The impact of generations working together: 2015 a significant year. Associate Professor Kate Shacklock Griffith Business School, Griffith University

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1 The impact of generations working together: 2015 a significant year Associate Professor Kate Shacklock Griffith Business School, Griffith University

2 Griffith MBA Values If you undertake the Griffith MBA you will graduate with an understanding of responsible leadership, sustainable business practices and what it means to work globally within the Asian Century - as such you will be equipped to be an effective businessperson in the 21 st century. Responsible leadership Giving our students the knowledge and skills and values to encourage them to become responsible leaders in the future, with a concern for planet and people as well as profit. Sustainable business practices Researching, developing and promoting social, financial and environmental approaches that lead to sustainable businesses and communities. Global orientation Providing education and research that recognises we operate in a fast-changing global environment, and that prepares global citizens, with a special focus on the Asia Pacific region.

3 Summary Today, in countries like Australia, there are commonly four generations working alongside each other. However, this year is particularly significant. In 2015, the youngest Baby Boomer turns 50 and a new, fifth, generation becomes eligible to join the workforce. What does this mean for organisational management? Is a multigenerational workforce an opportunity, or does it create extra challenges? This paper explores the notion of generation and suggests that, based on the identified differing values that generations hold, there is merit in being aware of the differences between the generations, even though we cannot judge individuals by their generation, much like we cannot judge individuals by their nationality or religion. What is a generation? There is no single agreed definition of a generation or even the birth years of the various generations. Views differ between countries and authors. Nevertheless, a typical definition of a generational cohort is a group of people sharing similar birth years and consequently experiencing similar historic events framing their beliefs, values and preferences (Palese, et al., 2006). According to Lowe, et al. (2008), there are four generational cohorts in the current Australian workplace: Matures/Veterans (born before 1946); Baby Boomers (born ), who value promotion, position and personal growth; Generation X ( ), who tend to place lower value on work itself and are unwilling to sacrifice their personal lives for a career, are less hierarchical and more entrepreneurial; Generation Y (also called Millennials, ), who are more confident, achievement-oriented, technologysavvy, and career-oriented but dislike hierarchy, and have difficulty in relating to superiors. However in 2015, there might be five generations working together, possibly spanning 75 or more years age difference. The youngest generation (Generation Z, also known as igen or GenTech ) can now typically start work (from age 15). Generation Z, often called digital natives, are safety conscious, very concerned about surveillance, have a short attention span, a strong ability to empathise, and a powerful sense of equality. A summary of some of the key differences in values for each of the generations is outlined below.

4 The Generations (See reference list for sources) The Veterans, or The Silent Generation Born % of this generation is retired. They are adaptive generation because they have had to be. This generation includes beats and beatniks; they have a practical outlook and a dedicated work ethic. They are respectful of authority and believe in personal sacrifice. an Baby Boomers Born An idealist generation, often stressed out; experienced the pop media revolution and the ideal of peace in our times; are optimistic, driven and team-oriented. Often people from that generation have their self-images tied to doing a good job. They are competitive and loyal, value individual freedom and dedication. Generation X aka the 13 th Generation Born A reactive generation, street wise. Both parents likely to work (latchkey kids). Grown up questioning their parents, and now they're questioning their employers. They don't know how to shut up, which is great, but that's aggravating to the 50-year-old manager who says do it and do it now. Less likely to have corporate loyalty; value self-reliance and work-life balance; technology is an important part of their lives. Looking more for balance between work and family, are more informal, fun loving and independent. Generation Y also known as Millennial Generation and i.generation Born A civic generation, inner driven within the information revolution, striving to get ahead. They have been pampered, nurtured and programmed with a range of activities since they were toddlers, meaning they are both highperformance and high-maintenance. They also believe in their own worth. Drawn to their families for safety and security. Generation Ys don't mind change and don t expect to stay in a job or even a career for too long. This is a generation of multitaskers, who can juggle while talking on their mobile phones while trolling Facebook or Twitter. They are ambitious, hopeful, relaxed, polite, collaborative, and tend to enjoy working alongside their friends. Much less likely to respond to the traditional command-and-control type of management still popular. Socially sensitive, optimistic, ambitious, technologically adept and easily bored Examples of conflict between the generations While Boomers may expect a phone call or in-person meeting on important topics, younger workers are likely to prefer virtual problem solving. Conflict can also flare up over management style. Unlike previous generations who have grown accustomed to the annual or bi-annual review, Gen Y have grown up getting

5 constant feedback and recognition from teachers, parents and coaches and can resent it or feel lost if communication from bosses isn't provided regularly. In one study, more than 70% of older employees were dismissive of younger workers' abilities. (Armour, 2005). Likewise, nearly half of employers say that younger employees are dismissive of the abilities of their older co-workers. (Armour, 2005). For the younger generations (X and Y), the traditional command and control style of leadership is obsolescent. This top-down, one-way leadership style emanating from a military model is not effective in today s business environment. Today s young leaders prefer to just do it act first and evaluate (or apologise) later, arguing the best leaders do not evaluate first in our high-speed environment. So, what can management do? What should management do? As a people manager, you should be aware of and acknowledge the differences between generational values to avoid misunderstandings and enhance the effectiveness of your team. Each generation can learn from another, creating a mix of perspectives and leveraging experiences to improve the way their team works, to create innovation, and to diversify the organisation s customer base. Although each employee may not behave according to all of their generation's characteristics or values, understanding that the generations have different styles will help with building teams, increasing productivity and innovation, embracing change and, importantly, assisting managers to manage staff successfully. For example, each generation has its own communication style, as well as distinct values and feedback needs. Similarly, each generation has different career expectations, expectations of work-family balance and other values that affect their work behaviour. Conflicts between the generations often occur when communication styles and engagement perceptions differ. Management must bridge those gaps - both real and imagined using whatever techniques and experiences they have, but in any case, with excellent communication.

6 Communication Differences (Sherman, 2006) The Veterans; Silent Generation Baby Boomers Communication that is inclusive and build trust; face-to-face or written will be more effective. Communication that is open, direct, and less formal. Group processing of information and staff meetings that allow discussion are valued. Prefer face-to-face or telephone communication, but will use . Generation X Communication that involved technology appeals. Communication approach is bottom line, may become bored at meetings that include considerable discussion before decisions are made. Generation Y Like immediate feedback and may become frustrated if s and text, SMS and other phone message are not answered quickly. Enjoying teamwork, they read less (so lengthy policies and procedures may be ineffective), but s and chatrooms are good mechanisms for this generation Notably, it is now Gen X, the key consumers, and the arbiters of parenting, family and community philosophy, who are taking the reins of leadership in many organisations while the Boomers step back or leave/retire (but don t call them older!). Gen Y is waiting for the Boomers to leave, to free up places at the top for them to move into (and in the not-toodistant future, or they ll leave if not learning/growing). So, what can managers do? The answer lies in the following: All employees need recognition, access to sufficient resources to do their job and feedback from their manager/leader. It's important to be flexible in communication styles to create an environment where staff can play to their strengths. Each person needs to be recognised as an individual first and to feel valued for their unique contribution - this is one of the multigenerational opportunities. With so many differing perspectives, organisations have no excuse to not be able to bring a suitable product to market, to retain the best staff, or to tailor the best service. One approach commonly espoused is to emphasise the areas and goals that are common or shared at an organisational level, plus acknowledging each person's contribution. Awareness training and positive examples from the top of the organisation will help, or placing a mix of

7 generations together in teams, because there is evidence that, for longer-term projects, a better outcome will be achieved when there is a heterogeneous grouping rather than a homogeneous grouping. What does this all mean? The notion that there are generational differences in work values is popular among practitioners, however there continues to be debate within academic circles as to its validity. Sociology provides a strong basis for the concept of generations, but empirical results are somewhat mixed. There is insufficient generational research to be sure that age, experience or career or life stage, for example, do not also impact the results. Longitudinal research is needed to confirm (or not) whether there is any predictive influence of an employee s generation upon their work values. In the meantime, as a manager/leader of people, treat your people individually with respect and stay alert to differences between them that need to be valued and leveraged, for the betterment of your business. References Armour, S. (2005). Generation Y: They've arrived at work with a new attitude. USA Today. (accessed 2011) Lowe, D., Levitt, K. J., & Wilson, T. (2008). Solutions for retaining Generation Y employees in the workplace. Business Renaissance Quarterly, 3(3), Lyons, S., & Kuron, L. (2014). Generational differences in the workplace: A review of the evidence and directions for future research. Journal of Organizational Behavior, 35(S1), Hansen, J., & Leuty, M. (2012). Work values across generations. Journal of Career Assessment, 20(1), Parry, E., & Urwin, P. (2011). Generational differences in work values: A review of theory and evidence. International Journal of Management Reviews, 13(1), Jin, J., & Rounds, J. (2012). Stability & change of work values: A meta-analysis of longitudinal studies Journal of Vocational Behavior, 80,

8 Palese, A., Pantali, G., & Saiani, L. (2006). The management of a multigenerational nursing team with differing qualifications: A qualitative study. The Health Care Manager, 25(2), Shacklock, K. & Brunetto, Y. (2011). The intention to continue nursing: Work variables affecting three nurse generations in Australia. Journal of Advanced Nursing 68(1), Sherman, R. (2006). Leading a Multigenerational Nursing Workforce: Issues, Challenges and Strategies. Online Journal of Issues in Nursing, 11(2), 3-12.