Talking Talent

“Haven’t there always been generational conflicts in the workplace?” a client asked me the other day.

Yes, of course there has. Each generation wants to make their own mark and do things differently from their parents. The exponential changes in technology and education mean Generations X and Y enter the workforce with very different values, experiences and attitudes than Baby Boomers. They are better travelled and more at ease with technology in all its forms.

So what can managers do to form cohesive teams, where workers feel valued and deliver the productive outputs required by organisations (be they public or private sector)?

First of all, recognise that the diversity between the generations is just that – there is no right or wrong, no better or worse, just difference.

Secondly, recognise that they are not going to be alike as they grow older, get mortgaged and married. Each generation will carry its ‘personality’ throughout their lives.

My experience in leading teams across many locations and countries is that all people want to feel respected and listened to by those people who lead them. So, start a conversation.  Just make sure it is one that plays to the generational personality. Part of what makes us different generations is the way we want to have these conversations and what we want to talk about. 

Baby Boomers like to monitor their work environment and exert some control over what happens within it. Talk to them about tools that help them see the results of their labour. They like to see their work measured and are happy to have set metrics of activity and output. They then want to see the results of their activity in charts or graphs - especially if it includes a league ladder that shows them how they are progressing against other workers, teams or states (think about the Rugby League State or Origin – a classic Baby Boomer competition). They can become disaffected if they are part of a team that constantly ranks in bottom. 

X Generation want the world to be a better place and as workers they like to influence the workplace in a positive way. Talk to them about how they would make the office a better place to work or about how to change processes so that people are more productive in their daily activities. They like to see the impact of changes and how things are better year on year. They are very responsive to opinion surveys and satisfaction scores. They become disaffected if no action is taken to correct bad scores.

The newest entrant into the workplace is Gen Y, and they have been raised on a diet of constant feedback from their parents, teachers and sporting coaches. They crave recognition for the things they do, and they require it on an almost daily basis.

Talk to them about them – this is the ‘me generation’. They become disaffected if you take credit for their ideas or, worse, still ask for their ideas and then do not implement them.

David Knox, Worldwide Partner at Mercer, has published a paper exploring Australia’s position on the age pension.

As our population ages and a larger percentage of people sit in that over 65 age bracket, he asks whether a pension at 65 is still appropriate.

Knox outlines a number of adjustments to pensions around the world, including:

• The US is gradually increasing its normal retirement age for Social Security from 65 to 66 between 2002 and 2009 and then increasing it again from 66 to 67 between 2020 and 2027; 
• The UK announced in a 2006 White Paper discussing their new pensions system that they will gradually increase their State Pension age from 65 in 2024 to 68 in 2046; 
• Germany is gradually increasing its pension age from 65 in 2012 to 66 in 2024 and then to 67 in 2029; 
• Denmark is increasing the age threshold for the public old-age pension from 65 in 2024 to 67 in 2027. Furthermore from 2025, the eligibility age will be directly linked to changes in life expectancy at age 60; 
• Japan is increasing its age for access to the earnings-related component of its pension from 60 to 65 by 2025 for males and by 2030 for females; 
• Increases in pension age that affect both men and women are being implemented in the Czech Republic, Greece, Hungary, Italy and Korea (OECD, 2007).

What’s my point?  I’m certainly not suggesting that people don’t deserve the aged pension.  What I’m suggesting is that we need to look at the fact that, as our population ages, we are going to lose a pool of high skilled, knowledgeable and experienced workers who will retire when they still have many good years in them.  Is 65 really still the right age to retire?

Following on from yesterday, Australia’s population is projected to age progressively from the median age of 36.4 years in 2004 increasing to about 41 in 2021 and about 45 years in 2051.  By 2051 around 26 percent of Australia’s population is projected to be aged 65 years or older, compared with 13 per cent currently.

Extensive research has concluded that immigration beyond current levels would have a diminishing impact on retarding the ageing of the population. This reflects ageing being a gradual process and that most migrants who enter Australia would themselves be part of the aged population in 30 to 40 years time.

This means harnessing ‘grey power’ is vital if we are to continue to compete on a global stage.

With the economy facing capacity constraints and the population ageing, it doesn’t make sense to have skilled people driving taxis.

Fifty-year-olds are still perceived as being past their used-by-date in the workforce.  At the same time, the latest census data reveals that 11 per cent of Australia’s population is between 55 and 64.  It is these people that the ICT industry needs to do more to attract, retain and retrain.

Research analyst firm, Mercer, says that workers aged 55 and older, particularly women, appear to be the answer to the ongoing skills and labour shortage – not generation Y – and Australian employers must consequently shift their focus from young to old to maintain productivity.

Research findings reveal that by the year 2012 the amount of workers in the labour force aged 55+ will increase by 14 per cent whilst the amount of workers aged 25-54 will increase by only 5 per cent.

Furthermore, the amount of women aged 45+ will increase by 12 per cent whilst the number of men in the same age group will increase by only 6 per cent

Mercer’s Tim Jenkins says that there’s a sense of urgency for employers.  By 2012 demand for skills is expected to increase 18 per cent in the construction industry; 13 per cent in the accommodation, café and restaurant industry; and 12 per cent in the wholesale industry, but with no guarantee that demand will be met with supply.

“In four short years there will be close to a quarter of a million more workers aged 55+ in the Australian labour force and assumptions about what an employer should expect from an employee, and vice versa, have to change.

“Australian employers have to re-define what the average daily and weekly job looks like and how it is remunerated in order to hold onto older workers, maintain productivity and keep downward pressure on wages that, according to our research, are forecast to rise at an average annual rate of 4.2% between now and 2012.

This seismic demographic shift threatens the sustainability of many Australian businesses.

So why does a recent survey by career management firm, Linkme.com.au, tell us that almost three-quarters of Australians believe that finding new employment – across all industries - after 50 is almost impossible.

People are telling me that they feel ‘on the scrapheap’ once they hit 45, and yet these are the very people who have a lifetime of skills and experience to harness.

One woman I spoke to said she was advised to change her resume to say ‘more than 10 years’ experience’ instead of ‘more than 20′ and to remove the dates from her degrees – all to reduce the perception that ‘older’ means ‘out-of-date’.

In industries where work is increasingly based on knowledge-creation, the focus needs to be on the workplace as a key arena for encouraging ‘lifelong learning’ as part of work.

Retaining and retraining older workers will save recruiting costs, maintain institutional memory and technical knowledge and give a higher return on investment in training.

However, it’s not just the responsibility of employers.

Employees need to recognise that they work in a fast-paced industry where training is paramount.  Continuing employment or re-entering the workforce may require a commitment to retrain and some attitudinal shifts too.

The most important factor in a mature person’s employment prospects is: are they adaptable?  Those most at risk of redundancy and underemployment have had fewest opportunities to acquire new skills and develop a positive attitude to learning.

Australia’s economic growth – and our industry’s prosperity - is partly dependent on mature-age workers remaining in the workforce for as long as possible, so it’s time to discard negative perceptions of baby boomers and support them in their working lives as much as Gen-X and Yers.

It’s no good saying what a great place your organisation is to work if a Google search then throws up a hate website, manned by disgruntled ex employees.  It’s no good talking about commitment to corporate social responsibility if you polluting a river, or using sweatshop labour in a third world country.

Workers want to ensure they are a cultural fit and aligned to the objectives of the organisation. The person who answers the phone, conducts the first interview, the look and feel of the office and staff in the office will all say something about your firm.

It is important that the recruitment and retention processes line up and that what a worker hears and sees through the multiple touch points they have with the organisation are consistent with what they will find as an employee. This is particularly pertinent for Y Genners. They want honesty and truth in what they are told. Don’t tell them how it will be - tell them how it actually is.

Gen Y employees will relate to a compelling vision, especially if you will take the time to ask them about their values and ambitions and show how the two are aligned. I think this equally applies to other generations and it is up to us as employers to give their work meaning. It is we who must create the psychological bond between employer and employee.

We also know that Y Generation expect and require a lot of feedback, and in a more personal way than either Baby Boomers or X Gen. Y Genners have received it from parents, teachers, nannies, music teachers and sports coaches. I often tell client managers that Baby Boomers created the Y Gen monster; they crave attention and recognition and now it is our job to give them that feedback in the workplace.  And they do not like negative feedback, so be prepared to take a less robust approach than you may have with a Baby Boomer.

A word of warning, however: if you ask for suggestions or comments, be prepared to listen. Y Gen will get tired of employers who pay lip service to their ideas. Workers join organisations and leave managers and it is fair to say that we have a way to go in developing leadership and helping your managers to cope.

When asked about the impact that Baby Boomers leaving the workforce would have on the US economy, Bill Clinton replied, “they are the economy.”

From the time they were born, Baby Boomers have dominated the economy and the organisations that make it up. Currently they run the majority of ASX listed companies, boards and government departments. They entered the workforce with full employment and huge demands for their services and right now, at the tail end of their careers, they are still the topic of conversation (retaining mature workers) and are in demand for their skills and experience.    

There is no doubt that some subtle and often unspoken age bias still exists in today’s public and private sector organisations. Even though there is no research that proves any limitation by age, stereotypes about the learning abilities of older people persist in our society. A recent survey by Adage (a company that specialises in finding employment for mature workers) found that managers in 124 companies believe older workers are more expensive and less productive than younger workers and have less technological ability.

This perception is a roadblock for organisations who need to work with managers to ensure that they embrace the age diversity available to them and acknowledge that it is reflective of the population and the clients that they will serve.  It is also at odds with the social representation of Baby Boomers. Do not say ‘old’ to a Baby Boomer! They do not think of themselves as pensioners now or in the future.

Indeed, they believe they invented adolescence and in many respects they are aspirational Y Genners – they buy iPods, have piercings and tattoos, indulge in extreme sports and wear the same clothes as their children. The Australian Pensioners’ Insurance Agency recently changed their name to APIA – evidence that they would be unable to attract their target demographic - over 50 year olds - if they had an uncool name.

So, what do you think?  Was Bill Clinton right?  Are Baby Boomers THE economy?

It is often said that youth is wasted on the young.

This may be true, but the future is all theirs. If Gen X left school or university wondering if they would find a job, Y Gen are in no such situation, with more jobs than candidates available at every level of employment.  The biggest dilemma for organisations across the world is how they will compete for a decreasing pool of young people who still provide the backbone of new talent for organisations. 

Technology savvy Y Genners are hardcore online browsers of opportunities, possibilities and experiences. A job is just one of countless choices they have. For this group organisational loyalty is fading, the work ethic as we know it is dead, permanent employment went out with the twentieth century and long service leave is something they simply do not understand.  Because work is not viewed as an investment in the future with an organisation, they want immediate payoffs from the workplace.

Given the variety of choice, this generation likes to keep their options open. They know that making a commitment to a specialist skills path for example closes down options that may be more exciting. Which is why 60 per cent change their university course in their first year; they do not complete apprenticeships and more of them seek generalist and most often double degrees in order to expand their job options and prolong the moment of decision making. When they take a job they are three times more likely to change in a year than baby boomers and one in four do.

This is a generation that is both exciting and frustrating. Frustrating because they flaunt what we think are entrenched behaviours. They resign by SMS and see no reason to serve out a period of notice.

However they are also the most flexible, multi-skilled and multi-tasking generation ever.  Yes, even the boys. They are at ease with technology, diversity, complexity and uncertainty. If Gen X wanted to know what you will do for them next week, Y Generation want to know what you are going to offer them right now. Baby boomers were willing to wait much longer for their organisational rewards. Y Generation, on the other hand, are commitment phobic - they will not be lured by promises of climbing ladders, paying dues and cashing out at retirement.

They want you to answer the question for them: what value can I add today? What can I learn today?  What reward will I receive today?