Multi Generations Summary
Multi Generations Summary
Multi Generations Summary
A Summary of
Talking About
My Generation:
Exploring the Benefits Engagement Challenge
The full report includes:
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Overview of the report
For the first time in history, we are seeing up to five different generations in
the workplace. These generations share the same managers, rub shoulders
in the same spaces and collaborate on the same projects — but that is where
the similarities end. With the age gap between these individuals reaching up
to 50 years, we see just how far apart the values, drivers and needs of these
different generations can be.
Meanwhile, for the past decade, a “perfect storm” has been raging in the
workplace that has brought together a confluence of economic uncertainty, global competition,
falling prices, ubiquitous and ever-evolving technology, and shortages in staff and resources.
Throw in the changing “psychological contract” that now exists between different generations and
their employers, and it is no surprise that HR professionals are rethinking how they reward their
employees, looking beyond the “one size fits all” approach and assessing the effectiveness of
traditional flexible benefits.
In unpacking some of these issues, Barclays has commissioned Dr. Paul Redmond (pictured),
a leading expert on generational theory from the University of Liverpool, to conduct both
quantitative and qualitative research to uncover the financial aspirations, concerns and priorities
of today’s workforce.
Through the lens of generational science, the report provides human resources (HR)
professionals with a new and compelling way of thinking about how to use employee benefits
to more effectively engage with the different generations.
1 Wadee, Z., “Generations X and Y are different, so tailor your benefits accordingly,” HRM Magazine, 4 April 2011
3
The research explores these
five questions:
1 Dtheoesneeds
the current employee benefits structure suit
of the vast majority of the workforce?
4 Win illfivetheyears
current employee benefits structure be obsolete
as the generations in the workplace shift?
5 Bworkforce
uilding benefits packages for the multigenerational
— what’s the cost of getting it wrong?
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What does the report tell us?
Here is a selection of research findings taken from
the full report.
1 2
Does the current employee benefits How do these needs contrast and
structure suit the needs of the vast compare between the three key
majority of the workforce? generational groups?
The report highlights that current benefits Distinct generational characteristics have been
packages are too inflexible for today’s employees found to exist within the workforce, which are
especially apparent when looking at employee
• Six-out-of-ten employees claim that a benefits packages:
comprehensive benefits package is a key
factor when looking for a new job. • Baby Boomers (those born between 1945 and
1960) were the least demanding generation in
• However, 85% felt that their current employee terms of their employee benefits, with 71%
benefits packages failed to provide the support valuing their company pension scheme,
and flexibility required to meet present and 48% valuing health care and 57% valuing
future financial needs — a major finding opportunities for career development. Existing
suggesting that across the UK a serious benefits packages were found to benefit this
discrepancy exists between the needs of generation (after all, they designed them).
employees and the benefits packages provided.
• Generation X (1961-1980) wants work-life
• Despite recognising the value of work-based balance, and while 71% value their company
financial guidance, over 90% of employees pension scheme, 69% value flexible working
from all generations had no access to any form hours. Paying off the mortgage and spending
of work-based financial guidance. more time with the family are major concerns
for 41% of Generation X respondents, as is
saving for retirement (30%).
Financial education and
• Generation Y (1981-1995) is focused on
guidance in the workplace securing opportunities for career advancement
Generations X and Y are particularly and taking on more responsibility, with 64%
responsive to the idea of being able to citing ongoing career and personal
access financial education in a variety development as most important to them.
of ways including face-to-face in the Nearly two thirds (65%) seek financial
workplace. The report’s focus groups education and guidance, particularly because
discovered Generation X managers who Generation Y faces significant financial
were being kept awake at night worrying barriers, as 29% currently prioritise getting on
about pensions and mortgages, and the housing ladder and 30% paying off debts.
talented Generation Y professionals who
were resigned to not being able to afford a
mortgage until their early forties.
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Chart 1: An overview of the working generations
Maturists Baby Boomers
Characteristics
(pre-1945) (1945-1960)
Formative experiences Second World War Cold War
Rationing Post-War boom
Fixed-gender roles “Swinging Sixties”
Rock ‘n’ Roll Apollo Moon landings
Nuclear families Youth culture
Defined gender roles — Woodstock
particularly for women Family-orientated
Rise of the teenager
3% 33%
Percentage in
U.K. workforce*
Aspiration
Home ownership Job security
Attitude toward
Organisational — careers
career Jobs are for life
are defined by employers
Signature product
Automobile Television
Communication media
Communication
preference
Face-to-face ideally, but
Face-to-face
telephone or e-mail if required
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Generation X Generation Y Generation Z
(1961-1980) (1981-1995) (Born after 1995)
End of Cold War 9/11 terrorist attacks Economic downturn
Fall of Berlin Wall PlayStation Global warming
Reagan / Gorbachev Social media Global focus
Thatcherism Invasion of Iraq Mobile devices
Live Aid Reality TV Energy crisis
Introduction of first PC Google Earth Arab Spring
Early mobile technology Glastonbury Produce own media
Latch-key kids; Cloud computing
rising levels of divorce Wiki-leaks
35% 29%
Currently employed in
either part-time jobs or
new apprenticeships
Freedom Security
Work-life balance
and flexibility and stability
“Technoholics” – entirely dependent
Digital Immigrants Digital Natives on IT; limited grasp of alternatives
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3 4
Is the language and media used to Will the current employee
explain employee benefits appropriate benefits structure be obsolete
for the growing Generation Y in five years as the generations
workforce? In what ways could it in the workplace shift?
be better fit for purpose?
• Thinking about future employee benefits
• E-mail (45%) and staff intranet (41%) are still needs, each generation faces its own unique
the most popular ways for companies to obstacles and challenges. While dissatisfied
communicate their benefits to employees, with existing benefits packages, few
compared to seminars (20%) and one-on-one employees were able to see beyond their
meetings (13%). current benefits offerings.
• The result: confusion. One in five Generation Y • Although the majority (80%) of employees
respondents said that in the past year they have across all generations expect their employer to
been confused about what employee benefits provide a comprehensive benefits package, we
they have or are currently entitled to. found that relatively few employees have a
clear sense of the type of benefits package
• More than 50% of employees now use the that would best suit their future needs.
Internet when sourcing financial information. Helping staff visualise their future selves —
However, counter to claims about the rise of the particularly in terms of the financial challenges
“digital native” generations, our report’s focus they are likely to face in the future — can be
groups discovered widespread support for a highly effective way of overcoming
face-to-face interventions and personal this obstacle.
engagement particularly amongst Generation Y.
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5
Building benefits packages for the
multigenerational workforce — A toolkit for HR
what’s the cost of getting it wrong?
professionals
• 12% of Generation Y respondents are so
Understanding the generational
dissatisfied with their current benefits package
differences is a key business
that they have considered moving to a
imperative, particularly when devising
different organisation. This indicates the
and implementing organisational
emergence of a new Generation Y
engagement strategies. In a post-
“psychological contract” impacting how future
recession workplace, where employee
generations engage with their employers: The
loyalty is undergoing a fundamental
role of the employer will shift from being a
shift, what do employers need to do to
benefits “provider” to a benefits “enabler.”
ensure that they are meeting the needs
of all their employees, at every stage
• H
owever, the reward for offering the right
of their lives?
benefits packages to the right generational
groups can be significant. Research shows Workplace generations need and
that employees who are satisfied with their expect tailored benefits packages.
benefits packages are also more likely to be Based on generational profiles, the
loyal to their employers and engaged with full report provides broad suggestions
their organisations.2 on the products and methods of
communication for each generation that
• If tailored to the specific aspirations, priorities can help you begin your journey toward
and objectives of each generation, benefits greater employee engagement.
packages can be highly effective in enhancing
employers’ engagement strategies.
Organisations with high levels of engagement
have 40% lower employee turnover rates than
companies with low levels of engagement. In
addition, Total Shareholder Return (TSR) at
these organisations has been calculated as
being 42% higher than their competitors.
Employees with the highest levels of
engagement perform 20% above average,
while being 87% less likely to leave
their organisation.3
2 “Benefits and the coming employee retention crisis,” Trends E-Magazine, October 2011
3 P.A. Consulting, “Engaging your employees to drive superior organisational performance,” 2013
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Chart 2: Baby Boomer The New
Psychological Contract Psychological Contract
The full report includes
an organisation an organisation
psychological contract
— the unspoken
relationship between
employer and
employees — and the COMMAND FUNCTIONAL
emergence of a new
psychological contract. & control teams
Job for Job for
LIFE NOW
c a re e r c l a r i t y
(fixed term contracts)
p o r t f o l i o c a re e r
Employer- Employer-
provider enabler
RISING INCOME RISING INCOME
and security reduced security
Promotion Personal
& progression development
SAVE NOW SPEND NOW
spend in the future save in the future
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The full report, Talking About My Generation:
Exploring the Benefits Engagement Challenge,
is available from Barclays:
employersolutions@barclays.com
www.barclays.com/employersolutions
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report or any of the information, opinions or conclusions set out in the report. This document
is intended solely for informational purposes, and is not intended to be a solicitation or offer,
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Item Ref: IBIM2328 November 2014