$3$ Generational Changes

Analyze the differences in ethical principles between different generations.

Which of these is the best example of a meta$-$stereotype?

a$.)$

Baby boomers should retire so young people can take the reins.

b$.)$

Baby boomers are too set in their ways.

c$.)$

Millennials must think I$\text{'}$m not tech savvy because I$\text{'}$m $55$ years old.

d$.)$

Millennials are on their phones too much.

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Generational Changes

Sophia

Sophia

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WHAT'S COVERED

In this lesson, you will consider the differences in worker attitudes and expectations that correlate to when they were born. Specifically, this lesson will cover:

$1.$ Generations in the Workforce

$2.$ Stereotypes and Meta$-$Stereotypes

$2$a$.$ What Defines a Generation?

$2$b$.$ Technology

$2$c$.$ Work Ethic

$2$d$.$ Mutual Understanding

$3.$ Managing Generational Differences

Terms to Know

$1.$ Generations in the Workforce

several people in a workplace of different ages.

In Western countries, since the early $20$th century, people have been divided into generational cohorts, linked by shared experiences that shape their attitudes and even their ethics. Although there may be slight differences in the demarcations, depending on the source, a rough breakdown of people currently in the workforce is:

Baby Boomers: Born $19461964$

Generation X: Born $19651980$

Millennials $($aka Generation Y$)$: Born $19811996$

Generation Z: Born $19972012$

Although there are some workers older than the baby boomer generation still working $($including President Joe Biden, as of $2023),$ most people you encounter in the workforce will fall into these four categories.

As the baby boomer generation ages, more and more people are retiring. In $2010,$ more than $25\%$ of all employees were retirement age. Fast forward to the U$.$S$.$ labor force in $2017,$ however, and millennials have taken over the top spot in the labor market, with more than $40\%$ of the total workforce. Although older workers are now retiring closer to the traditional retirement age of $65,$ many plan to keep working beyond $65,$ often into their $70$s$.$ No longer is retirement an all$-$or$-$nothing proposition, and older workers in the baby boomer generation are taking a more positive attitude toward their later years. A surprising number of Americans expect to work full$-$ or part$-$time after $$retirement$,$ and most would probably work longer if phased retirement programs were available at their companies. Financial reasons motivate most of these older workers, who worry that their longer life expectancies will mean outliving the money they saved for retirement, especially after retirement savings took a hit during the global recession of $20072009.$ For others, however, the satisfaction of working and feeling productive is more important than money alone.

These converging dynamics continue to create several major challenges for companies today. It is not unusual to find a worker who is $50,60,$ or even $70$ working for a manager who is not yet $30.$ People in their $50$s and $60$s offer their vast experience of $$what$$s worked in the past,$$ and those in their $20$s and $30$s tend to be experimental, open to options, and unafraid to take risks; therefore, a diverse mix of ages in the workforce is beneficial to organizations. The most effective managers will be the ones who recognize generational differences and use them to the company$$s advantage.

Many companies have developed programs such as flexible hours and remote work to retain older workers and benefit from their practical knowledge and problem$-$solving skills. In addition, companies should continually track where employees are in their career life cycles, know when they are approaching retirement age or thinking about retirement, and determine how to replace them and their knowledge and job experiences.

Another factor in the changing workforce is the importance of recognizing diversity among workers of all ages and fostering an inclusive organizational culture. According to a recent report by the U$.$S$.$ Census Bureau, millennials are the largest generation in U$.$S$.$ history, and more than $44\%$ classify themselves as something other than $$White$.$ In addition, women continue to make progress on being promoted to management, although their path to CEO seems to be filled with obstacles. The most successful organizations will be the ones that recognize the importance of diversity and inclusion as part of their ongoing corporate strategies, which include age diversity.

TERMS TO KNOW

Baby Boomers

The generational cohort born between $1946$ and $1964.$

Generation X

The generational cohort born between $1965$ and $1980.$

Millennials $($aka Generation Y$)$

The generational cohort born between $1981$ and $1996.$

Generation Z

The generational cohort born between $1997$ and $2012.$

$2.$ Stereotypes and Meta$-$Stereotypes

In the previous section, generational similarities were defined as $$shared experiences$$ that shape attitudes and ethics. This raise