Understanding how generational gaps or differences affect the success of business and industry is becoming an increasingly important issue.

Everywhere you look within business media somebody is sharing research, experiences, or opinions on the generational divide and specifically how it relates to Gen X and Gen Y as they enter today’s workforce. In order to fully understand how organizations can create and manage a culture where all generations interact and communicate effectively we need to understand all current generations in the workforce.

According to the AARP 77.5 Million Boomers will be vacating corporate America within next five years (2008). 56% of our current national leaders are Baby Boomers. Conversely there are only 46 Million Gen X and Gen Y’s to take the place of those vacating Boomers. These numbers reflect why business and industry need to be so concerned about brain drain and develop a strategy to combat it. Key questions to be reviewed when determining your organization’s current position on the issue and potential strategy include:

• How can your organization effectively manage potential brain drain?
• What processes have you put in place to have your intellectual capital remain as your experienced people create an exit strategy?
• How can your organization effectively work with and manage the merging minds of existing Boomers and the new employees from younger generations?
• How can your organization become an employer of choice for the 46 Million Gen X and Gen Y’s currently in or entering the work place as competition for their talent will become fierce?

“A generation is shaped by the events and circumstances its members experience at phases in life, beginning with childhood. Common generational traits initially develop as a result of social attitudes toward children and child rearing norms at the time” (William Strauss and Neil Howe – authors of Generations and 13^th Gen). Generational overviews simply mean that certain behaviors are more typical of each group.

An interesting statistic shows that 68% of Baby Boomers feel younger people do not have as strong a work ethic as they do, and that makes doing their own work harder. 32% of Gen Xers believe the younger generation lacks a good work ethic, and that is a problem. 13% of the Gen Yers say the difference in work ethic across the board causes generation friction. They believe they have a good work ethic for which they’re not given credit.

Isn’t it fascinating that every generation believes the other “generations” are the problem? Perhaps an appropriate strategy should be to help coworkers understand the differences as well as the advantages each generation brings to an organization. Mastering the benefits of different mindsets, approaches, and opinions is what makes good companies great. If everyone thought alike the innovation we see in the world today would have stagnated long ago. Companies and organizations need to embrace generational diversity and use collaboration to harness the best of all minds.

Let’s take a look at some of the differences in order to properly educate and embrace the value of each generation.

The Baby Boomers were born between 1946 and 1964 and are categorized in two group based on the world around them during these designated time frames.

Baby Boomer #1 (1946-1955)

• Major Events – The death of President John F. and Robert Kennedy as well as Martin Luther King, political unrest, walk on the moon, Vietnam draft, anti-war protests, sexual freedom, drug experimentation, civil rights, and the beginning of the women’s movement
• Key Characteristics or Traits – Experimental, individualistic, free spirited, and social cause oriented

Baby Boomer #2 (1956-1964)

• Majors Events – Watergate, The Cold War, states lower drinking ages, oil embargo, raging inflation, gas shortages, and President Carter’s decision to reinstitute military draft registration
• Key Characteristics for this Generation – Less optimistic, government distrust, general cynicism

Overview of the Baby Boomers

• Rejection and the redefinition of traditional values (Traditionalist-previous generation to the Boomers)
• Healthiest and wealthiest generation
• Often self absorbed, very focused, and workaholics
• Committed to one company or organization
• Focused on success as defined by possessions and wealth
• Women establishing careers, creating the juggling act between job and family, creating latch key kids
• Amassed a lifetime of experiences and knowledge which needs to be passed on

Summary

Baby Boomers have a great deal of knowledge to pass on to younger generations, and passing on the information and intellectual capital is vital to any company’s success. Organizations must create a culture where all generations can learn from the value of another generation—older to younger and younger to older. It is imperative to growth and success.

Let’s take a look at Gen X and see how they are different than the Baby Boomers. What similarities exist and what assets does Gen X brings to the work place?

Generation X (1965-1976) or (1961 to 1981)*

*(depending on what research you read)

• Averages 3-5 years in any one organization
• Tend to be free agents
• Distrusting of corporate motives
• Technologically savvy, pragmatic, and competent
• Efficient at managing themselves
• Received very little formal training in the work place, learned on the fly
• Will not sell their souls to the job 24/7
• Work and life balance more important than money and advancement

Gen X Retention Ideas

• Flexible schedules, interesting work, sense of purpose, minimal bureaucracy
• Continued learning and development
• Values feedback, clear communication, and recognition for a job well done

Gen X Management Ideas

• Tremendous capacity to process a great deal of information and concentrate on multiple tasks
• Don’t hover over their shoulder
• Craves time with their boss and they never get enough feedback
• They are problem solvers and self starters

In addition to educating Gen Xers about generational differences so they can better understand the Boomers and Gen Y, capitalize on their flexibility, self starter ability, and minimally required supervision. They will get it done with the proper measurements in place so get out of their way and let them do it!

Let’s take a look at what makes Gen Y unique?

Generation Y (1982-2005)

• Fortune magazine deemed Gen Y the highest maintenance but potentially highest performing generation in history
• View themselves as entitled
• Outspoken
• Have a high inability to handle criticism
• Technologically sophisticated
• Well positioned to address global issues and inclined to view the world as a vast resource
• Driven to make a difference
• Racially and ethnically diverse
• Demands a fast track career and thirsts for positive feedback
• Work and life balance

Gen Y Retention Ideas

• Encourage their values and show you care
• Will work with organizations that are socially responsible
• Flex time, telecommuting, career incentives that permit talent to advance quickly
• Support the technology they use

Gen Y Management Ideas

• They want the best and they think they deserve it
• They do not want to be seen as children
• Forget gender roles … they have
• Show how their work will contribute
• Mentoring for them will be critical to success
• Will need help with communication and problem solving skills
• Will need help understanding their strengths and limitations

Companies need to take advantage of Gen Y’s global and diverse view. They may need a bit more mentoring and assistance with things like communication, but they are bright and extremely innovative. I believe the up front investment will create employee loyalty, and the organization will see a huge payoff throughout the relationship.

As the face of our workforce changes and Baby Boomers choose to move on, Gen X and Gen Y is the current and upcoming talent pool for organizations. Develop a strategy and a management philosophy that embraces the value and skills of each person based on the individual first. Then develop supporting strategies to create and maintain a culture that unifies all skills and values. By doing so you will build stronger teams, and stronger teams means measurable and positive outcomes.