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Generations at Work: Implications for Finding, Retaining and Managing Talent
Diane Piktialis Research Working Group Leader and Program Director
June 2, 2008 [email protected]
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Topics
Changing labor force demographics and composition by generation
Implications and challenges for talent management
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Part I.
Who are the Generations at Work?
Changing Demographics: “What’s the big deal?” Aging U.S. workforce will thin current pipeline
% change 2000 - 2010
65 & older 55 to 64 30 52
Median Age of US worker in 2000 was 39.
In 2010, it will be 41.
45 to 54 21 35 to 44 -10
35-44 year old cohort to shrink 10%
25 to 34 8 16 to 24 Total, All Groups 15 12
First time in 25 years that youngest workforce grew more than overall Page:4 Source: Occupational Outlook Quarterly, Winter 2001-2002, Bureau of Labor Statistics
Aging is Global Ratio of Retirement-Age to Working-Age Male Population 20
U.S.
37 2030 forecast 2000 26
U.K.
45 30
Spain Netherlands Japan France
21 24 30 34 41 54 57 63
For every 100 men of working age, the number of retirement age men will nearly double in 30 years in many countries Denmark
44 23
Australia
43
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Why Should Employers Care?
Small “edge” in talent can give big organizational advantage
“
In the news” and personal experience with changing demographics resonate with senior leaders
as to why need to improve: Recruitment Selection Performance Management, and Retention Policies
The Conference Board CEO Challenge: In 2008 talent shortages emerge as #1 concern
Boomers Are Ready for Nonprofits,
But Are Nonprofits Ready for Them? (2007) Key Messages:
Baby boomer retirements could cause serious talent shortages “Brain drain” of critical skills and competencies and long-term relationships cultivated with funders when senior execs leave organization The good news: nonprofits can turn this approaching crisis into a strategic opportunity by tapping into a new source of talent--
Boomers thinking of retiring…but may actually work beyond “retirement” Boomers showing strong interest in nonprofit sector jobs
But critical challenges lie ahead Page:7
Crunching the Numbers: Impact on Nonprofit Sector
Shortages in healthcare, education, and social services (U.S. Dept. Health & Human Services 2004, National Association of Social Workers 2006) Occupational shortages: nurses, social workers, geriatric workers (Rosen 2005, Arehart-Treichel 2006) Leadership shortages--current and predicted (Bridgespan 2006) Numerous surveys (2001-2006) indicate planned departures of nonprofit executive directors over next 5 yrs.
(CompassPoint Nonprofit Services 2001, Hinden & Hull 2002, Annie E. Casey Foundation 2003, 2004; CPNS & The Meyer Foundation 2006) Page:8
The Four Generations at Work
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Generation Veteran or Traditionalists Years born Ages today 1927 - 1945 63 - 81 years old Baby Boomers Generation X Generation Y or Millennial 1946 - 1964 44 - 62 years old 1965 - 1980 28 - 43 years old 1981 - 2000 8 - 27 years old
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The Gist of Generations
Members of a generation share a common time in history.
This commonality creates generation specific attitudes, values, preferences, and behaviors .
Differences between generations can affect interpersonal and team dynamics and affect nearly every aspect of talent management
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Caveats
Generalizations about generations highlight trends
There are many differences within a generation and many similarities between generations
Generational definitions largely US centric , though some relevance to Europe, Canada, Australia
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Generations: Who's Who*
Matures
or
Veterans
(born 1925-1945). Veterans reflect what we refer to as “American values.” They are loyal and have respect for authority. Prefer “command and control” leadership and will make sacrifices for getting the job done. If you look at the organizations controlled by people in this age range, you will see how powerful the members of this generation are. Also called
Silents.
Early Boomers
(born 1946-1954). These were the children born following World War II. There was a massive increase in the birth rate, known as the Baby Boom, which began shortly after the end of the war. They are very competitive and have faith in their ability to change things for the better. They are optimistic and idealistic but realize that loyalty is “dead.” They have much understanding of the history of the organization, enjoy leadership roles, are good team players and like to be recognized for their wisdom.
Late Boomers
(born 1955-1963). This is the second half of the Baby Boom. Social scientists are beginning to study this segment of the boomers to identify differences from the early Boomers.
Generations: Who's Who*
Gen Xers
(born 1964-1982). The group identified as Gen X began when the birth rate decreased after the end of the Baby Boom. The term Generation X became widespread after the publication in 1991 of Douglas Coupland's book of the same name. Gen Xers have seen much failure in public and personal institutions and trust themselves rather than institutions. They tend to be skeptical and independent and want work life balance. They dislike rules, red tape, corporate politics and prefer “business casual.
Gen Yers (born 1983 -
Very techno-savvy, value diversity and have a global perspective. Want lots of feedback and ongoing communication very entrepreneurial and expect managers to help their professional development. Don’t expect to stay in one job or career for too long.
Sources: Center for Creative Leadership "Emerging Leaders" Research Study;
Generations at Work
, Zemke Raines and Philipczak (2000);
When Generations Collide,
Lancaster and Stillman (2002) Page:13
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The Multigenerational Workforce Today
10% 15% 29% 46% Matures Baby Boomers Gen-X Gen-Y
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Generational Differences are Real
Their differences are more than simply age or life stage.
“They have to do with lifestyles and work styles shaped by forces as disparate as dust bowls and iPods.”
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Generational Differences at Work
Attitudes toward work
Work styles
Job satisfaction criteria
Career aspirations
Learning styles
Types of commitment
Clashpoint: Dynamics of relationships
Is there a generation gap at your organization?
75% of workers age 55+ say they relate well to younger co-workers Only 56% of younger employees relate well to older workers Source: Ransdsat USA 2006 Page:17
Clashpoint: Intergenerational Conflict
40% of HR professionals are aware of intergenerational conflict
#1 – conflicts regarding acceptable work hours #2 reason – believe other generations don’t respect them Page:18 Source: SHRM Generational Differences Survey 2004
Intergenerational Conflict (cont.)
Most common areas of conflict
Work ethics Organizational hierarchy Technology issues Dealing with change Workers from
large organizations much more likely
report intergenerational conflict to Page:19 Source: SHRM Generational Differences Survey 2004
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Clashpoint: Communications
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In Their Own Words…
GEN Y Communication
“Generation Y is inevitably more technology oriented. The CEO of defense contractor Raytheon calls them “the thumb generation” “They communicate differently. One PR woman I spoke with told me her daughter tried to quit her job via email.” “Younger generations have no problem letting their superiors know when their work schedule may interfere with their social calendar.” "Generation Y is much less likely to respond to the traditional command-and-control type of management still popular in much of today's workforce”
Part II.
Bridging Generational Divides:
Talent Management Challenges
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Talent Management Implications
Advancement and succession planning Employee motivation, engagement, productivity Management practices Training and development Career paths Rewards and benefit designs
Succession Planning and Advancement
Fewer younger employees want to move to positions of greater responsibility than in the past.
Page:24 Only 43% of prime candidates want to move into a job of more responsibility 80% of these prime candidates for promotion would like to work fewer hours than they now do Currently work-life balance most important to younger employees (under 35) Aging baby boomers want flexibility to wind down or start something new Sources: SHRM 2004, FWI National Study of the Changing Workforce 2002; (The Building Movement Project 2004, 2005
Succession Planning and Advancement (con’t) Cross-generational divides
Facilitating effective leadership transitions as younger employees move up the ranks when Younger leaders feeling undervalued and squeezed between older leaders not leaving and even younger generation who wants to advance quickly Sources: The Building Movement Project 2004, 2005; Boomers Are Ready for Nonprofits but are Nonprofits Ready for Them, The Conference Board,2007.
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Career Aspirations
Veterans
• Build a
legacy
.
Baby Boomers
• Build a
stellar career
.
GenX
• Build a
portable career
.
GenY (Millennials)
• Build
sequential career
.
From: When Generations Collide by Lynne Lancaster and David Stillman
Generations and Knowledge Transfer
It takes two to tango.”
Good
intergenerational communication
will facilitate the transfer of critical knowledge Interpersonal
dynamics
between expert and receiver can make or break the transfer and use of knowledge Page:27 The
learning styles
and motivations of the generation you want to receive and use knowledge key to success Last few decades have seen a shift in preferred learning styles from verbal to visual to virtual approaches to learning
“It hadn’t occurred to me that we need to focus on the people who will receive transferred knowledge. I realize now that I know absolutely nothing about how these younger employees communicate.” -- head of knowledge management at US company
Organizations are Unprepared
“ We have mature individuals at the top of our organization. If they were to leave, a lot of experience would be lost” “(My) organization fails to recognize the enormous body of information residing with senior people….when they leave, it will be too late.” Page:28 Sources: ASTD/IBM Learning and Changing Workforce Demographics Study. 2006 The Conference Board, Grey Skies, Silver Linings, 2007
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How big is the risk to your organization?
Knowledge transfer issues were the highest rated challenge associated with changing workforce demographics (cited by almost 30%)
YET
Less than half of the organizations were specifically addressing knowledge transfer as part of their overall strategy
ARE YOU?
Sources: ASTD/IBM Learning and Changing Workforce Demographics Study. 2006; Boston University Center on Aging and Work, 21 st Century Multigenerational Workforce
Generations and Work-Life Navigation
Work-Life balance among most
important
factors in job satisfaction
to younger employees of both sexes
Likely
to increase
as women continue to exceed men in professional education and management positions Direct
relationship to the desire to advance
A
majority of older adults
cite part-time work, flexible schedules as very important job characteristics
YET
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Challenge: Dearth of flexible work practices in nonprofit sector
Source: National study of the Changing Workforce, 2002, Generations and Gender, 2004, F&W Institute
The Generational Digital Divide: Work Styles Digital Natives Gen Y Digital Immigrants Matures, Boomers, Gen X
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A Typical Millennial
Gen Y is a generation “on the go”
“As a generation on the go, they expect most things in life to be fast and convenient for them. They are the 24/7-generation, used to shopping online at 2 a.m., self-checkout, and quick service. While their grandparents grew up in the shadow of the depression and believed that patience was a virtue, this generation grew up in the information age where you never have to wait for anything.” Source: First year attorney
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Talent Management Challenges
Building
human resources capacity
in the sector How do we
motivate
generations ?
employees of different How do we make sure every generation
gets training
it needs to stay competitive?
the How do we
tailor rewards and benefits
for people at each life stage
and
of different generations?
How do we
maximize age diversity
?
How do we
leverage generational differences
to benefit the organization?
Summary
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Generations and Organization Performance
Generational understanding is critical to success at the workplace
Employee
Recruitment Employee satisfaction Trust Retention
Organization
Engagement Trust Productivity/Effectiveness Collaboration and Teamwork Creativity and Innovation