Generational challenges are part of a larger issue: the impact that declining birth rates and an aging workforce are having on the labor market.
Every organization is having challenges with finding high quality talent.
And having a workforce crossing different generations, with vastly different formative experiences, can create leadership challenges. But – it can also create a tremendous opportunity to build a team full of rich and diverse perspectives that gives you an edge over your competitors.
With a mix of Baby Boomers, Gen Xers, Millennials, and even some Gen Zers in the workforce, leaders need to become adept with managing different expectations, work styles, and communication preferences.
Let’s look at some of the challenges that come with managing intergenerational teams and how you can address them.
The Generational Mix: Who's in the Workforce?
For the most part, today’s workforce primarily consists of three generations: Baby Boomers, Gen Xers, and Millennials. Gen Z is beginning to enter the labor market, but their presence isn’t yet significant in most organizations.
Each of these groups grew up in very different eras that shaped different behaviors and expectations when it comes to the workplace.
Baby Boomers, typically born between 1946 and 1964, are nearing retirement age, but they still hold critical roles in many companies. Gen Xers, born between 1965 and 1980, make up a big portion of today's workforce, and they often hold managerial or senior-level positions. Millennials, born between 1981 and 1996, are the largest generation in the workforce today and are known for their tech-savviness and desire for work-life balance.
Different Eras, Different Expectations
Each generation brings a unique set of experiences and expectations to the workplace – shaped by the era in which they grew up.
For example, Baby Boomers tend to value loyalty, hard work, and a hierarchical structure, which reflects their experiences with more traditional institutions.
Gen Xers, on the other hand, are known for their independence – having grown up during a time of economic uncertainty that led them to value self-reliance and flexibility.
Millennials, the first generation to grow up with the internet and digital technology, expect immediate feedback and a more collaborative and flat organizational structure.
They value purpose-driven work and a healthy work-life balance, which can sometimes be at odds with older generations' expectations.
The requirement for feedback is exaggerated much more with Gen Z's - almost to the point where if they don't have a regular feedback mechanism, you'll see churn.
These differences in work styles and preferences can create friction in the workplace if you don't manage them effectively.
Let’s look at an example.
Bridging the Divide
An engineering firm I worked with is owned and run by Baby Boomers, but the managers are primarily Millennials.
The company values "above and beyond" as a core principle. To the Baby Boomer owners, this means the client comes first and you work as many hours as necessary to get the job done – reflecting a farm-kid work ethic.
The owner had read that the Millennial generation valued work-life balance. Knowing that some of his managers had young children at home, he questioned the relevance of this value during a core values review meeting (something we do regularly with our clients.)
His Millennial managers pushed back. They argued that "above and beyond" can still be achieved without sacrificing personal time and well-being.
“Do we want to work 70 hours a week? No! But above and beyond means we do what it takes. We're committed. Maybe it doesn't mean staying up to midnight to get it done, but it might mean we make an additional phone call or do additional work. We can be both balanced and be passionately customer focused.”
The company ultimately decided to keep the core value and to operationalize it by creating clear and tangible descriptions of what it looks like when someone is demonstrating “above and beyond.” This allowed them to stay away from general descriptors that could fall flat with some people.
Best practices for managing intergenerational teams
Here are some of the best practices we’ve discovered when it comes to managing intergenerational teams.
Develop a People Strategy
You need a people strategy. Great companies recognize that this isn’t an expense - it’s the most valuable investment any company owner will make. People are what brings a company to life.
If you're a smaller company, you probably can't afford a strategic HR person in-house.
But you absolutely should invest in an outside resource to provide you with direction, strategy, tools, and assessments to help you develop an approach to talent recruitment, hiring practices, training, and development.
Invest in Management Training
Managers are incredibly influential when it comes to shaping employee experience and engagement. Hire people who have the innate strengths and behavioral style to be effective people managers – good “doers” aren’t necessarily good managers!
Then equip them with the skills to understand and bridge generational differences. This includes training on communication styles, feedback preferences, and conflict resolution.
Set up a Business Operating System
Your business operating system provides a platform for clear expectations, measurement, and objective feedback – setting the stage for clarity and accountability.
The most adept managers are the ones who have the ability to individualize. (To learn more about this, read First, Break All the Rules – one of the best “managing people” books I ever read.)
Effective management isn’t a one size fits all approach. A business operating system gives you a platform from which you can individualize.
Develop Clear Core Values and Expectations
Make sure that your company's core values are clearly defined and that there is a shared understanding of what they mean across generations.
This can help align everyone around a common purpose and reduce misunderstandings.
Adapt Your Approach to Feedback
One of the most glaring generational differences in today’s workplace is the approach to giving and receiving feedback.
We’ve seen that both Baby Boomers and Gen Xers typically value autonomy and may not need frequent feedback to feel engaged or to perform well.
But Millennials and Gen Z have grown up with technology that provides instant feedback, and they often expect the same in their work environments.
Companies that fail to recognize and adapt to these differences may see higher turnover rates, especially among younger employees who feel undervalued or disconnected.
Create a Flexible Work Environment
Different generations have different needs and preferences.
Having a flexible orientation will help you recruit across generations – allowing you to reach the broadest swath of talent in the marketplace.
For example, a 70-year-old subject matter expert might be a great resource for your company but might not want to work 50 hours a week. Creating a part-time position could bring you incredible experience and huge value.
Offering remote work or flexible hours are other ways to help accommodate differences and improve employee satisfaction.
The “talent wars” aren’t going to end anytime soon.
As birth rates decline and the labor pool shrinks, the ability to effectively manage a multi-generational workforce is going to be critical for the ongoing health and growth of any organization.
It’s also an opportunity to become an “employment destination” - a differentiator that can help you exponentially outperform your competitors.
If you’d like some support implementing any of the ideas from this article, please reach out for a conversation – we’d love to help!
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