Gen X, Y, Z: How to Earn Their Loyalty

By Henry Evans

Every generation of management (and parents, for that matter) feels the same way. We just can't seem to figure out how to win over Generation X, Y or Z...wherever we are in the algorhythm of workforce generations. We bemoan a changing world, the unyielding and unpredictable influence of technology on young minds and growing ambitions. We are confused and even frustrated that the old rules aren't necessarily working for us anymore.

Are Generations X, Y & Z that different from Baby Boomers or the young professionals that preceded them? Admittedly, the job market has come full circle a couple of times in the last thirty years. Job applicants have been enjoying the fruits of a ripe market. In the mid-70's, job offers were rarely turned down and the scales tilted in favor of employers when it came to negotiating terms The tide has turned, with virtually zero unemployment and technology candidates in high demand. The power has shifted. Employees at virtually all levels are intent on having their needs met. And they're becoming increasingly clear on what those needs are. This is no small thing. Fortune 500 companies across the country are taking notice.

Welcome to the Generation of the Employee. Many smart companies have beefed up their compensation and benefits packages to keep them happy. Smaller companies may find this easier to do than their global corporate counterparts, who face more complex issues in re-vamping reward programs and creating more employee-friendly benefits packages. This can be a costly endeavor. In the competitive world of employee retention, this is a cost of doing business today. Trying to figure out what makes today's work force tick has HR departments across the country in a quandary.

What's Important to Them

Consider this possibility: money and perks aren't all today's employees are after! Perhaps, the anthem for Generation X, Y and Z is less along the lines of The Rolling Stones' "I Can't Get No Satisfaction" and more in step with Aretha Franklin's "R-E-S-P-E-C-T". They're really not such a mystery:

* Over two years ago, the University of Minnesota conducted a study with Generation Xers to determine workplace attitudes and priorities. The findings are eye-opening. The most important factor for Generation Xers when considering a job is the potential for "being appreciated". This far-surpassed security, wages and benefits. Other findings were:

* If today's employees start to stagnate in a job, it's likely they'll move on. In short, this generation of employees wants to engage and make a difference -- now. Unlike their fathers (and/or grandfathers), this crop has little intention of going for the gold watch. Time is short and they know it.

* They want challenge. They will not be satisfied with doing the same job for decades. There are more opportunities today and they know it. They have higher expectations for themselves than previous generations, and aren't apologizing for it.

* Parenting is a priority. Many of today's employees were children of divorce, or a part of the "latchkey generation". Employers are taking note that family life has become a major priority for this group; employees want something different for their children than they themselves experienced. Meredith Bagby, an economist, news commentator and author in her 20's speaks to the effects of divorce on her generation in her book Rational Exuberance, "Half of this generation comes from divorced families. Since 1970, when Xers were growing up, the divorce rate has tripled. Our generation is marrying later, putting more time into family and sacrificing less for the job. The biggest challenge is providing our own children with what we didn't have - fathers, time, attention, security."

* Today's breadwinners are considering choices previous generations didn't dare to make. For example, frequently the higher paid spouse keeps working after kids become a part of the equation while the other stays home. Gender is not a factor in deciding which spouse will stay at home. This generation is not bound by stereotypes. According to the Families and Work Institute, 60 percent of men and women under age 25 with children would make "a lot" of sacrifices in money and career advancement in order to spend more time with their families, versus 34 percent of workers overall.

* Personal freedom is close to a battle cry, particularly for working parents who seek flexible work hours and opportunities to work at home. Certainly computers have made this a workable arrangement for many employers. And, telecommuting is common now in many industries. Employers are being forced to sit up and take notice of a workforce that is increasingly independent.

The Bottom Line

Many employers consider this growing list of wants and needs intimidating. Others consider these attributes potentially advantageous. They are the attributes of healthy, focused and independent thinkers. Leaders, even. The challenge lies in how to keep this generation of employees motivated and loyal. Whether they're Generation X, Y or Z, here are a few tips on how to earn their loyalty:

  1. Lift the hood on your organization. This generation wants to be a part of something meaningful. Engage them by letting them in on the strategic direction of the company.

  2. Clearly define goals and objectives for achieving success. Hold yourself and your employees accountable for results. Articulate expectations for the individual as well as the organization. It's important that everyone feel that what they do on a day-to-day basis is worthwhile and relevant to the company's success.

  3. Recognize a job well done. This generation is willing to work extraordinarily hard when they're truly engaged in what they're doing. And they respond well to being recognized for it.

  4. Engage your people to find out what's important to them Employees today have a good reason to be cynical; they've heard about "open lines of communication" much more often than they've experienced it. Make them believers.

  5. Be flexible. Dare to loosen the reins on traditional policy and test out new incentive programs, flexible work hours and home offices for your best people.

Employee loyalty isn't a given anymore; you have to earn it.

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