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For Peer Review Only A Multi-Cohort Examination of Generational Differences in Competency-based Performance and Engagement Journal: Human Performance Manuscript ID: Draft Manuscript Type: Original Article Keywords: generational differences, employee performance, employee engagement, Millennial employees URL: http:/mc.manuscriptcentral.com/hhup Email: [email protected] Human Performance

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A Multi-Cohort Examination of Generational Differences in Competency-based Performance and Engagement

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Page 1: Millennials Manuscript

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A Multi-Cohort Examination of Generational Differences in

Competency-based Performance and Engagement

Journal: Human Performance

Manuscript ID: Draft

Manuscript Type: Original Article

Keywords: generational differences, employee performance, employee

engagement, Millennial employees

URL: http:/mc.manuscriptcentral.com/hhup Email: [email protected]

Human Performance

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Generational Differences 1

Running head: GENERATIONAL DIFFERENCES IN COMPETENCY PERFORMANCE

A Multi-Cohort Examination of Generational Differences in

Competency-based Performance and Engagement

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Abstract

This study investigated potential differences between Millennial-generation and older

employees’ competency-based performance and engagement using both cross-sectional and age-

defined cohort samples. Data were obtained from 3766 customer service employees and their

managers in a cross-organizational sample. Ratings of Millennials’ overall performance was

comparable with their counterparts from previous generations. When examining differences at

the competency level, Millennials outperformed older employees in learning ability and

adaptability but performed lower on a larger number of competencies relating to work ethic, self-

management, and interpersonal skills. Our study suggests a complex interplay in the relationship

between performance and generation, with each generation leveraging different strengths to

achieve similar levels of overall performance. We discuss implications of our findings for

coaching, training, and selecting a multi-generational workforce.

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A Multi-Cohort Examination of Generational Differences in

Competency-based Performance and Engagement

Within the context of a strong interest in actively recruiting, managing and leveraging the

skills of a diverse employee workforce, organizations have displayed increasing interest in and

have drawn broader implications from research into potential distinctions among employee

subgroups, and generational effects have received extensive attention in recent years. This

attention is likely due to the impending retirements of a large Baby Boom generation, which in

turn has created an imbalance between jobs to be filled, and sufficiently-skilled new workforce

entrants to fill them. This degree of imbalance is such that growth in the labor force itself may be

threatened in the forthcoming decades (Toossi, 2007). This excess of employee “demand” may

have expanded the proportion of candidates from the newest generations who are considered

viable for employment. Because of this, organizations may face pressure to be less selective in

who they hire; instead, they must recognize and prepare for a new generation “as is,” including

their strengths and weaknesses in terms of on-the-job performance.

The generation currently entering the workforce, and therefore a primary focus of recent

attention, has been defined as the “Millennial” generation, with birth years between 1977 and

2000. Similar to prior generations defined using a cohort-based approach to categorization,

Millennials are classified based on the premise that the values and behaviors of individuals

within this cohort would be similarly shaped by defining events, most notably for this particular

generation the 9/11 attacks and the emergent omnipresence of the Internet (Howe & Strauss,

2007). Although inherent conceptual and methodological risks with a generational perspective on

employee categorization have been noted by numerous authors (e.g., Deal, 2007; Macky,

Gardner, & Forsyth, 2008; Sullivan, 2008), it nonetheless remains a salient area of interest for

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organizations facing tangible challenges with staffing and retaining the workforces that will

define their future productivity and growth. With organizations seeking detailed guidance on

these issues, it is important for researchers to conduct targeted investigations on this topic to

inform research-guided recommendations, as a counterpoint to the extensive but not peer-

reviewed publications, many of which are based on anecdotal and/or small-scale examples.

The popular press frequently asserts that the Millennial generation differs notably from

earlier generations in terms of workplace preferences and performance. Millennial workers

reportedly prefer more collaborative work settings, adapt more quickly to change, are less

engaged in their work, and are more likely to change jobs frequently (e.g., Hulett, 2006).

Other popular publications suggest Millennials prefer time on the job for socializing with friends,

want all processes (e.g., job training) tightly integrated with current technology, and demand

constant praise and recognition for their workplace contributions. The purpose of this paper is to

empirically-investigate these common stereotypes to uncover whether they are

overgeneralizations or whether they accurately reflect some observable differences in behavior

between Millennials and the generations that came before them.

A secondary aim of this paper is to provide additional context for interpreting the data. In

addition to comparing behaviors of Millennial and older groups within a multi-year sample, we

partitioned the available samples into three timeframes based on when the data were gathered.

We then used the age of Millennials in the present day to classify employees from each

timeframe into equivalent age categories. Finally, we compared the magnitude of performance

and engagement effects between these timeframes, in an attempt to disentangle generation

effects from the conflating effects of age. Given that the concept of a “generation gap” did not

arise with the Millennial generation – Deal (2007) provides quotations indicating signs of such

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perceived distinctions as early as 400 B.C. – a cohort-based perspective may provide insights

into whether and how current effects differ from effects obtained in prior comparisons.

Job Performance of Millennials

Compared to earlier generations, Millennials are often viewed as more difficult to

manage and retain as employees. While a moderate degree of research has been conducted

regarding the work preferences and motivations of Millennials (e.g., Rawlins, Indvik, & Johnson,

2008; Taylor, Morin, Parker, Cohn, & Wang, 2009), very little empirical research exists

regarding the relative job performance of younger generations as compared to their predecessors

(Macky et al., 2008). In one of the few empirical studies to investigate this issue for Generation

X, the generation immediately preceding Millennials, Sessa, Kabacoff, Deal, and Brown (2007)

compared multisource feedback ratings of leaders from various generations. Due to the small

sample sizes available for Millennial leaders (based on the small number of individuals

achieving a leadership role early in their career), they were not able to include this group in their

comparisons. However, for Generation X leaders Sessa and her colleagues observed stronger

usage of individualistic rather than collectivist leadership styles. Although either of these styles

may be effective in certain employment settings, this finding does suggest that Generation X

employees may differ from the preceding generations in terms of how they interact and work

with others.

In terms of the Millennial generation specifically, but based on survey findings rather

than structured performance information, jobfox (as cited by American Society for Public

Administration, 2008) found that only 20% of corporate recruiters considered Millennials

“generally great performers” and gave much higher ratings to those in other generational

categories (e.g., 58% had highly favorable perceptions of Generation X workers). These

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perceptions align with many of the anecdotal remarks regarding the job performance of

Millennials found in the popular press and trade journals. For example, Hulett (2006) reported

that Millennials are strong multi-taskers and agile learners, drawing upon their interactions with

technology from an early age. Because the formal literature on generational differences in job

performance is limited, research in the area of age and job performance may also be informative.

Because Millennials are also currently the youngest generation, our hypotheses will also draw

upon the more developed literature surrounding age differences in job performance, while

recognizing the importance of addressing the conflating nature of age versus generation effects.

Because we are unable to conclusively separate Millennials from younger employees, however,

for our formal hypotheses we use the phrase “Millennial/Younger” to refer to this subgroup.

One approach to partially address the issue of determining which effects are due to

generation and which are due to age is to compare the current Millennials cohort (based on their

current age range within the employee population) with similarly-aged cohorts for whom

performance information was gathered at earlier points in time. Specifically, we compare the

current cohort of Millennials (birth years of 1977 and later or on average, a maximum age of 31

in the most recent studies available for our analysis sample) to individuals 31 years of age and

younger in datasets gathered between 2002 and 2004 (birth years of 1972 and later) and between

1997 and 1999 (birth years of 1967 and later). The limited research into differences by

generation on competency-based job performance does not allow us to hypothesize specific

effects; however, we view it as a potentially informative research question regarding how

“young” employees in the current 2007-2009 workforce (i.e., Millennials) compare to “young”

employees in the workforces of 2002-2004 and 1997-1999. These latter workforces would

include a proportion of Millennials, but they would also include members of the previous

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generation, Generation X. The “Older” categorization also varies within these cohorts such that

in the more recent sample this aligns directly with the Generation X/Millennial transition;

however, in the earlier cohorts the transition to “Older” as defined by age includes only the

earlier portion of Generation X rather than that full generation.

Job Performance and Age

Research into age-related differences in overall job effectiveness (e.g., McEvoy & Cascio,

1989; Ng & Feldman, 2008) has generally detected low-magnitude positive linear relationships

between these variables. In the most recent large-scale investigation of these relationships, a

meta-analysis conducted by Ng and Feldman (2008), the corrected correlation between age and

supervisor-rated core task performance was estimated to be 0.03. However, these authors also

observed substantial variability in this relationship, suggesting that different facets of job

performance may be predicted to varying degrees. Through subsequent moderator analyses, they

observed correlations ranging from -0.04 for performance in training programs to 0.28 for

punctuality (reverse-coded from tardiness). This pattern of findings suggests that exploring age-

performance relationships, as well as generation-performance relationships, at an overall level

may obscure a more varied set of linkages existing among sub-elements of job performance

(Cleveland & Lim, 2007).

In the current research, we seek to expand upon the potential limitations of an exclusive

focus on overall performance by utilizing a competency framework to attempt further explication

of the complex age-performance relationship. Competency-based approaches to defining

individual characteristics linked to job success are important foundations for understanding and

addressing differences among employee groups because, in comparison to more traditional task-

based approaches, they are viewed to be superior in informing training and development-oriented

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HR applications (Schippmann et al., 2000). Drawing upon previous research where applicable

and to a lesser extent, on popular characterizations related to generational issues, we propose

several hypotheses regarding job performance differences among generational categories.

First, we identified Applied Learning, or assimilating and applying new job-related

information in a timely manner, as a competency linked closely to fluid intelligence, which has

been shown to decrease for older adults (e.g., Horn, 1982) and to reach maximum levels for an

individual in his or her early twenties (e.g., Schaie, 1996). Accordingly, we predicted that

performance in this competency would be higher for Millennial/Younger employees.

Hypothesis 1: Applied Learning performance will be higher for

Millennial/Younger than for Older employees.

Certain competencies are reflective of personality constructs which differ by age, with

Adaptability being one such example. Adaptability is defined in competency terms as

maintaining effectiveness when experiencing major changes in work responsibilities or

environment, and making effective adjustments to new work conditions. We identified Openness

to Experience as a related personality facet which has been shown to decrease for older

individuals (e.g., Roberts, Robins, Caspi, & Trzesniewski, 2003), guiding our prediction for this

competency.

Hypothesis 2: Adaptability performance will be higher for Millennial/Younger

than for Older employees.

Conscientiousness has been shown to increase for older individuals (e.g., Roberts et al.,

2003), which may have implications for work activities drawing heavily upon this attribute. In

addition, the response categories of “Work Ethic” and “Morality/Ethics/Beliefs” were among the

most commonly-cited distinctions between generational categories from a recent survey

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conducted on the topic by the Pew Research Center (Taylor et al., 2009). In Deal’s research

(2007), the value of Integrity was also identified as a top ten most important value by only 39%

of “late Generation Xers” (overlapping in birth years with the current characterization of

Millennials) as compared to an average of 68% for the preceding four generational categories.

Based on these findings, we predicted that performance on the competencies of Work Standards

(defined as setting high standards of performance for oneself and for others and taking

responsibility for work outcomes) and Integrity (defined as adhering to social, ethical, and

organizational norms and to codes of acceptable conduct) would be higher for Older individuals.

Hypothesis 3: Integrity performance will be higher for Older than for

Millennial/Younger employees.

Hypothesis 4: Work Standards performance will be higher for Older than for

Millennial/Younger employees.

Anecdotes and many of the popular press publications cite a high degree of comfort by

Millennials for group-oriented activities and frequent communication with others. However, our

prediction for the competency Collaboration, defined as working effectively and cooperatively

with others and establishing and maintaining good working relationships, is guided by the

finding of Sessa et al. (2007) that later-generation individuals were more likely to use an

individual rather than a consensual interaction style, as well as by the common characterization

of the Millennial group as a “me” generation (e.g., Macey & Schneider, 2008). It may be the case

that group interactions in a social setting, often conducted remotely using technology, may not

translate into effectiveness interacting directly with others (of a more varied age range than one’s

peers) for interdependent tasks in a work setting.

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Hypothesis 5: Collaboration performance will be higher for Older than for

Millennial/Younger employees.

We also investigated exploratory research questions related to several additional

competencies commonly identified as important for these roles, Communication, Customer

Orientation, Decision Making, Managing Work, and Initiative. For these competencies, we did

not propose a priori hypotheses due to the limited insight provided by existing research. We also

explored potential differences in Overall Performance – we do agree with authors (e.g.,

Cleveland & Lim, 2007) suggesting that such a level of analysis can obscure more meaningful

and interpretable effects at the competency level. However, we nonetheless included this analysis

facet in order to facilitate comparisons with other research and to explore the possibility that

competency effects may counterbalance in their contribution to overall job effectiveness.

Engagement

Macey and Schneider (2008) proposed a model of employee engagement that

distinguishes three components: a psychological state, a manifestation of behaviors, and a

disposition. The behavioral aspect is the element of engagement perhaps most closely linked to

popular press perceptions regarding Millennials. Behaviors such as putting in extra effort on the

job, seeking out opportunities to make contributions to the workplace, taking initiative, and

intentions to stay with an organization are all associated with these behavioral aspects of

engagement. This view of engagement is shared by most industry approaches to engagement and

is often conceptualized as a combination of satisfaction and involvement (Wefald & Downey,

2008).

The popular press is replete with anecdotal examples stating that Millennials are

disengaged. For example, a Business Week article (Pallavi, 2005) used terms such as spoiled,

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overindulged, disengaged, and self-absorbed to describe this generation. Related to these

conceptions, Millennials are often perceived as job hoppers that do not expect long-term

relationships with a single employer (Alsop, 2008). Alsop contends that these individuals grew

up in an environment that rewarded and catered to individual interests and that they are therefore

more likely to seek out environments that offer flexibility and work life balance. The argument is

made that because Millennials expect to have their needs catered to, they are not as likely to be

loyal to a single organization, to accept criticism, or to take initiative ([email protected],

2008). The consulting firm BlessingWhite (2008) conducted a global survey of over 7500

employees and reported that a greater percentage of Millennials across a wide range of

geographic regions were disengaged as compared to their counterparts from other generations.

These findings translate into views that Millennials are predisposed to be less engaged

and are therefore more difficult to manage than their colleagues from previous generations. To

counter this perceived effect, managers are often encouraged to adjust their leadership styles to

these so called ‘unique’ aspects of Millennials’ needs (Alsop, 2008) and accordingly,

organizations appear to be continually seeking prescriptions for dealing with this generation.

Research on the relationship between employee engagement and tenure and age has been

mixed. Following a review of the literature on employee engagement, tenure, and age, a report

by The Conference Board (Gibbons, 2006) found trends indicating that employee engagement

was linked to length of service and that factors influencing engagement were likely to shift as

employees aged. For example, they reported a frequent finding that employees early in their

tenure with an organization were more likely to be engaged than those with moderate levels of

tenure and that older employees were likely to be employed longer by their current employer

than younger employees. Harris Interactive (2005, as cited in Gibbons, 2006) found that a larger

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percentage of employees over the age of 55 agreed with the statement “a great deal of my pride

comes from my work” than did employees under the age of 35. Based on this collective although

not entirely uniform set of prior research, we predict higher engagement levels for Older

employees.

Hypothesis 6: Engagement will be higher for Older than for Millennial/Younger

employees.

Method

Our research sample includes data gathered from customer service employees

(engagement) and their managers (performance) from 19 organizations. Employees completed a

proprietary measure of employee engagement. Collection of competency-based performance data

followed a consistent approach involving manager rating sessions preceded by frame-of-

reference and rater error training. In these sessions, supervisors evaluated employees using 4 to 6

behavioral statements for each of 8 to 12 competencies. These competencies were established

through job analytic activities which included interviews, job observations, focus groups,

surveys, confirmation surveys, and stakeholder reviews. Performance ratings were utilized for

research purposes only and were described to participants as such; ratings were not made

available to the client organizations and no administrative decisions were possible on the basis of

the information. Within each organization, we standardized ratings such that performance

reflected an employee’s performance relative to others within their respective organizations.

Our analysis sample size comprises 3766 employees with age data available; of these

individuals, 1478 (39.2%) were classified as Millennial/Younger employees based on their

birthdates of 1977 or later and 2288 (60.8%) were classified as Older employees based on

birthdates of 1976 or earlier. Although our “Older” group in fact includes individuals from a

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range of preceding generations (e.g., Generation X and Baby Boomers), due to the largely

exploratory nature of our study we wished to focus our analysis on the distinctions between the

Millennial generations and all previous generations as a set. Our study investigates three types of

research questions: first, main effects of competency-based performance by generation; second,

main effects of engagement by generation; and third, changes in the magnitude of these effects

from the 1997-1999 to the 2002-2004 and to the 2007-2009 timeframe.

Measures

Engagement. The engagement measure used was the E3, a proprietary 17-item

standardized survey developed by the consulting firm Development Dimensions International

(DDI). This survey measures employees’ perceptions of personal meaning and motivation in

their work, positive interpersonal support from their company and work unit, and efficiency

within their work environment.

Competency-Based Job Performance. Competencies used as the basis for employee

performance ratings were drawn from the competency library of DDI. This taxonomy has been

developed and refined for approximately 40 years based on job analyses conducted across a

range of organizations, positions, and industries. Competencies were developed to be clearly

defined, independent from other competencies, and behaviorally-observable. DDI has evaluated

and observed substantial correspondence between this competency model and generalized

models such as those developed by the National Skill Standards Board (NSSB; Herman,

Bramucci, Piala, & Litman, 2000) and the Occupational Information Network (O*NET;

Peterson, Mumford, Borman, Jeanneret, & Fleishman, 1999), as well as numerous models from

other consulting firms and individual organizations. For this study, we limited our group

comparisons to the most frequently-observed competencies based on job analyses conducted on

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customer-facing positions as listed in Table 1. We also included an index of Overall

Performance, which was calculated by unit-weighting and averaging all individual competencies

included within each study.

Analysis/Results

In order to avoid excessive influence over the findings by a particular organization’s

sample, we randomly sampled within organization such that no more than 1000 individuals were

included from each. Although this sampling approach reduced our analysis sample sizes, we

viewed it as an appropriate procedure to potentially increase the cross-organizational

generalizability of the Millennial/Younger-Older employee comparative results.

We conducted ANCOVAs comparing competency-based performance and engagement

between Millennial/Younger and Older-generation employees. In these comparisons, in order to

reduce the potentially conflating effects of job tenure, we included this variable, measured in

months, as a covariate in the analyses. The evaluation level for this covariate varied slightly

between competencies based on sample variations, with a minimum value of 22.2 months and a

maximum value of 27.5 months.

Competency-based Job Performance

Group-level sample sizes for these comparisons ranged between 650 (for

Millennial/Younger employees on Integrity) and 1866 (for Older employees on Building

Customer Loyalty and Overall Performance). We converted F-statistics to d-values to compute

standardized effect size differences for all comparisons; positive d-values indicate higher

performance for Millennial/Younger employees as compared to Older employees. Results for our

performance comparisons are presented in Table 1, including significance levels and effect sizes

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for the comparisons—all results discussed below are significant unless otherwise noted. A

graphical display of the mean differences between the two groups is also presented in Figure 1.

For Overall Performance, group differences were not significant and the resulting effect

size was small (d = -0.045). We observed significant performance differences in the expected

direction favoring Millennial/Younger employees for 2 of the competencies included in the

analyses: Applied Learning (Hypothesis 1) and Adaptability (Hypothesis 2), p < .01. In addition,

for Managing Work (exploratory research question), we found a small trend favoring

Millennial/Younger employees but it fell short of significance (p = .07). We observed

performance differences favoring Older employees for 3 of the competencies hypothesized,

supporting Hypotheses 3, 4, and 5 (i.e., Collaboration, Work Standards, and Integrity). In

addition, Older employees outperformed Millennial/Younger employees on two additional

competencies explored but not directly hypothesized: Customer Orientation and Initiative.

Engagement

For Engagement (Hypothesis 6), we observed significant differences between the groups,

after controlling for job tenure, such that Older employees reported stronger levels than

Millennials/Younger workers, F = 6.28, p < 0.01, d = 0.108.

Cross-Cohort Analyses

A key challenge when evaluating generational differences is to disentangle these effects

from effects due to age alone. In an attempt to partially separate these two types of effects and as

a secondary analysis to the overall (across all validation study samples regardless of year

conducted) group differences reported above, we split the sample into three portions based on the

timeframe when the data were gathered, and we classified employees from each timeframe into

Millennial-equivalent age categories. That is, because Millennial employees in our most recent

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sample timeframe (2007 to 2009) were 31 years of age or younger, we compared employees of

this age group to older individuals for all three timeframes for which data were available. We

viewed the trend in these differences from the 1997 to 1999 timeframe, to the 2002 to 2004

timeframe, to the 2007 to 2009 timeframe to potentially be indicative of how generational effects

may diverge from age-based effects on competency-based performance.

Of the analyses conducted on competency-based differences by timeframe, we observed

interpretable trends in two competencies: Collaboration and Applied Learning. For

Collaboration, the trend indicated effect sizes progressively favoring Older employees: in the

1997-1999 cohort, Younger employees performed better on this competency to a very small

degree (d = 0.036); however, Older employees performed better in the 2002-2004 cohort (d = -

0.111) and incrementally so in the 2007-2009 cohort (d = -0.135). For Applied Learning,

conversely, effect sizes favored Younger employees to a slightly larger degree in 2002-2004 (d =

0.240) and 2007-2009 (d = 0.223) as compared to 1997-1999 (d = 0.179). In terms of the

remaining competencies as well as for Overall Performance and engagement, effect size

differences were either stable across the timeframe cohorts or did not indicate a consistent trend.

Discussion

The competency-level effects we observed for the Millennial generation largely parallel

those expected based on age differences (e.g., in fluid intelligence and the corresponding

competency Applied Learning). However, at a broader level it is clear that although both

Millennial and older employees are capable of achieving similar levels of job effectiveness, they

achieve this success in varying ways; the strengths of Millennials in competencies such as

Applied Learning and Adaptability appear to be counteracted by stronger performance levels of

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older employees in competencies such as Collaboration, Work Standards, and Customer

Orientation.

Competency-based Job Performance

Millennial/Younger employees performed significantly better on the competency of

Applied Learning, as compared to Older employees. This finding corresponds with the decline of

fluid intelligence levels in older adults (e.g., Horn, 1982) and the close relationship of Applied

Learning to this form of cognitive functioning. Millennials often conduct rapid internet searches

for information they subsequently apply to their immediate needs. In this way, Millennials may

commonly practice some of the skills associated with Applied Learning in their non-work lives,

and may be readily able to exercise these same behaviors in a work context.

Millennial/Younger employees also performed better on the competency of Adaptability.

Although this finding converges with the decrease with age of the personality construct

Openness to Experience, it also contradicts some stereotypes drawn from the popular press.

Managers reportedly express frequent frustration with Millennials because they ask “why” so

often, and may question the necessity and rationale for a new policy or procedure (e.g., Buono &

Nurick, 2008). However, Millennials as a group have also experienced extraordinary changes

during their lifetimes, particularly in the areas of technology and globalization. The

pervasiveness of these changes may have heightened the abilities of this generation to modify

their behaviors to match the situation in a work as well as a personal environment.

Older employees outperformed Millennial/Younger employees in Collaboration. This is

consistent with the research of Sessa and her colleagues (2007) showing that later-generation

individuals were more likely to use an individualist interaction style characterized by assertively

prioritizing one’s own interests over those of the group. Further, Millennials’ perceived

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preferences for electronic communication media such as texting and instant messaging, may not

fit with company expectations or preferred teamwork approaches of older employees. Many have

suggested that their dislike of in-person meetings impedes Millennials’ ability to problem solve

as a group and build strong interpersonal work relationships (Alsop, 2008) as well as to increase

their emotional intelligence at work (Lipkin & Perrymore, 2009).

Our findings indicate that Older employees performed better on the competency of

Integrity. This is a finding shared by previous survey-based research (e.g., Deal, 2007; Taylor et

al., 2009) and also a frequently cited notion in the popular press. In her book detailing the

psychology of Millennials, Twenge (2006) argued that Millennials as a group care little about

seeking others’ approval. She believes this pervasive attitude has contributed to lower adherence

to social rules and an increase in cheating in schools. Millennials have also witnessed numerous

business scandals (e.g., Enron, WorldCom) and have observed rampant disregard of employees

when companies raided pension funds and invoked massive layoffs. These events may have

influenced Millennials’ own ethical workplace behaviors and attitudes.

Our research also found that Older employees outperformed Millennial/Younger

employees on Work Standards and Initiative. These competencies are related to work ethic,

which is a value that characterizes Baby Boomers’ parents (Alsop, 2008). Baby Boomers

themselves are often noted for their work ethic though it is said to be driven by motivation for

status and titles. Another important consideration is that perceptions of one’s work standards will

be colored by prevailing norms within a given job or organization. While some contend that

Millennials do have strong work ethics, albeit different work ethics (e.g., Lipkin et al., 2009),

characteristics traditionally associated with a strong work ethic may be at odds with Millennials’

stated preferences for setting their own work hours and working their jobs in around their lives.

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In terms of Initiative, it seems Millennials often exhibit some related behaviors, but Older

employees may contribute more meaningful, appropriate, or pragmatic ideas and behaviors than

lower-tenured Millennials. Thus, when Older employees speak up or initiate work on their own,

their thoughts or work products may be viewed by managers and leaders alike as more

acceptable and more valuable.

Our research indicated that Older employees outperformed Millennial/Younger

employees in Customer Orientation. The first finding is consistent with the notion that

Millennials comprise a “me” generation and are not particularly skilled at taking the perspective

of others. Millennials as a generation have enjoyed more buying power at a younger age than did

previous generations (Tulgan, 2009). As such, they may be more accustomed to playing the

customer role, rather than the customer service role, and may be less able to view work situations

and their own work outcomes through the viewpoint of a customer.

In terms of the competency of Managing Work, although we did not predict this finding a

priori and the difference did not achieve full statistical significance, converging empirical

evidence does exist to support the trend of Millennial/Younger employees outperforming Older

employees. Studies have demonstrated lower levels of executive functioning (Rhodes, 2004) and

multi-tasking (Verhaeghen Steitz, Sliwinski, & Cerella, 2003) for older adults; both of these

cognitive processes are related to coordinating one’s own multiple work activities effectively

while avoiding or ignoring the influence of potential distractions.

Overall Performance levels were very similar between Millennial/Younger and Older

workers, consistent from an age perspective with large-scale meta-analyses such as Ng and

Feldman, (2008). This suggests that employees of both groups, Millennials/Younger and Older,

may be capable of the same level of work success but may achieve this success in different ways.

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While there were no significant differences in Overall Performance, the observed differences in

individual competencies can potentially be summarized based on the themes of the

competencies. Older employees performed better as a group on interpersonal and self-discipline

competencies (e.g., Collaboration, Integrity, Work Standards) while Millennial employees

performed better as a group on learning and information management competencies (e.g.,

Applied Learning, Adaptability, and marginally on Managing Work).

Engagement

Older employees reported significantly higher levels of engagement than

Millennial/Younger employees. When engagement is conceptualized as a combination of

satisfaction and involvement (Wefald et al., 2008), it may become evident why Millennial

employees may be perceived as less engaged. Millennials have a reputation for leaving jobs once

they become disenchanted with their current work situation (Lipkin et al., 2009). They are not

likely to make sacrifices for the futuristic promise of promotions or other rewards (Tulgan,

2009). Also, they witnessed their workaholic parents getting laid off in the 1990s as the economy

changed (e.g., Lipkin et al., 2009) so their loyalty to the organization must be earned; it is not a

given. Additionally, Millennials are known for having high demands around compensation,

flexible work schedules, perceived importance of work tasks, and constant positive performance

feedback. When these attributes on the job fall short of expectations, Millennials’ subjective

level of satisfaction will decrease. This attitude may also be captured by the engagement measure

used in this study, specifically the components of satisfaction and perceived managerial and

organizational support.

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Changes in Performance Effects by Cohort

We found linear changes in the magnitude of competency-based performance differences

for Applied Learning and Collaboration. This suggests that Millennial-generation employees

may be progressively advancing/declining as compared to their similarly-aged predecessors.

Regarding Applied Learning, the increasing advantages for this competency of

Millennial-generation employees over and above what might be expected based only on age,

may be explainable due to continued growth in education levels for this generation. The National

Longitudinal Survey of Youth 1997 (NLSY97) has tracked a group of individuals with birth

years ranging from 1981 to 1985, and has compared them to a carefully-matched cohort group

with birth years ranging from 1957 to 1965 (NLSY79). The 1997 group, roughly parallel to a

portion of the current Millennials categorization, were found to have stronger educational

backgrounds in terms of their own academic achievement as well as that of their fathers and

mothers (Altonji, Bharadwaj, & Lange, 2008). For example, the NLSY97 cohort had completed

13.17 grades by age 22 as compared to 12.61 for the NLSY79 cohort.

Regarding performance on Collaboration, although Millennial/Younger employees

outperformed Older employees to a small degree during the first cohort we examined (1997-

1999), Older employees surpassed them on Collaboration performance in the 2002-2004 cohort

and incrementally so in the 2007-2009 cohort. One potential explanation for this finding is that

younger employees’ performance in this area has decreased as the availability and their usage of

technology has increased. The adoption of and reliance on these communication media may

explain the decline in Collaboration performance compared to older employees during the same

time period. Many organizations and managers alike insist that collaboration is best

accomplished during in-person meetings and phone calls, and reliance on these more impersonal

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Generational Differences 22

media causes breakdowns in communication and limits their development of negotiation and

listening skills and better interpersonal connections (Alsop, 2008).

Additional longitudinal or cohort-based research will be beneficial in aligning the

competency differences identified in this study, with broader workplace trends. Because the

work environment and requirements themselves are changing, any differences between

generations, particularly those that are growing in magnitude, can have particularly impactful

implications under certain scenarios. For example, a trend of increased interdependent and team-

oriented roles may lead to challenges for the Millennial generation in capably filling these roles

given their struggles with Collaboration. Conversely, roles requiring a larger degree of

information acquisition and application than in the past may further disadvantage older workers.

Limitations

Because of our exclusive focus on customer-facing positions, further research is

necessary to determine if our results extend to other work roles. One example of a job family

potentially worthy of further investigation is a manufacturing or production role where safety is a

primary consideration, due to previously observed relationships between age and safety

behaviors (Ng & Feldman, 2008). Jobs drawing heavily upon technical or professional

knowledge may also be useful targets for further study, to examine if increases in crystallized

intelligence based on age (e.g., Salthouse, 1988) translate into higher knowledge levels for older

individuals, and if the Millennials generation remains lower in this competency despite their high

and constant levels of information access. Another potential avenue of research that will increase

in relevance regarding Millennial-generation employees would be an expanded focus on leader-

level roles and leadership/management-related competencies, building upon the research

conducted in this area by Sessa and colleagues (2007).

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Our study also focused exclusively on subjective rather than objective performance.

Although age-based differences in objective performance have been similarly small as for

subjective performance (Cleveland & Lim, 2007), objective performance may also be less

susceptible to potential interactions between supervisor and subordinate age in influencing

performance ratings. Another potential limitation of our study is our partial focus on

competencies derived from a single consulting firm’s taxonomy. Although we have attempted to

emphasize core competencies that may overlap with other similar frameworks, extension of our

results to alternative competency frameworks will be important for gauging the generalizability

of our conclusions.

In terms of our cohort-based approach to a portion of our research questions, we did

attempt to use this methodology to gain insights into generational and age trends over time.

However, we recognize the limitations in the data that were available to us in terms of cohorts

extending only 10 years into the past; certainly being able to extend this cohort approach to span

an entire generation (that is, 20 years or more) would have been additionally informative. Further

research attempting to disentangle age and generation effects will be warranted, perhaps with a

specific focus on competencies such as Customer Orientation, Initiative, and Integrity where we

detected generational differences but no consistent trends from a cohort viewpoint.

Practical Implications

With minimal overall performance differences between younger and older groups, it is

likely worthwhile to invest in understanding and targeting performance differences at the

competency-level and providing structure (e.g., coaching, training) to improve employee

performance in these areas. Given the strain that may result based on Millennials’ approach to

their work differing from the way older workers conduct their work activities, it may be

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worthwhile to leverage both Millennials’ and older workers’ preferences and strengths to achieve

overall improved job performance for an organization’s entire workforce. Although we do not

advocate training programs accessible by only one generational group but not by others,

development courses including representatives from all generations and focusing on

competencies exhibiting larger between-generation differences (e.g., Applied Learning,

Collaboration, Adaptability, Work Standards) may facilitate collective learning, understanding,

and reconciliation of approaches potentially differing between the generations. In addition, our

findings suggest that each generation uses their different profiles of strengths to compensate for

other areas of weakness and reinforces holistic models of selection that evaluate performance

across multiple competencies. With Millennials’ successors already being born (e.g., the

Homeland Generation; Howe & Strauss, 2007), investigation and clarity regarding the

implications of a strong Millennial employee presence may be an important precursor to

additional changes expected when their sons and daughters join them in the workforce.

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Table 1

Job Performance Differences: Millennial/Younger as Compared to Older Employees

Millennials/

Younger

Older Performance

Competency

Mean1 N Mean

1 N

F

Sig.

Level

d

Overall Performance -0.007 1279 0.032 1866 1.604 0.205 -0.045

Communication 0.028 1230 0.011 1680 0.214 0.644 0.017

Collaboration -0.028 1164 0.057 1598 4.703 0.030 -0.083

Customer Orientation -0.038 1277 0.063 1866 7.450 0.006 -0.097

Decision Making 0.001 1204 0.016 1609 0.168 0.682 -0.015

Applied Learning 0.119 733 -0.048 1253 12.353 0.000 0.158

Adaptability 0.113 744 -0.053 1013 11.370 0.001 0.161

Managing Work 0.066 670 -0.023 1088 3.349 0.067 0.087

Work Standards -0.028 1123 0.053 1548 4.095 0.043 -0.078

Integrity -0.079 650 0.078 991 9.346 0.002 -0.151

Initiative -0.047 962 0.069 1027 6.276 0.012 -0.112

1 Values represent marginal means after evaluation of job tenure as a covariate.

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Figure Caption

Figure 1. Millennial/Younger and Older Group Means by Competency and Overall Performance

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Group Means by Competency and Overall Performance

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

Overall Performance

Communication

Collaboration*

Customer Orientation**

Decision Making

Applied Learning**Adaptability**

Managing Work+

Work Standards*

Integrity**

Initiative**

Millennials/Younger Employees Older Employees

** p < .01; * p < .05; + p < .10

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