e-Tips

As I speak to many groups, firm managements, owners, partners and consultants in diverse knowledge/professional services industries, not surprisingly a number of newer questions have arisen repeatedly in the last 6-9 months related to the current economic crisis and its impact on generational attitudes. [Please see the end of this article for definition of generational cohorts.*] Following are some of those questions and my thoughts based on generational patterns and studies of behavioral style.

Q. Now that the quick-to-change-jobs Gen Yers are staying put for fear of being out of work (a thought or fear that previously never crossed their minds), will they adopt the more traditional work attitudes of the older generations? If so, is this a permanent change?

A. Gen Y/Millennials are very practical (and can be cynical) as well as idealistic. They have always asked first “what’s in it for me?” Secondly, despite their easy mobility, they want stability and security. So when they feel insecure, they tend to stay and work to preserve their positions until the odds are in their favor again. Many in this generation have been protected by their parents and other adults such as coaches, unlike Generation Xers, many of whom, especially the ones over 40, had to fend for themselves from pre-adult days and in past economic downturns.

Asking them, the Gen Yers say their objectives and values remain the same. When the economy turns up, they will revert to their prior attitudes, but tempered by experience and with their loyalty to employers more severely challenged. As pragmatists, they will accept reality, but their formative influences are still paramount attitudinal indicators.

Q. How will Gen Xers respond to this environment?
What must firm managements do to bridge the leadership gap?

A. As always, Gen Xers will do what they have to and try to minimize for themselves the personal/family sacrifices the Boomers made previously.

Firms will need to increase training and coaching in order to prepare these inherently autonomously- behaving Gen Xers for organization-wide visions of cohesiveness and sustainability. Their smaller numbers than the generation before or after them give the Xers a potential advantage in work opportunities, but they need to want to take more responsibility to keep sufficiently ahead of the more ambitious Gen Y/ Millennials.

Gen Xers need to be more empathetic to the Boomers in order to get them to “let go” and transfer knowledge and clients more readily and harmoniously. This is truer than ever, as often compensation systems provide the opposite incentive and encourage staying as long as possible and hoarding work. Shrinking of funds may be shifting their retirement horizons.

The economic pressures have also led to Gen X hoarding work from Gen Y in order to retain their jobs and compensation.

Q. How is/will Baby Boomers react and behave in the current environment in which they are experiencing large financial losses after expecting a comfortable retirement with options about how to spend their time and money?

A. Not surprisingly, given the sharp reduction in retirement funds in Boomers’ portfolios, those who had wanted to continue working beyond the traditional retirement age anyway are now even more desirous of staying in the workplace. Many of those who planned to retire from their current positions, if not stop working entirely, are having second thoughts on the timing.

To employers, this is good news/bad news. First the good: there is an opportunity to retain knowledge, skills, mentors, and relationships not yet transferred to the next generation. The bad news is equally apparent: Boomers’ reluctance to exit causes a bottleneck in promotion opportunities and disruption of the normal transitioning expectations and flow. It leaves management and individuals with a more widespread need to deal with inter-generational tensions and tug-a-war.

Still today most firm leaders and managers are Boomers and are caught in the bind of doing whatever is necessary to keep the enterprise profitable while wanting to treat people who have contributed for many years fairly. The results often have been unfortunate and bad for overall morale.

So how must firm managements respond?

Times of crisis bring opportunities for constructive change that can jettison outmoded business models in favor of new ones better suited to client – and people-focused organizational realities. Purely short term thinking will be detrimental in the long run. Invite all generations into the conversation. Listen and take the best combination of short – and long-term ideas. These times require courage, innovation and a positive attitude toward change that is inclusive of diversity.

Please continue to send your thoughts, comments and stories my way.

Phyllis

© Phyllis Weiss Haserot, 2010. All rights reserved. 

* A reader asked that I include the generational chronology for easy reference, so here it is. Generations are defined by the similar formative influences – social, cultural, political, economic – that existed as the individuals of particular birth cohorts were growing up. Given that premise, the age breakdowns for each of the four generations currently in the workplace are approximately:

Traditionalists: born 1925-1942
Baby Boomers born 1943-1962
Generation X born 1963-1978
Generation Y/Millennials born 1979-1998 (under age 30 today)

For coaching, training and special programs on inter-generational relations and maximizing the potential of young professionals, call Phyllis for an exploratory talk or complimentary coaching session at 212-593-1549. We also provide *Next Generation, Next Destination* succession and transitioning planning programs and services for baby boomer senior professionals and their firms. See our blog: www.nextgeneration-nextdestination.com.