This blog - and this entire site - is dedicated to researching and analyzing the ways in which the changing generational makeup of the workforce affects businesses in both everyday operations and long-term strategy and planning. In a lot of areas it is obvious that generational behaviors, preferences and differences are going to have an effect, such as communication preferences, flexible work schedules, working styles, etc.
However, this generational shifting is impacting and will increasingly impact businesses in ways that may not be overtly obvious to all managers or executive teams. Take the article below as an example. The report mentioned in the article below states that US job satisfaction is at a twenty year low and that managers need to be wary of this, not only in terms of reduced productivity and efficiency in an already difficult economy, but also in terms of talent and knowledge loss as the economy rebounds.
Managers who are not taking into account the generational workplace preferences of its employees or who are not creating an environment that supports and cultivates multiple work-styles and approaches will find themselves rapidly losing what talent they have as the economy turns around and new opportunities arise in the market. Furthermore, managers who are not focused on long term knowledge transfer management, mentoring and talent development now will have a difficult time attracting top talent and maintaining uninterrupted operational coherency when the market turns around (not only will the Boomers be more comfortable with retiring, but younger talent will be looking for the best opportunities with the growing companies). As the article explains (read full article here):
“While one in 10 Americans is now unemployed, their working compatriots of all ages and incomes continue to grow increasingly unhappy,” says Lynn Franco, director of the Consumer Research Center of The Conference Board. “Through both economic boom and bust during the past two decades, our job satisfaction numbers have shown a consistent downward trend.”
Fewer Americans are satisfied with all aspects of their employment, and no age or income group is immune. In fact, the youngest cohort of employees (those currently under age 25) expresses the highest level of dissatisfaction ever recorded by the survey for that age group.
“The downward trend in job satisfaction could spell trouble for the overall engagement of U.S. employees and ultimately employee productivity,” adds Franco.
“These numbers do not bode well given the multi-generational dynamics of the labor force,” says Linda Barrington, managing director, Human Capital, The Conference Board. “The newest federal statistics show that baby boomers will compose a quarter of the U.S. workforce in eight years, and since 1987 we’ve watched them increasingly losing faith in the workplace.” Twenty years ago, some 60 percent of that generation was satisfied with their jobs. Today, that figure is roughly 46 percent. Barrington adds: “The growing dissatisfaction across and between generations is important to address because it can directly impact the quality of multi-generational knowledge transfer–which is increasingly critical to effective workplace functioning.”
If you aren’t considering the effects of the generational shift on your organization, now is the time! Don’t be caught in a situation in which knowledge is lost, talent is not developed, and employee satisfaction and productivity are low! Businesses, now more than ever need to be focused on the generational issues at play in the economy and in their organization, and plan for the future by investing in talent development and knowledge transfer management. Although, as the first story indicates, businesses are increasingly cutting consulting budgets to save costs, this will not be a solid strategy for many organizations in the long term.