Managing Multiple Generations in the Work Force

1. Managing Multiple Generations in the Work Force Terri Manning Bobbie Frye

2. Influencing Factors Economic Conditions Societal Norms Political Events Major Crises …but it takes a society to raise a generation

3. Generations • Consists of approximately a 20-year span Has a unique set of values. • Reacts to the generation before them. • Looks at their generation as the standard of comparison. • Looks at the next generation skeptically. • They are either idealistic, reactive, civic or adaptive. • What you would like for me to tell you is “how can we make them be like us?” • That will never happen. They look at you as an example of “what not to do.”

4. How Generational Births Will Impact Retirements (Millennials) (Boomers) (Xers)

5. Generations Living in America in 2010 • Veterans 1925-1942 • 23.8 million living • Baby Boomer 1943 – 1965 • 62 million living • Generation X – 1966-1981 • 84 million living • Millennials – 1982 – 2002 • 110 million living • Generation Z 2003-2022 • About 29 million so far

6. Source: Greg Hammill, FDU Magazine, Winter/Spring 2005

7. Source: Greg Hammill, FDU Magazine, Winter/Spring 2005

8. Numbers in the Workforce 24.2%

9. The Baby Boomers 1943–1964 (the largest generation, idealist) • Divorce reached a low in 1960 of 9% • Families moved due to GI Bill, GI housing and industrialization • First generation to live miles from extended family • Family size smaller (2-3 children) • Few grandparents in the home • Moms stayed home, dads carpooled • Children spent significant time with • adult role models • Perception of the world as “safe”

10. Baby Boomers and School

11. Boomer’s Childhood and School Experiences • Overwhelmed the school system, large class sizes • Ability grouped (red birds and blue birds) • Question authority but respect position • Emphasis on team work (cohort education) • Need silence to concentrate • In college were told “you are lucky to be here.” • Segregated by race, the battles began for desegregation • No special ed students in school (in most states) but honors courses in a few subjects • Rarely tested and not for school performance (PSAT, SAT)

12. Values of Boomer Employee • Majority of employees (age 46-67ish) • Always share personal experience – “what has happened to me is relevant to you” • Value stability and respect • Like to see their successes • Tend to “workaholism” and have difficulty balancing their lives, working 40 hours is “slack.” • Are competitive • See themselves as the standard of comparison • Appreciate technology because of how easy it makes their work – still fear they might “break it” and may have a “back-up plan”

13. Boomers at Work • Ethic = long hours show commitment • Team oriented and relationship builders (don’t like conflict – can’t we all just get along) • Not budget minded • Sensitive to feedback

14. Remember these……

15. How Boomers Learn • Want things to fit into the “big picture” • Want recognition for how well they have done • Team oriented, work well in groups • Like to explore and analyze, look at different views • Follow instructions well • Good with content

16. Boomers at Work • Value stability and respect • Like to see their successes • Tend to workaholism and have difficulty balancing their lives • Are competitive • See themselves as the standard of comparison

17. Boomers at Work • Ethic = long hours show commitment • Tend to workaholism with same expectations of others (50+ hours wk) • Team oriented and relationship builders (don’t like conflict – can’t we all just get along) • Not budget minded • Sensitive to feedback

18. The Gen Xers 1965–1981 - A Lost Generation… A Nomadic Generation….. Half the Size of the Baby Boom (reactive) • Divorce reached an all-time high • Single-parent families became the norm • Latch-key kids were a major issue of the time • Children not as valued – looked at as a hardship • Families spread out (miles apart) • Family size = 1.7 children (many only-children) • Perception of the world as “unsafe” • Average 10 year old spent 14 ½ minutes a day with a significant adult role model

19. Gen X in School

20. Gen X Childhood/School Experiences • Learned to rely on self (less patience with teams) • Distrust authority • Seek challenging environment (career education emphasis) • Want feedback on progress • Want to do things their way – like no rules and freedom on assignments • Had special ed classrooms in school but separated • Had honors programs • Funding cut to education • Testing “mania” began with them • First daycare centers and latch-key kids (high divorce) • Some diversity, began earnest desegregation in schools

21. Gen Xers as Employees • Significant number of employees (age 29-45ish) • Cynical and pessimistic • Want work-life balance • Think globally and seek independence • Like technology and want an informal work environment • Don’t want the boomers’ work ethic • Communication is important and talk to adults as friends/peers (not impressed with authority) • Reward should be based on productivity not hours worked • Want control of self, time and future • Loyalty to people not a company • Impatient with poorer people skills

22. Remember these…..

23. Was this your first video game?

24. Was this your first calculator and cell phone?

25. How Gen Xers Learn • Task oriented – like to learn new skills • Speed is important • Self-paced learning, independent learning • Want to have fun while they learn • Informal learning environments are best • Hate group work • Want feedback from teacher

26. Gen Xers at Work • Cynical and pessimistic • Want work-life balance • Think globally and seek independence • Like technology and want an informal work environment • Don’t want the boomers’ work ethic • Communication is important and talk to adults as friends/peers (not impressed with authority) • Believe reward should be based on productivity not hours worked • Want control of self, time and future • Loyalty to people not a company • Impatient with poorer people skills

27. The Echo Boom/Millennials… • The Millennials are almost as large as the baby boom-some say larger - depending on how you measure them (approx. 81M). • The Millennials are the children born between 1982 and 2002 (peaked in 1990), a cohort called by various names: Echo Boom Generation Y Millennials Net Generation

28. Things Began to Change for This Generation • Abortion rates peaked in 1980 and began a slow decline. • Poverty rate for children peaked in 1983 and began a slow decline (Medicaid began). • US divorce rate peaked in 1981 and began a decline. • Homicide rate against children peaked in 1982 and began a decline. • They were born into a better world, a more optimistic world than the generation before them.

29. Millennials in School

30. Millennial Childhood/School Experiences • Many private schools, charter schools, magnet schools – all to meet the needs of the individual child –many, many choices • School uniforms, child safety, high performance standards, character education, cooperative learning and community service • Goal oriented – outcome based education (what’s in it for me) • Interactive, participatory and engaging – are consulted by adults • Everything 24/7 and available electronically

31. This is what they grew up with?

32. How Millennials Learn • Try it their way – always looking for better, faster way of doing things • Prefer graphics before text, reading of excerpts • Like small and fast processing technology – best when networked • Want instant gratification and frequent rewards • (spot)

33. How Millennials Learn • Focus on skill development – not memorization of what they perceive they don’t need to know • Productivity is key – not attendance – so make it worthwhile or they won’t come • Have different critical thinking skills based on their high tech world not thought processing (need help here) • Rely on teacher to facilitate learning • Group think and interaction

34. Millennials - Not Very Hardy • Our parents told us “when the going gets tough, the tough get going” and “if at first you don’t succeed, try, try again.” • Their philosophy “when the going gets tough, it means you should try another route” and “if at first you don’t succeed, maybe you shouldn’t be here.” • They have trouble staying in rigid and non-flexible environments.

35. Emerging Adults • “Ambitious yet aimless” characterizes this generation • They work for a while until they save enough money to live for a while, then quite – play for several months and then look for work again. • They know at the age of 21 that they may have to work until they are 70 – 75. So why hurry into a career job now. • They have the same attitude with school. • They stop out regularly and see if things work out. They appear to be in “no hurry.” • They swirl….

36. Salary Expectations • Realistically, what do you expect your starting salary will be when you begin working? Millennials • $15-20K 7.7% • $21-30K 29.3% • $31-40K 27.0% • $41-50K 15.9% • $50K+ 7.0% • Not sure 12.5% Approximately 65% felt they would earn $40K or less

37. Jobs in Lifetime How many jobs do you think you will hold in your lifetime? • 1-3 35.7% • 4-6 41.5% • 7-10 16.5% • Over 10 6.2% 64% expect to have 4 or more jobs

38. Importance of Career Components Items thought to be very important: • Respected on the Job • Opportunity for Professional Development • Ability to Have an Impact on the World

39. Importance of Job Benefits Benefits thought to be very important: Health Insurance Salary Growth Plans like 401K Life Insurance Bonuses Employer-paid Retirement Benefits thought to be unimportant: Stock Options Profit Sharing

40. Older Generations Make Assumptions • That younger generations will measure success just as we have. • Young worker must pay their dues and follow the same paths to success as previous generations. • The company ladder will remain intact. • Workers go where the jobs are. Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

41. What Millennials Want • Ability to work whenever and wherever they want. • Variation on the job • Continual feedback from supervisors • Opportunities to learn, retool and reinvent themselves • Challenge, new problems to solve • To be in charge of their lives and future Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

42. What They Are Not Interested In • Time-honored traditions • Doing things the way they have always been done • Paying their dues • How their managers got to where they are (rank) • A work ethic that requires a 10 hour day • Unquestioning loyalty to a company Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

43. Change in Values Two youngest generations: • Define success differently • Their time is equal in value to money • Will pursue other rewards for their work • The company/corporate ladder has become irrelevant • View their predecessor’s experience as a warning, not a road map • Don’t value the rules of management, motivation and reward Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

44. Skepticism The two younger generations: • Have been given ample reason to question authority • Don’t believe their leaders tell the truth • Question the motives and truthfulness of institutions across the board • Invest their loyalty and trust in individuals and therefore, the right boss is critical (otherwise they change jobs, #1 reason they quit) Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

45. What Will It Take for All Generations to Work Well Together • A new understanding of what employees want from their jobs, bosses and workplace experience • A new understanding of loyalty and how to develop it (not through pay, promotions and benefits) • A new definition of self – young employees define themselves by what they do outside the job, not what they do for a living Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

46. What Will It Take • New behavior from leaders who realize younger workers enter the workforce seeking self-fulfillment and aren’t interested in “paying their dues” for an unspecified amount of time for a vague reward • Because young people are doing everything later – staying in school, living at home, getting married, having kids – this impacts their commitment to work Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and Increasing Profits, 2007

47. Reasons US Workers Change Jobs In 2006, 21% of US workers made voluntary job changes for the following reasons: • Growth and earnings potential (30%) • Time and flexibility (23%) • Financial compensation (22%) • Culture and work environment (22%) • Benefits (12%) • Supervisor relationship (10%) • Travel and development (9%) • Management climate (9%) Benefit News

48. Changing Workforce • Workers are demanding the ability to balance their work and personal responsibilities. • Workers are not afraid of changing jobs. • The idea that the best way to grow financially and otherwise is to stay with one employer has been eroding to the point of extinction. • Younger workers and those earning $15,000 or less were the most likely to change jobs. • The cost of turnovers range from $7,000 for hourly employees to $30,000 for mid-level managers and $80,000 for technical or senior level management (Center for Workforce Learning). Charlotte Biz, March 2007

49. How They Will Push Us… • More independence in the workforce • Consumer-based fairness • Better technology • Enhanced professional development • Get rid of “that’s the way we’ve always done it” • Have more life balance • Re-establish priorities

50. What We Know • Times are changing – in business and society • So – leadership must change • The younger generations are working in a different economy and business world • They have different values and goals THEY WILL NEVER BE LIKE US!