Shortage of Gen Xers opens opportunities for millennials

The large population of Generation Y, also known as millennials, is overtaking the workforce — and may soon be running your business.

That's the assessment of Todd Thomas, a professor at the graduate school of business at Northwood University, during a seminar at the Automotive Aftermarket Products Expo in Las Vegas last November.

"My prediction of what's going to happen over the next 10-15 years, and is already starting to happen," he said, "is that those positions that are very senior right now — where the person in it might be 50 years old — the (person in that position) in a few years is going to be 35 because there is not enough Gen Xers."

In several years millennials will be the ones running the business, he told the audience of auto service shop owners and manager.

"And they're going to be doing it much younger and with less experience than the man before," he said.

The millennials, those ranging in age between 19 and 35, are the largest consumer group and soon will be largest employee group in the U.S., he said.

According to the U.S. Census Bureau, the U.S. workforce breaks down thus:

• Generation X (35-52 year-olds) — 42 percent;

• Generation Y (19-35 year-olds) — 37 percent;

• Boomers (53-70 year-olds) — 20 percent;

• Traditionals (over 70) — 3 percent; and

• Generation Z (16-19 year-olds) — 3 percent.

There are differences between the generations when it comes to work motivations and behaviors, but they also share similarities, he said, noting that it is important for managers to learn how to communicate between these generations.

Many boomers stayed longer in the workforce than they planned, along with some older traditionals. As they are now starting to retire, Gen Xers are trying to move into positions that the boomers are moving out of, he noted. But there aren't as many people in the Gen X generation and the larger Gen Y generation is following them into higher positions, he said.

Meanwhile, Gen Z is just entering the workforce.

"They have skills and they have abilities that they are going to bring to your workplace that, if you don't figure out exactly how to leverage those, you're going to miss out," Mr. Thomas warned.

"Working with different generations can be uncomfortable. It can be frustrating. But the problem is, every time that communication is less effective, it takes longer and it's misunderstood." And it can cost the business time and money, he added.

He said there is a confluence of: fewer boomers in higher level positions; fewer people of what traditionally is considered the appropriate age to fill those positions; and then a very large number of younger people waiting in the wings. So businesses will soon end up having much younger people moving into senior management positions, he predicted.

During his seminar, he provided what he admitted was a very generalized overview of each generation, noting that not all people in an age bracket will fit the generational description.

Traditionalist (70+ years old)

This generation mostly has retired from large corporations, but in smaller businesses there is still a large number of people in this generation working, especially if they own the business.

The traditionalists grew up during the Great Depression, World War II and other military conflicts. They generally have a deep respect for authority, like stability, work hard and developed a business hierarchy so everyone knows who they work for and what the rules are.

Baby Boomers (b. 1947-64)

This generation grew up during the social upheaval of Woodstock, the Vietnam War, the Cold War and political assassinations. Known as the "Me" generation, they work hard for self satisfaction and are more competitive. They believe the best person should succeed, tend to be optimistic because they were fairly self-sufficient growing up, like to go after goals and pursue personal growth to be better and more successful.

Gen X (1965-82)

There are fewer members of this generation, who grew up during Watergate, a growing cynicism of government leaders, the fall of communism, the women's movement and an increased focus on social issues.

Gen X, and some of Gen Y, grew up as latchkey kids, "so this group grew up pretty self-sufficient because they had to," Mr. Thomas said.

This group also grew up feeling like there's no such thing as job security. While traditionals and some boomers worked for one company throughout their careers, Gen X has seen layoffs and company closures disrupt a sense of job security.

They have adopted the attitude that if a job doesn't offer everything they are looking for, they are willing to work at a company for a while and then find another job that is a better fit.

Boomers called them slackers because they didn't share their priorities.

"Gen X watched the boomer generation go after material things, go after cool cars…and put them in their driveway and spend no time with their kids," Mr. Thomas said, noting "Gen Xers want their life to be a little bit different. So this group actually introduced the whole notion of work-life balance."

Gen Y/Millennials (1982-98)

They are global-centric and technology-savvy. They grew up with technology already in place and a view of the world as a small place.

They grew up during 9/11, Columbine and blogs. Random terrorism acts make them believe the future is very difficult to depend on. They value job satisfaction and opportunity more than they value money — but they want money to do things.

"They are more willing to be spontaneous and unpredictable because they see the world as more spontaneous and unpredictable. They're very accustomed to that. Technology changes and something you get used to changes, and they just grew up in that change environment," Mr. Thomas said.

"Gen Y, as a generation, is not very patient. They want to get it now; they want to get it immediately and, in most cases, they can (i.e. Amazon next-day shipping)."

This generation believes in sharing information openly, especially between and among departments in a company, to enable faster job completion, believing: "I could understand the business better if I had access to information about the business, which means I can act in a more effective way," Mr. Thomas said.

"You have to deal with this group. They are going to be a part of your life," he told business owners and managers. "This group is truly digitally native. They grew up as small infants being entertained with iPads; they had phones in their hands; they grew up with technology from the beginning. To ask someone of this generation to put down their technology is more profound than you think because it has always been there."

This generation also can access information very quickly thanks to the Internet.

"What this generation does is they research what they need at that moment and they use it and go on. Later on, if they forget, it's no big deal. They can pull it up again," he said. "So when you are looking at your business and the kind of people you're going to want to be working in there as they grow, than these are all important aspects of this particular generation."

Gen Z (1997-2018)

The newest generation to enter the workforce has grown up during social conflict over diversity, so they are usually more accepting of differences among people and more pragmatic than they are optimistic.

They do things for the purpose of doing them: "How do I use this right now? How does this help me right now? What do I get as a result of doing this right now?" Mr. Thomas said.

They also are highly aware of their personal brand. Even though it appears these young people share everything about themselves on social media, they are actually selective of what they share based on the impression they are trying to give.

They are aware of their brand and how they are presented to others, and diversity is a given for this group, Mr. Thomas said.

Similarities

While it may seem these generations have very different work philosophies and motivations, they also share many similarities, Mr. Thomas said.

"All generations want a sense of financial security and seniority and they want diverse co-workers," he said, based on research on what satisfies employees.

All employees like to follow people who inspire them, he noted.

"This is your challenge, if you're a manager or an owner of a small business, you have to figure out how do you create the environment that inspires the people who work for you?

"If I'm a boomer and I have Gen Ys working for me, creating an environment that's the one I like is not the one that helps them. And I need to stop and listen and figure that out."

Everybody wants to be treated fairly, but primarily people want to be treated fairly within their peer group, he said. Everyone likes to be recognized for their performance and they want to do work that provides some kind of personal satisfaction.

Gen Y and Z employees seeking job satisfaction may first have to do "grunt work" as a new hire, Mr. Thomas acknowledged.

"But if we want to keep them around for a while, we have to connect. We have to understand what things inspire them — and we all like to have a sense of purpose."

He admitted that these are broad generalizations but understanding the general differences among generations will help managers connect with their staffs.

Some management tips include:

• Make sure there is a collaborative culture in the workplace and an appreciation of the different generations of employees.

• Use multiple modes of communication as preferred by different generations, whether it's by phone, email, text, etc.

• Mentor and be mentored, regardless of age. Mr. Thomas said managers and older employees should be open to the idea that they have things to learn from all generations while at the same time offering the wisdom of their own experiences.

Gen Yers will probably have numerous jobs during their life — but they would like to work at the same company their whole career. They just don't believe they will find a company that will provide them with job satisfaction, he said.

"So don't give up on the other generation that they're going to leave you in three years. Find ways to connect with them so you can make it worthwhile. And the way we do that is to listen and to actually take the time to care," he said.