Generational change in the company: Six tips
People have been talking about the baby boomers retiring for 15 years. Now it's really happening. A major challenge, as the dramatic shortage of skilled workers shows. The integration of the new Generation Z is also challenging. Young people seem to have completely new expectations of their working life. What do companies need to manage the generational change well?
"We are looking for staff!" If you walk through the streets of a German city, you will see this notice almost everywhere: at hairdressers, bakeries, kindergartens, hospitals. They are all looking for new employees. Small businesses are vying for staff just as much as large companies - with sophisticated recruiting strategies, flexible working models and a new openness towards lifestyles and backgrounds.
This is because the baby boomer generation, born in the years of reconstruction after the Second World War (approx. 1946 to 1964), is retiring. The Institute for Employment Research (IAB) predicts that seven million workers will be lost in Germany by 2035. And a much smaller number of a young, highly sought-after generation will follow, whose demands on the world of work are causing headaches for many companies.
Generation Z: What is it really like? Anyone who asks this question ends up in the middle of a generational conflict
The Spiegel bestselling author, generation researcher and management consultant Rüdiger Maas (born 1979) describes Generation Z as unfit for life: unfocused, coddled by their parents and unable to navigate through life without a smartphone. These young people shuffle like snowflakes when they are challenged to get by in working life. (Generation unfit for life: How our children are being robbed of their future, Yes Verlag 2021).
Yael Meier, just 21 years old and also a management consultant, paints a completely different picture of Generation Z, but with a focus on preparing companies for the demands of her peers. According to Meier, the job for post-millennials should be well paid, meaningful, flexible and as instagrammable as possible - because young people today are proud to show how they live and work on social media platforms. They also want constant feedback from their colleagues and managers, as they base their self-worth on likes and followers.
Work-life blending instead of work-life balance?
That sounds a bit exhausting and is actually a step up from what the previous generations have just fought for: a reasonably good work-life balance and - among knowledge workers - a permanent option to work from home.
But for the very young newcomers to the job market, the very term "work-life balance" sounds like a deep conflict: working to live! The "Zetties" supposedly want smooth, meaningful transitions and call this concept "work-life blending". They have also experienced their parents being made redundant during the pandemic, even though they had been loyal to the company for years. This gives them a whole new definition of loyalty: 75% describe themselves as loyal to their employer, while still keeping an eye on the competition. A new option could still open up.
But who has the authority to interpret entire birth cohorts? Can the differences between the generations really be so precisely defined and entire birth cohorts summarized in types?
Marburg sociologist Martin Schulze doubts this. He has looked at the survey data from long-term studies by the German Institute for Economic Research without finding any evidence that generations are actually very different from one another. What is changing constantly and dramatically, however, are people's attitudes, values and ideas in general. His thesis: new views spread throughout society over certain periods of time.
A bloodletting of knowledge when the baby boomers leave
The ever-increasing desire for even more flexibility in the organization of work is therefore not only pronounced among very young people, but is a development that has been reinforced by the pandemic and is also desired by older age groups. They too are longing for more meaning, autonomy, feedback, participation and the option of workation and sabbaticals.
At the same time, their position on the labor market is changing: even people who are already fully integrated into working life today are increasingly being courted and will be able to choose the job they want to do according to their criteria in the future.
What may retire with the baby boomers is an understanding of competition and constant rivalry. After all, they had to fight much harder for their careers. What will be even more noticeable, however, is the loss of knowledge: An incredible amount of know-how and experience will retire with the large group of baby boomers - something that needs to be preserved.
Six tips: How do you best prepare for the generational change in your company?
1. develop a strategy for the generation change
It's not always easy to broach the subject of retirement with older team members or managers. Some people may feel offended when asked about their plans for retirement. To take the edge off this conflictual topic, you should develop a strategy within the company on how you want to prepare for the generational change. You don't have to reinvent the wheel.
There are numerous examples of best practice for generational change, or you can seek the support of external consultants.
2. take a look at the age structure in your company
Who reaches retirement age and when? How many young employees can succeed them? How do you need to recruit in order to maintain a balance?
Only if you make a precise analysis of the age structure in your company can you plan for the long term and the handover to the younger generation can succeed.
3. train your junior staff
Scout the young talent in your company at an early stage and systematically train them now for future tasks. Develop programs for junior staff to strengthen young people in the skills that are important to them.
Make the most of the transition period: develop mentoring and tandem projects between the baby boomers and the young talents. This effective knowledge management will ensure a smooth handover of existing knowledge and valuable experience.
4. prepare the succession at an early stage
Four or five years go by quickly: address the issue of succession at an early stage and support the process, e.g. through mediation or coaching. You can form generational tandems so that the succession is well prepared for the long term.
5. how do my employees "really want to work?"
Create a working atmosphere that is good for your employees and therefore good for your company.
1.5 days of meetings per week, interruptions every four minutes due to a constant flow of messages via various channels? Optimize productivity by creating new spaces for concentration. Constantly check: What is really necessary to achieve our results? Does another meeting really make sense? What focus times are important for my employees and when, so that they can do their job undisturbed?
6. work on your corporate culture without ifs and buts
Sustainable business practices, the recognition of diversity - be it in terms of gender, origin or special needs (keyword inclusion) - and a healthy management culture are becoming increasingly important for all generations. A high level of value transparency is important for companies: What makes you a good employer? What do you stand for? Continue to develop in this area and talk about it!
Sources:
IW Report 11/2021: Possible development of the shortage of skilled workers up to 2040
How a demographically induced contraction of the labor market can still be averted
https://www.iab-forum.de/wie-sich-eine-demografisch-bedingte-schrumpfung-des-arbeitsmarkts-noch-abwenden-laesst/
In 2035, there will be 4 million more people aged 67 and over living in Germany:
https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/12/PD22_511_124.html
Employers beware: Even your 'loyal' Gen Z workers may still be looking for another job:
https://www.fastcompany.com/90835522/gen-z-job-loyalty-employers-report-2023
Gen Z versus millennials. How big are the differences?
https://open.spotify.com/episode/0MPMqIjbKawTye5g9eVoNp?si=-luRCWgjTZiFSzcq18fStg
