GENERATIONAL SHIFT, THE

Rough Notes, Nov 2004 by Zinkewicz, Phil

Studies reveal marked changes in younger employees' attitudes; successful agencies share their strategies

In the 1941 Hollywood classic "How Green Was My Valley," a group of Welsh coal miners struggle for better working conditions for themselves and their families. But those better conditions are not easily attained, and tensions begin running high among the miners. Eventually there is a confrontation between the workers and their employers, leading to violence and then death.

Luckily, employee-employer disputes in this day and age don't have such melodramatic results. Nevertheless, the struggle depicted in this film-in microcosm-reflects the never-ending effort by employees and employers to find a common ground where they can coexist to their mutual benefit. One might say that employers are continually trying to attract new talent and find ways to keep that talent happy, and that employees are looking for a sense of security as well as fair compensation. But it's not that simple. The fact is that, in the past decade, employers and employees have undergone economic as well as psychological changes that some say are altering the workforce.

For example, a study of changes in the workforce conducted by EainmakerThinking, Inc., a New Haven, Connecticut-based management training firm, shows significant developments that have occurred over the last 10 years. According to the study's author, Bruce Tulgan, between 1993 and 2003 a profound revolution was taking place in the values and norms of the American workplace, and the impact has been felt throughout the world.

"During this 10-year period, we at RainmakerThinking, Inc., have been conducting extensive research on the employer-employee relationship," says Tulgan. "Our research is ongoing. As of September 17, 2003, we had identified six key findings:

* Work has become more demanding on employees.

* Employer-employee relationships have become less hierarchical and more transactional.

* Employers are moving away from long-term relationships.

* Employees have less confidence in long-term rewards and greater expectations for shortterm rewards.

* Immediate supervisors are now the most important people in the workplace.

* Supervising employees now requires more time and skill on the part of managers."

The "Generational Shift"

"Together, these findings and the trends they reflect amount to the most important change in the employeremployee relationship since the period immediately following World War II," says Tulgan. "We call this change the 'Generational Shift.' In the early- and mid-1990s, we first observed these trends only among the youngest people in the workforce. Back then, these trends were decried as aberrations-driven by the 'free agent' inclinations of Generation X (those born 1965-1977). Many analysts expected these trends to abate following the dot-corn crash and the economic downturn that has persisted since early 2001. Instead, these trends have both intensified and also spread among workers of all ages," says Tulgan.

Over the last 10 years, globalization and technology have created a business environment of high risk, erratic markets, and unpredictable resource needs, according to Tulgan. "To remain viable, employers have been forced to adopt extremely flexible and efficient staffing practices. In turn, employees have adjusted by adopting more aggressive attitudes, expectations, and behaviors. Average employees feel challenged to take care of themselves and their families; they struggle to balance desires for long-term security with short-term needs for opportunities, work conditions, recognition, and rewards."

Tulgan says past downturns in the economy have intensified these responses, not weakened them. As a result, he says, the values and norms that first appeared among Generation X are steadily supplanting more traditional workplace values and norms.

"Now there are powerful demographic forces under way that will cement the Generational Shift. First, those of the Silent Generation (born before 1946) are gradually exiting the workforce. By 2006, two experienced workers will leave the workforce for every one who enters. second, the Baby Boomers (born 1946-1964) are becoming the aging workforce. Third, the prime-age workforce will be made up increasingly of Generation X and Generation Y (born 1978-1986). As Generation X and Generation Y come to dominate the prime-age workforce, they will usher out the last vestiges of the oldfashioned workplace values and norms and finish the workplace revolution."

Not a pretty picture

The RainmakerThinking study paints a less than attractive picture of the workplace of the future, where employers must be ruthless to survive and individuals must be very aggressive to succeed. Many of the study's findings demonstrate that there is a growing tension, even frustration and distrust in the workplace on the part of both employers and employees.

"Individuals in the workforce no longer believe they can rely on institutions as they did in the past," Tulgan remarks. "They have seen Enron and the other corporate scandals, mergers and acquisitions, liquidations, the migration of companies overseas to benefit from cheaper labor, and other developments. They are seeking short-term rewards rather than longterm promises that may never be fulfilled. And managers and immediate supervisors are now on the front line in terms of communicating with employees."