WPA in the News

How to Manage the Four Generations in Today’s Workplace

January 27, 2010
Employment Relations Today: Questions — and Answers Column
By Lynn Lieber, Esq.

Managing four generations at work has become a key topic for human resources professionals; the unprecedented effects that the Great Recession is having on the U.S. workforce have renewed HR’s interest in this topic. The plummeting economy is sending many workers back to the job market as layoffs and cutbacks abound; the massive losses of retirement savings are driving older workers back into the workforce in record numbers. These factors have substantially contributed to the mix of worker ages and the potential for intergenerational conflict in today’s workplace.

Baby boomers (ages 42–61) and Generation Y (age 26 and younger) might have eased by one another in the workplace with no clash at all, as baby boomers retired and Generation Y moved in and up the ranks. Instead, the Great Recession changed all that.

There has been a 13 percent increase in U.S. workers over the age of 55 who are seeking employment since December 2007, up from 843,000 to 2 million this past August. In June 2009, the unemployment level of this age demographic peaked at 2.1 million — a number higher than anytime since 1948 when the Bureau of Labor Statistics began tracking that data. The oldest workers — those over the age of 65 — have also seen their unemployment levels rise, up to 447,000 in August 2009 from 197,000 in December2007 — a 127 percent increase.

However, older workers are faring better in the workplace than younger workers. The number of young people in the United States without jobs has exploded to 53.4 percent — a post–World War II high, according to the Department of Labor. This number represents the flip side to the Department of Labor’s report that the employment rate of 16- to 24-year-olds has eroded to 46.6 percent — the lowest ratio of workers in that age group, including all but those in the military, since World War II.

Organizations have to adapt to these new dynamics and ensure all generations are engaged, even during challenging times. Despite the perceived “generation gap” from differing views and potential conflict, organizations — and especially HR — have the opportunity to capitalize on the assets of each generation for competitive advantage.

HOW CAN ACKNOWLEDGMENT OF GENERATIONAL DIFFERENCES BENEFIT THE WORKPLACE?

Generational diversity brings an array of experiences and perspectives to the workplace. Yet, managing and working with members of different generations can also create workplace challenges because of different generations’ needs, approaches, and expectations.

Certain attitudes are common to each generation, and distinct from those held by members of other generations. In part, these differences exist because the values and motivations of each generation are shaped by the unique historical events, settings, and innovations of the time period.

HOW ARE THE GENERATIONS DEFINED?

There is no agreement on exactly where to draw the line that divides one generation from the next, but there is consensus that there are four generational groups making up the majority of the current workforce.

Obviously, there are exceptions to generalizations about any group. There are also overlapping characteristics within each of the four generations, particularly for employees born in cusp years who may have experiences from, or exposure to, events from two distinct eras.

Traditionalists

Traditionalists, sometimes referred to as the “silent generation,” are the “brick builders” of corporate culture. They are currently 62–85 years old. In the United States, more than 1 million workers are 75 years of age or older. Taken as a whole, this group has great respect for authority. Traditionalists are inclined to follow the rules.

Traditionalists’ life experiences have been shaped by such events as World War II, the Great Depression, Lindbergh flying across the Atlantic, construction of the Empire State Building, the Golden Age of radio, the Korean War, emergence of the “silver screen,” the rise of labor unions, the Hindenburg disaster, and the discovery of penicillin.

Management or younger employees may clash with traditionalists if they dismiss or devalue the historical knowledge older workers have of their industry. Traditionalists also disengage if they believe the organization, management, or coworkers do not respect the value of a lifetime’s worth of experience.

Baby Boomers

Baby boomers are currently 42–61 years old and are one of the most talked-about, studied, and analyzed generations. Members of this age group are characterized as rebels who were forced to conform. While their parents tended to follow rules, this generational group is known for challenging the rules. Baby boomers value personal satisfaction, pursue high achievements, and also crave external recognition.

This generation was shaped by the Civil Rights Movement, women’s liberation, the Cuban Missile Crisis, the Vietnam War, the Trudeau era of multiculturalism, Woodstock, the Cold War, the U.S. landing on the moon, the rise of television, and the Kennedy assassination.

Boomers tend to have difficulty sharing praise or rewards. Many are also concerned that technology is phasing out face-to-face human interaction in the business world.

Generation X

The Generation X consort is currently 27–41 years old. There is some debate about where defining lines are to be drawn for the “X Generation.” This group was stereotyped as “slackers” but is also thought of as growing up quickly. Rather than following rules or challenging them, this generational group often elects to change the rules entirely.

Generation X has been shaped by the rise of MTV, the emergence of personal computers, the AIDS crisis, the Challenger disaster, massive corporate downsizing, Reagan conservatism, the fall of the Berlin Wall, Operation Desert Storm, the Los Angeles riots, and the beginning of the video game era. Generation X employees change jobs frequently; many believe organizations are more loyal to the bottom line than to the employees who invested a lifetime’s commitment to a single employer. Members of Generation X also butt heads with managers and organizations that operate according to rigid, hierarchical organizational structures.

Generation Y

Currently age 26 and younger, this group goes by many names, including nex-ters, millennials, echo boomers, net generation, and the recession generation. This group’s identity is actively evolving. Compared with those who came before them, Generation Y members prefer to create the rules for themselves. Generation Y is also seen as being overconfident and relatively self-absorbed. As a whole, Generation Y has a more difficult time than previous generations distinguishing between or separating their professional and personal lives.

Generation Y employees’ lives have been shaped by the Oklahoma City bombing, the Waco Massacre, incidents of school violence, the digital age, Enron and other corporate scandals, reality TV, 9/11, the U.S.-led war on terror, and Web-based social networking.

HOW DO THE DIFFERENT GENERATIONS VIEW THEIR RELATIONSHIP WITH THE ORGANIZATION?

Based on age, employees can have very differing perceptions of their relationships with their employers, as well as their commitment, loyalty, and views about tenure in employment.

Traditionalists are generally loyal to the organization, preferring long-term tenure and commitment. Their no-nonsense “pay-your-dues” attitude makes them inclined to believe you climb the corporate ladder based on your tenure with the organization.

Baby boomers tend to be more loyal to their team than to the organization as a whole. They believe in adding value by going the extra mile and can have a “live-to-work” mentality. Due to the economic times in which they entered the workforce, they can have a “fight-your-way-up the-corporate-ladder” mentality.

Members of Generation X are primarily loyal to their supervisors; they can exceed expectations and deliver results, but they also have a “work-to-live” attitude. Their tendency is to focus on their own professional career ladder, as they feel that the corporate ladder could be pulled away.

Generation Y employees are more likely to feel loyalty to their peers than to management or the organization itself and want to ensure equitable treatment of all. Their corporate ladder resembles a circular staircase, and they are more likely to have a “work-to-contribute” philosophy.

HOW DO THE DIFFERENT GENERATIONS RELATE TO AUTHORITY?

Knowing how particular generations tend to interact with authority is crucial for all organizations to preempt potential problems. Traditionalists respect authority and hierarchical systems. They are most comfortable keeping relationships with their superiors formal, and respect seniority and job titles. Their work philosophy is compliant — "Tell me what you want me to do.”

Baby boomers tend to challenge authority, desiring “flat” organizations that are more democratic. They are most comfortable forming personal relationships with their supervisors and may be more likely to have an attitude of “Let me show what I can do for you.”

Sometimes to supervisors’ chagrin, Generation X employees are unimpressed with authority. Their attitude toward management can be more inline with “Tell me what you can do for me.” They prefer informal relationships with their supervisors and value competence and skills over tenure.

Generation Y employees often believe that situations should be evaluated at an individual level rather than according to a predetermined policy. Members of Generation Y tend to have high expectations of employers in terms of benefits, flexibility, and compensation.

WHAT WORK STYLES DEFINE THE GENERATIONS?

As Generations X and Y move further into the workforce, their childhood mantra of “I can be anything I want” is running into the brick wall of employment reality. Differing work styles and beliefs about work in general often create tension in the workplace. Understanding these points of conflict will help managers respond to issues more effectively. Managers should understand the perspectives employees of each generation bring to the workforce.

Traditionalists tend to be linear in their work style, following the rules and the leader. They thrive when processes are focused and can dislike change; they might perceive change as meaning something is broken.

Baby boomers work best in structured environments but are willing to challenge the rules when they feel it is necessary. They equate change with caution and are people-focused, preferring to work as a team.

Generation X employees are flexible, rule-changing, and results-focused. They prefer to work independently, with little supervision. As opposed to the prior consorts, Generation X sees change as opportunity.

Generation Y has a unique, flexible work style that many managers may find challenging. They value fluidity in the workplace and seek to create the rules rather than follow them. They are highly technology-focused and prefer to work independently without supervision. From the viewpoint of a Generation Y employee, change is positive and means improvement.

WHAT ARE THE MANAGEMENT STYLES OF THE DIFFERENT GENERATIONS?

Traditionalists generally manage subordinates and situations by taking command and exerting control. They are sometimes rigid micro-managers, and their motto might be “Do as I say, not as I do.”

Baby boomers are participative managers, always aware of workplace politics and making management decisions based on consensus. Baby boomers tend to follow the latest management trends, books, and theories.

Managers in the Generation X consort are collaborators and tend to favor performance-based management. Their attitude is often “Do what we need to do to get the results.”

Generation Y tends to be hyper-collaborative as managers, using a personal approach and encouraging team members to do what they are best at. They are proponents of just-in-time management and do not like to interfere; they prefer to let employees have free rein.

WHAT STEPS CAN ORGANIZATIONS TAKE TO RESPECT AND CAPITALIZE ON GENERATIONAL DIFFERENCES?

It is important for supervisors to recognize that employees’ backgrounds and age often affect the way they approach projects and one another. Older workers may be dissatisfied working on a project that is continually changing, and younger workers may grow bored if a manager insists that work be completed in a highly procedural or bureaucratic manner that is rule- or process-driven. Successful managers of multigenerational workforces need to keep in mind the following points:

Traditionalists need respect.

They are motivated by acknowledgment of their historical experience and expertise. They maintain an attitude of commitment and endurance and make personal sacrifices for the greater good. Their professional relationships are formal and reinforce workplace hierarchies.

Baby boomers need success.

They view money as evidence of social status. They are motivated by material gain and professional advancement. Although driven, as individuals, boomers promote collaborative efforts and prefer business decisions to be made by consensus. Boomers believe in the importance of following historical precedents and take a process-oriented approach to their work.

Rather than gather test scores, the employer should conduct training in a manner in which it will be able to show that the employee spent a sufficient amount of time in the training, had to interact with the materials, and agreed to abide by the employer’s policies.

Generation X needs autonomy.

Supervisors should provide feedback, not give orders. Generation X employees are motivated by professional growth and flexibility in their work. They work independently, believe in personal responsibility, and struggle to fit work into their lives. For Generation X, precedent is superseded by what is pragmatic, and its members’ informal approach undermines workplace hierarchy and positional authority.

Generation Y employees seek to contribute to society and to make a difference. Flexibility and the opportunity to pursue personal growth are highly motivational to Generation Y employees. Generation Y believes in its own hype and maintains a self-absorbed and inflated self-image — even in the face of failure or rejection. Generation Y expects equality, and its members consider everyone from the CEO to the mail clerk as their peers. Their casual approach to work and social interactions reflects their desire for immediate recognition on a professional and personal level.

If organizations want to thrive in this competitive environment of global talent management, they need employees and managers who are aware of and skilled in dealing with the four generations that make up the workforce.

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