Generational Differences In The United States

Employee Motivation Based on Generational Differences in the United States

James A. Monroe

Averett University BSA 407 BBA 2-144

May 20, 2013

Table of Contents

Abstract …………………………………………………………..………………………...3
Introduction…………………………………………………………………………………4
Literature Review…………………………………………………………………………...7
Traditionalist/silent/veteran generation…………………………………………….………7
Baby boomers …………………………………………………………………….…….…10
Generation X……………………………………………………………………………….12
Millennials………………………………………………………………………....………15
Conclusion…………………………………………………………………………………18
References………………………………………………………………………………….19

Abstract
Currently in the United States, there four different generations working in the workforce side-by-side. These generations come from different backgrounds, thoughts, and ways of communicating, work ethics, and behavior. They also require different needs in the workplace. Organizations need managers and supervisors that are trained and capable of working with different generational groups in order to identify needs and motivational techniques.

Employee Motivation Based on Generational Differences in the United States In the United States, diversity has increased due to globalization in the workforce (Jenkins 2008). The talent pool is ever expanding as companies seek employees from not only within the United States, but around the globe in order to increase revenues (Jenkins 2008). Recent corporate scandals have left applicants somewhat suspicious of the workplace and they are now desirous of more than just a check every two weeks. Potential employees now want to know much more about organizations from political affiliations, to causes the organizations support (Jenkins 2008). One of the causes for that is the wake of events around the scandal associated with Bernie Madoff and his $17 million dollar fraudulent investment firm. Employees want job security and to know that the potential firm in consideration is stable and has family/work/life balance. Generational diversity is much more than just a multicultural issue. Diversity includes embracing many different types of people on many different levels (Forbes 2011). It represents race, creed, color, religion, ideas, thoughts and generations. Different generations have different aspirations, ethics, and values that could lead to conflicts in the workforce. Understanding these differences and applying solid management techniques is a major step towards improving loyalty, motivation, and commitment (Jackson; Jenkins 2008). Workforce diversity and conflicts can have a devastating effect on profitability, competitiveness, growth, and long term survival of a company if not well managed. Companies should focus on the continuance of recruiting, motivating and retaining the talents from multiple generations (Jenkins 2008).
In 1999, the Society for Human Resource Management along with a compilation from other several sources published the following workforce percentages broken down by generation (Figure 1).
Figure 1.
Percentage of Workforce by Generation

Modified from data Society for Human Resource Management, 2009 Companies should understand that generational differences are essential to the enhancement and cooperation between generations. Each generation in the workforce has different needs, thought processes, ethics, and values (Jenkins, 2008). Organizations that are successful, have found ways to effectively bridge the generational gap in workforce differences to ensure that all generational needs are considered and work values are met (Hankin, 2005; Marshall, 2004). Currently there are four generations in the United States today, but many scholars propose the existence of a fifth generation called Generation 2020 (Jones & Fox, 2009; Mask 2007; Weinstein). The four generations currently working together in the workforce are Traditionalist, Baby Boomers, Generation X and Generation Y. The dates and other associated names are listed below in Table 1 (Generation Timeline). Although the date ranges are different for other researchers, I decided to focus on these dates as they are the most common found throughout the references researched.
Table 1. Generation Timeline
Traditionalists
Baby Boomers
Generation
X
Millennials
1922-1945
1946-1964
1965-1980
1981-2000
Veterans
Silent
Traditionals
Baby Boomers
Generation X
Gen X
Gen Xers

Gen Y
Nexters

There were several varying characteristics across the generations being compared. Understanding the differences between the generations is fundamental in building a successful multigenerational workplace. Each generation has specific experiences that mold their personal preferences, expectations, beliefs, and work styles. These socioeconomic experiences impact both work and leadership styles and are detailed below in Table 2 Socioeconomic Generational Differences in the Workplace as defined in a study done by The United Nations, (Carlson & Deloitte & Touche). To further understand each generation in detail, I will discuss the characteristics of each generation. The groups of facts based on each generation is influenced by majority trends, but are not distinctive characteristics identifiable in each individual of a particular generation.
Table 2. Socioeconomic Generational Differences in the Workplace

Traditionalists
Baby Boomers
Generation X
Generation Y/Z
Characteristics
Team Players
Indirect Communicators
Loyal to Organization
Respects Authority
Dedication & Sacrifice
Duty Before Pleasure
Obedience
Respond well to Directive
Leadership
Adherence to Rules
Big Picture
Systems In Place
Fresh Perspective
Do Not Respect Titles Disapproves Absolutes
Disapproves Structure Optimistic
Team-Oriented
Uncomfortable with Conflict
Personal Growth Led
Sensitive to Feedback
Health & Wellness Personal Gratification
Positive Attitude
Impatient
Goal-Oriented
Multi-Tasking
Global Thinker
Self-Reliant
Flexible Hours
Informal Work Environment
Just A Job
Technology Literate
Informal
Balance
Give Assignments and Freedom To Complete Them
Question Authority
Confident
Social
Moral
Street Smart
Diverse
Collective Action
Heroic Spirit
Tenacity
Technological Savvy
Lack of Skills for Dealing with Difficult People
Needs Flexibility
Workplace Attire

Formal
Business Casual
(high end)
Business Casual
(low end)
Whatever Feels Comfortable
Work Environment
Office Only Long hours

Long Hours –
Office Only
Office, Home, Desires Flexible Schedule
Office, Home, Desires Flexible Schedule
Motivators
Self-Worth
Salary
Security
Maintain Personal Life
Mentoring
Not Necessary
Does not handle negative feedback well
Not necessary to receive feedback
Constant feedback needed
Retention
Loyalty
Salary
Security/Salary
Personal Relationship
Client
Orientation
Personal Contact
Telephone
E-mail
Email/IM/Text
Technology
Dictates documents, e-mail only in the office, use of library instead of web, limited phone use
Documents
prepared by the
Associates, e-mail primarily in the office, web use to
“google”
Creates own documents, uses mobile and laptop, uses web to research, review etc., e-mail/mobile
24/7
Creates own documents, creates databases, uses web to research and network, use of email/IM/text 24/7
Career Goals
Build a legacy, a life-time career with one company
Build a perfect career, excel
Build a transferable career, variety of skills and experiences Build several parallel careers, have a several jobs simultaneously Overcoming Generational Gap in the Workplace
Literature Review
Traditionalists/Silent Generation/Veterans
The population of the Traditionalist generation is now between the ages of sixty-eight and ninety-one (Hammill, 2005; Macon & Artley, 2009; Meister, 2009). The 2009 ethnic composition of Traditionalist in the workforce is illustrated in Figure 3.

Figure 1.

Modified from Pew Research Center. Tabulations from the March 2009 Current Population
Survey for the civilian non-institutional population from the Integrated Public Use Microdata
Series (IPUMS).

Commonly referred to as the Veteran or Silent Generation, they are described as hardworking, loyal, submissive, and technology challenged. About 95% of Traditionalists are retired from the workforce and those who remain in the workforce have surpassed retirement age and many work reduced hours (Kane, 2013). They were brought up in a more challenging time with life experiences that included being too young to join the service during World War I. The economic and political uncertainty that they experienced led them to be hard working, financially conservative, and cautious (Carson & Deloitte & Touche, nd). Traditionalists value traditional morals, safety and security as well as conformity, commitment and consistency. They prefer educational institutions of their generation referred to as brick and mortar institutions and traditional lecture formats as compared to web-based education online (Kane, 2013).
Traditionalists are loyal to their country and employer where most have worked for the same employer their entire life. They are also concerned with civic interests and very active in community affairs. Traditionalists have been described as formal in their mannerisms and a top down chain of command, needing respect, and prefers making decisions based on what worked in the past (Kersten, 2002). The National Oceanographic and Atmospheric Association Office of Diversity (2006) characterized members of this generation as the private, silent generation, who believe in paying their dues, for whom their word is their bond, who prefer formality, have a great deal of respect for authority, like social order and who love their things and tend to hoard stuff. They have also been described as having a high regard for developing communication skills, and are known as the most affluent elderly population in the U.S., due to their tendency to save and conserve (Jenkins, 2008). In the workplace, they are presumed to show consistency and see out technological advancements, be past-oriented, display command-and-control leadership reminiscent of military operations, and prefer hierarchical organizational structures (Tolbize, 2008).
Traditionalists not only survived the Great Depression of the 1930’s, but they were also instrumental in shaping the United States as an economic and military power. Patriotism, teamwork, “doing more with less” and a task-orientation very much define this generation. Employees of the Traditional Generation are considered to be the historians of the organization and keepers of the organization’s past and founding goals and beliefs. Most organizations have as their president or member of their board of directors someone from the Traditional Generation, who sets the tone of the culture and is ultimately responsible for the strategic direction of the business (Valueoptions.com). Most of the first true innovators were birthed in the Traditional Generation. They are responsible for developing today’s space program, creating vaccines for many diseases including polio, tuberculosis, tetanus and whooping cough and laying the foundation for today’s technological environment. Traditionalists were responsible for moving families from farms and cities to suburbia life or also known as the suburbs. This generation was also the first to pursue equality through the Civil Rights Movement (Valueoptions.com).
Motivating employees belonging to the traditionalist generation can be a difficult task for managers in the business world. Traditionalists value recognition and praise and managers should seek opportunities to publicly recognize the contributions of employees in this generation by writing articles concerning them and their achievements in organizational newsletters (Leibold & Voelpel, 2006). Traditionalists value incentives geared towards the future such as stock options. Incentives that are deemed to be of importance to their future generations are deemed essential by veterans (Hammill, 2005).
Baby Boomers
Baby Boomers, or the Boomers are those born between 1946 and 1964 and will be between the ages of 49 and 67 in 2013. This generation is known as the Boomers because of the extra seventeen million babies born during that period relative to previous census figures (O’Bannon, 2001). The 2009 ethnic composition of Baby Boomers in the workforce is illustrated in Figure 2.

Figure 2.

Modified from Pew Research Center. Tabulations from the March 2009 Current Population
Survey for the civilian non-institutional population from the Integrated Public Use Microdata
Series (IPUMS).

Boomers witnessed and partook in the political and social turmoil of their time: the Vietnam War, the civil rights riots, the Kennedy and King assassinations, Watergate and the sexual revolution as well as Woodstock and the freewheeling 60’s (Adams, 2000). Although they experienced all of those events, The Boomers were brought up in an abundant, healthy post-war economy growing into an egocentric generation (Carlson & Deloitte & Touche). They are well established in their careers and often hold positions of power and authority. Today, Baby Boomers make up an overwhelming majority of the highest paid Chief Executive Officers. According to a 2012 in Forbes magazine, 464 out of 500 of the highest paid CEOs are boomers, this could be the reason that most choose to work beyond retirement age. This number can be somewhat misleading as many of the CEOs of different generations choose to pay themselves low salaries in order to increase the company 's profits as much as possible (Fortune, 2011). Figure 3. is a graphical illustration of highest paid CEOs by generation.

Figure 3.

Modified from data Forbes, 2012.

Baby Boomers believe that work is the key to achieving organizational goals (Hammill, 2005; Zemke, Raines & Filipczak, 2000).
Generation X
The Generation X population is now between the ages of thirty-six and forty-eight (Hammill, 2005; Macon & Artley, 2009; Meister, 2009). The 2009 ethnic composition of Generation X in the workforce is illustrated in Figure 4. To motivate baby boomers, organizations may have the need to grant them more free time from their work, as such initiative are highly valued (Zemke et al., 2000). Managers should provide more activities as well as responsibility to them. Training directed towards career development should also be offered to aid baby boomers to be in a position to realize their potential hence self- actualization. Recognition, including monetary awards motivates baby boomers. Appreciating the role they play in an organization is essential in retaining and motivating baby boomers (Gravett & Throckmorton, 2007)

Figure 4.

Modified from Pew Research Center . Tabulations from the March 2009 Current Population Survey for the civilian non-institutional population from the Integrated Public Use Microdata Series (IPUMS).

If it weren 't for immigrants, Generation X would have seen a significant drop in their overall generation (Klie, 2012). In the United States through the mid-1960s and 1970s, there was a significant drop in the number of births, but the steady flow of immigrants helped increase the numbers of Generation X, which made up a lot of difference (Klie, 2012). Generation X values teamwork and multicultural settings enabled by their work ethic that all individuals are the same or equal.
Unlike previous generations, members of Generation X work to live rather than live to work. They appreciate fun in the workplace and espouse a work hard/play hard mentality. This Value Work/Life Balance is derived from observing their parents (Boomers), who defined themselves by their professional accomplishments (Hammill, 2005; Zemke, Raines & Filipczak, 2000), which often left Gen Xers at home alone. They are referred to as latch key children (Mask, 2007), which led to traits of independence, resilience and adaptability. Generation X typically has strong feelings tapered by an attitude of "I don 't need someone looking over my shoulder.” They work hard but are efficient so that they can spend time with their own interests and families. Generation X grew up with parents working, high parental divorce rates, and the massive job layoffs of the 1980s. This caused Generation X to become individualistic rather than team players (Society for Human Resource Management, 2010). Generation X has redefined work loyalty. They are no longer loyal to the companies and organizations employing them like their parents and grandparents. This generation is loyal and committed to the tasks they perform, to the work group they are assigned and the boss they are working for. This generation values employability and they do not highly regard the career ladder. Instead, they value the career lattice, which allows them to have the capability of moving laterally, stopping at some point and starting all over again (Marshall 2004). When it comes to investments, Generation X is more willing to take a chance with their own investments and developments rather than with their organizations or other institutions for long-term security, again this is due to their independence (Laurel, 2005). Their experience with corporate downsizing has created a mindset that corporate relationships are unreliable and that corporations only care about revenues. In turn, this attitude has stereotyped Generation X as disloyal (Fiterman, 2003). Generation X is adaptable, not intimidated by authority, and has an ability to multitask. However they are impatient people with poor social skills who are looking for flexibility and variety to keep them challenged (Laurel, 2005). Generation X change jobs frequently in order to increase marketability (Cooper, 1998); they also often have conflicts with management and organizations that operate according to a rigid hierarchy (Lieber, 2010).
Additional events that have shaped this generation include MTV, personal computers, the AIDS crisis, and massive corporate downsizing (Lieber, 2010). All of these events influence Gen-X’s individualistic attitudes in some form or another. Generation X prefers emails over long meeting and letters, but wants access to plenty of information (Laurel, 2005).
To motivate Generation X employees, management should ensure that fun can be had while at work because this generation seeks enjoyable task. Management should also ensure work is flexible enough to enable these employees to manage their personal priorities such as family and social events (Laurel, 2005). This generation also requires frequent communication with management to better understand the reasoning behind decisions and the projects these employees are meant to undertake. Teamwork somewhat “fuels” generation X’s work fire and improves motivation. Generation X is comprised of individuals seeking independence and autonomy. To motivate them, the management of an organization should view independence as highly valued and a motivating factor. Providing flexible work schedules that accommodate the personal needs of generation X is a motivating factor (Jenkins, 2008; Marston, 2007).
Millennials
Millennials are now between the ages of thirteen and thirty-two (Hammill, 2005; Macon & Artley, 2009; Meister, 2009). The 2009 ethnic composition of the Millennial generation in the workforce is illustrated in Figure 4. Millennials are the most ethnically diverse generation ever (U.S. Census Bureau, 2004). Hispanic and Asian ethnic groups are growing at a rate higher than any other ethnic group; it is anticipated that by 2050 greater than 50 percent of the total population of the United States will be Hispanic or Asian (U.S. Census Bureau, 2004). This is reflected in school attendance, where approximately 20 percent of students have one foreign-born parent. Millennials openly accept diverse backgrounds and beliefs, which creates a community of tolerance and inclusion (U.S. Census Bureau (2004).

Figure 4.

Modified from Pew Research Center. Tabulations from the March 2009 Current Population Survey for the civilian non-institutional population from the Integrated Public Use Microdata Series (IPUMS).

Millennials have been nurtured and pampered by their baby boomers parents who provided for their every emotional, educational and physical need and want. Millennials were encouraged to set goals and work hard to achieve the life style that they want. This makes them self-confident, realistic, and social.
Work for the millennial generation is fun because if a task is boring or not enjoyable, they tend to quit as compared to other generations (Jenkins). The Millennial Generation is team-oriented, characterized by high social levels. Millennials work better in groups rather than individually and enjoy multitasking. They are hard-working despite having fun and they are the best at multitasking. This is attributed to the various activities that learners are expected to carry out simultaneously in schools today (Hankin, 2005). The social and political media bombardment of information to this generation has increased their global orientation. The media and technology are becoming so powerful that communication between countries is becoming a much simpler task (Alch, 2000).
Millennials appreciate structure in the workplace and they highly respect and acknowledge titles and positions. Employees in this category form close relationships with their bosses unlike generation X that demands independence and little supervision. Technology is the main method of communication used by the Millennial generation and education is seen as a means of obtaining the ends. The Millennial Generation works and earns money to spend unlike generation X that prefers to save. Due to generational differences, Generation X and the Millennial Generation do not usually blend easily (Joiner, Reynard & Ando, 1994). To motivate this group, flexibility in the work schedule should be provided as being shortly late does not amount to irresponsibility. Technology is another motivating factor for motivating millennial employees. Employees in this category are inclined to use technology compared to manual work. Also providing technology that would enable them carry out their work from home for some days may also be a motivating factor (Hankin, 2005).
This generation gets bored easily with repetitive tasks, they are energetic and adventurous. Employees in this generation may leave a high paying job just for the sake of new opportunistic challenge. Change and challenge are essential motivators for the millennial generation. Training is also an essential motivating factor for this generation (Joiner, Reynard & Ando, 1994).
Organizations should have in place facilities for training so as to retain and motivate this generation as Millennials understand the importance of training and building skills, abilities, and knowledge in order to establish a career path (Mask, 2007). They are the most education-minded generation in history. Millennials fell as though a higher education will lead them to a better professional situation (Joiner, Reynard & Ando, 1994).

Conclusion
Learning and appreciating the different generations in the workforce is essential not only to human resource manager but also to the whole organization. Most organizations that have four generations of employees working for them have found the task of employee motivation challenging, given the difference in needs, aspirations, thinking, work ethics and values. To effectively manage and motivate the four generations in workforce and close the gap between them, it is vital for an organization to leverage the competencies employees offer in order to add value and meaningfulness to an employees work environment. Managers who utilize the talents and strengths of employee’s provide challenging opportunities and experience increased retention and engagement of workers. For an organization to be successful, it is essential that an organization initiates training programs for all employees based on generational gaps and the needs for each generation.

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