Generational Competence

(Article originally published by WFC Resources, December 2005, as an UpDate Column)

Two reports made us sit up and take notice last month. The first, a survey from the Society for Human Resource Management, found that 76% of America's workers are thinking about looking for another job. The second, a workplace forecast, also from SHRM, estimates that 22 million new jobs will be created in the next decade and only 17 million new workers will be available to fill them.

This normally conservative organization doesn't just throw these kind of survey results around to get attention. Antsy workers combined with big labor shortage? That should be enough to propel a conscientious HR professional into action.

But what action? What will it take to hold on to the skills we want and attract our share of the new workforce?

Ceridian Corporation believes one key will be to better understand generational differences. In their new report, "Changing the World of Work," they've coined the term "generational competence" to describe the learning that must take place today in organizations that want to meet the very diverse needs of four generations, both in the workforce and in the marketplace.

With the demise of the employer-employee compact and its promise of long-term job security, says the 24-page report, it will be a case of "one-size-fits-one." In a trend that parallels the move toward giving employees more responsibility for and control over their own benefits, the new employee contract will be an individual deal, designed to fit the values and needs of employees at different stages in their lives.

Generational competence means having detailed knowledge of what will make each generation stay or leave, be productive or not.

Here are a few things we know generally about each of the four:

• Mature workers (born between 1927 and 1945 and 10% of the U.S. labor force) can be motivated by showing respect for their experience and perseverance, asking their opinion on what has worked well and what hasn’t worked well in the past, personal touches like handwritten notes, a mentoring role – and extra help with technology.

• Baby boomers (born between 1946 and 1964 and 46% of the U.S. labor force) want to know that management values their contributions. They want personal approval and expect to be rewarded for their work ethic and long hours. They also value opportunities for mentoring younger workers.

• Generation X employees (born between 1965 and 1977 and 29% of the U.S. labor force) want fewer rules and red tape and more independence in where and how the work is done. They value a work culture where the importance of work-life balance is recognized and respected. They value a fun, informal work environment. Use of innovative technology as a perk and multiple work assignments are important.

• Generation Y employees, the newest entrants to the labor force (born between 1978 and 2005 and 15% of the workforce) are looking for a work environment where diversity is valued and where talent and achievement are noticed and rewarded. They want opportunities to work as part of a team, to apply new technologies and to learn new skills.

Talent management strategies in a tightening labor market will force a renewed focus on training and the development of internal talent. Finding the right training modality will become even more important as Gen Y takes its place in the workforce hierarchy. While this report says the most effective learning occurs when people work together on a task rather than when they study a manual or take a course, it also points out that self-paced e-learning may be the most preferred method of training for a Gen Y or Gen X employee.

Each generation seems to have different career expectations, but the desire for work-life balance seems to be a major factor for all four. Many baby boomers are considering cutting back on work and stepping off the career ladder because of their stage in life. A Families and Work Institute study says a growing number of younger workers are choosing to forego promotion opportunities in favor of greater work-life balance. In the Conference Board report on talent management, Talent Management Value Imperatives, it is suggested that employers not only need to inform employees of possible career paths, they must also be clear about the options and the value proposition of those choices for the employee, as well as the organization.

Of course the "one-size-fits-one" mantra applies to benefits. Knowing what matters to specific employees is critical, says this report, "more important than ever," says the Conference Board's Linda Barrington. "Rewards" aligned to age, from performance appraisals to cash and non-cash recognition, can help to build engagement and align employee efforts with business goals. Health care is important to all four groups, but the devil is in the details, which differ for each group. Younger workers are more likely to push for portable insurance and wellness programs; long-term care will be increasingly important to older workers.

Work-life balance is among the most important factors to younger employees of both sexes, says the FWI report, Generation & Gender in the Workplace. Brought up by two-earner parents, they've watched and experienced the ever-increasing work demands and are most likely to demand flexibility and control over their schedules.

What's the most successful way to communicate benefits? The SHRM Generational Differences study found value in using multiple channels; face-to-face meetings, e-mail, intranet tools and printed materials, it turns out, are preferred by different audiences for different kinds of messages.

And the big question: How do you keep workers of all generations productive? Again, the factors that contribute to employees' passion for their jobs differ. A Gallup survey found that in order to boost productivity and engagement in workers under 40, "it may be especially important to provide a clear sense of progress, a feeling that they're still 'going places.'" For those over 50, says a 2004 Harris Interactive poll, organizations will need to accommodate their diverse and changing preferences in work schedules. Some will want to move to part-time, some will prefer to cycle back and forth between working and not working.

Finally, one-size-fits-one extends to managing. Train managers to recognize issues and conflicts that are generation specific, to modify strategies and tactics for each generation, and to educate their direct reports on generational differences. Retention, says this report, has traditionally been viewed as an HR problem. But those who really influence whether an employee stays or leaves are direct managers and supervisors. TalentKeepers, a global research organization that specializes in retention issues, believes that changing how people are managed can control as much as two-thirds of turnover. And training managers to handle generational differences was found by SHRM to be "highly successful" in 37% of cases where it was used to intervene in generational conflicts.

Work-life balance will play an increasing role, predicts this report, and that fits with the research we're seeing each day. As we were writing these words, a new study hit the wires. Burson-Marsteller, a New York public relations firm, and the Economist Intelligence Unit, a business research and analysis firm, announced their findings: more workers, including recent college graduates looking for jobs, are saying that balancing work and home is important to them. Says the news item, "This has become one of the main barriers for people looking to reach the top. It's a big issue, one that might give a lot of people a reason to pause before taking advantage of an opportunity." And that means people of any generation.