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Retaining four generations at work

Remember the old days when the workforce was mostly homogenous and one managerial approach worked for all?

By Nancy Ahlrichs, Vistage Speaker, September 2007

Topic: Employee Retention

Well, those days are gone, says Vistage speaker Nancy Ahlrichs. Employers must now deal with no less than four generations in the workplace, each with a different set of goals, aspirations and values.

Veterans. Born prior to 1946, this generation makes up 7.5% of the current workforce.
Baby Boomers. Born between 1946 and 1964, “Boomers” represent 42% of the workforce.
Generation X. Born between 1965 and 1976, “Gen-X” comprises 29.5% of the workforce.
Generation Y. Born between 1977 and 1986, “Gen-Y” totals 21% of the workforce.

“Growing a business in today’s world requires top talent in all four generations,” says Ahlrichs. “Generation X plus Generation Y now total more than 50% of the total working population. The challenge for CEOs and business owners is adapting their managerial and retention strategies to meet the needs of each generation.”

Understanding the Generations

Successfully managing four different generations starts with understanding who they are, what they believe in and what they expect from your company and the workplace in general.

According to Ahlrichs:

Veterans

Veterans have a very strong work ethic -- give an impossible task to a Veteran and they will get it done. Most have served in the military or been married to someone who did. As a result, Veterans tend to be very respectful of seniority, title and rank. Because their world outlook was shaped by the Great Depression, Veterans have a very practical outlook (make do, reuse, recycle) and know how to put money away for a rainy day.
Key Veteran values: Self-sacrifice and dedication.

Boomers

Boomers have a driven work ethic (come in early and stay late) and are highly competitive. They have a very optimistic world outlook, and believe that if you set goals and work hard you will get where you want to go. Boomers have less respect for rank and hierarchy, and prefer leadership by consensus. They tend to set long-term goals and have the discipline to follow through.
Key Boomer values: Hard work and be a team player.

Gen-Xers

Gen-Xers grew up alone because both parents were working. In addition, 40% of their parents were divorced and/or lost their jobs during the '80s and '90s. As a result, Gen-Xers are very concerned about life balance and fiercely protective of family time. They tend to be sceptical and pragmatic, and value leadership by competence. They have no respect for service, title or rank because their parents had all three and lost their jobs anyway.
Key Gen-Xer values: Life balance and respect for individuality.

Gen-Yers

Gen-Yers are very entrepreneurial. Most worked at legitimate jobs before they left high school. Gen-Yers are also very technology - and computer - oriented. They see themselves as citizens of the world and feel very connected through the Internet. They have better relationships with their parents than Gen-Xers, and have a strong interest in teamwork (although they define “team” differently than Boomers). They excel at multi-tasking.
Key Gen-Yer values: Making a difference in the world and respecting diversity.

Generational Retention Strategies

How should employers respond to such differing values and expectations?

To retain Veterans and Boomers, Ahlrichs recommends the following:

Focus on the “what” and “how.” Tell Veterans what to do, tell Boomers how to do it.
Ask for their ideas and input.
Set very clear performance goals and expectations.
Value their age and experience.
Focus on the big picture and long-term.
Don’t micro-manage.
Recognise and reward their long hours and hard work.
Offer flexible schedules for those who don’t want to retire but no longer want to work full-time.

To retain Gen-X and Gen-Y employees:

Provide plenty of training, mentoring and feedback.
Explain the “why” of every assignment.
Hire managers who excel at building relationships.
Create an environment open to diversity (people and ideas).
Offer a competitive salary based on work, not seniority.
Provide recognition, respect and responsibility.
Explain the big picture of what your organisation does, where it is going and how each individual fits in.
Provide opportunity regardless of age or tenure.
Respect their individuality (e.g., tattoos, hair colour and body piercings).
Surround them with talented peers (these are great hiring magnets).

“Research shows that all four generations respond well to these strategies,” notes Ahlrichs.

“However, Gen-X and Gen-Y employees are especially attuned to an environment that continuously develops and stretches them.

“In addition, each generation responds well to having clear performance expectations and a performance management system that focuses on career development as well as past performance. The key is recognising that you get from each generation what you expect.”

Global Retention Strategies

What works to enhance retention for all generations?

Learn to build consensus. Veterans and Boomers expect to be asked for their opinion. Gen-Xers and -Yers will give it to you without being asked. Building consensus with input from many different viewpoints is essential to maintaining a happy, motivated workforce.
Embrace diversity. This means respecting not just diversity of skin colour and ethnic background but also ideas, values and ways of viewing the world.
Change your performance review systems. Traditional annual performance reviews don’t work for any generation because they don’t change behaviour or bond people to the organisation. “Today’s employees want performance feedback on a regular basis,” notes Ahlrichs. “You still need to set goals and developmental plans, but add a component -- called ‘fast feedback’ -- to let employees know if they are doing the job right and, if not, how to fix it now.”
Speak to all four generations. Veterans and Boomers tend to value the group and the long-term view. Gen-Xers and Gen-Yers focus on the immediate and the individual. The challenge involves expanding how you think about your business and how people fit into the big picture. Find ways to talk about your business so that all four generations get excited about working for you.

“Above all, stop trying to change the behaviour of younger generations and instead change your attitudes toward those generations,” advises Ahlrichs. “Every generation brings different skills, mindsets and values to the workplace. Smart employers learn to embrace those differences and focus on the strengths of each generation while minimising the weaknesses.”

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