TIP OF THE MONTH: Dealing with the generation gaps in the workplace

April 26, 2010 | Posted by Carolyn Pikoulas
You've probably heard it before: for the first time in our history, we actually have FOUR different generations working side by side in our workforce today. They are: the Traditionalists (born around 1930's to 1945); Baby Boomers (1945 - 1965); Generation X (1965 - late 1970's); and Millennials (aka Generation Y, born between late 70's - early 90's). Why is it so important for businesses to recognize and understand these differing generational mindsets? In a word: cost.

Each generation brings a new perspective to the table. These differences affect many aspects of business including recruitment of talent, employee turnover, productivity, knowledge management, customer service, etc. For example, the costs associated with employee turnover can be huge in respects to training, employee morale, advertising for new applicants and interviewing. There will be a mass exodus of retiring Baby Boomers in the next several years, which means there will be large holes to fill for the Gen-Xers and Millennials. The knowledge and talent that will be lost from these retirees could also be financially devastating without the proper transition. In addition, there are FOUR generations of consumers, each with a different need. If companies don't recognize these differences and breakdown communication barriers now, they will find themselves struggling to compete in the marketplace.

A few notes about the generations:
Traditionalists
"This is the way we do things around here. This is the way we've always done things."

Traditionalists (also called the Silent Generation) make up about 5% of the workforce, mostly in top positions in the corporate world. They are the savers who have sacrificed much for our country and for the greater good. They are very patriotic and are loyal to organizations and institutions. They believe in a "chain-of-command" in business and in tenure. They don't ask many questions and do the job they're told. They are rarely impulsive shoppers and are among the most affluent in our society.

Baby Boomers
"Hey, everyone! I want to know everything that's going on with the Vandelay project. Let's have another meeting."

Baby Boomers are currently the largest generation in the workforce (about 45%), which means they are the most influential in society. This group has been raised by parents who did not coddle their children. They have been taught to be hard workers without complaining. They had entered a highly competitive workforce in their day, which meant they had to put in a lot of extra hours to get ahead. They are also very collaborative and like to be involved in projects, so they often feel the need to discuss problems and ideas with a team. This group believes in a structured, 9 to 5 workday and can sometimes feel guilty about taking vacations.

Generation X
"Listen. I'm way too skilled and educated to stay in one place, and I could care less if Carl over there has worked here for 20 years. Good for you, Carl. Peace out -- I'm gonna spend time with my family."

As the second largest group in the workforce (about 35-40%), Generation X was raised by two working parents. Because of this, they have become very independent; often called the "latchkey" generation. This is the first generation that experienced the stress of divorced parents. A Gen-Xer may have also seen a parent serve loyally in one company for many years, only to be laid off at a drop of a hat. Along with world events, this has made them more skeptical and untrusting of institutions and authority. So, this generation has a very entrepreneurial spirit with loyalty to people, rather than organizations. This group values family time and quality of life, so they usually have no problem using up all of their vacation time. When the Gen-Xers are passed the torch from their Baby Boomer managers, they'll most likely dismantle the familiar hierarchal form of management and other office politics.

Millennials
"Hey, as long as I don't have to meet with anyone face to face."

This generation fills about 10% of our workforce and is growing at an alarming rate. This group has grown up with news of corporate and political scandals, widely-available technology and the Internet. They live in a world without borders, where nothing is a certainty. They are ambitious multi-taskers who rely on peer to peer communication. They were raised by parents who focused on their children's self-esteem, which gives them a sense of both confidence and entitlement (kind of like getting a trophy just for participating). They demand constant and immediate feedback from their managers, as well as unprecedented transparency. They have no fear in sharing ideas and want to solve problems as efficiently as possible. They're open to change, can handle a variety of tasks, and enjoy being challenged. In turn, they challenge the status quo and want to push the envelope. They appreciate flexible hours to be able to work anywhere at a time that fits within their lifestyle. They highly value their personal time, friendship, and families. This generation also realizes that they are in-demand in the marketplace and know they have lots of choices. They see value in a variety of work experience and are looking for jobs that suit their needs. Don't be surprised if a Millennial is so bold to ask for another week of vacation after only working in a position for a few months.

How do you handle these differing backgrounds? Here are a few tips:

1. Educate yourself, your employees and your bosses about the differences between the generations. It's not about one generation being better or harder-working than the other. Diversity of thought makes an organization stronger and more appealing to both its workers and customers.
2. Let employees share their experiences and viewpoints in a fun and safe atmosphere.
3. Create a flexible environment. For example, if a Millennial works from home on a project that doesn't require interaction with others, don't downplay the importance of that employee's contribution.
4. Be creative. For instance, forget the idea that one benefit package fits all. Determine what employees want and reward them with it.