The Power of Generational Insight

Viv Du-Feu 28 November 2012

capitallaw.co.uk

consultcapital.co.uk

capitalinsight.co.uk

Respecting diversity and age

• Age discrimination legislation is here as of 1 October 2006

• Our workforce is getting older

• We have 4 (soon to be 5) generations in the workplace for the

first time ever

• We need to respect age diversity in the workplace

• To what extent do your HR Policies and practices reflect the age

diversity of your workforce?

Population Change

10

11

12

13

14

15

16

17

18

19

1950 1980 2000 2020

15-24 yr old

65 or over

• The labour force is growing older

• There are fewer young people entering the labour market

• The numbers of people in older age ranges is rising

Source: The Guardian, 3 May 2006

Live births – USA 1920 - 2005

Total

0

1000000

2000000

3000000

4000000

5000000

6000000

1920

1924

1928

1932

1936

1940

1944

1948

1952

1956

1960

1964

1968

1972

1976

1980

1984

1988

1992

1996

2000

Date

Nu

mb

er

Number of live Births, 1920 2003 England and Wales

0

100

200

300

400

500

600

700

800

900

1000

Thousands (rounded)

1920 1926 1932 1938 1944 1950 1956 1962 1968 1974 1980 1986 1992 1998

Years

Generational Repetition

• Each generation assumes the following generations will define

success the same way they have

• Each generation then assumes the following generations should

“pay their dues” the same way in order to achieve that success

• With a few exceptions, each generation thinks the following

generation has had it much easier

Understanding the background of each generation

Theory:

The oldest, wealthiest, and most visible members of a generation

define the behaviour and attitude for those that follow

• Matures – 67 to 87

• Baby boomers – 47 to 66

• X Generation – 35 to 47

• Generation Y – 35 to 19

• Generation Z – 19 and younger

The 5 generations

The Matures - Born between 1925 & 1945, now aged between 67 and 87

• Duty, honour, country

• Dedication, sacrifice

• Conformity, blending, unity – “We First”

• Patience

• Hard, hard times then prosperity

• National pride

• Doing a good job was most important

• Age = Seniority

Tagline • “When in command, take charge. When in doubt, do what’s right.”

Noise made when you let them go …

• Oh, no… what will people think? Where will I find stability? My family! I’m ruined!

Relationship to Employer • Willing to learn new skills to be more effective in their current job.

• Work ethic = worth ethic2

• “Workaholic”; competitive

• Success is largely visible – trophies, plaques, lifestyle

elements

• Optimistic

• Consumers

• Defined by their job

• Personal development

• We are the world; we are the children

Baby boomers - born between 1946 & 1965, now aged between 47 and

66

Tagline • “Live to work”

Noise made when you let them go …

• Looks like I’ve got to get the C.V. up-dated … this won’t be easy, but I can find something …

Relationship to Employer

• “Willing to go the extra mile” for an employer

• “Include them in decision-making, give clear goals and responsibilities and then get out of their way and let them get the job done”.

• Taught to question authority at a young age

• Saw lifelong employment end. Nothing is guaranteed

• Time is a currency equivalent to money

• Question the sacrifices the Boomers have made to achieve

their “success”

• Latchkey kids…raised as their parents’ “friends”

• Independent, loners, nomads, poor team players

• “Prove it to me”

Generation X - born between 1965 & 1977 - now aged between 35 and 47

Tagline • “Work to live”• “Vanguard of the free-agent

workforce”

Noise made when you let them go …

• OK, that’s cool … lots of opportunities out there …

Relationship to Employer

• Always looking for “bigger/better deal”.

• Less loyalty to an employer• More self-reliant and self-directed: at

home in an uncertain market

• Optimistic

• Individualistic yet group oriented

• Time = currency

• Have a hard time focusing on anything

• Busy

• Like “X”, raised as their parents friends

• Time horizons are very close. “Future”

• View their generation as “problem solvers”

• Huge goals. Clueless on the execution

Generation Y – 35 to 19

Tagline • “Like Xers on steroids”

Noise made when you let them go …

• (texting his friend during the dismissal meeting): Hey, I don’t have to go to work tomorrow, wanna go to the Gym ?

Relationship to Employer

• Most high-maintenance generation to ever enter the workforce

• Little loyalty to an employer; not intimidated by authority.

• Will live longer than any generation in history – as at 2008 life expectancy projected to be 89.2 years for females and 88.6 years for males

• Lowest infant mortality rate ever – 4.5 deaths per 1,000 live births in 2008 compared with 12 deaths per 1,000 live births in 1980

• Parented by older parents – average age of Mother at first childbirth in England and Wales 2008 was 29.3 years, average age of Father 32.4 years.(* Source Office of National Statistics)

• Active consumers

• Believe they can “make a difference”

• Used to relentless testing from nursery onwards

Generation Z – Born after 1994 and before 2004

Generation Z

• Technology is a way of life, information is easily obtainable and requires no

effort having grown up with the internet and social networking

• Most inclined to protect the planet, attracted to the argument their

ancestors have ruined it

• Familiar and comfortable within informal communication/ use of Cyber

language

• Growing up in a world of equality believing men and woman are equals

• Most financially endowed generation in history

• Most technologically literate generation of children ever

Generation Z

• Children of older wealthier parents, fewer siblings

• The most materially supplied generation of children ever

• The most technologically and socially empowered generation ever – U

Tube, My Space, Internet, cell phones, IPods and all current gadgetry

• Internet savvy, technologically literate, shaped to multi-task

• Move quickly from one task to another placing more value on speed than

accuracy

• Only ever known a wireless hyperlinked user generated world where they

are always only a few clicks away from any piece of knowledge

• In a decade will comprise one tenth of the workforce

Generation X40%

Baby Boomers45%

Matures5%

Generation Y10%

The Generations in the Workplace

Traditional linear life stage trajectory:

Live with parents

Get an education

Start career

Get married

Buy homeHave

childrenChildren leave

home

The Futures Company 2011

Possible Millennial trajectories:

Live with parents

Move in with friends

Travel abroad Get marriedChange career

Older kids leave home

Get an education

Start career Buy homeCohabit with

partner

Move back home

Cohabit with partner

Go back to education

Get divorcedMore

additions to family

Sell homeLook for

new home

Have children

The Futures Company 2011

Times have changed: Median Age of First Marriage

1970 2003

Men 23.7 32.9

Women 21.8 30.6

Median Age of Women at first childbirth:

23

24

25

26

27

28

29

30

1970

1975

1980

1985

1990

1995

2000

2005

Time

• Boomers/ Matures – a currency to be invested into their future

• Generation X/ Generation Y – a currency they’re reluctant to give away

Time

• Matures – work ethic defined by the punch clock

• Boomers – visibility is the key. Workaholics

• Generation X – “What does it matter when, from where, or how long I work, as long as I get the job done”

Balance = Success

• Generation Y – “It is five o’clock – I have another life to get to”

Two amazing things to say when managing Xers and Ys:

1) I know this work isn’t your life and it shouldn’t be. But while

you’re here let’s agree to some things that you’ll be accountable

for

2) We’re all really impressed by your work ethic. Why don’t you take

next Friday off as a “thank you”

Three amazing things to say when managing Boomers and Matures

1) I really appreciate how hard you work and amount of time you put

in here. We’re lucky to have you here

2) What can we do to make you even more effective at your work?

3) Give them another Certificate of Achievement. They eat those

things up

Generation Y - who has worked them out?

Q: What do their messages have in common?

A: They celebrate huge amounts of individuality.

Employee…

• The McPassport, a McDonalds European initiative, is an official certification of the training and skills that employees have acquired whilst employed by McDonald’s.

• It is designed to support employee movement throughout the EU’s 27 member states

• Over 225,000 McDonald’s employees are eligible for the McPassport called “unprecedented” by the Financial Times.

McDonald’s McPassport

The New Workplace

Know yourself

Your portfolio of assets

Cycles of employment

Your career web (vs. corporate ladder)

Build synergy (with employer)

Changes in the world of work

A Good Team…

Matures – Produces quality. Not in it for individual recognition. Work is done in proximity to one another.

Boomers – Everyone works until all the work is finished. Long

and hours. Committed to each other & the team.

Generation X – teams are not defined by proximity. Each person

has a unique role.

Generation Y – What will this team do for me

Employee…

Loyalty and satisfaction are largely measurements of emotional connection between people and something about their work.

Employee…

The younger the person, the more “emotional connection” comes via the person’s relationship with their leader.

To the X’ers and Y’s…

Whether the job is “good” or not and whether or not they are “happy” is largely determined (85%) by their relationship with their boss.

To the X’ers and Y’s…

X’ers and Y’s are loyal to people, not to companies or organisations.

They rarely quit their job or their company, they quit their leader.

To them, that leader = the company.

X’ers and YsManagement & Retention

Therefore, ask these questions:

“Who are they working for or reporting to? Is this the person who can develop their loyalty?”

“Do they have a mentor that really cares and is helping guide them if needed?”

“Do they have a best friend at work?”

“Are we clear about what our employees want from us?”

X’er and Y’s Management & Retention

What is the number one thing:

1. Connectivity with the boss.1. The ability to be “themselves”.1. Pay.

Low pay will cause turnover.

But high pay won’t solve retention problems.

Recruiting Matures

Company’s credibility in the marketplace.

Company’s history.

Flexible scheduling.

Need for mentors.

Already have skills, really need wisdom.

Stay current, stay sharp.

Pleasant pace.

Hard work will pay off.

Stability of your organisation.

“Teamwork”

Leadership positions available.

Exposure to senior leadership.

Recruiting Boomers

Talk to them about short term and long term options within your company.

Highlight short-term steps – “These are the skills you’ll learn shortly after you begin with us.” – Carpe Diem.

Talk to them about how their knowledge of technology will be of benefit to them.

Back up plans.

Live for today but prepare for tomorrow. “You’re going to enjoy this. And you’ll also be building quite a future for yourself.”

Recruiting Generation X

Recruiting Generation X

Wary of too much advertising and marketing- Sell the steak, they’ll see right through the sizzle.

Peer to peer testimonials. “Let me let you talk to some guys around here…”

They’ll ask “Why?” a lot. It is not an attack on your credibility.

But you’ll have to prove your authority. That you’re reliable. That you do what you say and say what you do.

Recruiting Generation Y

Their natural talents will have an immediate application to their work.Your company must be a unique fit for them.

Want what their friends have and what their friends are doing with a unique twist. “Your friends are also going to be working hard but here is how this work will make you a bit different.”

Peer to peer – very important.

Spend time with them. Answer questions. Where possible, become a non-stressful element of their lives.

Admire them as individuals. (I’m really impressed by the decisions you’re making…)

Engagement

• Adopt “Get it Done” and “Whatever it takes” attitude.

• Be visible, be active in the workplace. Boomers value “face time”.

• Demonstrate how you have earned your leadership role.

• Have firsthand knowledge of sub-ordinates work, preferably having done the same job at some point.

Engaging Boomers

• Honour commitments at all costs.• X’ers place very high value on reliability.• Recognise that work does not equal life – celebrate X’ers hobbies, passions in addition to their work skills.• Be prepared to allow flexibility on schedules when needed and the individuals role on the team.• Revisit deadlines as needed. Have a serious interest in the individual – spend time with them, get to know their goals and personality.• Offer and commit to develop new valuable and relevant skills for them.

Engaging X’ers

• Have a sincere interest in the individual – spend time with them – know their goals and personalities.

• Recognise that work does not equal life – have some fun.

• Offer flexibility as with the X’ers.

• Offer commitment to develop new, valuable and relevant skills for them. • Articulate how you are going to help them achieve their personal goals whilst achieving the firm’s goals at the same time.

Engaging Y’s

Thank you

Questions?

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