Next Generation Next Destination

THE GREAT GENERITIVITY DEBATE

 I want to call your attention to an interesting debate on the between Marc Freedman, founder of Civic Ventures, and David Brooks of The New York Times.

In a column published February 1, Brooks proposes reversing public policies that he says rob the young to serve the old and take from them funding, freedom and opportunity, saying, "It now seems clear that the only way the U.S. is going to avoid an economic crisis is if the oldsters take it upon themselves to arise and force change." He calls for a "generativity revolution" of millions of people demanding changes in health care spending and the retirement age to make life better for their grandchildren.

In a piece published today on The Huffington Post, Freedman says "the real generativity revolution is well under way. And with the help of smart new policies, this movement of forward-looking baby boomers might actually succeed." He writes, "It's increasingly clear that these older workers aren't competing with younger people; they are meeting demands for talent that will only grow as the economy recovers."

Freedman argues, "With 10,000 baby boomers turning 60 every day, it's time for public policies that honor their aspiration to leave the world a better place and harness their talent and energy for the long haul."

You can read David Brooks' column here:
http://www.nytimes.com/2010/02/02/opinion/02brooks.html
Marc Freedman's piece is here:
http://www.huffingtonpost.com/marc-freedman/generativity-revolution_b_447774.html

Comments from both points of view are welcome on Encore.org, as well as right here. Join the discussion  at http://www.encore.org/news/marc-freedman

What are your thoughts? How do we prevent generational resentments and warfare?

FORECAST: ASK THEM WHAT THEY WANT

n      A component of the engagement package is reward. So organizations will adopt Innovative Ideas to Reward Their Valued Workers. Employers will focus on recognition and non-financial rewards that will provide the psychic rewards that professionals and other top talent need to keep them going and loyal.  And firms will learn to go to the source of most welcomed ideas – workers suggesting what rewards other than money are most appreciated. I bet that one of them, especially for Gen Y, is employers listening to their ideas and taking their suggestions seriously – so this one is a two-fer!

 

       Different generations and individuals have their own ideas of what is meaningful recognition. Rewards may need to be customized and must be perceived as fair.

 

        Phyllis Weiss Haserot    www.pdcounsel.com

FORECAST: RE-HIRING IN RETIREMENT

n      The  counterpart to succession preparation as we experience an aging workplace is another forecast: Employers Will Accommodate Older Workers Like Never Before. Employers need to get the work done; many workers, including successful professionals and executives, want to keep going whether or not they really need the additional money to live comfortably. The Herman Group suggests that employers will see the benefit of avoiding recruiter fees and expensive contract help by bringing back their retired personnel on part-time, seasonal or temporary bases, even if the older workers can dictate their own terms. I can envision organizations hiring their former personnel with knowledge no one else would have to the same degree or dissuading them from going elsewhere for the typical “busy seasons” or employing them for training and coaching the next generation to continue top service to clients.

 

      This will require sensitivity in communication to younger workers about the benefits to them and facilitation of cross-generational dialogue within work teams and mentor partnerships. But it sounds like a win-win for many organizations seeking continuity  of client service and culture.

 

        Phyllis Weiss Haserot    www.pdcounsel.com

FORECAST: TAKING SUCCESSION PLANNING SERIOUSLY

I have made it an annual rite for several years to review and give my take on the forecasts most relevant to my readers fron the Herman Trend Alert for each upcoming year. So here goes the first of four I have selected for 2010.

n      The  forecast that I hope the most becomes reality, the sooner the better because it is vital, is Increasing Attention to Succession Planning and its sidekick “succession preparation.” The longer firms put off serious preparation for the next generation to step into the big Boomer shoes the greater the danger. As  huge numbers of Boomers near the exit in their current workplace (not necessarily out of the workforce as such), the more behind the eight-ball and the less competitive firms will be as the economy picks up and competitors’ innovation accelerates. The current breather many organizations have allowed themselves during the recession will leave them gasping for air. Succession planning and preparation is needed at all times. Anyone whose expertise and contacts will be missed can cause a serious business disruption and loss of clients if quality transitions are not in the works. Remember, talented personnel can leave for numerous reasons besides retirement.

 

Phyllis Weiss Haserot          www.pdcounsel.com

GENERATION GAP FOR LEADERS

It happens every time we have a "recession" or economic turndown. But this time it is more daunting not only given the severity of the economic situation, but also given the demographic realities. The talent crunch when the economy turns up and firms are hiring again will be magnified because so many Boomers are approaching the age when they will "retire" from current positions - voluntarily or involuntarily.

In any case they may be gone. And many are managers and executives. Will there be enough people trained, experienced and ready to capably step into their shoes?

A new report from PricewaterhouseCoopers says that in 2008 over 2007, the percentage of managers and executives eligible for retirement within 5 years rose much more dramatically than it did for workers in general. (The survey covered more than 300 companies across 12 industries.)

The current recession has given organizations a breather, and many Boomers would like to keep working for a long time more, even if they can afford to retire. Surveys in 2004 and 2005, when the economy was booming and retirement funds were healthy revealed that about 80% of boomers wanted to keep working after age 65 in some capacity - reinventing retirement, as the then newly coined phrase goes.

The PricewaterhouseCoopers report as covered in the New York Times (12/27/09) contains a graph showing that about 34% of managers and 27% of executives in 2008 would be eligible for retirement in 5 years. They are closer now. The percentage for all workers was about 17%. A great opportunity for the next generation of leaders and managers, but will there be enough of them from the much smaller Generation X, and will they be ready?

Shouldn't this shake up management enough to get some serious succession planning and transitioning going at all levels?

Phyllis Weiss Haserot   www.pdcounsel.com

TRIUMPH OF THE MULTI-GENERATIONAL TEAM

Among the many fascinating pieces in the New York Times magazine annual "Ideas" issue (December 13, 2009) is an item on a study finding that the stereotypical belief the older employee (age 45 and up) is deficient is a myth. (Data on various tests pitting Boomers and up against people under age 30 to follow in another post.)

Here's the conclusion I liked best of all, in sync with my *Cross-Generational Conversation* work, from the study by Gary Charness, a University of California at Santa Barbara economics professor, and Marie Claire Villeval, from the University of Lyon: In the cooperation test, Charness and Villeval found that groups with a mix of ages outperformed homogeneous groups. They say that it's best to have a range of ages in the office for an optimum work force.

The study found that the 45s and older were actually more cooperative than the younger people and contributed more to their group. That's a nice boost for the Boomers and encouragement for all the generations to find common ground and collaborate. If you'd like advice on how to make that happen, give me a shout.

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING: A TALE OF MUTUAL MENTORING

For further evidence that many Boomers are not afraid to jump into the technology and new media world, we have the story of James R. Gaines, former top editor of Time and People magazines who joined FLYP in the summer of 2008 at age 61. FLYP is an online digital publication that combines text with Flash animation, motion graphics, streaming audio and video to do what he has always done - tell stories.

In his article in the New York Times "Preoccupations" column ( November 29, 2009), Jim Gaines talks about his mutual learning relationship with the staff of FLYP, several decades younger than he. Here are some of his thoughts about the age and experience gap.

*  Gaines figured the staff members, recently out of college, would be lucky to work with him and learn from his experience and achievements, but the opposite turned out to be true for him.

*  He feels lucky to be working with them, and they have been quite patient about helping him understand all the technology and software applications. "...I learn more than I teach most days, which is both humbling and thrilling," he wrote.

*  He is dealing with the paradox of wanting to be a colleague but knowing his role as boss: "to sustain, provide and sometimes to teach, but not necessarily be a friend." It's analogous to his role as parent at home. 

Gaines decided to ask his young staff members what they think of him and the distance between him and the staff. Some of the responses he got include:

*  "I don't ever think about Jim's age until someone in the office brings it up" (usually over some digital gaffe). 

*  "We're a small team where we can't get hung up on who is guiding who. New media isn't about who has the longest resume. It's about who has the best ideas and who can implement them the most creatively. That's something age can't really teach you."  [I comment here that this is at least partly true in many industries and fields.]

*  They are impressed with his enthusiasm, and it reinforces their excitement for what they are doing.

Gaines points out that his and their enthusiasms differ from each other. He remarks on how strongly the staff reacts to things - positively or negatively, what he sees as youthful extremes of emotion. But he is thrilled with the relationship. He concludes," The young people I work with now will be settlers of that [digital] frontier, and I can't think of anything I would rather do than help them get there."

This story illustrates an excellent example of mutual mentoring, where mentor and mentee roles shift back and forth as appropriate. It becomes a comfortable process that benefits both parties or a group.

It's one type of what I call "3rd Wave Mentoring." I will be presenting a webcast for the West LegalEdCenter on this new wave of mentoring (including mentoring circles and other networked approaches) on December 16th. Contact me at pwhaserot@pdcounsel.com for more information.

Phyllis Weiss Haserot      www.pdcounsel.com

HOW ATTITUDES TOWARD ECONOMIC RECOVERY INFLUENCE BUSINESS TRANSITIONING

A new MetLife survey says the severe economic downturn has revised the retirement mindset for all generations. Better late than never (?) all generations regret their financial behavior pre-crisis. Amassing too much credit card or other debt was most prevalent among Gen Xers (54%); and Boomers more than others (22% to 17% for all Americans) regret insufficient diversification of assets.

Gen Yers expect the economic recovery to come sooner than other generations do. As a group, they expect the economic recovery for the country (29%) as well as for themselves (49%)  to come in less than 2 years, according to the survey. Older Boomers (over age 55) are the most pessimistic about their own financial recovery, probably because they have less time to make up for recent losses. 38% of younger Boomers believe their personal financial recovery will take at least 10 years.

These attitudes haven't translated into much action so far. 44% haven't done anything yet to change their retirement/investment behavior, probably owing to both inertia and confusion. 54% of Gen Yers haven't made any changes, and 45% said the financial crisis had little or no impact on them. Is this undue optimism, since job loss is high, along with salary cut-backs, and not showing signs of turning around soon? Or is it not knowing better, or the influence of an upbringing which told them they would be successful whatever the situation?

In the workplace, will the behavior and attitudes found in the survey mean an increasing divergence in opinion on how a business should make its investments in technology, training, risk management, etc.? Protective strategies vs. future investment at higher risk aiming at higher gains?

Will these differences make it more difficult to achieve smooth transitions of practices and clients from one generation to another? As individuals, according to the study, are increasingly realizing they need and are turning to financial advisers, will firms turn to advisers to help them achieve more harmonious, win-win transitioning that will benefit the firm overall, those who are leaving, and those who continue on?

Your thoughts?

Phyllis Weiss Haserot      www.pdcounsel.com

MORE ON GEN X LEADERSHIP GAP AND RETENTION DISCONNECTS

I have written frequently before about a looming Generation X leadership gap. Still another survey indicates that employers and employees are not on the same page about talent management and retention.

Research by Deloitte Consulting in a survey report released in August 2009, "Keeping Your Team Intact: A Special Report of Talent Retention"  finds that Gen X employees have the highest intention to leave their current jobs of the three most prevalent generations in the workplace after the recession is over. Those saying they are likely to stay: 37% of Gen Xers surveyed; 44% of Gen Yers; and 50% of Boomers. Yet only 9% of employers think Gen Xers are likely to leave when the recession ends. From the time they entered the workplace, Gen Xers typically had more of a freelance mentality than other generations, so their intention is not surprising.

The reasons for intended leaving also differ between employees and management expectations. Employers ranked "excessive workload" as the #2 barrier to retaining employees, but it was only ranked 10th by employees. The latter's chief factor for shifting employers was lack of job security. They ranked "lack of trust in leadership" as the 6th most important reason for leaving, but employers ranked it considerably lower. Gen Xers typically have lower trust in leadership and authority than other generations.

Gen Xers ranked "additional bonuses or financial incentives" as the most effective retention tactic (48%), while only 37% of corporate leaders saw it as the highest priority. Only 40% of Boomers ranked bonuses and financial incentives as the most effective tactic.

These findings again raise the red flag of a potential leadership deficit among the next generation to step into the Boomer leaders' shoes as they eventually leave the workplace. Gen X is a much smaller generation than either the Boomers or Gen Y/Millennials; many Gen Xers have a considerably smaller appetite for taking on the heavy, time-consuming responsibilities the Boomers were willing - even eager - to shoulder.

The potential gap has been masked by the recession. But as we come out of it, the urgency of planning for and training Gen X leaders will become increasingly apparent and urgent. Those firms that neglect this and take a short-term view will likely come up short in desired talent and needed leadership. It's time now to seriously examine how to keep an prepare those best able to lead the workforce of the future.

Phyllis Weiss Haserot   www.pdcounsel.com

BOOMER-GEN Y BUSINESS LINK: CLOSING THE DIVIDE FOR PROFIT

Despite the so-called Boomer-Gen Y gap, there is much evidence of natural similarities and synergies. This  belief is backed up by a recent survey by Knowledge Networks for the Center for Work-Life Policy. Laura Sherbin, an economist with the Center said the two generations work together well because they both want autonomy and flexibility.

As reported in "Finding a Guide for Online Networking" by Elizabeth Pope in the New York Times (October 15, 2009), the survey of 1,5 95 people indicated that 40% of older adults had asked their younger colleagues for help with text messaging, iTunes, and social networking. In fact, there is a distinct phenomenon developing for the web-savvy to help their elder colleagues or even strangers build second careers online. Since over 40% of Generation Y participates in online social media, according to the research, they sometimes pick up and refer job leads they come across online to their elders.

The Times article relates some examples of young people helping Boomers and Traditionalists start businesses online. One Boomer interviewed got help from people in their 20s and 30s that she met through her local Chamber of Commerce and BNI International. They even gave her advice on managing clients and setting fees.

What's great about this generosity of the Gen Yers is their eagerness to share information with not only their peers, but anyone who is interested in and appreciates their help. That's got to be an optimistic sign for the future of work. I love it! Let's all, as individuals and organizations, capitalize on this cross-generational collaboration, reverse and mutual mentoring.

Please share examples of this phenomenon whether personally experienced (other than with children) or observed in the workplace.

Phyllis Weiss Haserot   www.pdcounsel.com