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Page 1: DEMOGRAPHICS OF THE WORKFORCE - Modern Business › wp-content › uploads › 2018 › 08 › ... · a multi-generational workforce. managing a multi-generational workforce BABY
Page 2: DEMOGRAPHICS OF THE WORKFORCE - Modern Business › wp-content › uploads › 2018 › 08 › ... · a multi-generational workforce. managing a multi-generational workforce BABY

There are three primary generations in today’s workforce: Baby Boomers; Generation X; and Millennials. Advances in technology have shaped the working lives of these generations in different ways.

We will not discuss Generation Z (also known as iGen or the Centennials) as the workplace research on this cohort has not been completed given that only the eldest of them has entered the workforce. These individuals have never known a world prior to the 9/11 attacks and have been plugged into social media since birth – both of which have dramatically shaped their worldview.

With such a diverse workforce, business owners must have a clear understanding of generational differences in order to create a culture where all employees are engaged, motivated, and loyal. We can generalize the distinct needs of each generational group. Baby Boomers offer institutional knowledge and experience. They are motivated by leveraging their knowledge and utilizing their suggestions and experience to benefit the company’s bottom line. To create loyalty, supervisors must publically acknowledge a Baby Boomer’s dedication to the company. Generation X employees thrive when their critical thinking skills are engaged by frequent, high-level projects. Generation X employees value their independence. Employers need to trust them to manage projects individually without micromanaging. Conversely, Millennials are loyal to their own careers and desire meaningful work. Their connection is not to a company, but rather to trusted leaders in the organization who communicate regularly about how the Millennial’s work adds value to the business.

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DEMOGRAPHICS OF THE WORKFORCE

The landscape of today’s workforce is rapidly changing. Business owners must ensure supervisors are equipped with the tools to effectively manage a multi-generational workforce. This white paper addresses:

1) demographics of the workforce;2) acknowledging and addressing unconscious biases; 3) equal employment opportunity considerations; and 4) best practice recommendations for businesses with a multi-generational workforce.

managing a multi-generational workforce

BABY BOOMERSare 27% of the workforce

GENERATION Xare 27% of the workforce

GENERATION Y(MILLENNIALS) are

44% of the workforce

These employees were born between mid-1940s and mid-1960s. This generation’s technological advances include television and

the creation of the first transistor radio in 1954.

These employees were born between mid-1960s and 1980. The invention of the first desktop computer shaped

Generation X workers.

Millennials are separated into two sub-categories because of the quick pace of technology. First-wave

Millennials, born in the 1980s, remember dial up connections and two-way pagers, whereas many

second-wave Millennials, born between 1990 and 2000, had cellular phones with Internet

connection by the time they were teens.

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ACKNOWLEDGING AND ADDRESSING UNCONSCIOUS BIASES

About the authors

managing a multi-generational workforce

Everyone has unconscious biases. In an employment setting, supervisors must acknowledge their own biases and make conscious decisions not to allow these biases to affect employment decisions. For example, if a supervisor assumes that a Baby Boomer candidate does not know how to operate a computer or understand Excel functionality, they may choose not to hire the individual for a technology-heavy position even when that person may be the most qualified. Choosing to hire

a Millennial directly out of college on the assumption that the Millennial is more technologically savvy than a Baby Boomer could lead to not only a potential charge of discrimination based on age, but the hiring of an unqualified person who lacks experience.

Business owners must train their supervisors to address these unconscious biases. Using assessments like the Harvard Implicit Association Test provides supervisors with insight into their own biases. These assessments, however, should be used for training purposes only and the results should not be retained in personnel files. The focus should be acknowledging the existence of biases and double standards that may impact hiring and managing decisions.

They influence our judgment

and decision-making, and

because we are not aware of

them, can be detrimental in

certain circumstances such as

what information to prioritize

in decision-making, who to

hire, promote, and reward,

and where to allocate

precious resources.

unconscious biases

PATRICE FEATHERSTONE

Vice President of HRAssistant General Counsel

JOSHUA SHEA

Payroll Supervisor

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Without proper training, supervisors may allow their biases to influence employment-related decisions. The Age Discrimination in Employment Act of 1967 (“ADEA”) was enacted to prohibit age discrimination in employment. Moreover, the purpose of the law is to promote employment of older persons (40 years of age or older) based on their ability, rather than age, and to help employers and employees find ways to address issues that may arise with older workers. As discussed, Baby Boomers account for twenty-seven percent (27%) of the workforce, while younger generations (Generation X and Millennials)

account for the remaining seventy-three percent (73%). Given these demographics, supervisors may make hiring decisions based on an individual’s similarity to the majority of their workforce rather than based on qualifications. This can have significant legal and financial ramifications.

Many Generation X employees are already protected under the ADEA or will be in the next two years. Therefore, the issue of age discrimination will remain a relevant workplace issue.

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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC)

The EEOC, the federal agency responsible for enforcing the ADEA, reported receiving in:

Even with the decline in charges in 2017, the EEOC collected:

2016

2017

2017

2016

20,857 WERE CHARGES OF DISCRIMINATION 2,162 WERE BASED ON FAILURE TO HIRE

$90.1 MILLION DOLLARS FOR CHARGING PARTIES

18,376 WERE CHARGES OF DISCRIMINATION 1,796 WERE BASED ON FAILURE TO HIRE

$88.2 MILLION DOLLARS FOR CHARGING PARTIES

managing a multi-generational workforce

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Business owners and supervisors must understand that solutions can no longer be one-size-fits-all for a multi-generational workplace. In order to stay competitive, employers must recognize the many ways to communicate with and engage employees based on their generation.

1. ACCESS THE WORKPLACE Supervisors should start by identifying generational

differences and customize their supervisory style to the generation. Generally,

• Baby Boomers live to work, are loyal to the company, and believe in being in the office to complete their assigned tasks. • Generation X employees work to live and believe that work should not define their lives. • Millennials work their own way, desire meaningful work, and are devoted to finding a deeper purpose in their own careers.

A perfect example of a multi-generational workplace is a company that offers a flexible work schedule and allows employees to choose how, where and when they work, so long as their tasks are completed. In this scenario,

BABY BOOMER GENERATION X MILLENIALS

Will likely work in the office for 40 or more hours during the hours of 8 AM to 5 PM.

Might work (4) 10 hour days in and out of the office to allow them an additional day off to spend with family or do an activity.

Might opt to work remotely and likely, sporadically, and accomplish the same tasks in less than 40 hours.

Once an employer understands the goal is the completion of the task and not how the task is completed, the employer can create a culture that appeals to every type of employee which increases employee engagement and loyalty.

2. MANAGE WORKPLACE CULTURE:

Workplace culture is the personality of a company. It defines the environment in which employees work and includes

a variety of elements, including work environment, company mission, value,

ethics, expectations, and goals.

Essential to a multi-generational workplace

is management’s transparency regarding the value placed on each employee, regardless of their generation. Business owners and their supervisors must be vocal about the respect of all forms of diversity, the contributions each individual makes to the team, and ensure sensitivity is shown to other perspectives.

This type of culture will increase the types of interpersonal relationships between employees. Expressing the importance of teamwork by organizing team development exercises will open the lines of communication amongst employees of all generations. For example, if during a conversation, a Baby Boomer mentions going to watch their grandchild in a gymnastics tournament over the weekend in Seattle, a Generation X employee might chime in with information about their wedding in

BEST PRACTICES

managing a multi-generational workforce

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Seattle, while the Millennial uses their smartphone to Google places and restaurants with the best reviews to share with the other two employees.

3. MENTORING PROGRAMS: Acknowledge the strengths and weaknesses that each

generation brings to a healthy work environment. Don’t allow generational labels to define an employee or prohibit them from learning from their colleagues.

• Baby Boomers bring soft skills, including loyalty, emotional stability, and problem solving to the table.

• Generation X and Millennials bring critical thinking and technological skills.

Mixing generations initiates conversations and allows for the transfer of institutional and professional knowledge. Usually, mentoring involves pairing a more senior employee with someone less senior. In a multi-generational workforce, reverse mentoring can be equally effective because it allows younger employees to feel valued while teaching senior employees who may not be as technologically savvy about operating systems.

There are several benefits of mentoring programs. Understanding why one generation thinks or behaves the way they do can go a long way

to improving interpersonal relationships, employee morale, productivity, and ultimately client satisfaction. Employers can educate their teams by conducting trainings on the generational differences and using these trainings as a segue to a mentoring program.

4. CUSTOMIZE BENEFIT PROGRAMS: Benefits are important to all generations. To remain

competitive, employers must implement benefit plans that meet the needs of each generation. For example, a company that offers paid caregiver leave (leave for an individual serving as the primary caregiver for a family member with an illness or injury) may be appealing to a Baby Boomer with an ailing spouse or a Generation X employee with an ill parent.

Moreover, Generation X employees require flexibility and seek organizations that adapt to their preferences. Therefore, this generation will search for organizations that offer flexible work schedules, a 401k match, and training and development programs that include succession plans.

Millennials are generally socially conscious individuals. Accordingly, employers with Paid Community Service leave, tuition reimbursement, and unlimited Paid Time Off programs will attract and retain this generation.

managing a multi-generational workforce

Cultivating a healthy multi-generational workforce requires the

understanding that there is more that connects employees

than what separates them.

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Now, more than ever, employers must address generational changes in the workplace.

As 10,000 Baby Boomers turn sixty-five (65) every day, Millennials WILL MAKE UP FIFTY-ONE PERCENT (51%) OF THE WORKFORCE BY 2020.

As Baby Boomers retire, a Georgetown University report predicts a number of challenges for employers. Specifically, the population of younger workers with the education and skills to replace Baby Boomers is not large enough or growing fast enough to account for these departures. The report predicts a SHORTFALL OF 5 MILLION QUALIFIED WORKERS.

Given these projections, multi-generational management requires:

1. Ongoing training of supervisors on generational differences

2. Unconscious biases

3. Improving interpersonal relationships

Moreover, your business should incorporate the best practices discussed above to produce a positive, engaged, and productive multi-generational workforce.

managing a multi-generational workforce

IN CONCLUSION

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MBA provides its clients with strategic HR consulting and customized, technology–based solutions for all of your HR, risk management, benefits, and payroll needs.

MBA is a trusted advisors and single point of contact for human resources consultations, payroll processing, risk management compliance, and benefits administra-tion. Stop spending your valuable time on non-revenue generating back office tasks. Leave it to the subject matter experts at MBA to manage your administrative needs so

that you can focus on what you do best: growing your business.

MBA is dedicated to helping our clients create an inclusive workplace for all generations. Please contact MBA’s team of experienced HR Consultants for more information and guidance on implementing the best practices discussed in this pamphlet, or to learn more about our other customized trainings and special offerings. Visit MBA at www.MBAhro.com.

MBAhro.com | 888-622-6460The IRS does not endorse any particular certified professional organization. For more information on certified professional employer organizations go to www.IRS.gov.

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