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Watch the Gaps
Protect against turnover and lost opportunities by recognizing the generation gaps

As a father of two daughters I have experienced the so-called generation gap first hand, and the way we communicate offers a perfect example of what I mean. I may be comfortable with a smartphone, but Samantha and Jacqueline treat the devices like appendages. And while I still default to phone calls and emails, they are more likely to tap a text.

Generational differences are hardly limited to households or electronics. Today's workplaces face gaps of their own, particularly as retiring Baby Boomers - those born in the post-war prosperity between 1946 and 1964 --  are replaced by members of generations X and Y.

Employers who respond to the differences between these demographic groups have a competitive advantage when looking to attract and retain the younger employees who represent the future of their organizations.

The fact that these differences exist is nothing new. Attitudes of a demographic group have always been shaped by shared experiences. Generation X, born between 1965 and 1980, developed its views about work when the promise of a job for life began to disappear. After watching parents lose careers despite decades of service, they adopted an approach of working to live rather than living to work. And Generation Y, born between 1981 and 2000, honed its skills in an era of electronics and social media. To its members, connections and discussions have always been just a click away. There should be little surprise that they expect feedback more frequently than older peers.

Ceridian's 3rd annual Pulse of Talent survey, which studied the attitudes of 800 working Canadians, shows just how dramatic the differences can be. Each generation has different expectations around career paths and rewards, researchers concluded. Employers who fail to adapt to the differences face the challenges of high turnover, lost revenue and missed opportunities alike.

Members of Generation Y were seen to place the highest value on flexible hours or a chance to work from home, but they are also looking to learn from their established peers. Sixteen percent want access to mentoring opportunities. These could be supported by the findings in another Ceridian report, which discovered that 57% of mature employees would like to keep working in some capacity. Fourteen percent of the oldest workers already stay on the job to contribute to society and 11% are looking to stay socially connected.

Employers who configure benefits plans to support the aging employees, retaining them in the workplace, will be in the best position to connect the generations.

The need for mentorships is not limited to Generation Y, either. Thirty-five percent of Generation X employees wanted more training options, and 22% were interested in taking a leadership role. They may simply need more support than they understand.

"Generation X and Y workers are thought to be more than willing to step into senior-level roles that demand delegation and people management, but that doesn't automatically mean they're ready," concluded Ceridian's Second Wind: The Evolving Nature of Retirement. "Mature workers can help develop and shape the supervisory skills of younger workers, and increase their familiarity with the challenges and rewards of managing a multi-generational workforce."

But approaches to compensation may represent some of the biggest differences between the demographic groups, the Pulse of Talent survey shows. While money and wages are always important, 74% of the surveyed members of Generation Y preferred non-monetary performance rewards. In contrast, only 56% of boomers said the same thing. Personal days off was the most popular option across all generations, with about 20% preferring free meals or event tickets. Another valued reward came in the form of technology such as a smartphone or tablet, particularly for members of Generation Y.

The younger group's love of technology can play another role in the business. Forty-one percent of Generation Y said they use social media sites to promote their company. This can generate everything from sales leads to finding new recruits. But 12% of Generation Y employees are also likely to use the same tools to complain about an employer or a bad performance review.

The companies which offer the most welcoming workplaces - strengthened through flexible benefits plans and other support - are in the best position to avoid a threat like that.

As a final note, let me offer you a Happy New Year, with wishes for a healthy and prosperous 2014.

Is there a topic that you would like me to address in a future edition of the Buzz? A burning question about benefits plans that has always been hanging over your head? Let me know. Drop a quick email to billz@callerygroup.com.

Top Tips:

  • Each generation has different expectations in terms of career paths, rewards and communication. Recognizing the differences - and structuring benefits accordingly -- can protect against high turnover and lost business opportunities.
  • 74% of Generation Y members prefer non-monetary performance rewards. Don’t overlook the value of personal days off, free meals or event tickets as retention tools.
  • 16% of Generation Y workers are looking for mentors. Employers can use benefits plans to retain the experienced employees to support this need. After all, 57% of mature workers want to continue working in some capacity.

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All rights reserved. All of the content herein is the sole property of the Callery Group, and may not be reproduced, transmitted, or stored in a retrieval system - in whole or in part - without the written permission of the Callery Group. Links to the originating article at www.callerygroup.com are permitted.

The Buzz Bits
Miscellaneous links to interesting benefits information

The Benefits of Benefits: Benefits Canada

You’re Not Covered: CBC Marketplace

Generation Next: Smallbizadvisor – by Bill Zolis

Making the Case for Investing in Mental Health in Canada: Mental Health Commission of Canada

Minding the Gaps -- The Changing World of Travel Insurance: smallbizadvisor

Community Ethics, Big City Expertise

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