Matures Embrace Technology More Than Gen Y in Workplace

Business Wire, June 25, 2007

With a worker shortage looming, Randstad's 2007 survey reveals people, not technology, are key to productivity

ATLANTA -- People cannot be replaced by technology, especially when it comes to increasing productivity in the workplace. In 2007, employees' efficiency and output replaced technology as the key source of productivity gains, according to Randstad's annual survey World of Work (formerly Employee Review), conducted by Harris Interactive([R]).

For eight consecutive years, global workforce solutions company Randstad USA has explored top business issues and evolving workplace trends that impact employers and employees. In its 2007 World of Work survey, Randstad focuses on employee productivity, retention and morale.

The survey reveals a divergence between generations' use of and resistance to particular communication tools in the workplace. Gen Y, the youngest generation with a reputation for being technologically savvy, is overall the least likely to use communication tools in the workplace, including computers, faxes, personal digital assistants (PDAs), mobile and landline phones. The "power-users" proved to be the Matures, the oldest generation, who were well into middle age when the personal computer was introduced, and the youngest of whom were 50 years of age when business discovered the Internet. The newest technologies designed for increased efficiency and convenience, such as video/Internet/telephone conferencing and PDAs with telephone and Internet capabilities, are used the least.

"Working Matures seem to look for challenge and, more than younger generations, value the freedom to efficiently manage their workload, and their active use of new technology enables a more flexible work schedule with maximum career engagement," said Genia Spencer, managing director of operations and human resources, Randstad USA. "Conversely, younger generations could be more effective and have greater flexibility if they took more advantage of technology."

[TABLE OMITTED]

While communication tools help employees improve their performance, interpersonal communication gives employees a greater sense of involvement, strengthens workplace culture and increases motivation to stay with the company. It is a common perception that most people don't leave a company or a job, they leave their managers which means a positive employee-supervisor relationship is as important to retention as it is to productivity, especially in light of the looming worker shortage.

According to the Census Bureau, the number of retiring Boomers will continue to grow steadily until 2030, when one U.S. resident in five will be older than 65 years of age, compared now to one in eight. However, the generations who stand to benefit the most from the job opportunities care the least. Half of Gen X and merely 36 percent of Gen Y employees feel the shortage is a reality compared to Matures and Boomers, at 69 and 68 percent respectively.

"The survey indicates that more than half of American workers are looking for new jobs, a red-flag and opportunity for employers to focus on growing and developing valued employees," said Spencer. "The goal is for employers to motivate employees to stay and progress with the company."

However, employers are not leveraging these opportunities and instead are sending a jaded message to employees about their value to the company. While retaining and motivating employees is important to employers (76 percent), they would rather hire someone externally (72 percent) than train (67 percent) or promote (60 percent) current workers to replace departing retirees.

Workplace trends:

* Job Hunts Escalate: In 2003, one-third (33 percent) of employees thought it was a good time to look for new job opportunities. In 2007, more than half (55 percent) feel it's a good time to start looking.

* Morale on the Rise: Since 2002, employers have had a higher opinion of company morale than their workforce. Yet from 2002 to 2005, employers' morale declined 30 points (85 to 55 percent) and employees' morale dropped 17 points (57 to 40 percent). Since 2005, there has been a jump in perceived morale among both employers (66 percent) and employees (51 percent).

* Lack of Faith in Management: Faith in top management and their ability to make good decisions has dropped. From 2003 to 2007, employees reported increased doubts about their top management (18 to 27 percent) and supervisors (15 to 23 percent).

* Career vs. Job: Eighty-six percent of employers and 60 percent of employees view their current work as a career as opposed to "just a job," a number that has consistently increased since 2001. In 2001, 57 percent of all respondents viewed their work as a career vs. 71 percent in 2007.

Additional findings:

* Working Longer, Harder: Employers are working longer hours than employees. Only 26 percent of employers work less than 40 hours a week with 65 percent averaging 41 to 60 hour weeks. Nine percent of managers admit to putting in more than 61 hours per week.

* Doing What It Takes: Eighty-one percent of employers and 63 percent employees work as many hours as it takes to get the job done.