Many of today’s businesses employ workers from across the generational spectrum. Employees may range from Baby Boomers to members of Generation X to Millennials to the newest group, Generation Z.
Managing a workforce with a wide age range requires flexibility and skill. If you’re successful, you’ll likely see higher employee morale, stronger productivity and a more positive work environment for everyone.
Definitions of the generations vary slightly, but the U.S. Chamber of Commerce Foundation defines them as follows:
- Members of the Baby Boomer generation were born from 1946 to 1964,
- Members of Generation X were born from 1965 to 1979,
- Members of the Millennial generation were born from 1980 to 1999, and
- Members of Generation Z were born after 1999.
Certain stereotypes have long been associated with each generation. Baby Boomers are assumed to be grumbling curmudgeons. Gen Xers were originally consigned to being “slackers.” Millennials are often thought of as needy approval-seekers. And many presume that a Gen Zer is helpless without his or her mobile device.
But successfully managing employees across generations requires setting aside stereotypes. Don’t assume that employees fit a certain personality profile based simply on age. Instead, you or a direct supervisor should get to know each one individually to better determine what makes him or her tick.
Here are just a couple best practices for managing diverse generations:
Recognize and respect value differences. Misunderstandings and conflicts often arise because of value differences between managers and employees of different generations. For example, many older supervisors expect employees to do “whatever it takes” to get the job done, including working long hours. However, some younger employees place a high value on maintaining a healthy work-life balance.
Be sure everyone is on the same page about these expectations. This doesn’t mean younger employees shouldn’t have to work hard. The key is to find the right balance so that work is accomplished satisfactorily and on time, and employees feel like their values are being respected.
Maximize each generation’s strengths. Different generations tend to bring their own strengths to the workplace. For instance, older employees likely have valuable industry experience and important historical business insights to share. Meanwhile, younger employees — especially Generation Z — have grown up with high-powered mobile technology and social media.
Consider initiatives such as company retreats and mentoring programs in which employees from diverse generations can work together and share their knowledge, experiences and strengths. Encourage them to communicate openly and honestly and to be willing to learn from, rather than compete with, one another.
A competitive advantage
Having a multigenerational workforce can be a competitive advantage. Your competitors may not have the hard-fought experience of your older workers nor the fresh energy and ideas of your younger ones. Our firm can help you develop cost-effective strategies for hiring, retaining and maximizing the productivity of employees.
© 2020 Covenant CPA
“Company culture” is a buzzword that’s been around for a while, but your culture may never have mattered as much as it does in today’s transparency-driven business arena. Customers, potential partners and investors, and job candidates are paying more attention to company culture when deciding whether to buy from a business or otherwise involve themselves with it.
To determine whether yours is optimal for your long-term goals, you must look in the mirror and identify what type of culture you have. University of Michigan professors Robert Quinn and Kim Cameron have developed the Organizational Culture Assessment Instrument, which defines four common types:
1. Clan. These are generally friendly environments where employees feel like family. Clan cultures emphasize teamwork, participation and consensus. Such companies often have a horizontal structure with few barriers between staff and leaders, who act as mentors. As a result, employees tend to be highly engaged and loyal. Success involves addressing client needs while caring for staff. Clan culture frequently is seen in start-ups and small companies with employees who have been there from the beginning.
2. Adhocracy. Adhocracies are dynamic, entrepreneurial and creative places where employees are encouraged to take risks, and founders are often seen as innovators. They’re committed to experimentation and encourage individual initiative and freedom — with the long-term goal of growing and acquiring new resources. Success, therefore, is defined by the availability of new products or services. Think Facebook and similar technology companies that anticipate needs and establish new standards.
3. Market. These cultures are results-driven and competitive, with an emphasis on achieving measurable goals and targets. They value reputation and success foremost. Employees are goal-oriented while leaders tend to be hard drivers, producers and rivals simultaneously. Market share and penetration are the hallmarks of success, and competitive pricing and industry domination are important. Examples include Amazon and Apple.
4. Hierarchy. Hierarchical businesses have formal, structured work environments where processes and procedures dictate what employees do. Smooth functioning is critical. Companies strive for stability and efficient execution of tasks, as well as low costs. Leaders seek to achieve maximum efficiency and consistency in their respective departments. Hierarchical culture is common in government agencies and old-school businesses such as the Ford Motor Company.
Bear in mind that most companies exhibit a mixture of the four styles, with one type dominant. If you fear your culture is inhibiting you from achieving strategic objectives, there’s good news — cultures can evolve.
Although making widespread changes won’t be easy, no business should accept a culture that’s hindering productivity or possibly even creating liability risks. We can assist you in assessing your operations and profitability to help you gain insights into the impact of your company culture.
© 2019 Covenant CPA