Generational Differences and Motivation

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Introduction

Motivating employees is one of the main challenges that managers face these days. 79% of managers believe that this is their most important task (Longeneker, 2011). This task, however, is not an easy one, as managers cannot use a single policy to motivate everyone. Every employee has different needs, and due to the increasing life spans, the diversity of employees in the workforce is becoming more diverse than ever. Unless managers know how to cater to the different needs of the people, it is very difficult to please everyone in the workforce. Thus, it is vital for any organization and its management to learn, adapt and apply practices that attract these employees and help them stay motivated at work. The unrest about the so-called ‘generation gap’ is on the rise, and some believe that it is constantly widening. In this essay, we will discuss how a diverse workforce and motivation are interlinked. Whether each generation is motivated differently, would help managers develop an effective system to motivate their employees. Currently, the global labor force is comprised of four different generations, The Traditionalists, Baby Boomers, Generation Xers, and the Millennials. In this essay, we will not be discussing traditionalists, as they are a very rapidly declining part of the workforce, with the majority of them already retired.

A generation can be defined as an ‘identifiable group that shares birth years, age, location and significant life events at critical development stages’ (Cennamo & Garden, 2008). Each generation has, therefore, different beliefs and viewpoints, as they grew up under different sets of circumstances. These different generations also have different sets of values and traits, which are discussed below:

Baby Boomers: This generation was born between 1946 and 1964. This generation was the largest to date. However, in the coming years, due to their age, most of the Baby Bloomers would be retiring. They grew in a time where gender equality was becoming more predominant. They were raised by parents who stressed the importance of hard work and responsibility. Traits of this generation include loyalty, faithful, patriotic and conservative. Values of Baby Bloomers include integrity, community work, make a name for themselves (When Generations Collide….2010)

Generation X: This generation was born between 1965 and 1981. They are a predominant part of the current labor force, as majority of them are actively participating in it (When Generations Collide….2010). This generation entered the workforce during the economic downturns of the 1970’s and 80’s. This led them to see their friends and family suffer from job losses. Due to this many Xers took jobs below their skill level. They were also the first generation to experience technology, like the internet, video games and the home PC. According to the study “When Generations Collide….2010” this generation has certain traits and values. Their traits include independence, innovation, being resourceful and adaptable. Their values are entrepreneurship, growth opportunities and teamwork.

Millennials: This generation was born between 1981 and 2000. Millennials are the newest generation to join the work force. They are one of the quickest growing segments of the work force, due to which managers may ask what makes this group distinct from the previous generations. This generation is the “largest demographic bulge since the Baby Bloomers” (Aschoff, 2006). A global research company, Universum Communication said that companies seeking information about this cohort increased 45% over a six-month period (Gerdes, 2006). Millennials value accountability, project management, diversity and team work. Due to the age they grew up in, they are heavily reliant on the use of technology. Their traits include tech-savvy, environmentalists, realistic and globally concerned (When Generations Collide, 2010).

It is apparent, that so many differences can create problems in a workforce where all the generations work together. Workplace motivation is one of the main areas where these generational differences may be seen. In the following paragraphs, we will also discuss how these differences affect workplace motivation, and how the managers should apply the relevant motivation theories.

Literature

The motivation level of a worker will be directly linked with their current life situation, career, age, and the outside environment. For example, stable employment and high salaries often rank high among all generations during times of economic distress. During an economic boom, workers tend to take these factors for granted. To keep the workforce motivated, managers should know their employees and use different motivation techniques as each worker has different expectations from their employers. Retaining talent and developing them are the goals of every organization, and to meet them, managers must understand the requirements of today’s diverse workforce. As if the employees are not motivated, not only would it be difficult for the company to retain them, but it also has an employee population that is not as productive as it could be. This would eventually lead to a low quality of work done, which would be detrimental to any company’s success. A study by talent assessment firm SHL found that employees with a lack of motivation had multiple destructive side effects (Tailor Motivation…, 2009). Workers become distracted, complacent and less productive. Forty-three per cent of workers polled agreed that a lack of motivation caused them to procrastinate on the job. Also, nearly a third of workers polled in the study stated that a lack of motivation would lead them to search for a new job. (Tailor Motivation…, 2009).

Longeneker defines motivation as the inner drive to satisfy needs (Longeneker, 2011). It is logical to believe that a person will expend effort if it results in the satisfaction of a need (Longeneker, 2011). One recent theory argues that there are four indicators to measure workplace motivation: engagement, satisfaction, commitment, and intention to quit (Nohria, 2008). Engagement can be defined as an employee’s efforts that are put into the job. Satisfaction is based on the employee’s expectations of a company and whether they are met or not. Commitment is the connection and dedication an employee feels towards the organization. Lastly, intention to quit referring to the employee’s plans of remaining with the organization (Nohria, 2008). For this essay, the focus will be motivation for the entire job rather than the motivation for a specific task, even though motivation profiles are developed by employees, meaning they are more motivated for the performance of some tasks than others (Stamov-Roßnagel, 2010).

Motivation theories are a toolkit for managers, and if used effectively, can help increase the productivity of workers. Motivation theories can be divided into three main categories: Content, which shows how workers are motivated. These include theories by Maslow, McGregor, and Herzberg. Process theories show the actual process of motivation and include the expectancy and equity theory. Finally, expectancy theories are goal/attribution theories and show how a person can motivate others. This theory entails with job enrichment. In the following paragraphs, we will discuss the above-mentioned theories and try to determine how managers can apply them to a diverse workforce.

In the late 1940s, the Hierarchy of Needs which states the order of satisfaction of needs based on importance was developed by the American psychologist Abraham Maslow (Maslow, 1948). The first needs to be satisfied will be the most basic. After those, other needs will be the focus. These include physiological, safety, social, esteem and self-actualization. Maslow states that the order of importance of needs will vary from person to person since everyone is different. Due to this assertion regarding differences across the population, this theory could be taken along with the theory of the generation gap.

McGregor came up with his Theory X and Y approach to motivation in the 1950s. Theory X asserts that employees are inherently lazy and must be coerced by management to work (McGregor, 1972). On the other hand, Theory Y asserts that people have the desire to work and will seek out responsibility. According to Theory X, authoritarian management is required whereas Theory Y suggests a style of management that is participative, and employees are not solely coerced by rewards to work. (McGregor, 1972) In this theory, the perspective of the management defines employee motivation and how it affects development depending on how management views employees. From the theory X point of view, it’s likely that the morale and motivation of the employees are not addressed and will suffer. This is specifically true for Millennials as they desire a participative style of management and want to be involved more in the decision-making processes.

Herzberg took a comparatively different approach to both Maslow and McGregor. He developed the Motivation-Hygiene Theory, which looks into the factors that help employees to motivate themselves. These factors are categorized into two groups: motivators and hygiene factors. (Herzberg, 1974) His theory presents that hygiene factors create discontent in the workforce. These include salary, status, supervision, company policy, working conditions, and security. Motivators cause employees to be motivated to work. These include meaningful work, achievement, growth, recognition, responsibility, and advancement. (Herzberg, 1974) Herzberg claims that the highly motivated employee does not care about things such as time off and salary because that worker wants to come to work even if the salary is not high. According to Herzberg’s theory, for the creation of a motivated workforce, motivators should be maximized, and the influence of hygiene factors should be minimized. Herzberg is an ardent advocate of job enrichment versus job enlargement. He asserts an enriched job, one with purpose will bring out the best in an employee as opposed to an enlarged job with no meaning. As we explained how Millennials were raised above, hygiene factors would be more important to them than the other generations.

Job enrichment theory deals with job satisfaction and helps how managers can keep their employees satisfied with the work they are doing. This is not the same as motivation, it is more of an attitude. With the different traits that each generation has, each generation would see job satisfaction from a different perspective.

Findings

A study by SHL found that millennials are motivated by interesting work, a friendly work environment and healthy company culture (Tailor Motivation…., 2009). Millennials prefer meaningful work over a promotion or a raise. They attribute this as a success, rather than being promoted to a certain position (Goodman, 2006). They value personal fulfilment on the job. The above information indicates that Millennials value the motivators put forward by Herzberg. This could be possible due to the global and environmental issue that they have witnessed growing up. They also have drive to bond with their colleagues because they are always connected, owing to the growth in technology. A study conducted by Robert Half International (RHI) enabled it to provide specific tactics and strategies for retaining and recruiting members of the Millennial generation. The study found out that the top career concerns were financial security, job stability, and career satisfaction listed as most important to least important (“Generation Y” 2008). The first strategy suggested by RHI was to “make them an offer they can’t refuse” (“Generation Y” 2008). This means that employment offers that look into the main career concerns of this generational cohort must be provided by companies. The next strategy is to “put yourself in their shoes when thinking about benefits” (“Generation Y” 2008). This suggests that the success of managers depends on the benefits that they provide and whether millennials would consider them important or not. These benefits include “healthcare coverage, paid vacation, dental care coverage, 401(k) programs, bonuses, and flexible work hours/telecommuting” (“Generation Y” 2008). The third strategy is to “show them how they can grow.” The importance of a workplace environment and organisational structure in which they can expand their skills is very important. Aspects such as challenging and diverse work assignments, mentoring programs, and the cultivation of reciprocal work relationships are some of the environments discussed (“Generation Y” 2008). Lastly, RHI recommends that organizations “get the word out” (“Generation Y” 2008). Due to the substantial use of technology by younger generations, organizations cannot rely on old-school recruitment tactics that may have been effective in the past. The internet should be utilized using social media, blogs, podcasts etc. and an online image of the company should be provided giving a clear idea of what millennials would experience if they worked there. (“Generation Y” 2008). Companies are more likely to attract employees that will be successful once hired by reaching out to millennials through modern channels.

Business week conducted a survey and found that Generation X workers value monetary rewards more. This is mainly because during their childhood they saw their parents struggle financially during times of economic distress (Erickson, 2008). Thus, we can say that Generation Xers are more in touch with the hygiene factors compared to the other drives of motivation. This would contradict Herzberg’s theory. This generation also gives value to having different options in their careers. According to Cam Marston, a consultant on multi-generational issues, Generation Xers desire work-life balance, and fancy rewards in the short term over the long term. For example, rather than giving them a bonus at the end of the year, the managers could reward them with a long weekend after a hard and productive week at work (Goodman, 2006). Baby boomers are motivated when they see they are respected, valued and appreciated in the company (Jaworski, 2010). Due to this they highly value promotion, training, and career development opportunities. Baby boomers do not like having different options in their career and prefer following a clear and structured career path. Baby Boomers would most likely accept a promotion without a salary increase, something the Xers would never do. Baby boomers’ value the motivators more as well. This is mainly because of their growing age, due to which they are having to defend their rights in the workplace. Thus, they look for career advancement and growth opportunities. Therefore, due to the differences between each generation, Maslow’s theory would be more applicable. Herzberg’s theory has been controversial and some even argue that it is not applicable in modern times. (Sachau, 2007). Herzberg’s theory doesn’t take in to account the fact that some hygiene factors could be considered motivators by some employees.

Author Jennifer Deal surveyed 3000 companies and made the claim that ‘we all want essentially the same things at work’ (Rossi, 2007). In addition to this, there are a few other studies that found that the generational gap in the context of workplace motivation may not be as wide as we may think. Deal asserts that most workers have similar values, with family being the top of the list. According to her motivational differences arise, on how the workers use their rewards. For example, one employee may desire time off from work so that he can spend time with his family. On the other hand, another worker may want longer hours and high salaries so that he can meet the financial needs of his family. Society for Human Resource Management also conducted research and found that the generation gap may not be as wide as it is perceived to be. Sargent & Schlossberg put forward a theory stating life transitions as the main cause of motivational differences between generations. Life transitions are described as ‘Events or non-events that alter adult lives’ (Sargent, 1988). These transitions directly impact the everyday life of a person, resulting in a change in relationships and responsibilities. Therefore, it is logical to say that these changes also affect how a person perceives motivation. For example, if an employee gets married or has a baby, this would change the employee in a way that he may now want to earn more so that he can meet the financial needs of their family. Or they may desire more time off from work, so they can spend the extra time with their family. As these events happen on a common timeline for people, they can be associated with each generation. Sargent & Schlossberg also state that this is not always true, and managers must know what the employees are going through, and not just make assumptions based on age. They also emphasize the fact that age and life transitions are not always interlinked, but in a generation, most people experience similar life transitions, and thus their motivational drives could probably be more aligned.

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Generational Differences and Motivation

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