Once upon a time, long, long ago, there was what seemed to be a single generation in the workforce.  We now refer to them affectionately as the silent generation.  These are the people loyal to their company and worked until retirement.  Up to then, generation after generation learned how to lead based upon what worked and did or did not work for their predecessors.  We learned, as is human nature, because this did not work before, we will not go down that path again.  Like touching a hot stove; get burned once, I will not touch it again.  While this worked for decades following World War II, the 1960’s saw the beginning of an evolution as boomers began to enter this sacred workforce and shake things up.

THE ISSUE:  Multigenerational Lack of Understanding, Lack of Trust

Traditional and autocratic leadership styles began to see rise to greater confrontation and generational impacts began to shift the workforce landscape; and, with heads buried in the sand, doing little to meet the needs of the changing workforce, the storm currents began to swell, leaders felt they had to hold onto their power and maintain control somehow.  This is perhaps a natural human response to such a perceived threat.  As a result, have leaders in business today lost touch?  Is it too late?  Where is the trust we had in our leaders?  Do future generations deserve to experience a legacy of a sustainable economy?  Does free enterprise still work in today’s global economy or is a hybrid necessary today?  All good questions perhaps, and each impacted by a common factor—research on the multigenerational workforce indicates we must bridge the skills gap to compete.

You have perhaps heard this before, “What has worked for us before will continue to work…,”  “If it is not broken don’t break it!”  This was the golden rule after all, “Do unto others as you have them do unto you.”  Then came the 1980’s workforce, as the tail end of the boomers and the Gen-X ers entered the workforce.  We saw books like, “In Search of Excellence” where companies that helped us realize old conventional ways would not sustain their organization long.  Empowerment was the buzz word of the day.  It was at McDonald’s, it was everywhere.

Traditional methods of communicating and even training were to remain stable for a few more years, then the 1990’s saw ways to reach people using technology that became vastly more reliable, available and affordable.  We saw a media boom and information got to people’s finger tips much faster than ever.  What was once taboo, seemed to change.  Respect for people shifted as the majority of the population far out numbered the now silent generation.  We could watch the horrors of war, live on TV.  Information became king.  Dirty politics of the 1970’s took greater hold with more fierce campaigns and personal attacks.  After the turn of the century, privacy as defined by our founding fathers seemingly eroded after 9/11.  And, younger generations, the mid to late boomers, generation X-ers and the millenials found information they wanted, when they wanted it.  And, our children were using computer technology by age 3.

This information revolution rocked the foundation of the traditional classroom.  Grade school teachers and workplace learning professionals, had and continue to prepare themselves to ride the technology waves to help people remain effective and competitive.  People were demanding their rights and needs be met.  There was a shift from personnel to human resources.  2008 saw a shift when the workplace learning and performance (WLP) profession became recognized as an industry by the Department of Labor, so training could begin to gain a seat at the executive table to bridge a skills gap that now inherently exists with the multigenerational workforce.

But, still the mature (silent) generation and early boomers are at the helm of many of these companies.  And, adopting change is often confronted with fear.  Asking an executive (or anyone for that matter) to change what has worked for over 4 decades seems like asking a zebra to change its stripes.  “Can’t do it, wouldn’t be prudent!”  “Stay the course.”

Change goes deep, it becomes personal.  But, it starts from within, at the top.  Those that wanted to change found limited support to do so.  Rather than change, companies found it difficult and resisted, choosing instead to swim up stream against the current.  Only the current is now becoming like that of Niagara Falls, so powerful that the fear is overloading.  Leaders are hitting brick walls and hands are tied because stock holders look at their bottom lines.  Leaders often feel their hands are tied.  Employees in turn, feel their hands are tied and leave, before they are let go at the perceived whim of the leadership.

Do not be fooled if you think this will not impact you.  It impacts us all.  People in many companies are holding on because it is a “job.”  Leaders have a short window of opportunity to shift and make changes before the economy improves and people make a mass exodus to the next best company that will meet their needs and identifies with who they are.  Leaders need to learn to flex their style.  The war for talent will be the next global world war.  It will also be an industrial civil war within our borders and within an industry.

Large companies, often more likely to have deeper pockets, have the ability to find resources, make change and mobilize.  Their successes can be leveraged by smaller companies, the backbone of this nation that does not have such deep pockets.   They have to first get the message and want to change.  The blind spots, what we don’t know that we don’t know, still exist.  There needs to be an awakening then transformation for mobilization.

Initially, it was projected that the mature generation and boomers would be exiting the workforce and taking their knowledge assets with them.  The economic depression of 2007, resulted in lost pensions and retirement, further eroded trust and forced many to remain or even re-enter the workforce out of necessity.  This is all compounded with a huge influx of millenials pouring into the workforce.

This is where we are now.  The stand off—silents re-entering, boomers remaining and gen X ready to jump ship and millenials entering the workforce in record numbers and leaders looking only at the bottom line, seemingly oblivious to the storm cloud lurking overhead as seen by their behaviors that are repeatedly eroding away at trust.

Today as we see a workforce of matures, boomer, gen x and millennial, many executives are literally fighting to hold on to their power.  Their power, for many leaders, is rooted in the comfort of what has always worked.  That literally does not work anymore, many realize it, and it is a scary place to be as a leader—in the unknown and not have (perceived) control.  We, as leaders, after all are expected to have the answers.  This fear is evidenced in many ways.

Today we are seeing huge golden parachutes; misappropriation of funds, special interests buying politicians, executives going to jail, unfair consumer practices, political filibustering and the list goes on.  The result is a “deficit of trust” in this country as President Obama stated.  Trust has to begin with the leadership, the leaders that make the decisions that drive companies, that fuel the economy, that fuels people’s ability to meet their basic human needs.  This is the simplified economic cycle of life.  This is not meant as a political discussion.  In fact, our entire political structure on all sides is fraught with the same issues.  But, with that said, politicians are leaders too.

The scope of this dis-ease storm cloud is proportionate to the size of the workforce generationally and their unique needs.  Let’s examine this a bit closer by generation.  Please note that generational research studies are generalizations.  They do not apply to everyone but are used here as a guideline to understand others and develop strategic solutions as a leader, performance improvement consultant and/or trainer.  Please apply caution not to use such research to in any way stereotype people.  Beginning to understand and make a shift comes from awareness of what motivates people so we, as leaders, can step out of ourselves and treat our people the way they want, need and deserve to be treated.  Our people are our customers.

Mature (1922-45), also called the silent or veteran generation, are 70M in total and represent 7% of today’s workforce.  Notable impacts that may drive some their motivations include FDR, Pearl Harbor, and the post depression era.  Research shows, they want their leadership to be fair, consistent, and clear.  In turn, they are respectful, practical and dedicated.  They are hard working and stable.

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Baby Boomers (1946-64) are the largest population to date, reaching 80M strong and make up 44% of the workforce.  Many were impacted by JFK, MLK, Woodstock, and the trials of Watergate.  They want a leader that treats them as equals; one that is warm, and caring, with a clearly defined mission and uses a democratic approach that includes them in decisions.  They are team focused and dedicated..

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Generation X (1965-80) number 45M and make up 34% of the workforce.  Many were impacted by being left at home when both parents worked.  They saw the influences of Bill Gates, personal computers, the World Wide Web (WWW) which contributed to a media explosion.  They also experienced the devastation associated with AIDS.  They are skeptical and independent.  They want a leader that is direct, competent, genuine, informal, reliable, results-oriented and supportive of learning opportunities.  They are independent and adaptable.

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Generation Y (1981-2000) also referred to as the millenials, these 95M young people, up to 30 years young, are the largest generation in history to hit the workforce, making up over 15%+ of the workforce today and rising. They experienced rebirth of the family where parents invested time with them as children.  Events included Columbine, 9/11, depression of 2007 and corporate bail outs.    Born into a digital world, they are hopeful and optimistic.  And, they want a leader that is motivational, collaborative, positive, organized, achievement-focused, and able to teach and coach.

THE IMPACTS:  Bottom Line Sustainability

Our “deficit of trust” arose from behaviors stemming with fear.  The way to resolve this, is to shift to a place of hope and collectively focus on building trust.  This means embracing and recognizing behaviors that demonstrate and are viewed as trust builders.  And, it begins by understanding people and embracing the unique and valuable differences each person can contribute.  It plays right into creating a culture of innovation that will sustain a business.  Loyalty to a company does not have to be an archaic thing of the past.  One size fits all leadership will NOT work any longer.

And yet, leaders over the last 2 decades have eroded trust further by behaviors that are interpreted as eroding their trust, by appearing to merely focus on the bottom line.  Don’t get me wrong here, the bottom line is oh so important!  But, in the process, by the magnitude of the layoffs, these behaviors have sent shock waves through the workforce, and a message that we as leaders have forgotten our people.  We need to hit bottom line numbers, and labor is a significant expense.  Executives are in a fish bowl and media can spread news quickly.  Each and every decision can and does ripple throughout the information freeway.  The necessary shift can begin with leaders viewing labor as an investment rather than an expense (need to consult GAAP on this).  This is the beginning of a fresh perspective.

Cutting people appeared like “low hanging fruit” and a quick fix to show a profit.  But, it is not without an invisible impact which gains momentum over time.  The message of fear penetrated the culture and people begin to work in silos and hoard their knowledge.  This fear gradually began to erode at the trust the “mature” generation and early boomers had for their companies.  People, have shifted the way they viewed companies.  Constant cycles of layoffs sent a message to people, “We cannot rely on you for retirement.” “If you are not going to show us loyalty and appreciation, we will go somewhere else.  Oh yeah, we will bring all we know with us too.”

Companies began to seemingly once again retaliate with more and more non compete agreements, which most often are not valid, because employers cannot restrict the livelihood of their current or former employees.  These can however, be a red flag for deeper rooted corporate fear.  If companies are confident in their ability to take care of their people, these agreements may not be as necessary.  Does this seem radical?  Well we are in a radical workplace.  Roll up your sleeves, “fasten your seat belts, it is going to be a bumpy ride!”

Being asked to sign one of these agreements can be like suddenly being asked to sign a prenuptial agreement.  How do you feel about a prenup?  It may be expected, but it resonates as a potential omen of a fearful culture.  Don’t get me wrong here, companies need to perform due diligence to secure company trade secrets.  Leaders need to consciously weigh the impacts of such decisions and the way they are being communicated.

Studies have shown the impact of unhappy people have far greater impacts on productivity and bottom line results than people going to the competition.  We need to solve the root cause of dis-ease among our people.  Leaders that bury their heads in the sand on this are allowing the dis-ease to incubate and spread.  This way they will not go to the competition and it is not the shackles of an agreement holding them hostage.

THE SOLUTION:  Culture of Trust

We have a generational workforce mix today that is unprecedented.  Strictly bottom line leaders are falling short.  The symptoms are in our economy and consumer confidence.  This is the ultimate bottom line.  The root thread is the ability to change traditional patterns and become conscious to blindspots.  This begins with willingness and the coachability of the leader and may mean checking to see if we have the “right people in the right seats on the bus” as Jim Collins says in his book Good to Great.

A renewed understanding of the generations in today’s workforce requires a shift in our business practices.  “We have to treat people the way they want to be treated.”  Leaders’ change begins within for sustainable change to occur throughout the organization.

So what can we do as leaders and educators to foster a culture of trust and innovation in the midst of this storm?  Remember, this is about a perceived threat to power.  So upon the awareness on the part of the leader that there is an opportunity and a gap exists, the leader can create a safe space.

The mission for the leader, supported by the human resources, organizational development and training teams, is to create a culture of trust.  Perhaps taking that of a learning organization to a new level.  This is where failure is only that if there is no learning from it.  This is a culture that allows and even encourages people to be “real” by sharing their fears, concerns and ideas and get them out into the open without fear of judgment or retaliation.

This can be nurtured by cross generational mixers and more team collaboration where everyone’s opinions are welcome and respected will result in powerful results.  But, also assignments where millenials and Gen X-ers are encouraged to make decisions.

For this to work, everyone should feel valued and be aware of growth opportunities that exist within the organization (career pathing).  This is further supported by a foundation of skill development.
Millenials appreciate balance and are demanding it.  Matures and X-ers may physically require it.  Demonstrating an awareness and speaking to balance with home and work is a trust builder.  Behaviors that support it are programs you can create.  Your innovative approaches can come from your people, within your organization.

Create a common definition of trust within your organization.  Implement programs that go deeper and lay a foundation for trust, such as the TrustWorks Model for Building Trust.  Walk and talk your core values as a leader..

Remember your behaviors drive perceptions of other people.  Perceptions are the reality of the beholders.  It is not about changing people.  It is about changing behaviors that fuel people’s perceptions.  Understanding generational considerations and shifting to a flexible leadership style that fosters trust building behaviors will serve to help create sustainable organizations into this new decade.

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