Fifth-generation wireless technology, or 5G, is up to 100x faster than its predecessor and has low latency and increased bandwidth, enabling instantaneous real-time connectivity. The estimate is that there will be 432MM 5G connections in North America by 2029, and 5G is expected to contribute $1.5T to GDP between 2021 and 2025.Wireless service isn’t the only area where a fifth generation is making a splash. For the first time ever, five generations of employees are working alongside each other: the Silent Generation — born before 1945 (1%), Baby Boomers — born between 1945 and 1964 (15%), Generation X (Gen X) — born between 1965 and 1980 (31%), Millennials — born between 1981 and 1996 (36%), and Generation Z (Gen Z) — born between 1997 and 2012 (18%). This creates a diverse workplace that can provide community financial institutions (CFIs) with some challenges, but also a wealth of opportunities.Profiling the GenerationsRecognizing that there are generational differences, plenty of studies have attempted to profile the generations — mainly around values, communication style, work-life balance needs, and technology adoption. Broadly, most studies agree on the following attributes.
- Silent Generation. This group mostly values loyalty. They believe that jobs are for life and that individuals make their way up through the hierarchy. Face-to-face interactions are preferred, and they are less likely to engage with new technology.
- Baby Boomers. Hardworking and loyal to their employer, this generation values sacrifice to achieve success. They prefer picking up the phone and face-to-face meetings, whichever is most efficient. They are early IT adopters. Nearly half the cohort is planning to work beyond age 70. Many older workers are just as likely to work for camaraderie and mental stimulation as for money.
- Gen Xers. Known to be entrepreneurial, resourceful, and independent, this cohort rates personal professional interests above company interests. Work-life balance is important to them, as is efficiency in communications, and they favor emails, texts, or phone calls, as best suits the situation. They tend to be comfortable with technology, having grown up with the rise of PCs.
- Millennials. Open-minded, curious, and collaborative, this group seeks challenge and development opportunities in the workplace. The vast majority (nine in 10) are also looking for a sense of purpose in their work. As digital natives, they prefer email, text, and messaging apps over phone calls and in-person meetings, and they are likely to embrace new technologies eagerly.
- Gen Zers. The most diverse generation in history, they are said to be entrepreneurial and creative, and to value independence and individuality. Like Millennials, they grew up with smartphones and self-identify as screen addicts, preferring social media, texts, and instant messaging over other communication methods. About 86% of Gen Zers say they want to work for companies where they can learn skills to “advance their careers”.
Naturally, these profiles are stereotypes. They are helpful in providing context for likely preferences and the motivations of different generations in the workforce. However, it is important to recognize that different age groups also have much in common. Recent McKinsey research found that across the generations, employees value similar things — namely adequate compensation, career development opportunities, and caring leaders. Strategies for Leading a Multi-Generational WorkforceWe explore five strategies that CFIs could adopt to create a harmonious and productive working environment for all their employees, irrespective of generation:
- Be aware of generational differences. The first step to managing multi-generational workforces is to understand the potential strengths, weaknesses, and preferences of each group. It is key that everyone appreciates that each generation brings unique experiences that are valuable to the organization. Fostering collaboration across the age groups — with a mentorship program, for example — is one way of harnessing this.
- Focus on shared values. As the McKinsey study suggests, employees have more in common than we might think. Often, people have similar values but express them differently. Finding common ground, particularly in the more fundamental aspects of life and work, can help overcome any tension that might exist between the generations.
- Harness generational strengths. Baby Boomers’ experience could be invaluable in strategic long-term planning and projects that benefit from a historical perspective. Gen Xers could have a strong impact in leadership roles that require the ability to work independently and develop innovative ideas. Millennials will thrive when working with others to create positive outcomes for the organization. Finally, Gen Zers can make their mark by leveraging their technological skills and understanding of diverse experiences.
- Create a learning culture. The different generational skills are not only an asset to propel the institution forward, but an in-house knowledge pool to be exploited. For example, employees who might be less comfortable with technology can learn from the younger cohort, while more experienced workers can share their wisdom with their younger colleagues. Pairing the two can yield positive outcomes for all, such as reimagining old processes with new tools and capabilities.
- Adapt your leadership style. Knowing that different constituents respond differently to various communication styles, growth opportunities, and rewards, a tailored approach is likely to bring the best out in your workforce. For example, more traditional media, structured training programs, and formal rewards for the older generations, and messaging apps, instant feedback, and self-directed learning for the younger groups.
Working with multi-generational teams can seem like a challenge but by recognizing, valuing, and harnessing their differences, they can be your CFI’s greatest asset. However, it is also important not to be constrained by the perceived expectations of each generation and to rather get to know your team members on a personal level.
