconsiderworkinglongerhoursformorepay.GenYknowsthattheiridealistogainagreaterwork/lifebalancebutisalsokeentogainemployability.Tobalancethesepreferencesmanyactivelyseekanemployerwheretheycanbepartofateam,havefunandmakefriendswithintheworkplace.Althoughtheyseetimeforfriendsandfamilyasimportant,theytradeoffputtinginthehoursandsocialisewiththeteamofpeoplearoundthem.ThisisespeciallysoforthoseintheServiceandProfessionalsectors.GenYismorelikelytorecommendtheiremployerthananyothergeneration.Perhapsoppositetoexpectation,nearlyhalfactuallyintendtostaywiththeircurrentemployer

    for

    the

    next

    five

    years.This

    is

    especially

    the

    caseinthePublicandProfessionalsectors.GoogleiswellknownamongGenYasagoodemployer.Forthisorganisation,culturefitisattheheartofitsrecruitmentandretentionpracticesasourcasestudydescribes.TheProfessionalsectorseemstohaveanedgeoverothersectorsforGenY.ThemajorityofGenYispositiveabouttheaspectsofthevaluepropositionthattheyseekfromanemployer.Forexample,theyfeelpartofateam,theirorganisationisfun,theyfeelchallengedandcangetthingsdone.However,likeGenX,theyarelesspositiveaboutjobopportunitieswiththeircurrentemployer.GenYintheServicesectortendstobetheleastpositiveaboutthevaluepropositionofferedbytheiremployer.

    GenYTheGenerationYvaluepropositionGenerationYseektobepartofateam,havefunandmakenewfriends.Theyfeelmoreengagedtoperformbetterwheretheycanaccessthisteamworking.Threeinfourfeelpartofateamatworkwhilehalffeeltheirorganisationisafunplacetowork.Thisenvironmentisconsistentacrosssectors.Theyalsofeelmoreengagediftheyhavechallengingworkandtheyfeelabletogetthingsdone.Almosttwointhreefeelasenseofchallenge.ThisishigherinthePublicsector.Nearlysevenintenfeelstheyareabletogetthingsdone.ThisisslightlylowerintheServicesector.Theywantlife/workbalance.Overhalffeeltheycanachieveit.ThisishigherintheProfessionalsectorandlowerintheServicesector.Theyaremoreengagedwiththeiremployeriftheiroverallbenefitspackagemeetstheirneeds,butonlyfourintenfeeltheirneedsare

    met.

    This

    is

    much

    higher

    in

    the

    ProfessionalsectorandbelowaverageintheServicesector.Theyaremoreengagedwiththeiremployeriftheyhaveaccesstopersonaldevelopment.Forexample,beingabletobesuccessfulandhavingampleopportunitytogrow.Theseopportunitiesincludespecialistskillsdevelopment.Aroundtwointhreefeeltheycanusetheirkeyskillsintheirjobandsofeeltheyaredevelopingtheseskills.ThoseintheServicesectorarelesslikelytofeelpositive.Oneinthreefeelstheyhavejobopportunitieswithintheircurrentorganisation.ThisishigherintheProfessionalsector.GenYseeks:moreknowledgearoundotherpartsofthe

    organisationleadershipskillscustomerserviceskills,especiallyinthe

    Servicesectorprojectmanagementskills(intheTMTsector).

    Itrustwhatthecompanysaysimplicitly.

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    23CaseStudy

    UsingcompetenciesforfairrecruitmentassessmentacrossgenerationsBusinesscase:Traditionally,recruitmentcriteriarequiredaspecificlengthofexperienceinthecaresector.However,Brunelcarewasfindingdifficultyrecruitingexperiencedcarepeoplewiththecompetenciesneededtotacklenewissuesfortheirbusiness.Anexamplecompetencyisininvestigativeandproblem-solvingtechniqueswhichcouldcomefromanyindustryorexperiencelevel.Previousrecruitmenttechniqueswouldhavelookedmorespecificallyatexperiencewithinthecaresector.Brunelcarewantedtoprioritiseorganisationalfitoverstrictadherencetothetraditionalcriteriaofqualificationsandsector-specificexperience.Theyalsowantedtoensurethattheirrecruitmentprocesssuitedeachgenerationequally.Approach:LinemanagersdefinethepersonspecificationandHRensuresthatessentialcriteriaincludecompetencemorethanqualificationsandexperience.Recruitmentcommunicationsarethendesignedtoofferanon-conditionalmessage.Forexample,inajobadvertthereisnomentionofarequiredamountofexperienceorofqualificationsunlessthesewouldbeessentialtotherolesuchasfornurses.ThefocusofrecruitmentcommunicationsisaroundBrunelcaresvalueshardworking,committed,keepingpromisesandbeingnice.Thesevaluesarebasedonthequalitiesthatcorrelatetopeoplethrivingintheorganisation.Criteriausedintheselectionprocessfocusesonthesevalues.Candidatesmeettheirpotentiallinemanager,areassessedusingabatteryoftestsandhaveacompetencybasedinterview.Forexample,peopleareaskedtoprovideexamplesofwhentheylasthelpedsomeoneoranexampleofwhentheylastputthemselvesoutforsomeone.Judgementisbasedonhowpeopleactuallybehaveinsituationsandnothowtheywouldhavelikedtohavebehaved.Wherepeopledonothaveappropriatetechnicalexperience,theyaregivensupportandtraining.Outcomes:Brunelcarehasseenamarkedimprovementinperformanceofemployeesandinthevarietyofbackgroundsofpeoplerecruited.Forinstance,theyarecurrentlybuildingan8millioncomplexofshelteredhousingandhaveusedthecompetency-basedprocesstohirea23year-oldProjectManagerforapostwhichcarriessignificantresponsibility.Therecruitmentprocesshadidentifiedthatthisindividualhadalloftherequiredqualitiesfortheroleandfortheorganisation.Thisindividualcontinuestobeconsideredanoutstandingperformer.WithinBrunelcare,thereisastrongbeliefthatthismethodologyhelpstoidentifyandhirepiecesofgoldthatmanyotherorganisationswouldnottakeon.

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    Whydogenerationsmisunderstandeachother? 424Thedifferingexpectationsandengagementdriversofthegenerationsmayleadtomisunderstandinginworkplacerelationships.Thisisespeciallysoforindividuallinemanagerswhomayhavedifferentgenerationswithintheteam.Thischaptercoversthedifferentorganisationalpracticesthatcanbeaffectedbygenerationaldifferencesinattitudestowardsworkandtheworkplace.Eachgenerationmayfindmoresourcesformisunderstandingaroundspecificorganisationalpractices.WehavefoundthatVeteransmayfindgreater

    misunderstanding

    around

    different

    attitudes

    towardsretentionandcustomerservices;Boomerswithperformancemanagement;GenXwithmobileandflexibleworkingandinternalcommunicationsandGenYwithleadership,managementandcareerdevelopment.Inthenextsectionsweexploreeachofthesepracticesandunpackthedifferencesingenerationalviews.RetentionandloyaltyDifferingattitudestoretentionandloyaltyaremostlikelytofeellikeasourceofconflictforVeteranswhenworkingwithcolleagues.RetentionisalsohigheramongVeteranworkerswitharoundsixintenfeelingthatitwouldtakealotforthemtoleavetheorganisationtheyworkfor.Closetoretirementage,athirdstillexpecttobewiththeircurrentemployerinfiveyearstime.Veteransarealsomorelikelytodisplaydiscretionaryeffortthananyothergeneration.RetentionisunlikelytobeasourceofconflictbetweenVeteransandBabyBoomersasthelatteraremorelikelytostaywiththeircurrentemployerthananyothergeneration.Nearlysixintenintendtostaywiththeircurrentemployerforatleastthenextfiveyearsandfeelthatitwouldtakealotforthem

    to

    leave.

    However,theVeteranmanagermayfindGenXandGenYslightlyparadoxicalintermsoftheirloyaltytotheorganisation.Theseareemployeeswhoarehappytoworklongerhoursbutatthesametimearedifficulttoretainbeyondtwoorthreeyearsemployment.GenYcolleaguesarealsomoreinclinedtoleaveiftheircolleaguesaremaderedundantsomethingthataVeteranwouldbemuchlesslikelytoconsider.ThisislikelyduetothebreakupofacorevaluepropositionforGenY:theirsocialnetwork.IfaVeteran

    manager

    is

    leading

    organisational

    transition

    ordownsizingwithintheirorganisation,thentheywillneedtoengagecolleaguesthroughthechangejourney.LiketheVeteran,theBabyBoomermayfindthattheyoungergenerationssomehowlackloyalty.Forexample,GenXandGenYmaydemandmoreflexiblehoursandarelesslikelytotakealongtermcareerviewwiththeorganisation.ItisnoteworthyfortheBoomerthereforethatnearlyhalfofGenYintendtobewiththeircurrentemployerinfiveyearstimeandoneinfourexpectstochangejobseverytwotothreeyears.So,thecommonlyheldbeliefthatGenYisagenerationeasytorecruitbuthardtoretainmaynotbestrictlythecase.ThoseinthePublicandProfessionalsectorsaremorelikelytofeelthisway.GenXmaybesurprisedatthecontinuancecommitment5 seeminglyshownbyoldergenerations.TheGenXermayfindtheVeteranpuzzlinginrelationtotheirloyalty.Veteransareseeminglynotwillingtoworkflexiblehours,yetwouldextendtheirworkinglifeintoretirement.AsmanyasoneinsixBoomersmaydisplaycontinuancecommitment.GenXandGenYmaynotunderstandwhyoldergenerations

    would

    stay

    with

    an

    employer

    that

    theywouldnotrecommendtoothers.

    5Continuancecommitmentisthetermusedtodescribeindividualswhostaywithanorganisationbecausethecost/effortofleavingisgreaterthanthatofstaying.Theseindividualsremainbutdonotfeelmotivatedtogotheextramile.

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    Table2:PossiblesourcesofgenerationalconflictfromaVeteransperspective25

    Retention:Retentionishigheramongtheseworkers.Aroundsixintenfeelthatitwouldtakealotforthemtoleavetheorganisationtheyworkfor.Closetoretirementage,athirdstillexpecttobewiththeircurrentemployerinfiveyearstime.Morethananyothergeneration,theseworkersaremorelikelytofeelmotivatedtogobeyondwhatisexpectedandshowmorepassionandprideforwhattheydo.Morethanotheremployees,theymayconsiderworkingbeyondretirementage.Veteransaremorelikelytofeeltheygetafairdeal.Customerservice:RelativelyfewVeteransfeelthatthereisagoodlevelofinternalcustomerservicefrominternalsupportdepartmentswithintheirorganisation.ThoseinthePublicsectoraremorelikelythanothergroupstofeelthatexternalcustomerserviceispartoftheculturalnorm.

    Retention:Retentionisalsocommonamongtheseworkers.Nearlysixintenintendtostaywiththeircurrentemployerforatleastthenextfiveyearsandfeelthatitwouldtakealotforthemtoleave.Halffeelproudtoworkfortheiremployerbutonlyfourintenwouldrecommendtheiremployertoothersorfeelmotivatedtodisplaydiscretionaryeffort.Customerservice:Boomersaregenerallylesspositiveaboutcustomerservicebeingreceivedinternallyorbeingrecognisedwhenitisdemonstratedexternally.

    Veterans BabyBoomers

    GenXRetention:GenXmayseekachangeofjobsmorefrequentlythantheVeteranwouldexpect.Lessattachedtotheircurrentemployerthanoldergenerations,overhalfstillintendtoworkfortheircurrentemployerinfiveyearstime.AswithBabyBoomers,justoverfourintenwouldrecommendtheiremployerorwouldgobeyondwhatisexpected.Paradoxically,GenXaremorelikelythantheVeterantoexpectflexibleworkingandarewillingtoworklongerhoursformorepayorflexibility.Customerservice:GenXaremorelikelytoworkflexiblysopotentiallyofferingadifferentformofcustomerservicethanthatofferedbyVeterans.OnlyoneintenGenXersareinterestedinroleswheretheycangivegood

    service.

    Retention:TheVeteranmayfindGenYcolleaguesdifficulttoretain.TheVeteranmaybesurprisedthattheGenYemployeeiswillingtoworklongerhoursformorepayorflexibility.TheymaybeequallysurprisedthereforethattheGenYemployeemayalsoexpect

    to

    change

    job

    every

    23

    years.

    The

    VeteranshouldnotethatGenYemployeeswillconsiderleavingiftheircolleaguesaremaderedundant.Customerservice:GenYisarethemostoptimisticaboutcustomerservicebeingrecognisedandrewardedattheirorganisation,especiallyintheServicesector.Theyarealsomorepositiveaboutinternalcustomerservice,especiallyintheProfessionalsector.16%ofGenYarenotatallinterestedincustomerservicebeingpartoftheirrole.

    GenY

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    26 CaseStudy

    CreatingagenerationallybalancedworkforceB&QwerethefirstBritishcompanytoemployolderworkersandhavebecomethecompanythatpeoplethinkofinconnectionwithgenerationalbalance.Nowin2008,26%oftheirworkforceisover50and24%areaged24andunder.Thekeyactionsanddriversbehindthisachievementhavebeenconsistentbuthavedevelopedovertheyears:openingtwostoresin1989entirelystaffedbyover50sbenchmarkingoneofthesestoresagainstfourotherSupercentresusingtheencouragingresultstodriveculturalchangeandproactiverecruitmentofolderworkersremovingtheretirementageandanauditofallotheragebarriersresearchamongallover50sstaffacrossthecountrywhichreflectedthewidersocialbenefitsaswellasthe

    financialsecurityprovidingflexibleworkingforeveryone,irrespectiveofage,lengthofserviceorcaringresponsibilityregularreviewofattractionandworkforcestatisticsprocessthatdrivesrecruitmentonabilityandnotagelearninganddevelopmentframeworkofferingchoiceandflexibilityaroundhowandwhenyoulearnregularfeedbackandviewsfromtheworkforceviatheirinformationandconsultationforumandemployee

    sessionswiththeCEOdiversitychampionswithinallstoresdiversitye-learningprogrammebasedontheircorevaleoftreatingpeoplewithrespect.ThebusinesscaseforB&Qremainscompelling.Theolderworkersprovetobegreatcoaches/mentorsandrolemodelstoyounger,lessexperiencedstaff.Theyhavealsofoundthatdespitecommonstereotypesaboutolderworkers,theydoinfactopenlyembracechangeandnewtechnology.

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    27DrivingcustomerserviceAsecondsourceofconflictforVeteransmaybearoundtheemphasisplacedoncustomerservice.Veteransaremorelikelythanothergenerationstoseekroleswheretheycanbeofservicetocustomers.Thisgenerationaldifferenceis,perhapsironically,mostsignificantintheServicesectorwherelessthanoneintenGenXorGenYemployeesseeksarolewheretheycanbeofservicetotheircustomers.Thiscompareswithoneinfouroftheoldergenerations.Itmayneedtobeofrealconcernforemployersthatfewoftheyoungergenerationsseekroleswheretheycanbeofservicetocustomers.However,manyyoungerworkersdonotfeelthatthereisrecognitionforgoodcustomerserviceandtwothirdsofallemployeesfeeltheireffortwouldnotberecognisedbytheirorganisation.ThoseinthePublicsectorareconsistentlylesspositiveaboutthisrecognition.GenYaremorepositiveaboutservicebeingrecognisedthanothergenerations.PerformancemanagementShort

    term

    reward

    demands

    may

    be

    akey

    source

    of

    conflictfortheBabyBoomer,especiallywiththeyoungergenerations.Theymayfeelconflictwithshorterservicecolleaguesfromothergenerationswhodemandpayincreasesongroundsofgoodperformance.Havinggivenlongservicetotheircurrentemployer,Boomersexpectrecognitionoftheircontributiontotheorganisationslongertermsuccess.Veteransmayhavesomeempathywiththisview,butarestillmorelikelytofeelthatpayreviewsshouldbebasedonmeritratherthantimeserved.Asaconsequenceofthesedifferingviews,BabyBoomersmayfeelthattheydonothaveasgoodadealastheircolleagues.

    However,eveninthePublicsector,wherelongerserviceisgenerallyrewarded,BabyBoomersdonotfeelperformanceisfinanciallyrewarded.FeedbackfromGenXandGenYemployeesinthissectoralsoindicatealackoffinancialincentiveforhigherperformance.Thisindicatesthat,overtime,highperformingemployees- GenYinparticular- mayfindpaywillbecomearetentionissue.Theirengagementisaffectedbywhetherthedealmeetstheirneedsandsotheyaremorewillingtomoveelsewheretofindthisdeal.ThereareclearimplicationsforthedesignofpaystructuresinthePublicsector.GenYsrelativelyaggressiveattitudetoperformancemanagementmaybeafurthersourceofconflictforBabyBoomers.WhileveryfewBoomersbelievethatunder-performersshouldbefired,GenYismuchlesstolerantofunder-performance.NearlyoneinfiveGenYsbelievethatthebestsolutionforunderperformanceisforsomeonetobefired.ThistoleranceisespeciallylowwithintheTMTsector.GenYmayfeelfrustratedthatlengthofserviceisrecognisedbyBoomersbutperformanceisnot.ABabyBoomermanagermaybepleasantlysurprisedthattheyoungergenerationsarewillingtoworktheextrahours.Theyshouldbeconscious,however,thatthesemembersoftheteamaregoingtobeinterestedinclawinghoursbackinflexitimeorovertimepay.Conversely,Veteranmembersoftheteamaremuchlesslikelytoevenconsiderworkingtheextrahours.

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    29MobileandflexibleworkingAkeysourceofpossibleconflictforGenXisintheorganisationsmanagementoflife/workbalance.Asmanagers,GenXarelikelytosupportaVeteransdesiretoworkreducedorflexiblehoursbeyondretirementandaremorelikelytounderstandthisdesirethanaBoomer.However,theGenXermayfeelsurprisedbyaVeteransseeminglackofwillingnesstobeflexiblearoundhoursworked.BabyBoomersmaydisplayasimilarlackofinterestinbeingflexibleintheirhours.Asemployees,GenXmaystillfeelthattheyaredrivingorganisationalchangesinflexibleandmobileworkingpractices.Asageneration,GenYarethefirsttotrulyadopttechnologytomanagetheirlife/workbalanceastheboundariesofofficeandpersonallifebecomeblurred.

    InternalcommunicationGenXarealsomoreaffectedbythequalityofinternalcommunicationfromtheirorganisationthananyothergeneration.Theyexpecttobeabletotrusttheinformationtheyreceiveandmayleaveiftheyfeelthatcommunicationintheirorganisationispoor.BabyBoomersandGenYexpectagoodlevelofcommunicationbutarelessjudgementalofwhethertheycantrustit.Veteranattitudesarelessaffectedbycommunicationthantheirothercolleagues.Giventhattheyarethemostinformationhungrygeneration,havingjoinedtheworkforceduringthedigitalinformationage,GenYisactuallythemostpositivegenerationaboutcommunication.Theymaybeexpectedtobemoredemandingofinternalcommunicationgiventhefactthattheyareusedtoinformationattheirfingertips.Theyaremorepositivethantheothergenerationsabouthavingtheinformationtheyneedtodotheirjob,feelthatinformationisbelievableandthatworkprioritiesareclearlycommunicated.Employersarefindingthatonesizedoesnotfitallfor

    communication

    across

    the

    generations.

    Where

    organisationsarechangingtomoreIT-basedcommunicationssuchasintranet,telephonevideoconferencing,theyarefindingthattheyneedtocommunicatethroughmultiplechannelstoagenerationallydiverseworkforce.TheuseofnewertechnologysuchasvideosandpodcastsmayputoffVeteranandBoomerworkers.Thedemandfortraininginthedifferentusesoftechnologyisthesecondmostcommontrainingneed.

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    30

    Internalcommunication:Sixintenfeeltheyhavetheinformationtheyneedtodotheirjob.ItisslightlylowerintheTMTsector.Halffeelthattheinformationtheyreceivefromtheirorganisationisbelievable.ItishigheramongProfessionalsectorworkersthanPublicsectorworkers.Halffeelworkprioritiesareclearlycommunicated.Athirdaresatisfiedwiththecommunicationtheyreceive.

    Work/lifebalance:TheGenYemployeemaybemorewillingtoworkmorehoursforextrapaythanGenXmightexpect.Internalcommunication:Relativelyoptimisticaboutinternalcommunication,GenYismorepositiveaboutclarityofworkprioritiesthanGenX.Theirmanagerismorelikelytobeintheirsocialcontactsthananyothergeneration.Oneinfourdoesntwanttobemanagedbysomeoneyoungerthanthem.

    Work/lifebalance:TheVeteranmaybeseekingtoworkbeyondretirementage.TheVeteranemployeemaynotbewillingtoworklongerhoursformorepayorflexibility-somethingthatmaysurpriseGenX.Internal

    communication:

    More

    feel

    they

    havetheinformationtheyneedtodotheirjobthantheGenX.However,fewerVeteransfeelthatworkprioritiesareclearlycommunicatedandsomayrequiremoreexplicitdirectionthanGenXmightexpect,especiallythroughperiodsofchangeandtransition.Otherwise,VeteransholdsimilarratingsofinternalcommunicationtoGenX.

    Work/lifebalance:TheBoomeremployeemaynotbewillingtoworkmorehoursformoreflexibility- somethingthatmightsurpriseGenX.Internalcommunication:Boomersfindinternal

    communication

    important

    to

    their

    engagementyettheyarelesshappywithitthanGenX.Oneinthreeissatisfiedwiththeinternalcommunicationstheyreceivefromtheirorganisation.

    Table4:PossiblesourcesofgenerationalconflictfromaGenXperspective

    Veterans BabyBoomers

    GenX GenY

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    32LeadershipandManagementGenYmayfindthatoldergenerationsdemonstratelesstrustforseniormanagement.GenYarealsomorelikelytorateseniormanagerswellincludingthefactthattheymakeworkprioritiesclear.Thisgenerationarealsomorelikelytoplacetheirmanagerintheirnetworkofsocialcontacts.Overall,perhapsGenYarethemosttrustingoftheorganisationastheyhavenotbeenexposedtosignificantdownsizingoreconomicuncertainty. Itwillbeinterestingtoseewhethertheirgeneraloptimism

    about

    the

    workplace

    remains

    through

    the

    currenteconomiccycle.AlthoughBabyBoomersvalueexposuretotheorganisationsleaders,thisgenerationislesslikelytofeeltheyhaveaccesstotheirseniormanagersorfeellistenedtobythem.GenXexpectexposuretoseniormanagersbuthaveamorepositiveviewofthemthanBoomercolleagues.LeadersintheProfessionalandServicesectorsareratedmorepositivelythanthoseintheTMTandPublicsectors.

    CareerdevelopmentGenYmayfindsomegenerationalconflictintermsofcareerdevelopment.AGenYmanagermayfeelthatVeteransandBoomersdemandthattheorganisationwilldevelopthem.Theymayfindconflictwiththeoldergenerationswhowillexpecttheirlinemanagertoprovideopportunitiesforthemtolearn.GenYmayfinddevelopmentconversationswithotherGenYmucheasiertomanage-conversationsarelikelytostretchbeyondthecurrentorganisation.TheBabyBoomermaybesurprisedattheselfsufficiencyofGenYastheyexpecttomanagetheirowncareerdevelopment.GenYaregenerallymoreoptimisticthanBoomersaroundmuchoftheworkplacebuttheyseemespeciallydifferentintheirviewofcareerdevelopment.ThedifferencesareclearinthePublicsectorwhereBabyBoomersseekcoachingandmentoringskillsandGenYseektraininginhowtomanagetheirjobprospects.IntheServicesector,manywanttolearnacompletelynewtrade.Itisnotolderworkerswhoareseekingasecondcareerattheircurrentlifestage.

    Instead,

    the

    younger

    generations

    are

    more

    likelytowanttolearnnewtrades.However,thereisnoindicationthatGenYinthissectorwanttochangeindustry,astheyaremostlikelytowanttraininginpeoplemanagementandcustomerserviceskills.

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    Table5:PossiblesourcesofgenerationalconflictfromaGenYperspective

    Leadership:Oneinsixdontwanttobemanagedbysomeoneyoungerthanthem.

    Veterans BabyBoomers

    GenX GenYLeadership:Theyaremostlikelytotrustseniormanagement.Theirmanagerismorelikelytobeintheirsocialcontactsthananyothergeneration.Oneinfourdoesntwanttobemanagedbysomeoneyoungerthanhimorher.Development:GenYaremoreinclinedtofeelthattheyhaveopportunitiesfordevelopmentthananyothergeneration.Theyaremorepositiveaboutcareerpaths,growthonthejobandthatthereisfaircompetitionforjobs.Theyarealsomostpositiveaboutusingformalperformancefeedbackprocessestoimprovetheirperformance.Theyfeeltheirmanagerprovidesopportunitiesforthemtolearnandgrow.

    Leadership:TheVeteranislessinclined Leadership:TheBoomerislesslikelytotrusttotrustseniormanagers.GenYmayfeelsurprisedthatVeteransdontexpect seniormanagementthantheirGenYtheirmanagertobeamongtheirsocialcontactsnetwork. theyreceiveisnotbelievable.Boomersdo

    Development:Gen

    Y

    may

    be

    surprised

    at

    theVeteranslackofinterestinchangingjobsfrequentlytoprogressalongthecareer Development:TheBoomerislesspositivescramblenet.Veteransarelesspositiveaboutnumerousaspectsofdevelopment thanGenYerabouttheirdevelopmentthantheirGenYcolleagues(careerpaths,opportunitytogrowandjobopportunities). opportunitytogrow,jobopportunities,andTheyarealsolesslikelytofeeltheirmanagerprovidesopportunitiesforthemtolearn. inclinedtofeeltheirmanagerprovides

    colleague.Theymayalsofeeltheinformationnotexpecttheirmanagertobeintheirsocialcontactsnetwork.Oneintendontwanttobemanagedbysomeoneyoungerthanthem.

    opportunitiesincludingcareerpaths,faircompetitionforjobs.Theyarealsolessopportunitiesforthemtolearnandgrow.

    33

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    34 CaseStudy

    TailoringcareerdevelopmenttomeetgenerationalneedsBusinessCase:TheGenerationYcohortmakesupalmost75%oftheMcDonaldsworkforce.TraininganddevelopmentisrecognisedasakeycareeranchorforGenYandonethat,iforganisationsgetitrightforthisgeneration,willseektoattract,engageandretainthem.Therefore,traininganddevelopmentnotonlyplaysafundamentalpartinhelpingMcDonaldstoeffectivelyattract,engageandretainsuchalargeproportionofitsworkforcebutisalsocriticalinmaintaininghighlevelsofcustomerserviceandquality.Withsuchalargepercentageofemployeesfromoneparticulargeneration,McDonaldshasdevelopedabespoketraininganddevelopmentoffering,accomodatingtheneeds,expectationsandbehavioursofGenY,ratherthanplacingthemajorityofitsworkforceintoapredefinedtraininganddevelopmentplan.Approach:KeytothesuccessofthisapproachwastherecognitionandacceptancethatGenYemployeesweredifferent.Thetraininganddevelopmenthadtobeadaptedinordertokeepthemengagedandmaximisetheirperformance.WhenMcDonaldsexploredexactlywhatthisdifferencelookedlike,theyfoundGenYtobesuperbmulti-taskers,withtheabilitytoquicklyabsorbinformationfromamyriadofchannelsthatfrequentlyofferinformationcentredaroundaudio-visualstimulation.GenYhavebuiltupanincrediblystrongsenseofloyaltytofriendsandtopeergroups.McDonaldsthereforefoundthatwithinatrainingenvironment,thepreferenceofGenYistoworkcollaboratively.Theyalsodemandimmediatefeedback.McDonaldshavethereforeredesignedtheirtrainingprogrammestakingthesedistinctbehavioursintoaccount,ensuringthatprogrammesusethelatesttechnologytoprovidetrainingwhichfacilitatesmulti-tasking,thatisfilledwithaudio-visualinformation,allowsacollaborativeapproachandprovidesopportunitiesforinstantfeedback.OneexampleofjustsuchaprogrammeisMcDonaldsServiceLeadershipcoursecreatedin2008,aone-daycourseforRestaurantShiftManagerswhichisdeliveredin-store.ThecoursefocusesupontheroleoftheShiftManagerasthatindividualmovesfromasolefocusuponkitchenprocessestomanagingtheentirerestaurantandtakingfullresponsibilityforemployeesandcustomers.KeytothiscourseisashortDVDwhichfollowsSam,aRestaurantShiftManagerasheundertakesjustsuchadevelopmentjourney.Thevideoisviewedinfiveepisode,eachuptofiveminutesinlength.Aftereachepisodeisseentheparticipantsthenhavetheopportunitytodiscussandundertakeinteractivetasks,whichputsthelearningfromtheDVDintoaction.Earlyfeedbackfromcourseparticipantsisverypositive.Outcomes:AstudyconductedbytheacademicAdrianFurnhamshowedthat90%ofMcDonaldsstaffshowedhighlevelsofemployeeengagement.ThekeycontributingfactorsinthishighlevelofengagementamongMcDonaldsemployeesweretheopportunitiesfortraininganddevelopmentofferedbytheorganisation.

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    CreatingawinningstrategyCurrentworkforcesalreadypresentemployerswithacomplexmixofgenerationalattitudes,motivationsandappetites.Therecanbenodoubtthatthechangingdemographiclandscapewillcontinuetopresentchallengesastheoldergenerationsretireandthenewestgeneration,Z,enterstheworkforce.Theactivemanagementofcross-generationalmisunderstandingwillincreasinglybeafactoflifeforHRpractitioners. Avoidinglabelsandassumptionsaboutpeoplesattitudesandworkappetitesiscrucial.Peoplemayhavecorevaluesthroughouttheirworkinglifebutcomplexlifeexperiencesoverlapandmeanthatpeoplewillhavedifferentworkappetitesatdifferenttimes.Employerswillneedtodevelopacompellingvaluepropositionthatmeetsthecorevaluescommontoallofthegenerationsbutalsobepreparedtodeliveronamixandmatchbasistoreflectindividual,generational,sectorandevencountrydifferences.Creatingawinningstrategyformanaginggenerationaldiversityisnotforthefainthearted.Ourresearchsuggeststhattherearesomerealchallengesandissuestobefacedinthekeyareasofattractionandengagement,recruitment,leadership,careerdevelopment,performancemanagementandcustomerservice.Proactivelymanagingtheorganisationsemployerbrandandreflectinggenerationaldifferencesinjobdesign,willbefundamentaldriversofattractionandengagement.AttractionstrategieswillneedtoreflecttheincreasingimportanceofsocialresponsibilitywiththeBabyBoomergenerationandbeinformedbyanunderstandingofthedifferentgenerationalattitudestoretentionandloyalty.Retentionandengagementstrategieswillneedtobalancethebusinessneedswithincreasingdemandsforwork/lifebalance,flexibilityandfreedomtosuittheindividual.Managingtheemergingblurredlinesbetweensocialisingandworkfortheyoungergenerationswillalsobeakeydriverofengagement.Creatingcompetency-ledrecruitment,assessmentandselectionpracticeswillremainaskeydriversofrecruitmentbestpractice.Ifwearetoavoidtheinfluenceofwhoyouknowratherthanwhatyouknow,maintainingfairnessinthefaceofincreasingfocusonpersonalnetworksisemergingasarealchallengeforrecruitmentpractitioners. Leadershipdevelopmentwillbeinfluencedbychangingleadershipmodelsasaresultofthedifferent

    generational

    views

    of

    hierarchies,

    reporting

    structuresandteamworking.Issuesaroundtrustin

    5leadersareemergingasaresultofdifferencesinexposureandaccesstoleadersandmangers.Wewillseeanincreasingneedforbespokepersonaldevelopmentopportunitiesthatsuitboththecareerdevelopmentdemandsoftheoldergenerationsandtheself-sufficiencyofGenYtomanagetheirowncareerdevelopment.Thecrossgenerationaldemandforskillsdevelopmentintheirspecialistareaandforpeoplemanagementskills,willalsoneedtobebuiltintothesebespokeopportunities.Managingtheconflictbetweentheoldergenerationsview

    of

    reward

    linked

    to

    length

    of

    service

    and

    the

    youngergenerationsaggressiveattitudetoperformancemanagementandrewardrelatedtomerit,willbeaparticularchallenge.ThiswillbeespeciallysignificantintheretentionofGenYwhowillmoveoniftheyseealackoffinancialincentiveforhigherperformance.Theneedtodelivercommunicationsandtrainingthroughmultiplechannelswillcontinuetoincrease.Onesizewillcertainlynotfitallasexpectationsofcommunicationsvarywithsomewantingahighlevel,somewantinggoodquality,andsomedemandingtrustworthycommunicationsfirstandforemost.Giventhefundamentalimportanceofcustomerservice,arealchallengewillbetodriveaconsistentappetiteacrossthegenerationsforcustomerservicedelivery.Thelowlevelofinterestincustomerservicerolesamongtheyoungergenerations,andthecynicismaboutrecognitionforgoodcustomerserviceamongtheoldergenerations,needtobeofrealconcerntoemployers.Whilstmostorganisationsareawareoftheirspecificchallenges(therearelessonstobelearnedfromthosealreadydoingitwell),feworganisationshavereallyconsideredthestrategicimplicationsoffourgenerationsworkingtogether.PotentiallyfivegenerationsifweassumeVeteranswillstaybeyondretirement.Evenfewerorganisationscanevidencemeasuredsuccessfulinitiativesthattheyhavedriveninresponsetotheattraction,engagementandmanagementofmulti-generationalworkforces.Nowisthetimefororganisationstofacethechallengesandcreateawinningstrategytotakeadvantageoftheopportunitiespresentedbygenerationaldiversity.Forthoseorganisationsthatrespondnowthereisthechancetoturnathreatintoanopportunity.Greaterharmonywithintheworkforcecanachievesustainablehighperformance,broadertalentattractionandhigherlevelsofcreativityandinnovation.

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    TopTenTips36OurTopTenTipstohelporganisationsstarttoreviewandimplementchangesintheirstrategyandpractices:

    1 Analyseyourworkforceprofileintermsofageandanalysethefuture 6 Flexibility.Dontjustmeetlegalrequirements,considerradicalimpactofthechanging changestoflexibleworkinggenerationalmix. practices.Talktostaff.Whatwould

    makeabigdifferencetothem2 Carryoutanemployeesurveyandanalysetheviewsandmotivations couldenhanceyourbusiness.

    ofdifferentagegroups.Ensurethesurveycapturesviewsonrespect 7 Maximiseopportunitiestoenhancecoachingandmentoringacrossanddignityinyourworkplace. thegenerationalgroups.

    UsetheexperienceofVeterans3 Audityourinternalcommunicationstoassesswhetheryour moreeffectively.

    communicationschannelsandstylesaresufficientlyflexibleto 8

    Re-engageBabyBoomers.LookattheimpactofdisengagedBabymeetthepreferencesofallgroups Boomersincustomerserviceor

    ofemployees. otherbusinesscriticalroles.Re-engagethembyensuringthat

    4 Doesyouremployerbrandreallyconveywhatiscompellingabout theyarefeelingchallengedandhavedevelopmentopportunities.yourorganisationasaplacetoworkinawaythatattractsandengagesallgenerations? 9 Re-evaluateyourCSRpoliciesandpractices.Whoaretheyaimedat

    andwhoshowsthemostinterest

    5 Rigorouslyanalysecareerdevelopmentopportunitiesforandengagement?

    allstaffthroughstatsandcareerconversations.Areanygroups 10 Identifytheareasofcommonalityandbuildonthem.disadvantaged?

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    Acknowledgements 6Pennaresearchteam:KellyDreweryAnneRileyHeatherStaffCIPD:DianahWormanOBE,CIPDDiversityAdviserFredaLine,formerCIPDDiversityAdviserPeopleMetrics:hostingofonlinesurveyParticipants:Wearegratefultothefollowingfortheirparticipation,interestandhelp.CaseStudyorganisations:B&QBNPParibasBrunelcareGoogleMcDonaldsP&GFocusGroupattendeesandmembersoftheCIPDSeniorDiversityNetwork.Allon-linesurveyparticipantsinFrance,Germany,Ireland,Spain,SwedenandUK.AIFS ITVAiredale JohnsonandMattheyAon LearnDirectAtkins Learning&SkillsCouncilBabcockMarine LeedsMetropolitanUniversityBeachcroftLLP PriceWaterhouseCoopersBritishLibrary RoyalMailDickinsonDees Scottish&NewcastleEDFEnergy TescoEqualityandHumanRightsCommission TKMaxxFirstScotrail TransportforLondonHBOS UnileverUKLtdIdentityandPassportService VisitScotland

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    38FurtherreadingBrooke,L.(2002).Humanresourcecostsandbenefitsofmaintainingamature-ageworkforce.InternationalJournalofManpower,24(3).260-283.Cotton,C.Worman,D.andLine,F.(2008)Managingtheageingworkforce:theroleofTotalReward.CIPDResearchInsight.Glass,A.(2007).Understandinggenerationaldifferencesforcompetitivesuccess.IndustrialandCommercialTraining,39(2).98-103.Hansford,D.(2002).Insightsintomanaginganagediverseworkforce.Workspan,June02.48-54.Heiden,S.(2008).BuildaMulti-generationalPerformanceManagementStrategy.PerformanceManagement.Kroll,M(2003).Thechallengeoftheageandcompetencystructureinindustryforinnovationsandhumanresourcepolicy.JournalofEuropeanIndustrialTraining,27(7).Liebowitz,J.,Ayyavoo,N.,Nguyen,H.,Carran,D.&Simien,J.(2007).Cross-generationalknowledgeflowsinedgeorganisations.IndustrialManagementandDataSystems,107(8).1123-1153.McGuire,D.,Todnem,R,& Hutchings,K.(2007).Towardsamodelofhumanresourcesolutionsforachievingintergenerationalinteractioninorganisations.JournalofEuropeanIndustrialTraining,31(8).592-608.McKenzie,A.&Cannon,D.(1998).Acrosstheages:whygenerationalcommunicationmatters.IABCCommunicationWorld,15(7).21.Oshagbemi,T(2004).Ageinfluencesontheleadershipstylesandbehaviourofmanagers.EmployeeRelations,26(1).14-29.Salopek,

    J.J

    (2006).

    Leadership

    for

    aNew Age. American

    Society

    for Training

    and

    Development, June

    2006. 22-23.

    Schuman,H.andScott,J.(1989),Generationsandcollectivememories,AmericanPsychologicalReview,vol.54,1989,pp.359-81.Sertoglu,C.&Berkowitch,A.(2002).Cultivatingex-employees.HarvardBusinessReview,June2002.20-21.Sirias,D,Karp,H.B.&Brotherton,T.(2007).Comparingthelevelsofindividualism/collectivismbetweenBabyBoomersandGenerationX:implicationsforteamwork.ManagementResearchNews,30(10).Southard,G.&Lewis,J.(2004)Buildingaworkplacethatrecognisesgenerationaldiversity.Publicmanagement,April2004.Strauss,William&Howe,Neil.Generations:TheHistoryofAmericasFuture,1584to2069.Perennial,1992Westerman,J.W.& Yamamura,J.H.(2007).Generationalpreferencesforworkenvironmentfit:effectsonemployee

    outcomes.

    Career

    Development

    International,

    12(2).

    150-161.

    Wyatt,D(1993)OutoftheSixties:StorytellingandtheVietnamGeneration.UniversityPress,CambridgeMA.

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