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NEWS
Communication Styles and Incentives Part of a
Generational Mix to Lift Productivity in
Engineering Industries

April 2010 Kuala Lumpur | How do the different generations get along in the workplace? What are the things that divide them? And, does it matter? The impact of generational differences on workplace culture has been much discussed in recent years. The purpose of this latest research is to assess what employees themselves think about generational diversity and how it affects organizational performance. The survey, by global workforce solutions leader Kelly Services®, examines attitudes among Gen Y (age 18 – 29), Gen X (age 30 – 47), and baby boomers (age 48 – 65).

Introduction
Almost everyone has a story about a work colleague from a different generation. It seems that every generation has a host of stereotypes to throw at their older or younger counterparts. In general, each generation seems to portray those outside their age group as less hard working, less efficient, and more prone to quirky behavior. Yet the latest findings of the Kelly Global Workforce Index show that while attitudinal differences across age groups of workers in the engineering sector can cause conflict, most employees see them as enhancing or having a neutral impact on productivity. The survey obtained the views of nearly 100,000 people in 33 countries including almost 6,000 in the engineering industry across North America, Europe, and the Asia Pacific region.

What the Survey Found
Across the global engineering sector, the main findings of the survey are:

Understanding the Generation Gap
With many years of media focus on the so-called generation gap, perhaps it’s not surprising that
almost eight out of 10 engineering employees surveyed say they understand differences between
the generations. This perception is higher among baby boomers (85%) than Gen X (81%) and Gen Y (75%).

This may suggest that older workers feel they better understand the situation faced by younger
generations, based on their own background and life experience.

It may be that many younger workers are a little perplexed by the behaviors of their more mature
counterparts and genuinely do not understand how they fit into the workplace mix. Some might say that it reinforces the widespread perception that Gen Y employees are more self focused than their older counterparts.

The idea that Gen Y employees want to shape their jobs to fit their lives rather than adapt their lives to
the workplace is sparking calls for greater engagement by their (mostly) baby boomer managers.

The survey finds Gen Y and Gen X engineering employees may be more accommodating in adapting
their own communication style than baby boomers realize.

Intergenerational Conflict – a Significant Issue
Employee conflict is a potentially serious issue in almost every workplace with its ability to damage
productivity, erode a company’s reputation as an employer of choice, and lead to litigation in some
cases.

Some 48% of employees say they have experienced intergenerational conflict, with Gen X and Gen Y the
most affected.

Age Diversity and Productivity
There is considerable uncertainty as to whether generational diversity leads to a more productive
workplace. A total of 42% say it has a positive impact on productivity, 28% say it interferes with productivity, 22% say it makes no difference, and the remainder (8%) are undecided.

Gen Y and Gen X (both 42%) are the most positive when it comes to the productivity benefits, followed
by baby boomers (39%).

In short, well over half of the workforce does not believe that the grouping of different ages in the
workplace produces any positive benefit. The ambiguity among all age groups on this critical
question of productivity demonstrates a deep-seated, if largely unstated, problem; there is a high degree
of shared concern that the generational melting pot is not working as it should.

This may stem from inequitable work practices or a lack of an effective team-building culture. When viewed internationally, there are wide variations in how engineering employees feel about the productivity benefits of different generations. Countries including France, Portugal, Sweden, and
Germany have a noticeably inclusive approach while others such as Hong Kong, Thailand, and Finland are yet to be convinced.

The Human Touch is Still Critical
There are a myriad of stories about the experiences of those who have involved themselves in lengthy
and often misinterpreted e-mail conversations with someone sitting at a workstation that was just a 30-
second walk away. Most workplaces invest heavily in new technology systems to make internal communication quicker and clearer and information more easily retrievable.

While this investment has been seen by most organizations as inevitable, it may be time to
carefully consider how they use these tools, especially for employee peer communication.
An overwhelming number of employees (81%) nominate face-to-face discussion as their preferred
means of communicating with colleagues and coworkers. This preference is slightly higher among
baby boomers (85%), but is consistent across Gen Y and X (both 80%).

Instant messaging has been seen by managers as a fast and cheap way of communicating common
information directly among aligned groups of employees, but there appears to be little enthusiasm
for it among survey respondents (2%). This contradicts the view that Gen Y, who are widely
known for their use of instant messaging in social scenarios, prefer instant messaging in the workplace.
Even written correspondence (14%) is far less popular than face-to-face discussion, and phone and
voicemail ranked poorly at 3%.

When faced with a challenging workplace environment, many employees will at least try and
match their behavior to fit the prevailing culture, and so it is between the generations.
Some 75% of employees do adapt their communication to accommodate age differences,
indicating a willingness on all sides to make intergenerational workplaces successful. Younger
workers are more likely than baby boomers to do so.

Rewards Not Matching Expectations
Employee reward and recognition schemes have become increasingly prominent in driving productivity. Employers have enthusiastically linked them to individual performance goals, seeing this as
a tangible way of rewarding employees who contribute to collective success. Engineering employees are sending a clear message that employers are not rewarding them in ways that meet their hopes and expectations. Half of engineering employees are dissatisfied with the rewards and recognition they receive from management. This escalates with age, from 47% of Gen Y, to 52% of Gen X, and 55% among baby boomers.

When it comes to receiving rewards and bonuses, 56% of employees express a preference for traditional monetary rewards or promotions, while 33% nominate non-cash incentives such as time off
work or training opportunities. All generations prefer cash over non-cash rewards, although baby boomers are somewhat more attracted to non-traditional forms of rewards and bonuses.

Conclusion
Diversity across many cultural and business dimensions has become a hallmark of the modern workplace. Employers want to draw on the best employees across a range of backgrounds, because
they generally understand the benefits that accrue from a homogenized workplace. Managing the skills, expectations, and aspirations of each can mean the difference between being a stable and profitable employer of choice and a dysfunctional workplace.

Employees are acutely aware of the cultural, experiential, skill-set, and communication differences
between generational groups. Many have experienced workplace conflict arising from these
differences, but most see this diversity either as a neutral factor or a positive driver of productivity.
Most employees do go to some length to adapt the way they communicate with colleagues from a
different age group.

New information channels have enabled faster, but not always more effective, communication in the
engineering sector. New channels should be integrated with traditional communication (like faceto-
face contact) according to the level and complexity of information being imparted. Understanding the magnitude of generational differences and managing the expectations of the various groups are not simple tasks but can significantly enhance organizational performance.