Ladies & Dudes...Welcome to

Understanding and working withGen X & Gen Y...and the rest!

Steve MitchinsonManaging PartnerTeamRed Solutions

July 2009

In today's age-diverse workplace, one management style

does not work for all. Attracting and retaining talented people

of all ages requires a new skill set in order to stay competitive

Is it really that hard?

BackgroundBackground

• Research suggests quite clearly that engaging and retaining staff is taking on much greater significance

• A study by the University of Western Australia estimated that absenteeism costs a whopping $5 billion in the public sector alone every year.

• Absenteeism is a sign of a much bigger problem

• Could it be that enterprises are using generational change as an excuse

The Generations...The Generations...

•Where are the real gaps?

Why do we call the last one generation Y?

Veterans Boomers Gen X Gen Y

Is this the origin of Gen YIs this the origin of Gen Y

All generations have vital instinctsAll generations have vital instincts

The Hermann group 2007

It is how they display the instincts that is differentIt is how they display the instincts that is different

The differences are

their:

•Motivations

•Expectations

•Communication

Why be aware of generational differences?Why be aware of generational differences?

Key Facts•For the first time in our history, four generations are

now working side by side

•For the next several decades, for every two employees

who are eligible to retire we have less than one

employee to take their place!

•Research by Harvard University suggests that

Between 1977 and 2007, employment of workers 65

and over increased 101%.

Considerations for Recruitment and RetentionNeed to understand key generational differences in

order to both attract and keep good employees

•What employees want from a job and their boss

•What they will do if their organization or their boss

―does not deliver‖

•Employees have become more sophisticated consumers of employment

opportunities

•A new employer/employee dynamic has emerged

•Things that attract people to a company (pay and benefits) are not the same things

that keep them or engage them

•They are now less tangible - work-life balance, career development, performance

management, respect

You can rent their presence but you cannot buy their passion

―

What does this mean to employers?What does this mean to employers?

Implications for recruitmentImplications for recruitment

Veterans Boomers Gen X Gen Y

Born 1922 – 1943 1944 - 1960 1961 – 1980 1981 – 2000

Implication for

recruiting

Expect:

Respect

Accommodation to

work scheduling

needs

Clarity and

consistency with

respect to roles,

responsibilities,

performance

standards, decision

making processes

Varying levels of

competence in use

of technology

Expect:

To be “in charge”

Give and take in

problem solving and

decision making

Competition with

other individuals for

the most interesting

work and the best

rewards

Challenging work

Expect:

Flexibility in work

arrangements – “work

life balance”

Ready access to

interesting and

meaningful work

choices, and to

significant opportunities

for development (will

change jobs if necessary

to get these)

Expect:

Fast decision making

Work itself to be

stimulating

Continuous feedback

Frequent praise

Work in teams

Reliance on internal

and external support

networks

Continuous learning &

change

Highly self sufficient in

use of technology

Source: ―Workforce Engagement and Retention in the United States‖ by John Furcon of Buck Consultants Dec 2008

The Employment Deal...The Employment Deal...

Veterans Boomers Gen X Gen YBorn 1922 – 1943 1944 - 1960 1961 – 1980 1981 – 2000

How they view

the work

relationship

Loyalty to the

organisation

Loyalty to one’s

career

Selective loyalty Balanced loyalty

Attitudes about

work & pay

Hard work is good

in itself

Meet or surpass one’s

own expectations of

success

Work is considered self –

fulfilment

Wok synonymous with

continuous learning

and change

Generational

defining skills

Transportation &

telecommunication

s Age

Information Age Technological Age Integration of

information Age & Tech

Age while multiskilling

View of change Get it over with Create it Make it work for you Inevitable and

increasing in pace

What they want Fair Wage

Stable Employment

Secure retirement

Competitive wage

Stable employment in

meaningful work

Comfortable and

“interesting

retirement

Wealth

Work life balance

Early retirement

Wealth accumulation

opportunities

Indulge interests and

curiosities

Expect to work in

retirement

Source: ―Workforce Engagement and Retention in the United States‖ by John Furcon of Buck Consultants Dec 2008

Goals of Gen X and Gen YGoals of Gen X and Gen Y

Drivers of Employee CommitmentDrivers of Employee Commitment

The Watson Wyatt drivers of employee commitment (and the percentage of the impact of each) are:

1. Trust in senior leadership: 14%

2. Chance to use skills: 14%

3. Competitiveness of rewards: 11%

4. Job security: 11%

5. Quality of company‘s products and services: 10%

6. Absence of work-related stress: 7%

7. Honesty and Integrity of company‘s business conduct: 7%

8. All other factors: 26%

Towers Perrin found 10 drivers of commitment- In order they are:

1. Senior management‘s interest in employees‘ well-being

2. Challenging work

3. Decision-making authority

4. Evidence that the company is focused on customers

5. Career advancement opportunities

6. The company‘s reputation as a good employer

7. A collaborative work environment where people work well in teams

8. Resources to get the job done

9. Input on decision making

10.A clear vision from senior management about future success‖

Employee Rank of Retention Factors Employee Rank of Retention Factors –– Top TenTop Ten

1 Quality of relationship with supervisor or manager (Motivational Fit)

2 Ability to balance work and home life (Home Life)

3 Amount of meaningful work—the feeling of making a difference (Motivational Fit)

4 Level of cooperation with co-workers (Cooperation and Trust)

5 Level of trust in the workplace (Cooperation and Trust)

6 Quality of compensation package (External Rewards)

7 Opportunities for growth and advancement (External Rewards)

8 Clear understanding of work objectives (Motivational Fit)

9 Link between pay and individual contributions (External Rewards)

10 Other (Undefined)

The Top Five FactorsThe Top Five Factors

Employees top five factors for leaving:

The percentage of employees is shown along with the classification of the factor.

1. Quality of relationship with supervisor or manager (78%, Motivational Fit)

2. Ability to balance work and home life (78%, Home Life)

3. Amount of meaningful work—the feeling of making a difference (76%, Motivational Fit)

4. Level of cooperation with co-workers (74%, Cooperation and Trust)

5. Level of trust in the workplace (71%, Cooperation and Trust)

The “Veterans” The “Veterans” (now 60+)

What do they value?– Loyalty - Nostalgia

– Dependability

– Persistence

– Hard Working and Self Sacrifice

– Authoritarian - Traditional

– Wisdom and experience over technical knowledge

– Black and white world view

Source: Dr. Linda Duxbury, Professor, Sprott School of Business, Carleton University, Ottawa

The Baby Boomers The Baby Boomers (now 40 to 60)

What do they value?– Workaholics – Accept stress– Self-fulfillment– Importance of title/status symbols– Entitlement– Demanding of respect and sacrifice from

subordinates– Optimistic– Non-conformist – experimental– Objective sense of right and wrong

Source: Dr. Linda Duxbury, Professor, Sprott School of Business,Carleton University, Ottawa

About Boomers and beyondAbout Boomers and beyond

• Effects of longevity

• ―Encore‖ careers work in education, health care, government, non-profit organizations and for-profits that serve the public good - we need to embrace the opportunity..

• Outdated corporate policies mandating traditional work schedules

Generation X Generation X (now 34 to 45)

What do they value?– Dedicated to goal achievement - desire to

be recognized– Confident and self reliant but also can be

insecure and dependent on close supervision

– Pragmatic – Adaptive to change– Non-traditional but work within the system– Sacrifice personal life for advancement – to

a point - desire for job security– Accept diversity

Source: Dr. Linda Duxbury, Professor, Sprott School of Business,Carleton University, Ottawa

Generation Y Generation Y (now 16 to 34)

What do they value?– Independence and autonomy– Optimistic, Diverse, Globally Connected– Variety seeking, adaptive to change, challenge seeking– Entrepreneurial, networking– Distrust of hierarchy and authority, ―StreetSmart‖– Continuous development of skills– Lack of loyalty/unwillingness to commit– Work-life balance– Fun and communal workplace– New technology

Source: Dr. Linda Duxbury, Professor, Sprott School of Business,Carleton University, Ottawa

Managing the Diverse GenerationsManaging the Diverse Generations

Veterans

– Use them as mentors, coaches, trainers

– Recognize:

• their reward and recognition comes from the satisfaction of a job well done

• ―no news is good news‖ is their preferred form of feedback

• they feel that changing jobs carries a stigma

– Help them get ready for retirement

• Phased retirement, value their contributions, help them shift the balance

– If there is high turnover in this group, who tend to be the most loyal, there may be real problems

Source: Lancaster and Stillman, When Generations Collide

Managing the Diverse GenerationsManaging the Diverse Generations

Boomers– Help them to understand the value of their work, lend an

ear, listen to them, give them projects that allow them to showcase their skills and knowledge

– Recognize:• their reward and recognition comes from money, title

and the ―corner office‖• that feedback once a year – with lots of supporting

documents is enough• they feel that changing jobs puts you behind in career

– Help them balance work and home life

– Look at chances for development, advancement and mentoring of high profile boomers

Source: Lancaster and Stillman, When Generations Collide

Managing the Diverse GenerationsManaging the Diverse Generations

Gen X

– Invest in them, give them career development, they are resume builders

– Recognize:

• their reward and recognition comes from freedom and security

• that they want immediate feedback – now!

• they feel that changing jobs is necessary – it happens

– Give them balance now! Have policies and practices that focus on lifestyle

– Communicate to these employeesSource: Lancaster and Stillman, When Generations Collide

Why do Gen Y seem differentWhy do Gen Y seem different

• Not afraid to challenge the status quo

• Seek to pursue creativity and independent thinking

• Very independent and tech savvy.

• Have financial smarts– 37% of Gen Y expect to start saving for retirement before they reach 25

– 49% say retirement benefits are a very important factor in their job choices.

– 70% of the Gen Y respondents make voluntary contributions. (survey by Purchase, N.Y.-based Diversified Investment Advisors.)

• Work-life balance isn't just a buzz word

• Want change, and they want it now

• It is still about Wants & Needs – sometimes theirs are different

This compares with Gen X - known for its independent thinking, addiction to change and emphasis on family – but on a new level

Managing the Diverse GenerationsManaging the Diverse Generations

Gen Y

– Allow them to multi-task, multi-skill

– Recognize:

• idea of boomerang employee

• their reward and recognition comes from work that has meaning for them

• that they want immediate feedback – yesterday!

• that work isn‘t everything; it is just one of the activities they spend their time on; they need flexibility to balance their activities

• they feel that changing jobs is routine – it is what they expect to do – many times

– Look at the work – is it stimulating? is there a chance to

learn?Source: Lancaster and Stillman, When Generations Collide

Are we being fair to Gen Y ?Are we being fair to Gen Y ?

• The older generations tend to brand Gen Y as being distinguished for their sense of entitlement, outspokenness, inability to take criticism, and technological sophistication. Is that justified or whose fault is it?

• Fortune deemed Generation Y the most high-maintenance, yet potentially most high-performing generation in history. Maybe that explains it ?

• Time described members of Generation Y as wanting real life balance - they don't want to be slaves to their jobs the way their Baby Boomer parents are. Are they just continuing what Gen X started?

http://www.cio.com/article/149053/Management_Techniques_for_Bringing_Out_the_Best_in_Generation_Y

They're like Generation X on steroids. Bruce Tulgan, a founder of New Haven, Conn.-based RainmakerThinking

10 Key Differences between Gen X & Gen Y10 Key Differences between Gen X & Gen Y

1. Preferred style of leadership

X - only competent leaders will do

Y - collaboration with management is expected

2. Value of Experience

X - don't tell me where you have been, show me what you know

Y - experience is irrelevant, as the world is changing so fast

3. Autonomy

X - give them direction, and then leave them to it

Y - questions, questions, questions

4. Feedback

X - expect regular feedback

Y - need constant and immediate feedback

5. Rewards

X - freedom is the ultimate reward

Y - money talks Source: Krista Third of Tamm Communications

The 10 Differences between Gen X & Gen YThe 10 Differences between Gen X & Gen Y

6. Training

X - want to continually learn, if they don't they will leave

Y - still in an exam driven mentality

7. Work Hours

X - do their work and go home

Y - will work as long as needed ...or until they get bored

8. Work Life Balance

X - they want to enjoy life to the full, while they are young enough to do so

Y - their lives are busy - they need a lot of 'me' time

9. Loyalty

X - they are committed as everyone else working there

Y - already working out their exit strategy

10. Meaning of Money

X - it gives freedom and independence

Y - just something that allows them to maintain their lifestyle

Source: Krista Third of Tamm Communications

Interesting fact?Interesting fact?

Workers who use the web for entertainment

while at work — whether they're tweeting,

watching YouTube videos, shopping, or

catching up with the news — are 9% more

productive than those who don't, according to

a recent study by Professor Brent Coker at the

University of Melbourne

Exercise Exercise -- Why do we think staff leaveWhy do we think staff leave

Reasons people leave their employers 1= Very Important , 5=Not Important 1 2 3 4 5

1

2

3

4

5

6

7

8

9

10

Some Best PracticesSome Best Practices

• Identification of key personnel

• Identification of key positions

• Corporate key competencies

• Frequent performance reviews

• Competitive remuneration

• Individualized T&D plans

• A continuous process

• Ensure Developmental Opportunities

• Create transitional positions

• Encourage staff with potential to take on new assignments /upgrade their skills

• Consider job exchanges/sharing/ shadowing

• Fill temporary vacancies strategically

• Accessible management

Is your engagement strategy a bit like this?Is your engagement strategy a bit like this?

Understanding what drives employee engagementUnderstanding what drives employee engagement

“What employees seek — indeed, what we all seek in our work experience — is a blend of tangible and intangible elements that together create an environment of stimulation, contribution, recognition (monetary and otherwise), development, learning and support (from day-to-day

management and senior leadership)”Towers Perrin : Working today: Understanding what drives employee engagement

The Drivers of EngagementThe Drivers of Engagement

Motivational Fit: challenge, meaning, autonomy, organizational fit, manager relationship, job clarity

External Rewards: recognition, growth/advancement, compensation,

pay vs. contributions, organisation responsiveness

Cooperation and Trust: cooperation with co-workers, level of trust in

workplace

Organisational Direction: clear vision and strategy, appropriate

selection practices

Work/Life Balance: Surprise, surprise...

Workplace Harmony: internal politics, stress, workplace volatility

10C’s of Employee Engagement10C’s of Employee Engagement

• Communicate: clearly indicate expectations of the employee. Provide regular (balanced)feedback to employees regarding their work and performance. Career: provide meaningful work along with career growth opportunities.Confidence: Provide effective feedback to induce and boost confidence in an employee.Control: Empower employees with the control they need on their job and career.Clarity: Provide a clear vision of what job is to be done and how it is to be done. Collaborate: Good coordination and relationships require leadership to cultivate trust amongst the team, and to motivate their employees to work in and as a team.Compliment: Give recognition to the employee for the job well done.Connect: Make employees feel valuable and important. Show that you care.

• Contribute: Give opportunities to employees to contribute in the management decision making process. Seek suggestions, new ideas, and ways of improvement.

• Credibility: Managers must lead by example by demonstrating ethical standards and practices. They are the custodians of the company‘s reputation.

The 8 Enemies of Engaging Gen YThe 8 Enemies of Engaging Gen Y

• Uniformity

• The colour Grey

• Rules driven behaviour

• Isolation

• Lack of recognition

• Dropped in the deep end

• Lack of career opportunities

• Boredom or tedium

Based on the work of Kevin Panozza - former MD Salesforce

A Model for EngagementA Model for Engagement

The Traits of the disengagedThe Traits of the disengaged

• Don‘t express any desire to know the expectations for their job roles.

• Not curious about their company and their place in it.

• Perform inconsistently or at consistently low levels.

• Waste their potential, do not work with passion and are disconnected from their companies.

• Do not drive innovation or move their organizations forward.

• No strong relationship or engagement with their managers or fellow employees.

• Show up for work on time, put in a day‘s work, but not connected to their jobs.

• Exhibit a general negativity

Becoming an employer of choiceBecoming an employer of choice

• Organizational Policies

• Support the technology they use in their personal lives.

• Commit to socially responsible causes.

• Training Initiatives

– Communication Skills

– Collaborative problem solving skills

• Management Structures

– Mentors are needed to show GenY‘s the ropes.

– New hire orientations.

– Frequent check-in meetings with managers.

The Importance of TransparencyThe Importance of Transparency

• Facilitates accountability, trust, communication, responsibility, pride

• Encourages communications and information exchange

• Invites responsibility and accountability

• Builds trust and pride.

• Discourages work-politics

• A sense of achievement and belongingness is derived from a healthy work environment

• Employees are more likely to display their full potential

• Less likely to leave because of stress and frustration.

Staff Retention StrategiesStaff Retention Strategies

Develop a Plan & Strategy to Deploy it – and remember to communicate it loudly

Gathering Information —The first step in improving engagement, absenteeism and retention is to understand the causes.

Communication - Organizations need to talk to employees and measure their opinions to see why turnover is happening. In addition, talking to other organizations and benchmarking their practices can provide direction for creating a strategy.

Employee Development —In response to employees‘ desire for growth and advancement opportunities, organizations can introduce enhanced/flexible training and development programs, succession management systems, and other approaches for investing in their employees.

Recruitment – an often overlooked aspect is the actual recruitment process. What research has been undertaken to link staff absenteeism and turnover with recruitment strategies and profiles?

Staff Retention StrategiesStaff Retention Strategies

Work Environment/ Nature of Work

Several aspects of the work environment are directly linked to employees‘ satisfaction. These would include:

• Empowerment

• Enhancing open lines of communication between managers and employees improve the overall quality of working relationships.

• Interventions designed to make the workplace more hospitable will lead to improved retention. These could include:

– Introduction of relaxed dress codes

– Telecommuting options

– Flexible work schedules

Systems

• The ease with which IT systems can be used to assist an employee in their job are a major driver of satisfaction

• The level of access to external sites is becoming a key point for debate

Staff Retention StrategiesStaff Retention Strategies

Training & Development

• Individual Career Progression Plans

• Individual Training & Development Plans

• Setting Known Criteria for Career Progression

• Formal Performance Appraisals – perform and act!

• 360 Degree Feedback Mechanisms

Rewards and Recognition

• Organizations could consider improving the quality of compensation, benefits, and special perks as a means for improving retention. Employees want recognition for a job well done. Whilst understanding public sector limitations may apply in some instances, these can come in several forms:

• Special bonuses or rewards can help employees feel proud of their work and let them know that their efforts are acknowledged.

• Pay and recognition linked in some way to performance because employees know there are consequences for their actions.

Is it your leadership style?Is it your leadership style?

Cultural fit – The personality, leadership characteristics of the candidate should be in

sync with the culture of the hiring organization.

– The personality, leadership characteristics of the manager should be in sync with the culture of the hiring organization.

Challenge:• Put yourself in your staffs shoes

• Think back to the best boss you have had.

• What was it about them that made them so great?

• How well would you stack up ?

Top 10 Leadership QualitiesTop 10 Leadership Qualities

The Top Ten Qualities of a Great Leader :

1. They showed genuine interest in me as a person.

2. They were always approachable.

3. They made time to really listen to me.

4. They asked for my ideas, opinions and input.

5. They were firm but fair with everyone.

6. They did not have an ego problem, power or control issues - they put the organisation and the team before themselves.

7. They were open and honest; if the answer to a request or idea was no they explained why.

8. They showed respect, both for themselves and everyone else. They treated everyone equally – regardless of ‗status‘ or role.

9. They coached me through questioning, not ‗telling‘.

10.They were sociable but always ultimately professional.

How do your rate?

Top 10 Qualities of Ineffective LeadersTop 10 Qualities of Ineffective Leaders

Lack Energy & Enthusiasm

Accept their own mediocre performance

Lack clear vision & direction

Have poor judgement

Don’t collaborate

Don’t walk talk

Resist new ideas

Don’t learn from mistakes

Lack interpersonal skills

Fail to develop others

Source – HBR June 2009

Your challenge is...to make yourself redundant

How do we get Gen Y to stay?How do we get Gen Y to stay?

Know and

agree the

employee’s

Expectations

‘THE DEAL’

Fulfilment of

employee’s

expectation

Delivery

of the

Deal

TRUST

Workplace

Mgt

&

Snr Mgt

FAIRNESS

Commitment

•Job

•Effective

•Team

JOB

SATISFACTION

Intention

to

Stay

START BUILD RETAIN

Ask yourself ...Ask yourself ...

• Who are my key people?

• What makes them exceptional?

• What motivates them?

• How are they feeling?

• Are their working environment and terms of employment (i.e. compensation) competitive?

• Do they know how much you value them?

• What are their aspirations? Career goals?

• Can I help them meet these goals?

Accountability MatrixAccountability Matrix

Former Heroes (1) New Heroes

Unemployed Potential Heroes (2)

Work

Performance

Value(make the numbers)

Irritant(misses the numbers)

Irritant(Inappropriate values)

Value(Appropriate values)

Values

Different generations require different approachesDifferent generations require different approaches

• Remember that there are four generations to manage

• Be careful not to stereotype – generation is simply one characteristic that can be used to help us understand people

• Don‘t forget the basics- all generations want:

– Work-life balance

– Interesting work

– A good salary and benefits

– Flexible hours of work

Its just their definitions that are different!

High Level StrategiesHigh Level Strategies

Promoting Work/Life Effectiveness

Developing Support Services

Listening to employees and showing (genuine) interest in ideas

Providing an environment of trust and respect

Medium Level StrategiesMedium Level Strategies

Appreciating and recognizing a well done job

Recognition/reward for successfully completing firm-sponsored certifications

Flexible benefits

Medical care reimbursement

Providing conveniences at workplace

Gym or Sporting club membership program

Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

Case Study Case Study –– Creating a Healthy WorkplaceCreating a Healthy Workplace

• Automation of more basic tasks which have made frontline roles more challenging, varied and interesting;

• Increasing the profile of the work areas and what they are achieving for the enterprise

• Improved physical environment

• Value placed on customer service as a contributor to the strategic plan;

• Emphasis on developing more effective leaders

• Better recruitment, training and development programs to hire and develop the right staff. Employee involvement in hiring

• Non traditional performance measures – linked to organisational strategy

• Increased focus on quality and quantity rather than just the numbers

• A stronger emphasis on workforce planning and flexible working arrangements

• Improved visibility and commitment to defined career paths

• Creating a feeling of loyalty & pride - cultural development

• Rewarding contribution – staff involvement in key business and R&R decisions

• Being different e.g. massages, in house benefits, CEAD FM, Staff functions, RTO

• “The best thing about working here is....”

“Little of today’s “Little of today’s

technology is technology is

proprietary. Technology proprietary. Technology

is easily obtained and is easily obtained and

replicated and only replicated and only

levels the playing field. levels the playing field.

An organization’s An organization’s

valued human assets valued human assets

cannot be copied.” cannot be copied.” Bill GatesBill Gates

From the beginning...From the beginning...

Gen X...• Lots of dysfunctional families

• High divorce rate

• More mothers at work

• Mum‘s at work

• Mum and Dad both work

• Two parent incomes

• Time of insecurity and the recession

• ―the recession we had to have‖

Gen Y...• Pampered, nurtured and

programmed

• High(er) expectations of self

• High(er) expectations of employers

• Ongoing learning

• Immediate responsibility

• Goal-oriented:

Technology & the GenerationsTechnology & the Generations

Gen X

• PC gradually took control

• Walkmans were very advanced

• Microwaves

• They gradually become technology literate – digital immigrants

Gen Y

• Internet, mobile phone, SMS, instant messaging replaced communication

• Video games replaced sport

• Reality TV

• Emergence of virtual communities & social networks

• The most technically literate generation yet – digital natives

The Generations and economic timesThe Generations and economic times

Gen X• Recession late 80‘s/early90‘s

• Job uncertainty

• High unemployment

• Seen the economic highs and the lows

Experienced and survived by economic turmoil

Gen Y• High employment

• Strong economy

• Consecutive years of growth

• Never seen a tough time

Grew up in buoyant times..until now!