By Brian Kilcourse, Managing Partner
November 17, 2009
Back in the early days of television, a show entitled “Battle of the Ages” aired that pitted a team of adults against a team of kids to win the “most talented team” prize. It’s ironic that the show ran in the early days of the post-war Baby Boomer generation, because it’s being replayed in the job market right now, on the other side of the Boomer generation’s time on this planet. It’s certainly no secret that most Boomers aren’t boomed out yet, and given what’s happened to retirement accounts in the last two years that’s not likely to change soon. The question for employers is, how to get Boomers, Gen-X’ers and Millennial’s to work together? This isn’t just this year’s psychobabble du-jour – there are real implications to it that employers have to think seriously about, as relates to job design, compensation structures, workforce management, or even the size of the screens on mobile devices (trust me on this, as I use a magnifying glass to read my Blackberry). Thinking about the implications of a multi-generational workforce is important for retailers now because recessionary times present a great opportunity to attract good talent. In good times when jobs are plentiful, retail doesn’t look so attractive – the hours are long, the work is hard, and compensation packages are skimpy. But in times of economic hardship, retail looks like a steady paycheck.
Last week, Dr. Ken Dychtwald spoke to an audience at the Kronosworks event in Las Vegas about “how the age wave is transforming the marketplace, the workplace, and our lives”. “If there’s one thing will you remember from the presentation, it’s this fact,” exclaimed the author, “two-thirds of all the people who have ever lived past 65 are alive today!” The problem for many employers (retailers included) is that modernity is designed for young people; fashion, street signs and traffic lights, airplane seats, the font size on computer screens, etc. But for the years 2000-2020, 54% of the population will be 65 years old or more. And by 2025, all the modernized world will see an percentage increase in the over 65 set, while other age groups will a percentage decrease. According to Dychtwald, “the new ‘new’ is what ‘old’ people are doing, and it’s a revolution unlike all the previous ones. You’ll get more years back from retaining a 50 year old than from a 25 year old.”
The speaker quoted recent research from Merrill Lynch entitled Age Wave, that reveals that:
- “While 76% of boomers intend to keep working and earning in retirement, on average they expect to “retire” from their current job/career at around 64 and then launch into an entirely new job or career.
- When probed about their ideal work arrangement in retirement, the most common choice among boomers would be to repeatedly “cycle” between periods of work and leisure (42%); this was followed by a preference for working part-time (16%), starting their own business (13%), and working full-time (6%). Only 17% hope to never work for pay again.”
In short, in the new definition of “retirement”, people stay engaged, re-invent themselves periodically, and keep their options open.
What Are The Differences Between The Generations?
Or course, this isn’t just about Boomers. Members of “the silent generation” are still in the workforce, Gen-X’ers are impatiently waiting for Boomers to get out of the way, and Millennials are just trying to relate to it all. So how does the employer get these people to work together? Dychtward suggested that to make multi-generational teams work, the employer needs to understand the “generational identity” of each group. The author offered these observations:
The “silent Generation” (pre-Boomers) respect authority. They are joiners (memberships, unions, church communities, etc.). They’re materialistic, and when asked who they are, “they are their job”. Their weakness is they are set in their ways. Their strength is in their experience, and they are loyal;
Boomers question authority. They are self reliant and idealistic (“power comes from yourself”). They believe in a meritocracy (“your job is what you make it”). Their weakness is that they are always “too busy” and their distrust of authority can make them difficult. But Boomers are highly motivated and very people-oriented;
Gen-X’ers are uneasy with authority. They are individualistic, and are “change masters”. The job is a contract, not a calling- it certainly doesn’t define them. X’er’s have weak interpersonal skills, and maintain short-term loyalties. But X’ers are quick learners and very flexible;
For Millennials, authority must be earned. They are network-centric (people in their network are their “tribe”), and to a great extent they are still discovering themselves. When it comes to work, they are “free agents” – they will work for the company until a better offer comes along. Millennials are inexperienced, and still searching for the right fit. However, Y’ers are the most highly educated generation in history. They love technology and are master multi-taskers.
Another important aspect of the generational divide is ethnic diversity. While the group 65 and older are 81% white, that number drops to 64% for millennials.
What It Means
The numbers Dr. Dychtwald highlighted are too big to ignore. Employers that assume a “linear” transition from one generation to the next are ignoring 21st Century realities. Those who explore the differences in “generational identities” may decide to redesign their operational processes, compensation packages, and workforce to take advantage of what each sub-population of the total workforce has to offer. And unlike the 1952 TV show, in the new “Battle of the Ages” the “most talented team” prize will go to the group that has embraced generational diversity.
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