Generational Differences in the Workplace

This article was published in the June 2008 South Dakota e-Labor Bulletin.

In this article:

• Introduction

• Generation Profiles

• How Generation Y Differences Show Up in the Workplace

• Adapting Workplaces for Integrating Generation Y

• Live Dakota Focuses on Retention of Gen Y in the Workforce

One of the issues which keeps surfacing as we address the challenges of ensuring a South Dakota workforce prepared for the future is generational differences. Quite naturally, the greatest concerns with generational differences in the workplace currently focus on the youngest generation, Generation Y.

Generation Y is made up of those born between 1978 and 1995. Some are in their first few years of full-time employment following school; the youngest of the group will come of legal employment age within the next couple of years. Employers are finding vast differences in the psyche of this group, requiring some revamping in the traditional human resource and management techniques used to attract and retain quality employees.

With nationwide concerns of workforce shortages now and into the future we are demographically dependent, more than ever before, on this youngest group for the labor needed to sustain our economy. As baby-boomers begin to retire, many employers are finding they may have no choice but to accommodate the high expectations of this new group of workers.

Before we look at how and why Gen Yers are causing some “shockwaves of change” in the workplace, it is important to look at those generations they are different from—the employees older than them who are not only their co-workers, but often their lead workers, supervisors and top managers. As is usually the case in working out any differences, the first step is understanding where each of the players in the situation is coming from. So as a starting point, let’s look at each prior generation - who they are, and what events and social circumstances have molded them uniquely as they are.

Generation Profiles

The eldest generation still in the workplace are the Traditionalists, those born between 1900 and 1945. Many of this group of 43 million nationwide (128,555 in South Dakota) who are still living have already retired—or are very close to retirement. This generation experienced two world wars and the Great Depression. “Making do or doing without” was their culture. This generation loves their “stuff” and hates to get rid of anything as a consequence. Other defining events which helped shape this generation’s viewpoint of employment and life in general were the New Deal, the Korean War and the GI Bill. If one word were to be used to describe this generation of workers, it would be loyal. They respected authority and believed in working hard. Formal organization structures were the normal working environment. Individuals worked to build a legacy through a lifetime career—which normally also meant with just one employer.

Next come the Baby Boomers, the large group (over 75 million nationally, more than 200,000 in South Dakota) born between 1946 and 1964. Largely because they are such a large group, this generation has had profound effects on everything in society. New schools were built for them, and now retirement developments and healthcare facilities are being built to accommodate them. This generation experienced everything from tragedy to escapism before plunging into the real world. Leaders and events ranged from Martin Luther King Jr. and John Kennedy to Richard Nixon and “Deep Throat,” and from the Osmond family to the Beatles and Elvis Presley. Boomers grew up in a relatively affluent, opportunity-rich world.

The single most profound influence on this generation was probably the birth of television during their defining years. Experiencing landmark events such as Viet Nam, Watergate and assassinations, whether live or through TV, permanently changed the Boomers. If the Baby Boomers had to be described in one word, it might be optimistic—or maybe competitive. They value peer competition and are committed to climbing the proverbial career ladder to success. While Traditionalists worked hard because it was “the right thing to do,” Boomers earned a “workaholic” branding, believing it was the way to get ahead and succeed.

Next on the scene were the Generation Xers, born between 1965 and 1977. Although  relatively small (66 million nationally, roughly 150,000 in South Dakota), this generation has carved out its own unique identity in the workforce. This generation has noted some remarkable accomplishments as managers, inventors and entrepreneurs. Think Bill Gates. Xers saw many “big names” indicted or exposed as someone far too human to be a role model—the Brat Pack, Bill Clinton, Ayatollah Kkomeini, O.J. Simpson, Dennis Rodman and Madonna, to name a few. While Traditionalists were characterized as being loyal and boomers optimistic, Xers have been marked by skepticism. Xers are an extremely resourceful and independent generation who count on their peers and themselves to get things done. While they will work hard, their focus is on finding quicker, more efficient ways of getting the job done so they can have more free time for themselves and family. Xers have fought for “self command” in the workplace, preferring to manage their own time and solving their own problems rather relying on management to do it for them. They see job changing not only as acceptable, but necessary; employer loyalty to them is giving a two-week notice.

Last on the workforce scene is Generation Y, also called the millennials, Echo boomers, the baby busters or Generation Next—those nearly 76 million (about 203,000 in South Dakota) born between 1978 and 1995. Compared to generations before them, this generation’s biggest influence has been technology. They have grown up with access to cell phones, personal pagers and personal computers. Gen Yers have been directly affected by personal threats stemming from violent outbreaks such as Columbine, Virginia Tech, readily available illegal drugs, the proliferation of gangs—and probably most poignantly, the 9/11 tragedies. Generation Y also has in common an appreciation for diversity. After all, they have been exposed to many different kinds of people through travel, day care, technology and the media. Raised largely by baby boomers, Gen Yers feel empowered to take positive action when things go wrong. The ideal workplace of Generation Y is characterized more by collaboration and workgroups rather than reflecting the more traditional organization chart of superiors and worker bees. They multi-task and build parallel careers, and see job changing as part of a nearly daily routine.

How Generation Y Differences Show Up in the Workplace

So in what ways are the Gen Yer differences surfacing in the workplace, and what can employers do to minimize conflicts between generations and capitalize on the strengths of each for the most productive workforce possible?  Whereas previous generations feel they worked hard to earn their climb from rung to rung up the career ladder to their current positions, Generation Y feel entitled to those positions at the get-go. They expect promotions and raises every year. These millennials are accustomed to instant gratification. This is not too surprising, considering they were raised when the Internet, instant messaging and fast food were the norm.

Generation Y was never given much negative feedback. They were used to getting “participation ribbons” or trophies just for taking part in sports or other activities. Parenting styles were more “coaching” oriented—focusing on building the self-esteem of their children. Previous generations can handle criticism easier because they have gotten it all their lives. The older generations were raised when parenting styles were to offer criticism of performance, with positive reinforcement being rather rare in many cases. Papers in school were graded strictly not only for content, but for grammar, usage and spelling regardless of the school subject they were written for; nothing was overlooked for the sake of encouraging creating writing. Materially, the general affluence of the 80s and 90s meant parents of Gen Yers have been able to give their children more than any previous generation. Some suggest these parents have tried to give their children more financially out of guilt for not having spent more time with them—during the decades where dual-income households and single parents were prevalent.

While older generations have had to learn technology, Generation Y is super-technical. They used computers for school work (some beginning as early as kindergarten), and some could use a mouse nearly before they could walk. They never knew a world without techno-toys like cell phones, CD and DVD players, MP3 players, and iPods, so using such technology is second nature for them.

Whereas prior generations tend to work best individually even though they have learned to adapt when projects call for teamwork, Gen Yers thrive on teamwork with their peers.

While the traditionalists, boomers and Generation Xers tended to be career focused and fit in family time around workplace responsibilities, Generation Y puts the highest priority on family and friends, then work. Likewise, while the prior generations delayed planning for retirement until later in their careers, Generation Y is planning immediately for retirement.

Youth focus groups recently conducted for the Department of Labor show the state’s Gen Yers have the same characteristics as their national counterparts. They have clearcut and definite expectations of employers and the workplace. They expect employers to be flexible with schedules, allowing time for fun, family, friends and community service projects—which they also highly value. They also want employers to pay for ongoing and advanced education, and to provide mentoring opportunities. In fact, they expect employer support of customized career development plans. And they expect employers to help them plan now for retirement.

Generation Y wants feedback all the time, but they have a hard time handling constructive criticism. Think of the video games they grew up on, where the score was displayed instantly on the screen. But remember the ribbons they were used to getting just for participating in activities.

The millennials want a lot of responsibility right from the start on a new job. They don’t want to “pay their dues” and work their way up to that responsibility and higher wages. As multi-taskers who have been accustomed to multi-media entertainment, they want jobs with lots of variety.

Adapting Workplaces for Integrating Generation Y

So what can managers do to accommodate and utilize the strengths of this generation, who some say may be the highest performing workforce yet? The following are just a few possible accommodations, at least some of which may prove effective not only with Generation Y but with other generations in the workplace as well.

One suggestion for employers in recruiting and retaining Generation Y workers is to initiate open communication with them up front about their expectations—before even hiring them. Address any unrealistic expectations they have, and be open and candid with them.

When communicating with Generation Y in the workplace, embrace the technologies that are second nature to them. Send them text messages about staff meetings, and share information on flash drives rather than in brochures or reports, for example.

Another suggestion is to help Gen Y employees establish and maintain individual development plans. These workers get bored easily, and they want goals to attain. Find out what types of projects they are interested in doing, what they want to learn, then give them opportunities and encouragement to pursue those things as long as it fits within your organization’s mission. Another way to engage and challenge younger employees is to involve them in meetings, planning and decision-making to the extent possible. Some employers have implemented mentoring plans. Each new young employer is paired up with a more seasoned worker to help through the orientation process, and possibly beyond - through a career development plan. On the flip side, it may be effective to rely on the technological savviness of the Gen Yers in lead roles to help more seasoned workers learn to use the techno-tools.  

Depending on the nature of the business, one of the easiest but most effective accommodations may be alternate schedules. Gen Yers have been found to be project driven, willing to work long hours to finish a project. But they do not necessarily embrace the concept of working from 8 to 5, regardless of immediate workload. If possible, allow them flexibility in their work schedules as long as goals are being met. A reward for a completed project could be an early leave time; it would not have to be every day.

A related accommodation some employers are offering Gen Yers, and other aged workers as well, is the option to work from home or another remote location. Some employers are even purchasing home computer equipment for them, or reimbursing them for equipment they purchase on their own but can use for work. Working from home allows the workers much greater flexibility to work “all hours” when driven by a project, with free time conveniently at home when it is finished.

Communication is key. Find out what else motivates the Gen Yers in your workplace and incorporate perks when possible, whether it be an additional vacation day for excellent work, or gift cards for meals or entertainment. The South Dakota focus groups mentioned earlier showed entertainment is a high priority of this generation.

Millennial workers want to feel they are contributing members of the workplace immediately. Relatively simple efforts like having business cards ready for the Gen Yer’s first day of work may go a long way to this end. Consider social activities like happy hours, group lunches or company-sponsored sports teams to encourage informal networking. Mentoring programs, mentioned above, may help achieve this as well.

Gen Yers place a high priority on community involvement; they want to make a difference in the area where they live. Consider allowing a certain amount of time “on the clock” for such activities. Pursue opportunities for public relations as a return on that investment. Get your company listed as a sponsor of the activity, for example.

These are just a few examples of how employers are making some adjustments to more traditional management and human resource practices to accommodate the differences of Generation Y so they can capitalize on the innovation, fresh perspective and new energy  they can bring to the workplace.

Live Dakota Focuses on Retention of Gen Y in the Workforce

Part of the Workforce 2025 initiative is a program called Live Dakota. This program focuses on retaining current South Dakotans in the workforce, specifically targeting Generation Y. Through outreach efforts by the Department of Labor, these millenials are being educated about the great career opportunities available to them right here in South Dakota. It is possible to “live the good life” in South Dakota because we can offer not only a great quality of life, but rewarding employment as well. For more information, visit www.LiveDakota.org.