Generational Differences:

____________________________________ • The defining events, personal tendencies and work styles of the four generations in today’s workplace Generational Differences:

Four Generations at a Glance • Veterans  Born 1922 - 1943 • Baby Boomers  Born 1943 - 1960 • Generation X  Born 1960 - 1980 • Generation Y  Born 1980 - 2000

Four Generations in the Workplace Source: Bureau of Labor Statistics Current Population Survey, 2004

Generation Quiz • How well do you know the generations? • Circle the answer that you think is correct. • We will discuss the answers after the presentation.

Veterans (Age 63-84): Defining Events • Great Depression • World War II • Pearl Harbor • D-Day • Rationing • Atomic Bomb • FDR Administration • New Deal • Radio

Veterans (Age 63-84): Tendencies • Hard working • Family focused • Churchgoers • Respectful • Patriotic • Believe in duty before pleasure • Adhere to rules • Have patience • Believe in dedication and sacrifice

Veterans (Age 63-84): Work Style • Team players • Strong commitment to work • See work as an obligation • Dependable • Hard workers

Boomers (Age 46-63): Defining Events • Cold War • Civil Rights Movement • Space Program • Assassinations: JFK & RFK, MLK • Vietnam War • Watergate • Sexual Revolution • Women’s Liberation

Boomers (Age 46-63): Tendencies • Educated • Optimistic • Believe debt is OK • Personal growth-oriented (read self-help books) • Question authority • Independent • Cause-oriented • Work hard • Value youthfulness, health and wellness

Boomers (Age 46-63): Work Style • Service-oriented • Driven • Good team players • Willing to go extra mile • Want to please • Good at relationships • Uncomfortable with conflict • Not budget minded

Gen X (Age 26-46): Defining Events • Challenger explosion • Fall of Berlin Wall • Iran Hostage Crisis • Collapse of Communism • First Gulf War • AIDS • High divorce rate • Latch-key kids • Corporate downsizings • Personal computers • Video games

Gen X (Age 26-46): Tendencies • Live for today • Skeptical/cynical • Have a global perspective/value diversity • Distrust corporations • Entrepreneurial • Strong belief in work/life balance • Techno-savvy – Internet becomes standard • Enjoy/need a challenge

Gen X (Age 26-46): Work Style • Want to know why • Know there are no guarantees • See multiple perspectives • Results-oriented • Independent • Want flexibility • Multi-taskers • Creative

Gen Y (Age 26 & under): Defining Events • Oklahoma Bombing • School violence (Columbine) • Clinton/Lewinsky • 9/11 • Internet always available • Overscheduled • Parents have high divorce rate

Gen Y (Age 26 & under): Defining Events (cont’d.) • Two working parents • Cell phones standard • Exposure to sex, violence at early age • Obesity epidemic • Diabetes epidemic • “Ritalin Generation”

Gen Y (Age 26 & under): Tendencies • Patriotic • Introspective • Skeptical • Masters of technology • Media-vores • Open to diverse perspectives • Acceptance of multi-culturalism

Gen Y (Age 26 & under): Tendencies (cont’d.) • Innovative • Dependent • Self-confident • Socially conscious • Family is priority • Sociable/inclusive • Image driven • Overly medicated

Gen Y (Age 26 & under): Work Style • Looking to make a difference • Cause-oriented • Focus on the present (future uncertain) • Tend to multi-task • Fast-thinking skills(honed on Playstation/Gameboy) • Expect immediate gratification • Value other’s perspectives • Ask why

Gen Y (Age 26 & under): Work Style (cont’d.) • Thirst for knowledge • Networkers • Team players • Strive for work/life balance • Hard workers/multitasking ability • Tenacious • Optimistic • Need for supervision and structure • Less developed coping skills

The Big Picture • Global Trends • Bringing it Home  Immigration • Thought Questions • Educated Labor Challenges • New Workforce Attitudes • Generations and Gender in the Workforce • Taking Action • Thought Questions

The Big Picture: Global Demographic Trends In 2020 the World will be: • Older • By 2050, the global 65+ age cohort will triple in size to about 1.5 billion, or 16% of total. • Far less Caucasian • Far more concentrated in urban areas • By 2015, for the first time in human history, a majority of the world’s population will live in cities. Source: “Long-term global demographic trends: reshaping the geopolitical landscape.” Central Intelligence Agency (CIA), 2001. http://www.eldis.org/static/DOC9390.htm

The Big Picture: Global Demographic Trends 2020 Demographics continued: • While developed nations will get older, developing nations will experience significant youth bulges. Almost all population growth will occur in developing nations that, until now, occupied places on fringes of the global economy. • Of the 1.5 billion world population gain by 2020, most will be added to states in Asia and Africa. • Europe and Russia will shrink dramatically in relative terms. Source: “Long-term global demographic trends: reshaping the geopolitical landscape.” Central Intelligence Agency (CIA), 2001. http://www.eldis.org/static/DOC9390.htm

Bringing it Home: Immigration • Expect immigrants to play increasingly crucial roles in filling less-educated labor needs in the U.S. • Natural population growth is unlikely to provide sufficient workers to sustain the labor force growth needed to maintain overall economic growth. • The native born population as a whole is growing older and successive generations of native-born workers are better educated. This presents a serious challenge to those sectors of the economy that employ workers with less education. • On average, foreign-born workers tend to be younger than their native-born counterparts and a larger proportion have relatively little education. Source: “Economic Growth and Immigration: Bridging the Demographic Divide.” Immigration Policy Center, a division of The American Immigration Law Foundation. November, 2005. www.immigrationpolicy.org

Thought Questions: • How will the global demographic changes affect my industry? • Where might these demographic changes represent a market opportunity? Will they impact the global aspect of our business? • Can my company take advantage of these demographic changes to fill labor needs at a lower cost? • What role do/will immigrants play in my company and industry?

Educated Labor Challenges • But I heard that the Bureau of Labor Statistics has revised its labor supply and demand projections and now expects there to be a general balance between supply and demand for labor. • TRUE; however, • The balance mentioned above does not exist within industries requiring highly-skilled workers. • Competition for well-educated, high-skilled workers will expand as talent of this caliber becomes more highly sought after. Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

The New Reality • There really are fewer people available in the workforce compared to when Boomers moved through the workforce. • Today employees have an array of career options that Boomers generally did not have. • Bottom Line  It’s a Seller’s Market! Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

The New Reality • Women will increase their role in the workforce. • Labor participation rate for women projected to increase from 50% in 1980 to 63% in 2010; while rate for men projected to decrease from 80% in 1980 to 73% in 2010 • Women are ones most frequently seeking flexible work arrangements, but men want flexibility as well • This is not just a women’s issue • Gen X men think fathers can parent as well as mothers and should be equally involved in kid’s lives Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

Attitudes/Expectations of Professionals Baby Boomers: • Regard work as an anchor in their often turbulent lives • Value being true to oneself, feeling in control, making enough money to ensure comfort, maintaining health and vitality, and doing work that provides personal satisfaction • As they approach retirement, they are looking for more meaning in their work and ways to ‘give back’ to others • ‘Sandwich’ generation  juggling responsibilities for children, grandchildren, aging parents, and preparation for retirement Source: “Long-term global demographic trends: reshaping the geopolitical landscape.” Central Intelligence Agency (CIA), 2001. http://www.eldis.org/static/DOC9390.htm

Attitudes/Expectations of Professionals Generation X: • Individualistic, assertive, independent, shape their own work environment, take responsibility for development of skills/employability • Ambitious, want advancement and good salaries, but follow their hearts and quality of life concerns  Enjoy work but consider work/life balance important • View each job as a chance to learn; less hesitant to change jobs/companies or to become entrepreneurs • Likely to seek new career opportunities and ventures as they grow older Source: “Long-term global demographic trends: reshaping the geopolitical landscape.” Central Intelligence Agency (CIA), 2001. http://www.eldis.org/static/DOC9390.htm

Attitudes/Expectations of Professionals Generation Y: • Adaptable and flexible, but less homogenous and more conservative  Assume a ‘free agent’ mindset and are realistic about their expectations • Listen, respond, wait and see, and build trust one day at a time • More relaxed about diversity and far more prepared to participate in teamwork • Internet generation, dependent on technology, perhaps at the expense of basic reading, writing, and math skills • No secrets; more willing to share pay/workplace info Source: “Long-term global demographic trends: reshaping the geopolitical landscape.” Central Intelligence Agency (CIA), 2001. http://www.eldis.org/static/DOC9390.htm

Attitudes of Gen Y • Gen Y’s are ambitious, energetic, hungry for stimuli – and possess the overwhelming desire to stay put in one company for as long as possible. • Striking contrast to late ’90s when young people moved from company to company in search of new skills, contacts and experiences • Majority expect to hold more jobs over course of career than they would prefer • Would like to be loyal if employer was loyal to them, but know business is no longer set up that way • Noticeable gap exists between what skills students and employers believe are needed to succeed at work • Students gave lowest marks to mathematics, speaking foreign language, public speaking, selling things or ideas, writing and editing…skills needed in increasingly global business world • Students ranked highly habits such as working patiently/diligently, working independently, multi-tasking, and developing personal connections. Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

New Workforce Attitudes • Evolution of the employee to a ‘consumer of the work experience’ • Will want customized work arrangements • Accelerated acceptance of family as a top priority among employees of both genders and all generations after September 11th • Elder care a growing issue Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

Generation and Gender in the Workplace • Younger workers are more likely to be family-centric or ‘dual-centric’ (w/equal priorities on career/family) and less work-centric than parents’ generation • College-educated men wanting jobs w/more responsibilities: • 1992  66% • 2002  50% • College-educated women wanting jobs w/more responsibilities: • 1992  56% • 2002  35% Source: “Generations and Gender in the Workplace.” Families at Work Institute. http://familiesandwork.org/publications/genandgender.html

Generation and Gender in the Workplace • Though focus may have shifted, study refutes often-held assumption that Gen Y / Gen X employees are ‘slackers’  employees in 2002 worked just as hard as their age counterparts in 1977 • Gen Y in 2002  no significant difference from age counterparts from 1977 with respect to paid/unpaid hours per week • 1977  38.5% • 2002  38.5% • Gen X in 2002  actually worked more than age counterparts from 1977 with respect to average paid/unpaid hours per week • 1977  42.9% • 2002  45.6% Source: “Generations and Gender in the Workplace.” Families at Work Institute. http://familiesandwork.org/publications/genandgender.html

Taking Action • Ensure that training/on-the-job experience increase transferable and marketable skills • Provide rationale for work you are asking employees to do and explain value added • Provide task variety • Build teams with great care • Provide work environment that rewards extra effort and excellence • Pay attention to blurring of work, life and family issues Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

Thought Questions • How will the increasing scarcity of highly skilled and educated workers affect my industry and organization over the next decade? • Do my organization’s policies and work structure support a culture attractive to Gen X and Gen Y? • What inter-generational issues might exist in my organization? • How can technology (blackberries, laptops, etc.) be used to better support a flexible work environment? • Do we make efforts to market the work/life balance our organization encourages to men as well as to women? • How can my organization take advantage of global demographic trends to fill educated labor needs? Source: “Work Place Flexibility – The Next Frontier.” Billy E. Johnson. Deloitte Services LP. May 11, 2005.

So, how well do you know your generations?

Generational Differences: