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MOTIVATING THE MULTI-GENERATIONAL WORKFORCEWhat Five Generations Want and Need in the New World of Work

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Generational diversity is at work, and managing this shift will require flexible leadership, policies and programs. Are you ready?

YOUR WORKFORCE IS SHIFTING.

1Pew Research Center. “Millennials are the Largest Generation in the U.S. Labor Force.” 2018.2Chicago Tribune. “Baby boomers are retiring in droves. Here are three big reasons for concern.” 2019.3CNBC. “61 Million Gen Zers are About to Enter the U.S. Workforce and Radically Change it Forever.” 2018.

For the first time in the history of the modern workforce, five generations are working side by side toward shared goals. While it’s an exciting and dynamic time, this collaboration between ages will also result in dramatic workforce and cultural changes.

Already the largest generation in the workforce, Millennials are projected to make up 75% of it by 2025.1 Baby Boomers are busily making room for them, with 10,000 turning 65 every day, and 70 million due to retire by 2025.2 Generation Z – those born in 1996 or later – now accounts for 61 million people in the U.S., a number that’s already larger than Gen X and two thirds the size of the Baby Boomers.3

In this guide, we’ll cover four key takeaways for HR professionals and managers:

• What each of the five working generations want and need to be fulfilled

• Which main psychographic characteristics connect the generations

• How each generation prefers to be recognized at work

• How to build an inclusive culture that engages all generations

Serving the varying needs of each generation and recognizing their unique – and sometimes conflicting – beliefs, values, attitudes and perceptions is the key to maintaining a positive, productive culture.

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34Pew Research Center. 2018

Generations represent groups of people who have experienced the same cultural and political milestones during a specified period. In other words, they grew up together. Each generation’s precise representation in the workplace is shifting daily, but most agree that the youngest and oldest generations comprise less than 10% of the workforce together. 4

Age in 20204 Workplace Shift Over the Past Five Years

DEMOGRAPHICS

1%

45%

21%

31%

3%

7%

50%

20%

22%

1%

MEET THE FIVE WORKING GENERATIONS OF THE MODERN WORKPLACE

Born 1928 – 1945

75 – 92TRADITIONALISTS

Born 1980 – 1995

25 – 40MILLENNIALS

Born 1946 – 1964

56 – 74BABY BOOMERS

Born 1996 – Present

24 or youngerGENERATION Z

Born 1965  – 1979

41 – 55GEN X

2015

2020

2015

2020

2015

2020

2015

2020

2015

2020

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Aside from age, each generation also shares key values and attitudes about work. While there is certainly some commonality across these groups, the following lists represent the defining characteristics of each generation.

DISTINGUISHING FACTORS

MEET THE FIVE WORKING GENERATIONS OF THE MODERN WORKPLACE

• National values and civic pride

• Disciplined

• Value loyalty and dependability

• Respect for authority

• Value obedience over individualism

• Conformists

• Hopeful and optimistic

• Tech-savvy

• Resist traditional categorization by race, religion and sexual orientation

• Non-traditional views

• Multi-taskers

• Seek new and exciting opportunities

• Passionate about participation in the workforce

• Belief in civil rights, empowerment and diversity

• Pursuit of personal gratification

• Ambitious

• Relationship-driven

• Demand flexibility

• Expect diversity

• High self-esteem

• Tech-savvy

• Social and connected

• Emotionally attached to digital habits

• Edgy and skeptical

• Change masters

• Tech-savvy

• Self-reliant

• Private

• Unimpressed by authority

• Non-conformists

• Appreciate flexibility

TRADITIONALISTS

MILLENNIALS

BABY BOOMERS

GENERATION Z

GEN X

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TRADITIONALISTS Raised during an era of limited resources, Traditionalists are prudent and prioritize stability in their work. Successes in World Wars I and II and surviving the Great Depression have prepared this esteemed, “can-do” generation for nearly any challenge. When put to task, they prefer a direct, “Tell me what you want me to do” supervisory approach and to focus on one thing at a time.

Traditionalists expect predictable career ladders in return for offering their organizations stability, dedication, respect and personal sacrifice. It’s not unusual for Traditionalists to remain loyal to one or two companies in a lifetime.

They often appreciate hierarchical or ranking structures where leaders are selected on ability and experience. Above all, Traditionalists want the organization to succeed and, as a result, expect to play the role of mentor to the younger generations. They prefer simplicity and convenience, and want relatable, personalized information. Traditionalists face retirement challenges – both financially and in well-being – and are motivated by paternalistic benefits, such as pension plans and retiree healthcare.

WORKPLACE CHARACTERISTICS AND MOTIVATIONSThe events and culture of their time, age, gender, ethnicity, education and socioeconomic status all impact the workplace motivations of a generation. Beyond that, each generation has different expectations, assumptions, priorities and approaches to work and communication. Today’s leaders must familiarize themselves with the perspectives and influences of each generation.

Revered Traditionalist news anchor Walter Cronkite ended each report with his famous sign-off in the 1960s, “And that’s the way it is.” This sentiment epitomizes the pragmatism shared by this generation.

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BABY BOOMERS Boomers are passionate about their careers and inclined to use occupation as the basis for their identity. In fact, this generation invented the 70-to-80-hour work week. They believe time and experience investments are solid paths to advancement as a result of growing up in an age of prosperity and hard work.

Boomers devote their time and energy to success-oriented goals, such as financial security, independence and a sense of accomplishment. They prefer on-site, traditional office environments that promote teamwork. Boomers prefer to receive their information through meetings, newsletters and infrequent feedback, believing that “all is well unless you say something.” Prestigious job titles, public recognition, parking spaces, office size and other perks are revered as measures of success.

GEN X Gen Xers saw their hardworking Boomer parents lose their jobs in the economic downturn of the 1990s, despite the promises offered for hard work and loyalty. As a result, they don’t expect organizations to be loyal to them or to solve their problems. For Gen X, long hours and paying dues are relics of another era, while true job security comes from a strong résumé. Expect these employees to engage in continued self - improvement.

Gen X often dislikes being micromanaged and prefers to work independently, demonstrating tremendous drive and initiative – especially if they believe in their organization’s mission or if their success opens opportunities for even greater autonomy. Additionally, they expect career progression to be based on demonstrated competence, not on rank, age or seniority.

Boomers are optimistic after witnessing the advent of television, the first landing on the Moon and the advancement of civil rights. Driven and eager to please, they’re the generation known for their “live to work” philosophy.

Gen X might be accused of being the “not my job” generation, but ultimately their focus shifted from work to home as a result of caring for themselves while their Boomer and Traditionalist elders were working long hours. This generation fights for their personal time and prioritizes value over time investment. They work smarter, not harder.

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MILLENNIALS Millennials are focused on collaboration and eager to contribute to technological solutions that support innovation. Influenced by globalization as well as constant streams of information and communication, they seek validation at work by improving processes, efficiency and convenience through technology. They’re the first generation to grow up as digital natives, raised in a booming economy with sweeping technological advancements. Accordingly, they prefer instant or real-time communication through email, texts, video conferencing and social media.

Student-oriented learning programs that encourage self-esteem and participation spurred Millennials to confidently seek involvement in decision-making, particularly around developing work processes that will impact them. Millennials find meaning in their careers through creative challenges and personal growth. They want mentors to be highly involved in their professional development and will invest their loyalty and trust in individuals, not organizations. Pairing a top-performing Millennial employee with the right boss is critical to their success at work.

GENERATION ZSometimes known as the “Gamer Generation,” this group was plugged in at the earliest age yet. They embrace technology at work to enhance relationships with coworkers and peers, but prefer in-person recognition and feedback. While gadgets and social media present a distraction to many, technology enables unmatched learning opportunities for Generation Z, connecting them to innovative educational materials from a young age.

These employees expect a flexible, creative and challenging work environment with ample opportunities for learning and personal advancement. A strong social awareness of ethnic and cultural diversity has led this generation to not only accept, but expect diversity in the workplace.

This digital native generation expects flexibility, a dynamic company culture and access to social media from employers. They seek purpose in their work as well as challenging growth opportunities.

These new kids on the block represent a generation in the works. While most have yet to enter the corporate environment (or college, for that matter), they are already being shaped by their connections and technology.

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GENERATION FLUX Coined by Robert Saifian, the former editor and managing director of progressive business publication Fast Company, the term Generation Flux refers to the group most likely to thrive in today’s high-change environment. Saifian says:

“What defines Gen Flux is a mindset that embraces instability, that tolerates – and even enjoys – recalibrating careers, business models and assumptions. These are the people who are defining where business and culture are moving. And purpose is at the heart of their actions. For these folks, a mission is the essential strategic tool that allows them to filter the modern barrage of stimuli, to motivate and engage those around them, and to find new and innovative ways to solve the world’s problems.”

Typically, Millennials are more driven by passion, purposes and culture than any working generation before them, but their desire for meaning in their work is shared by outliers from all generations. Generation Flux ties the more typical generational groups together when they share adaptability and drive in the way that they get work done.

CHARACTERISTICS THAT CROSS GENERATIONAL LINESNow that we’ve covered demographics and characteristics for each generation, let’s consider some of the more intangible markers – the beliefs, attitudes and opinions – that bridge the groups.

Disengaged employees cost U.S. businesses between $483 billion and $605 billion per year.5 What if you could harness engagement by introducing Flux-friendly policies and programs? What can you do to infuse mission and purpose into your work – for yourself, your direct reports and your organization?

5Gallup. State of the American Workplace. 2017.

are not engaged with their work

67%

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THE MILLENNIAL MINDSETThe business community has extensively researched what Millennials want at work and how they get work done. But what if making our existing structures flexible to the needs of Millennials is the wrong approach? Is there more merit in fostering a flexible environment, as well as promoting what researchers now call the Millennial Mindset across your organization to encourage collaboration through a shared obsession?

Workplace flexibility and adaptability are not desires uniquely held by Millennials. They’re something people of all generations want. Work-life balance, personalized recognition and acknowledgment for their achievements and challenging, meaningful work are considered stereotypical demands of Millennials. However, when that generation makes up half of the workforce and there’s buy-in from portions of other generations, there’s a good chance the majority of your organization wants the same things.

WHAT’S IN A NAME? The traits and habits now so heavily associated with Millennials – flexibility, collaboration, meaningful and fulfilling work, advocating ideas and views – were desirable workplace attributes long before Millennials came around. Focus less on the label and more on how to promote a corporate culture of passion and purpose across your entire organization.

MULTI-GENERATIONAL PERCEPTIONS OF RECOGNITION To support the unique needs of five working generations, many leaders utilize strategic workforce recognition programs with customizable components, enabling individualized recognition and rewards that reflect their employees’ unique personal needs. The most successful systems recognize achievement through performance measures, on-the-spot recognition by managers and peer-to-peer recognition. By creating a dynamic recognition program, you can motivate an equally dynamic workforce.

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MONETARY REWARDS: WHAT THE GENERATIONS WANT

NON-MONETARY REWARDS: WHAT THE GENERATIONS WANT

MONEY

RESPECT

MORE MONEY

GOAL ATTAINMENT

BONUSES/STOCK

FLEXIBILITY

STOCK OPTIONS

FEEDBACK

LESS ABOUT MONEY

SOCIAL

Traditionalists

Traditionalists

Baby Boomers

Baby Boomers

Millennials

Millennials

Gen X

Gen X

Generation Z

Generation Z

• Public recognition

• Leadership opportunities

• Organizational loyalty

• Responsibility

• Control

• Flexible schedule

• Part-time hours

• Temporary work

• Symbolic awards

• Recognition

• Public recognition

• Management opportunities

• Promotion

• Peer recognition

• Control

• Flexible retirement options

• Job training

• Experiential rewards

• Sabbaticals

• Symbolic recognition

• Meeting organizational goals

• Recognition from boss

• Do well by doing good

• Flexible schedules

• Professional development

• Feedback

• Tangible rewards

• Experiential rewards

• Productive work environment

• Positive company culture

• Meeting own goals

• Recognition from boss

• Time off

• Skills training

• Mentoring

• Flexible schedules

• Professional development

• Gamification at work

• Tangible rewards

• Productive work environment

• Positive culture

• Learning opportunities

• Personal mentorship

• Constant feedback

• Recognition from boss

• Learning opportunities

• Connectivity

• Advanced tools and tech

MONETARY REWARDS

Monetary benefits reward employees for excellent job performance with money, including profit sharing, bonus incentives, stock options, scheduled bonuses (e.g., holiday and performance-linked) and additional paid vacation time. Monetary rewards can quickly become entitlements, as recipients tend to consider them part of their compensation. Money is also difficult to socialize, as it can be a taboo discussion topic among friends and family members. Not only do monetary benefits cost employers more than their non-monetary counterparts, they provide less overall value and impact on employees.

NON-MONETARY REWARDS

Effective non-monetary rewards range from flexible work hours, training, travel and experiential rewards to badges, gift cards and merchandise. Non-monetary benefits are often viewed as opportunities and should vary based on where employees are in their careers and their lives.

“Show me the money!” “Give me an experience.”

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DELIVER THE RIGHT REWARDS FOR A DIVERSE WORKFORCE.

TRADITIONALISTS BABY BOOMERS GEN X MILLENNIALS GENERATION Z

Monetary Monetary Monetary & Non-Monetary Non-Monetary Non-Monetary

PAIN POINTS & DESIRES

As they near retirement, they want financial security

They want to know that their input and contributions are recognized and respected

Balance is important to them, but so is advancing their skills and career placement

They value flexibility, efficiency and connectivity that builds company culture

Innovation gets them excited, and they expect tech that works at the speed of life

EXAMPLE REWARDS • Plaques

• Certificates

• Flexible schedules

• Bonuses

• Promotions

• Senior leadership mentoring

• On-site childcare

• Special project leadership

• Travel rewards

• Additional time off

• Event tickets

• Travel rewards

• Promotions

• Gadgets and tech rewards

• Opportunity to lead a new initiative

PREFERRED RECOGNITION STYLE

Deliver subtle, personalized recognition and feedback

Acknowledge their input and expertise

Informal, rapid and public communication when they excel at work

Regular, informal communication through company chat or social networks

Regular, in-person and public praise

WELCOMED BENEFITS

• Long-term care insurance

• Catch-up funding

• Sabbaticals

• 401k matching

• Catch-up funding

• Telecommuting

• Tution reimbursement

• Flexible schedules

• Continued learning

• Innovation incubator

• Online certification and training programs

RECOGNITION DON’TS

Don’t make a spectacle when recognizing Traditionalists

Don’t deny learning or growth opportunities to Boomers

Don’t hide top-performing Xers; they want the spotlight

Don’t go radio silent on Millennials; they need to feel connected to leaders and the organization

Don’t underestimate Gen Z — they may be young, but they have new approaches to work that could revitalize your culture

Promote collaboration and celebration. More and more companies are investing in online platforms that promote community and collaboration where employees can quickly and easily share success.

Focus on individual goals. Not all employees fit the mold of their generation. Rewards and recognition should account for individual work styles and how each employee likes to be recognized for accomplishments.

Make the customer the mutual priority. When your focus is the customer, everyone works together with a common purpose. The link between the employee experience and customer satisfaction is strong, so progressive companies are encouraging customers to recognize employees who give them a great experience.

Enable personal growth and work-life balance. Millennials have sought flexibility with particular ferocity, but work-life balance is something everyone wants. Empower your teams to develop their personal and professional skills by embracing flexibility.

Develop employee strengths through a mentorship program. Start a reverse mentorship program in which each employee is both a mentor and a mentee (in two relationships). Collaboration, engagement and learning improve dramatically as a result.

TIPS FOR MOTIVATING THE MULTI-GENERATIONAL WORKFORCE

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Involve employees. As much as senior leadership can drive culture, they’re not always the best people to name it. And unlike roses, which by any other name would smell just as sweet, culture must be defined in a way that can be easily explained to others. The words matter, so survey employees at all levels to get a 360-degree view of culture.

Carefully consider manager selection. Carefully select managers based on experience, aptitude, capacity for growth, leadership style and understanding of organizational and employee challenges and opportunities. They will implement your program on the ground floor, so you’ll need strong managers on your side.

Enhance the wellbeing of employees. If you’re relying on standalone recognition programs to keep your best people, it’s time to consider a more holistic approach to employee wellbeing. Wellness, performance management and employer branding are three programs that seamlessly integrate with recognition initiatives to offer added value.

13©2020 Maritz Motivation Inc. All rights reserved.

Maritz Motivation supports strong brands and stronger ROI by designing programs that attract, engage and retain top employees. Leveraging our unmatched experience in behavioral and data sciences, we offer a broad range of professional services and an award-winning technology platform that creates value for companies around the globe. Let us help you unlock the potential in the people who matter to your business.

Learn more at maritzmotivation.com.

New generations bring different beliefs and behaviors to work, creating new challenges for employers. At the same time, seasoned employees are coming into their own and leading business in new directions. If you want to support the dynamics of a diverse workforce, throw out the standard one-size-fits all model of talent management.

It’s time to embrace a more flexible alternative – one that is customized to empower each generation and designed to build a positive, productive culture.

THE NEXT GENERATION OF CULTURE