Next Generation Next Destination

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

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

TRANSITIONING AND THE "CAREER BUCKET"

Periodically I like to post about surveys and other happenings from the Encore Careers blog of Civic Ventures. The latest newsletter and blog features the results of their latest survey on ageism and career opportunities for Boomers. It found some surprising things about what Boomers are and are not willing to do to make themselves attractive for new positions and some unsurprising results as well. Take a look.

Check out some other interesting items there on the psychology of midlife transitions (whatever "midlife" is), where the jobs are, and what interesting and legacy-building jobs and activities members of the Boomer generation are undertaking for reinvention, fulfillment and giving back.

Phyllis Weiss Haserot     www.pdcounsel.com

CLIENT-CENTERED MULTI-GENERATIONAL SUCCESSION PLANNING

Survey fact: Many surveys of HR professionals have found that respondents recognize succession planning as a high priority concern.

Survey fact: Those same HR professionals admit that very little is being done to address it.

In a survey of companies in the northeast U.S. by Right Management and Practice Development Counsel (summer 2008), only approximately 9% of respondents said that a knowledge transfer process is in place. How will they survive if the creative class of Baby Boomers walks out, voluntarily or involuntarily, with their knowledge cache of skills, expertise, judgment and relationships?

What are the threats to a firm's client-centered, multi-generational succession planning?

Phyllis Weiss Haserot     www.pdcounsel.com