Kathie Lingle's Work-Life Blog

Generational diversity: Is it more talk than action?
Guest Blogger: Leonard Sanicola, CCP, CBP, GRP, CEBS, SPHR, WorldatWork

Sept. 18, 2008 — Well, there certainly is a lot of buzz these days about the different generations in the workplace. There doesn’t seem to be a day that goes by that I don’t read an article or view a research study that focuses on generational diversity in the workplace. I know when I attended our Total Rewards Conference in May, I was amazed to see the number of attendees at several sessions on this subject. I had an opportunity to speak to some of these attendees, and generational diversity is a top concern for many of them. This, however, seems to contradict the results of a recent survey that WorldatWork conducted.

The survey suggests that there is, at best, an awareness of differing generational needs by total rewards professionals, but there doesn’t appear to be a concerted effort to proactively go beyond this recognition. This survey reveals that 56% of organizations do not even consider generational differences when designing total rewards programs, implying that they may not realize the importance of evaluating the needs of each generation uniquely and rewarding them accordingly. Findings also show that 80% of surveyed organizations do not have an organization-wide, formal or informal strategy in place. Considering the workforce blend and challenges today, why is that? As readers to this blog, what do you think? Do you know of companies that do, in fact, have a strategy? If so, WorldatWork would love to hear about these companies.

In today’s world, “one-size-does-not-fit-all” is increasingly becoming the mantra as companies learn to manage the varying needs and preferences of the different workforce segments. That being said, why, then, has an increasing awareness of the issue not led to significant changes in the design of total rewards programs? It would appear that most companies are either addressing issues as they come up, or offer a variety of programs that hopefully can help across generations in attraction and retention or spend their resources targeting a special group only as opposed to meeting the needs of all generations. For example, the survey indicates that the phased retirement program is most utilized by Baby Boomers and the silent generations, while flexible work arrangements are used most by Generation Y. This is consistent with common perceptions of those groups, assuming phased retirement would be most effective for the older generations while younger generations would be more motivated by flexibility. A surprising finding shows that less than 50% of Baby Boomers utilize flexible work arrangements. Given that they are considered the “sandwich” generation and often have both child care and elder care responsibilities, it seems there would be greater usage of flexibility options.

Of the programs included in the survey, organizations view recognition programs (85%) and wellness programs (80%) as having the greatest usage by all generations, likely because they are programs that meet cross-generational needs. Organizations are competing for talent in a tough economic environment using inexpensive but impactful programs such as these that increase productivity and provide a viable means to manage health care costs.

Overall, survey figures reflect that generational differences are not at the top of practitioners’ minds. Survey responses show that rewarding a multi-generational workforce may be on the radar screen for a few employers, but the practical application of total rewards programs shows that most of the effort invested in attracting, motivating and retaining talent is spread equally across all generations. From my perspective, there is a great opportunity for companies to proactively consider multigenerational differences within their workforce and relevant labor markets in the design, implementation and communication of their total rewards programs. In doing so, there is an opportunity to leverage more effectively the many elements that comprise the total rewards portfolio in order to address the needs, values and preferences of the different generations.

What do you think?
For more information on Multigenerational topics please visit our One Stop Topics page.

The opinions expressed are solely those of the author and do not necessarily represent those of WorldatWork and its affiliate, Alliance for Work-Life Progress (AWLP).