The Multigenerational workforce: Opportunity for Competitive Success

Introduction

For the first time in history, four generations work side by side in many organizations.  The working generations span more than 60 years, including so-called Traditionalists, Baby Boomers, Generation X and Millennials/Generation Y.  All bring different experiences, perspectives, expectations, work styles and strengths to the workplace.  Despite the perceived “generation gap” from differing views and potential conflict, organizations – and especially HR – have the opportunity to capitalize on the assets of each generation for competitive advantage.

Predictions in Workforce 2020 (published in 1997) focused on demographic change as a major global force shaping the world economy.

More than a decade later SHRM’s 2008 Workplace Forecast upholds these predictions with key demographic trends:

1. the aging population,
2. retirement of large numbers of Baby Boomers,
3. generational issues and,
4. a greater demand for work/life balance.

At the same time, the loss of talent due to the retirement of older workers will likely drive an increased focus on skills, labor shortages and retention strategies for the current and future workforce.

Thus, in their respective industry sectors, HR leaders have the opportunity to create competitive success by strategically managing generational differences in terms of differing experiences, values and d expectations.  While not inclusive of all generational workplace issues, this article provides perspectives for HR and organizational leaders on selected key aspects of the multigenerational work-force and offers recommendations, primarily for U.S. organizations.

Today’s Four Generations

Generally, the concept of a “generation” is attributed to social scientist Karl Mannheim from his work in the late 1920s.  Grounded in shared life experiences and defining historical and cultural events during individual’s formative years, each generation has different collective memories, expectations and values.  As such, a generation is defined as an identifiable group that shares birth years and significant life events at critical developmental states.  At the same time, it is very important to avoid stereotyping people from different generations.  For example, research shows that people born at the beginning or end of a generation (referred to as “tweeners”) can exhibit values and attitudes from two different generations.

Generalities about generations can provide insight on values and expectations in the workplace.  The oldest generation, Traditionalists (also known as Veterans, Matures, and Depression Babies) grew up following the worldwide economic depression, with World War II as the major event in their childhood.  They view work as a privilege and have a strong work ethic grounded in discipline, stability and experience.  The Baby Boom generation, born after World War II, is the largest generation in the United States and has had a significant impact on societies worldwide.  Defining events of this generation include the space race, rock and roll, and women’s liberation.  Bay Bookers tend to be idealistic, driven and optimistic.

Different experiences have shaped Generation X and Y.  A much smaller generation than the Baby Boomers, Gen Xers were known as “latch-key children” with both parents working.  They grew up during the time of high divorce rates and massive job layoffs of the 19980s.  They are independent, creative, skeptical and distrustful of authority.  In contrast, the younger generation (known as Millennials, Generation Y, and Nexters) experienced terrorist attacks in their formative years, including September 11th, and technology has always been a part of their lives.  They are confident, team-oriented, patriotic and social minded.  Since their parents typically planned their activities, they are accustomed to having structured lives.

An extensive study on generational differences found that leadership style preferences are reflected in selected admired leaders of each generation.  Baby Boomers, for example, prefer leaders who are caring, competent and honest, as reflected in their choices of social leaders:  Martin Luther King and Gandhi. 

Generations X and Y want leaders to challenge the system and create change: Ronald Reagan, Tiger Woods, Bill Gates.  Each generation ranked honesty, competence and loyalty among the top leadership qualities, with honesty being the most important. 

For HR and organizational leaders, this means that firms need to recognize and understand the differences and similarities among generations regarding leadership qualities when it comes to the creation of leadership development programs for current and future leaders, for example (see Figure 1.)