Coming of Age in Corporate America

Challenges posed by a multigenerational workforce

It’s another busy Monday at the office. As you click “send” on your 23rd email of the day, you hear footsteps approaching. It’s your boss. The management team, she says, is facing competitive pressures and wants you to take on additional responsibilities. Unfortunately, money is tight and the company can’t offer you extra compensation or incentives. You mentally review your already heavy workload, knowing the strain new duties would create. Do you accept?

Many would. According to the 2008 Randstad World of Work survey, 68 percent of workers believe now is “a good time to take on extra work.” Up from 63 percent last year, the finding reflects an economy where grim job markets and fear of layoffs are prompting people to do more with less.

Yet in a corporate world where 60-year-olds work alongside newly minted college grads, which employees do companies count on in a pinch? Three generations - Baby Boomer, Generation X and Generation Y (also known as “Millennials”) - now share most of the office space, but each brings its own expectations and values to the table. To understand how these differences play out, we posed the above scenario to more than two dozen workers of various ages. What is an employer’s responsibility to employees during tough times? Is it acceptable for the company to ask for more effort without additional incentives?

While generational stereotypes suggest older employees might tough it out for the good of the company and younger job-hoppers might head for greener pastures, the picture isn’t quite so simple. For every age group, the prospect of extra work with no compensation raises complex issues of trust, loyalty and corporate culture. More fundamentally, it illustrates the challenges posed by a multigenerational workforce.

Meet Your Co-Workers
While there are various definitions and levels of consensus on what comprises generational groups, the span of a generation covers the time period between when a population is born and when it begins to procreate on a large scale. According to demographer Kenneth Gronbach, author of “The Age Curve: How to Profit from the Coming Demographic Storm,” there are an estimated 120 million-140 million people aged 20-60 in the American labor market. His classification, which is consistent with a number of traditional definitions, states that employees fall into one of three generations. Some generational cross sections also include a fourth group, an older traditionalist/silent/mature generation born before 1945, but this story focuses on the three generations that are more predominate in office cultures:

The Baby Boomers:  Born between 1945 and 1964, the Boomers are 44-63 years old. A huge generation of 78 million, they have had to compete for jobs and pay their dues. Many now lead their organizations, while others got burned through layoffs or corporate scandals. Still roughly half of the workforce, Boomers are retiring at a rate of one every eight seconds.

Generation X: Born between 1965 and 1984, Gen Xers top out at 69 million and are 24-43 years old. Eleven percent smaller than their predecessors, they’re in high demand as Boomers retire. As such, they’ve had the power to push for things like casual dress and work-life balance. Some brand them as slackers; others call them revolutionaries. Either way, they’re also the first generation in U.S. history to earn less than their parents.

Generation Y: Born 1985 and later, Gen Yers are expected to round out at 100 million by 2010, surpassing even the Boomers and overwhelming the entry-level job market. Raised on computers, cell phones and MySpace, they’re the workplace’s tech gurus. They’re taught to value education have little patience for busy-work and, generally, they don’t presume to have to pay their dues like many co-workers, expecting to be put on important projects right away. They may also be more up-front about their needs than older bosses find appropriate. Yet because they have to compete for positions, they often make motivated employees.

Agents of Change
Employee responses to the additional-work scenario reflect the context in which their generation entered the workforce. Moreover, they also show how expectations and values have adapted to the realities of corporate life.

Baby Boomers: Once Burned, Twice Shy
When Boomers entered the workforce, the company line was, “Stick with us and you’ll be rewarded with money, recognition and eventually a carefree retirement.” Then they found out things weren’t so simple.

“There are no 40-year jobs,” says Penelope Trunk, author of “The Brazen Careerist: The New Rules for Success.” “Companies are not loyal to employees the way they used to be.” Consequently, many Boomers who might have taken on extra responsibilities without a second thought in their younger days have had to rethink their loyalty.

“In my 20s, I felt that whatever the employer asked, you did, and they would value you, keep you and ultimately show their appreciation in the future,” says 47-year-old Mark Roberts, a marketer who has since taken on additional duties for several employers. But some managers seemingly fail to make the same sacrifices they asked of employees. “Times are lean? Need 120 percent? Don’t buy the Porsche 911 and park it in front of the building,” says Roberts. “I can’t hear your requests for more work over your actions.”

Boomer Joe Klimavich underwent a similar change of heart after living through several corporate mergers. “Before these transitions, I had been an enthusiastic, loyal employee who would have done most anything for my company,” says the communications specialist. His wife, also a boomer, was equally loyal to her company. Yet even though top executives profited from the mergers, says Klimavich, “neither my wife nor I has ever attained the same level of compensation in the 15 years since.”

“Older people are just tired about being promised the dream, and then the dream went away,” says executive coach Karen Berg, author of “Loud and Clear: 5 Steps to Say What You Mean and Get What You Want.”

“I realized that I could save my employer a million dollars and still not get recognized for it,” says Boomer Kevin Harville, who is now self-employed. Like many of his peers, he knows workers who put faith in their employer and saw their retirements disappear in implosions like MCI/WorldCom.

“My reaction would be kept to myself and it would not be favorable toward the company, as I am now being exploited, essentially,” says Boomer Gary Clarke, a technology consultant. He’d take on the additional work - and start his job search.

Other Boomers appear to have more resolute faith in corporate America. Take Thomas Christel, a 45-year-old who built his technology career by taking on additional, unpaid responsibilities at companies such as IBM, Accenture and Career Education Corp. “A good question to ask people is how they would rank their priorities,” he says. “For me, it’s always been: God, Country, Company, Family and Me.”

Generation X: Looking Out for #1 - and Baby
Few Gen Xers would place “Company” so high. Having “lived through outsourcing, NAFTA and watching their parents getting laid off,” younger employees often enter the workplace skeptical of an employer’s loyalty, says Natalie Holder-Winfield, author of “Recruiting & Retaining a Diverse Workforce: New Rules for a New Generation.” As such, they often expect more transactional relationships with their companies than Boomers did.

“The employer has little responsibility to the employee,” says Serdjan Balach, a 26-year-old management consultant. He thinks the burden is on employees to get what they need in exchange for extra work. Otherwise, he says, “it’s in the employee’s best interest to seek other employment.”

It’s a common sentiment among his generation. “They are tuned into WIIFM - What’s In It For Me,” says Holder-Winfield. When asked to do the additional work, Gen Xers, forever in scarce supply, will likely walk if their demands aren’t met, says Gronbach.

“If they change the job in a way I don’t like, I just leave,” agrees computer contractor Benjamin Myers, adding that he regularly gets calls and emails from recruiters seeking his services.

Fellow Xer Laura Hazen Johnson might accept the new duties, but not without a guarantee. “I would negotiate a future payoff to taking on responsibilities,” such as a verbal agreement for a promotion, bonus or raise. If the company didn’t deliver, she says, “I can leave and cite failure to fulfill the verbal commitment as a reason.”

Taught to fend for themselves, Gen Xers tend to also put down their foot when it comes to work-life balance. If new responsibilities cut into after-work yoga or a child’s school play, they may tell bosses to look elsewhere. “It’s the first generation ever to say, ‘Screw it. I don’t care. I’m leaving,’” says Trunk. “It’s the first generation of men who will actually give up a raise or promotion to be home with their kids.”

Of course, being parents strapped with mortgages and other financial obligations means many Gen Xers can’t risk giving up a steady paycheck. Michigan-based consultant Scott Glenn has several Gen-X peers who have already taken on longer hours because they don’t see another option. Stuck in a region dependent on the flailing auto industry, “They don’t want to relocate because of their families, and there are no other jobs out there.”

By contrast, some younger Gen Xers will stick around to improve their own marketability. “Early in my career, I found it invaluable to never say no to anything. I would work double time in an effort to build my brand,” says management consultant Henry Conor Johnston. In a world where employees under 30 stay at a job an average of two years, says Trunk, it’s a smart move to make every position count.

Gen Y: Teach Your Children Well
The best place for managers to turn when they can’t offer additional compensation, however, may be Gen Y. According to the 2008 Randstad World of Work survey, a company’s youngest employees are now the most likely to tackle extra work. Gen Y respondents also said they were willing to take on more responsibility at their current jobs.

The reason, suggests Trunk, may be based in Gen Y’s desire to learn and build their skill set. “Young people have been taught that education and learning is everything,” she says. Unlike their Boomer predecessors who strove for power, title and money, Gen Yers see learning, flexibility and mentoring as must-haves. “If the additional responsibility was a good learning or growth opportunity, I would probably accept,” agrees Erin Hay, a human-resource specialist. Loyalty also comes about when the company shows it cares about professional development. “I can see the president and the CEO on a day-to-day basis. I spend time with them,” says Mack McGee, a 23-year-old who works in business development. “There’s no place else I’d go.”

Like Gen Xers, however, most Gen Yers remain free agents. Projected to have 14 or more jobs during their career, many will take on extra duties to strengthen their résumé. While Boomers come to her seeking a “long-term home,” says résumé consultant Lauren Milligan, young job hunters have more of a “grass-is-greener” point of view. That’s especially true if the office starts cutting into their personal life. Hay draws the line at weekend work. “I work for a living,” she says. “I do not live to work.”

A Battle for the Ages
Given their differences, it’s not surprising that the generations don’t always see eye-to-eye. More open about their personal and professional needs, for example, Gen X’s and Y’s straight talk can rub older coworkers the wrong way. “We’re not used to being able to be that transparent,” says Berg, who has had to adapt to the communication style of her younger clients. Early in their careers, Boomers put in long hours and took on grunt work in hopes of ascending the corporate ladder. So when young employees arrive straight out of college demanding quick advancement and exciting assignments, says Trunk, older workers “feel really ripped off that there are no ladders and no one else is paying their dues.”

Feedback is another contentious area. While everyone appreciates kudos for a job well done, Gen Yers may expect it more. Raised by doting parents the same age as their bosses, says Trunk, many don’t understand why at work “no one cares about them.” Milligan has noticed the trend too. “A lot of my younger clients express frustration when their colleagues or superiors don’t acknowledge or validate their accomplishments,” she says. Young employees “really have to feel that the company appreciates them, more so than the other generations,” agrees Eric Papp, a 24-year-old consultant who helps companies build Gen-Y loyalty. For Boomers and Gen Xers used to annual performance reviews, this need for ongoing recognition may come across as high maintenance, but it may also create a more committed workforce.

The Rules of Engagement
Because much of today’s corporate culture will be shaped by how well the generations interact, managers need to keep the lines of communication open. With Gen Y flooding the labor market, several companies are taking steps to bridge the gap between older employees and their younger counterparts. Entry-level talent agency fahrenHEIGHT360, for example, facilitates conversations between its young job seekers and corporate clients about generational issues. Such dialogues, says company recruiter Ben Foster, bring out “the positives of Gen Y: creativity, innovation, resourcefulness,” while highlighting the value of older workers’ institutional knowledge.

Reverse mentoring is another way companies can encourage generational collaboration. Popularized in 1999 when former General Electric CEO Jack Welch instructed top managers to learn Internet skills from the company’s Web-savvy workers, such training transforms young employees into technology ambassadors. Fluent in IM, RSS, MySpace, Twitter and other digital technologies, Gen Yers get to impart their know-how and capacity for technology while making valuable connections.

Whatever method companies use to raise generational awareness, they shouldn’t neglect one key similarity among workers. “Everyone wants to know their efforts are leading to a common good,” says Boomer Terry Wisner, a professional sales speaker.

Indeed, an inspiring goal is the one ingredient that cuts across all ages to make workers step up. “If I’m sold on the vision, I do what I need to do to add value to the team,” says Boomer Mark Roberts. An employee’s willingness to go the extra mile, adds Gen Yer Mack McGee, boils down to whether you believe in the company’s mission. “If I can see that and I have a vested interest in being in that organization, I don’t have to think twice when that situation is thrown at me,” he says. “I believe in our company and I’ll do what it takes to see our unique concept succeed,” agrees Gen X copywriter Scott Hepburn. “Either that, or I’ll go down with the ship. I’m learning a lot either way, and I wouldn’t trade this job for the world.”

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2 Responses to “Coming of Age in Corporate America”
  1. Mark Allen Roberts

    I enjoyed your post.

    It strikes me as we are in the middle of difficult economic times we must all drop the fluff and go back to the basics, the core of our business. I believe this will also be a time leaders reengage the fundamentals of sound leadership.

    Being a Boomer I guess I am considered “old school”, but if a company has hired me and is taking care of my family I will be loyal to the company and its leadership.

    However when the leadership is focused on their personal rewards over the business and the team it breaks that loyalty bond, and crates an interruption.

    What I enjoyed most about this post was how it reinforced that leaders must take the time to know their people and work with them in a way that drives the maximum result. “Managers” will try to drive results their way or the high way. They have little regard for the individual, their generational characteristics nor their unique gifts or personality profiles.

    This will be a time leader’s step up and use the core principles of leadership that work. Although the economic times are tough, the number one concern of over 2,000 CEO’s I surveyed was; finding and retaining good people.

    “Managers” will think the economic times will give themselves more latitude, safety, to continue to manage their teams poorly, after all “where else will they go?”

    Leaders will serve those CEO’s who are looking for A players, we who treat their team members as individuals , as valued resources, and their primary focus is on helping serve their teams and help them accomplish the corporate vision.

    I left the “manager “ running the company with the new Porsche we all walked by when we heard;times were too lean for bonuses we earned or pay increases , and now serve an organization that values my contribution.

    ATTENSION ALL CEO”S; if you have a “manager “on your team (you know who they are as you have been hoping they would change) put them on a corrective action plan immediately before you lose the A players your competitors are still searching for.

    Secondly, if you are the “manager” running the company, slashing jobs and cutting pay while you reeve up the engine in your new toy….your team can’t hear your demands over your actions. You have created a loyalty interruption and you will lose you’re A players, even in uncertain economic times.
    Mark Allen Roberts

  2. “Coming of Age In Corporate America” « BYOCPO Be Your Own Chief Performance Officer

    [...] opinion on how people can overcome leadership and work-related challenges. See the article here: http://www.howsmatter.com/coming-of-age-in-corporate-america/ Brooke has done a nice job of covering a multitude of perspectives and she sites Jack Welsh, me [...]

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