Hewitt Quarterly - Vol. 6 Iss. 3

There is a lot of information, theory, and
speculation concerning generation differences.
We often receive the question, "how can I
motivate my millennials or my gen-Xers? Aren't
they driven by different engagement drivers?"

At Hewitt, when we think of employee groups, we go beyond standard categories such as generation, age, and gender. For meaningful and actionable differences, we have taken a cue from customer research and segment employees based on their values, behaviors, engagement levels, and drivers.

Ted Marusarz, Employee Research at Hewitt, says: "Product developers have learned that if you try to create a product for everyone, you actually put yourself at a disadvantage - you often create one that is everyone's second or third choice."

A Recurring Question: Millennial or Twenty-Something?
What drives the differences in employees? Is it the need for a sense of accomplishment among younger employees, or is it an age-based characteristic common to each generation of employees passing though its twenties? Put another way, when is a millennial really a 'Millennial' rather than a twenty-something?

These questions focus on the frequently overlooked difference between "generation effects" and "age-effects." The popular press regularly announces the arrival of each generation and how its distinct set of values will forever change society and the workplace. But these distinguishing values often have an uncanny resemblance to the values of the previous generation.

They postulate that Millennials can be demanding, impatient, and resent command and control management, and they value off- the-job pursuits, fun, individuality, meaningful work, and clear and timely feedback - which, it turns out, makes them just like the generations of twenty-somethings that entered the workforce decades before them .

Announcements of the latest generation's arrival are followed in a few years by a more sober second look that informs us that the [fill in the blank] generation wasn't different after all. So the tune-in, turn-on, drop-out Boomers, whose arrival ushered in the term "generation gap," embraced its elder's values by the mid- 1980s and is known today as the generation that lives to work.

Similarly, the Boomers' successors, Generation X, once thought of as "slackers" and "whiners" whose lives were "always stuck in second gear", is subsequently recognized for its competitive, go-getter qualities and, of course, goes on to toil untold hours writing the code and doing the deals that fueled the dot.com boom.

We often find more differences within a generation or age group, and many similarities across generations and age groups. After all, your daughter is addicted to her iPod. but your grandmother may well be, as well.

Workforce Segmentation
Engagement research does identify trends by demographics such as age. A common finding, for instance, is that younger employees are often less engaged and their engagement is typically driven by factors such as a heightened need for a sense of accomplishment.

Contrast that with greater need for work/ life balance among middle-age groups and the importance placed on strong senior leadership by senior employees.

But interpretation of these trends is another matter, and interpretation makes the difference in effective talent management.

Tim Harris, Analytic Consultant at Hewitt, says: "Though many view the world through generational lenses, in our experience, generations are often confused with age and age-driven factors like career and life stages."

The resulting talent strategy overplays the importance of generations, and their impact on organizations and many demographic categories only go so far. If you want to engage your people, segment by the differences that matter.

Segmenting by What Counts Most
What really matters - more than age, generation or life stage - is what drives employees' engagement. For that reason, we often find more compelling and actionable insights by segmenting employees by the set of values, drivers, and behaviors that impact their engagement.

In Hewitt's Workforce Engagement ProfileT work, employees typically fall into five or six engagement segments or clusters, based on the set of drivers that define their needs and how they relate to their work and employment. Table 1 describes our Workforce Engagement Profile.

Age and Generations Viewed Through the Workforce Engagement Profile
When age and generation are viewed through the Workforce Engagement Profile, what is most notable is that their influence is secondary in importance. No age or generational group defines any of the engagement segments, and employees of all generations are likely to be among the segments.

Noteworthy patterns exist by age, generation, and life and career stage - but in every case the differences are more pronounced within these groups.

Two distinctly different engagement segments, Disenchanteds and Unrealized Potentials, have a higher share of younger employees: those starting out in their careers. But the similarities stop there.

The Disenchanteds tend to be short-tenured employees in frontline jobs offering limited mobility. It's not surprising that they are driven by factors other than career opportunities.

Unrealized Potentials are more disengaged and frustrated, the result of a mix of higher educational, yet-to-be-realized career ambitions and less fulfilling work.

Among older employees, two distinctly different engagement segments have a higher representation: Enthusiastic Supporters and Detractors. Although similar in age, the two groups are polar opposites.

Enthusiastic Supporters are highly engaged, second only to Passionate Advocates, and committed to the organization and its goals. Detractors are woefully disengaged and a drag on the rest of the organization.

Segmentation with a Difference
Managers recognize the value of segmentation in talent management because they know that employees in a particular gender, generation, or age group are not all alike and won't be engaged by the same methods.

The challenge is to understand the segments and what drives their behaviors.

Instead of focusing on demographics that fail to distinguish, focus on segments that have common value and needs. In other words, identify who has an iPod, how they feel about it, and why.

Understanding these differences allows organizations to target the right talent strategies to the right group of individuals.

For further information and to understand how Hewitt's Workforce Engagement Profiling can re-invigorate your talent strategies, contact
ted.marusarz@hewitt.com or tim.harris@hewitt.com

Workforce Engagement ProfileT:

Six Distinct and Actionable Segments

Passionate Advocates are highly engaged, know what's expected of them, and are committed to the organization's goals. They are positive and find challenge and a sense of accomplishment in their work. There is moderate upside to increase the engagement of this group so the effort is made to maintain engagement. All ages and generations are equally represented among the Passionate Advocates, the largest of the six segments. Managers and new hires are slightly over-represented.

Enthusiastic Followers are also highly engaged. They are committed to the organization and its goals, but they feel frustrated by a lack of resources and poor work processes which they believe limits their productivity. Burnout is a risk because the effort they make to overcome resource limitations takes a toll on work/life balance. Though all ages and generations are included among Enthusiastic Followers, employees 35 years and older - and the Boomers, in particular - are more represented in the segment.

Under-Rewarded Supporters are engaged on the whole, but less so than Enthusiastic Followers. They like the company and its leadership, but feel that the two-way employment deal works one way. They view their commitment and support of the organization is not sufficiently rewarded or recognized. Focusing on these drivers moves them into more highly engaged segments. All ages and generations are equally represented among the Under-Rewarded Supporters. Team leaders and employees with post-graduate degrees are more heavily represented.

The Disenchanted are as likely to be engaged as disengaged. They like what they do, but think work processes get in the way, and they don't trust the organization's leadership to keep its promises. Providing greater influence in the workplace and evidence that they are valued increases their engagement. The segment includes proportionately higher shares of younger employees, particularly age 24 and under. They also have higher shares of employees in front-line roles with short tenure.

Unrealized Potentials are, on the whole, disengaged. Though they feel the organization is a good place to work, they personally feel under-utilized and under-appreciated, and see their progress as blocked. They tend to be a more educated group, often recently hired, and frustrated by yet-to-be-realized career ambitions and unfulfilling work. The segment includes proportionately higher shares of younger employees.

Detractors are woefully disengaged, and have little faith in the organization or respect for its leadership. Whether through passive compliance of "working to the book" and "withdrawing enthusiasm" or through an open acting-out, their negative presence is a drag on their co-workers and the organization. Though all ages and generations are included among Detractors, employees 35 and older are proportionally more heavily represented in the segment.

Workforce of One

There is a lot of information, theory, and speculation concerning generation differences. We often receive the question, "how can I motivate my millennials or my gen-Xers? Aren't they driven by different engagement drivers?"

Workforce Engagement ProfileT:

There is a lot of information, theory, and
speculation concerning generation differences.
We often receive the question, "how can I
motivate my millennials or my gen-Xers? Aren't
they driven by different engagement drivers?"