Generational leadership - what the different generations want
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Generational leadership
what the different generations want
and how they want it.
Intro Research Generational Values Psychological Contracts Leadership Styles Recommendations About us Print PDF
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Generation Birth years Characteristics
When you type ‘Generation Y’ in Google more than 3,500 news messages are found that
have been posted within the last month. Generations are ‘hot and happening’. HR managers
recruiting the newcomers are struggling to find out: Who are they? What do they want? How Babyboomers 1946-1964 Optimistic, loyal, ambitious,
can we motivate them? The existing team is wondering why the new-comers are getting the independent, personal gratification,
consultative culture
perks they have always wanted but never dared asked for. Like many companies, Robert Half
International was interested in the “what-abouts” of the generations.
Generation X 1965-1980 Global thinking, balance, informal,
Two Masters students from Nyenrode University shared our curiosity and in 2010, a free agents
collaboration was derived enabling them to carry out their thesis research. The task at hand?
To investigate the differences between the generations, their psychological contracts and
their preferences on leadership styles. Their research focuses on these three key areas since
they could contain clues (and answers) as to what the generations expect and why. Generation Y After 1980 Confident, achievement-driven,
social, teamwork, work-life
Through awareness, comes understanding. And by understanding, managers and hiring balance, culture
managers can better utilise the unique skill set offered and provide tips to attract, retain and
develop multi-generational teams for the years to come.
The following information details the highlights and key findings of the research. A full copy
of the Thesis containing the parameters, detailed results and analysis can be obtained by
request to John Harinck via generaties@rhi.net.
Generational Leadership 2
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Press ESC for normal viewThesis Research
The goal of the research was to gain knowledge and insight into the preferred leadership
style of the different generations present in the workforce today, namely the Babyboomers,
Generation X and Generation Y.
The thesis first discusses the generational values, then the psychological contract and finally,
the preferred leadership style of these generations. This research was conducted mainly to
see how the three components are connected and how they are influenced by each other. The
primary research question posed was:
Characteristics of
generations
Preferred
To what extent do different generations have different • Babyboomers leadership style
(1946-1964)
values and how does this influence the preferred leadership • Generation X
style with respect to their psychological contract? (1965-1980)
• Generation Y
(Born after 1980)
To be able to answer this question, several sub-questions were composed, a conceptual Psychologial
model and theoretical framework developed. The questionnaire, containing questions on contract
all three parts of the research was sent to a target audience of over 7,000 people of which
about 910 responded (approximately 20% of responses were from the researchers’ own
network including students). The people in the target audience consisted mainly of finance
professionals across all age groups primarily from within the Robert Half Netherlands
database. With 905 completed questionnaires and the help of SPSS, the connection between
the different concepts was tested using regression analysis.
Generational Leadership 3
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Press ESC for normal viewGenerational Values
Generations have been the subject of many different research projects and have been
discussed frequently. The Babyboomers are also called ‘liberated youth’, they tend to
follow idols and think in group terms. Generation X is more individualistic and known as the
‘competitive generation’. Generation Y is the ‘global generation’, connected to everyone and
everything, thinking in a non-linear way and quick to switch between topics. But do these
values actually hold true? And how are they affecting business life? Now that Generation Y
is entering the workforce these questions seem more important than ever before.
There is an ongoing debate on the classification of generations. Classifications have been
Employees want to be
made based on age but also on life phases. The influence and behavioural patterns of addressed based on
generations on the work floor and in society at large are also subject to debate. Companies their expectations, which
are facing the changing needs and expectations of their workforce. The idea of
a group of similar ‘workers’ is no longer tolerated by that workforce.
are often similar within
generations.
(see Pages 2 & 3 for Analysis)
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Preferences on generational values (1 to 5 in order of preference)
Analysis
When analysing the generational values, a framework of constructs Construct Babyboomers Generation X Generation Y
Status, power, and hierarchy n/a n/a n/a
(see Table : Preferences on Generational Values) was used. From
Safety and security 3 4 4
the analysis it appeared that the different generations value some
Freedom n/a 5 3
constructs higher than others. The number one preference for all
Balance 1 1 1
generations is a work-life balance. Generation Y values ‘having
room for a private life’ higher than the Babyboomers. This is in Challenge and development 4 3 5
contrast to what Van der Sluis mentioned in her research (Van der Legacy 2 2 2
Sluis, 2010) when she stated that the older two generations value
work-life balance more that Generation Y. The same contradiction
holds for the construct “legacy” - all three generations value this
as their second most important attribute and Generation Y values
legacy significantly higher than the Babyboomers. Within status,
power and hierarchy Generation X and Generation Y value a high
salary and bonuses and appreciation expressed in rewards and Safety and security proves
promotion significantly higher than the Babyboomers.
to be most important for
(continues on Page 3) Generation Y, Generation X
values this lower and
Babyboomers the lowest.
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Generational Leadership 5
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Analysis (continued)
Safety and security proves to be most important for Generation Y, Generation X values this lower and the
Babyboomers the lowest. This proves to be consistent with the theory of Howe and Strauss who state that
Generation Y value security are less inclined to take risks than their parents from the Babyboomer generation (Howe
& Strauss, 2007). The research of Van der Sluis is however contradicted here, for she states that Babyboomers find
security more important than younger generations (Van der Sluis, 2010).
Generation Y believes challenge and development to be significantly more important than Babyboomers. This is
consistent with the findings of Van der Sluis (Van der Sluis, 2010). The construct “Legacy” is valued highest by
Generation Y and lowest by Generation X and the Babyboomers. This is yet another inconsistency with Van de Sluis
who states that Babyboomers value this higher than the other two generations.
Based on the results it can be said that Generation Y values all 6 work values higher than the other generations.
Generation X has similarities with both Generation Y and the Babyboomers. The Babyboomers value work values,
the lowest. A pattern can be seen in which Generation Y values the constructs the most, followed by Generation X
and then the Babyboomers. The younger the generation the more important the work values are.
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Generational Leadership 6
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Press ESC for normal viewPsychological Contracts
expressive
flexible
The psychological contract is based on the obligations of the employer and the employee, as
perceived by the employee. Companies are now struggling to understand this psychological
WORK-LIFE BALANCE
respecting authority
loyal
contract in the minds of their employees. The way employees like to be addressed is also detail-orientated independent
taking on greater importance. A large part of the employer obligations is thus transferred technically competent
commitment
multitask
onto the shoulders of the manager/leader. The relationship with management plays a key finding solutions to problems
role within the psychological contract.
productive
Because psychological contracts differ from person to person and from generation to conformity active involvement
teamwork
on-the-job training long hours at the office
generation, different perceived obligations are projected onto management. To be able to
fulfil these obligations and guide the perceived obligations of the employee, the leadership getting everything immediately
style should be adjusted to meet the expectations of the employee.
dislike conflict
(see Pages 2 & 3 for Analysis)
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Analysis
The results of the survey show that all three generations have a different concept of their Psychological
Contract. In general the same trend, as for the other parts of the conceptual model can be spotted,
namely Generation Y values all parts of the Psychological Contract higher than the other two
generations. This may be due to unrealistic expectations or could have something to do with the level
of ambition that Generation Y has at the beginning of their career. For the constructs “pleasant working
conditions” and have “Internal job flexibility” Generation Y scores higher than Generation X but shows
no significant difference to Babyboomers. Howe & Strauss argue that Generation Y values flexibility,
work-life balance and involvement of the employer in their growth process (Howe & Strauss, 2007). This
could link to a high validation of “career development” within their psychological contract but does not The top 3 values
show in this analysis. Generation Y values “Social Atmosphere” first, then “pleasant working conditions”
of Generation X
and “good fringe benefits”. This is inconsistent with existing theories, except for the fact that Generation
Y values “internal job flexibility” the lowest which could be interpreted as a high validation for security with regard to the
which is not tested in the psychological contract. psychological contract
The top 3 values of Generation X with regard to the psychological contract are: “Social atmosphere”,
are: “Social atmosphere”,
“Career development” and “rewards”. All three constructs are valued significantly higher by Generation Y “Career development”
and Generation X values them significantly higher than Babyboomers. In the theory, Generation X are and “rewards”
not as loyal to their employer as Babyboomers - they want to start out themselves someday and expect
free agency within their working environment. Rewards are valued higher on the list of Generation X
than is the case with any of the other generations. Their “internal job flexibility” is also ranked higher
than with other generations. This could could be linked to the free agency position they try to achieve.
(continues on Page 3)
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Generational Leadership 8
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Preferences on the psychological contract Analysis (continued)
Babyboomers have yet another ranking of the different constructs of the
Construct Babyboomers Generation X Generation Y
psychological contract. They are close to both Generation Y and Generation X
Work content n/a n/a n/a
as their number one priority is “pleasant working conditions”, which is closely
Career development 3 2 4
related to their second choice “social atmosphere”. Their third choice is the same
Social atmosphere 2 1 1
as for Generation X, namely “career development” which is interesting, given the
Organisational policy n/a n/a
fact that most of the Babyboomers are close to retirement. The construct “career
Pleasant working conditions 1 n/a 2 development” is however valued significantly lower than both Generation X and
Good fringe benefits n/a n/a 3 Y. The other construct, “no support of competitors”, questions this and is raised
Rewards 4 3 5 as part of “extra-role behaviour”. This question is the only one that Babyboomers
In-role behaviour 5 5 7 value significantly higher than Generation X and Y. This could be because
Professionalism 6 4 6 of their professional experience, however the survey does not give a clear
Extra-role behaviour 7 6 8 explanation. In general it can be concluded that the generations place different
Internal job flexibility 8 7 9
priorities on importance for the constructs of the psychological contract.
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Generational Leadership 9
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Press ESC for normal viewLeadership Styles
Three main leadership styles were
referenced in the research, namely
Leadership style Main characteristics
Transformational, Transactional (including constructs)
and Laissez-faire. Transformational • Inspires others
• Idealised Influence • Intellectually stimulating
• Inspirational motivation • Challenging
• Intellectual stimulation • Encourages innovation
When generations are asked about their preferences for their ‘ideal leader’ both
• Individualised consideration • Coaches & develops
Babyboomers and Generation Y think being competent as a leader is most important while • Maximise performance
Generation X values honesty most. These preferences are based on the ideas a generation
as a whole have about their environment, accepted behaviour and key assumptions about • Clarifies goals
Transactional
the world and business. These can be translated into work values and expectations • Contingent reward • Rewards performance
from leaders. • Management by Exception • Monitors mistakes
(MBE) -active
Three main leadership styles were referenced in the research, namely Transformational,
Transactional and Laissez-faire. There are attributes associated with each leadership style, Laissez-faire • No clear goals
based on which a dominant leadership style was used as a construct for measurement. • MBE-passive • Avoids involvement
See table. • Laissez-faire
(for results see Page 2)
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Results
From the results of the survey it becomes clear that Generation Y values all construct of leadership higher
than the other generations except for leaders taking their conscience into account when making decisions and
laissez faire leadership. The preference of all three generations clearly falls for “inspirational motivation” first,
“individualised consideration” second and “Intellectual stimulation” third.
For all three constructs, Generation Y places a higher value on Leadership than Babyboomers. Interestingly
however, looking at the ranking, Babyboomers do value these constructs in a similar order. There is no
significant difference between Generation X and the other two generations except for “intellectual stimulation”
where Generation Y values this significantly higher than Generation X and the Babyboomers. These results
indicate a clear preference for transformational leaders across all three generations.
results indicates a
The constructs “Contingent reward” and “MBE-active” belong to the transactional leadership style in which
clear preference for
the leader rewards achievements and monitors mistakes. These constructs are valued in fourth and fifth place
respectively with Generation Y again scoring significantly higher than Babyboomers. No significant difference transformational leaders
was found between Generation X and the other two generations. across all three generations
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A manager should be Inspire to motivate
inspirational, personal,
intellectually stimulating
and be admired.
See the person
The different generations value the different constructs in a similar way but with different
intensity. Babyboomers value the work-life balance, legacy, safety and security, the social
atmosphere and the style of leadership less than the other generations. Generation Y is Stimulate creative thinking
just entering the workforce and has higher expectations than the generations that have
already been working for some time. All generations are looking for the same type of
working environment but the younger the generation the more important this is.
Because the generations are so similar in their needs it is possible to satisfy their
Reward
needs using one approach with different intensities. All generations value balance and
legacy, also a nice atmosphere in the workplace is important and all generations prefer
transformational leadership. A manager can anticipate this by adjusting work tasks and
managing the company culture. Communication about mutual expectations is essential. Lead by example
(for Babyboomers see Page 2, Generation X see Page 3, Generation Y see Page 4)
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Babyboomers
Babyboomers value balance, legacy, safety and security and challenge and development.
They expect pleasant working conditions, a social atmosphere, the opportunity to develop
their career, and rewards. In the workplace a transformational leadership style should be
applied to motivate and inspire. Babyboomers want to leave something meaningful behind;
a manager could anticipate this need by giving them projects to work on that will have a
long term impact.
Even though Babyboomers are the oldest group in the workforce they still value challenge
and want to develop themselves and their career. It is therefore important to give
Babyboomers tasks in which they can explore new territory and grow in competency and
on a personal level. Managers are encouraged to challenge employees by stimulating them
to think in new and innovative ways. Finally Babyboomers want to be able to admire and
respect their leader. Babyboomers want to be able to trust and look up to their managers.
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Generation X
Generation X values balance, legacy, challenge and development, safety and security, and
freedom (ranked in order of importance). They expect a social atmosphere, the opportunity
to develop their career, rewards and professionalism. In leadership they find fairness,
competence and straightforwardness important.
In practice, this means that Generation X want to have a balance between their private life
and their work life. Open discussion of these expectations should be encouraged and they
should be linked to career development. Challenging and meaningful tasks are important
when coupled with a degree of freedom to work in their own manner and be rewarded
accordingly.
Generation X-ers also value a good social atmosphere on the work floor and as managers
can actively manage the culture and mood of the company whilst behaving in a way that is
representative of the company.
X-ers want to be inspired by their manager and be treated as individuals. A manager should
mentor and coach the employees so they can grow both personally and professionally.
Clear goals should also be set with contingent rewards attached.
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Generation Y
Generation Y values balance, legacy, freedom, safety and security, and challenge and
development (ranked in order of importance). They expect a social atmosphere, pleasant
working conditions, good fringe benefits, the opportunity to develop their career and
rewards. As for the other two generations on the workfloor, a transformational leadership
style should be adopted.
In practice, this means that Generation Y want to be given room to combine their private
and personal life. Y-ers want to be involved in solving problems and therefore they should
be provided with work that is meaningful and has a long-term impact.
Y-ers value freedom highly, they want to decide for themselves how and when exactly
a task is executed. Results are important and Y-ers therefore want to be judged and
rewarded on and for these results. Y-ers also look for safety and security. A manager
should provide a sense of security about the position of a company - communication is
key here.
A manager should be inspirational and give feedback. Y-ers want to be coached personally
by their manager in order for them to develop. Y-ers want to admire their manager and also
be able to identify with their manager’s position.
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The Authors
Danielle van Bakel & John Harinck had high expectations from their ‘soon-to-have’ first job. About to graduate
from Nyenrode Business University with Master’s degrees in General Management Science, what could they
expect from their colleagues and how would their manager lead them? In order to prepare for this upcoming life
change they conducted their thesis research on the different generations and their preferred leadership style in
cooperation with Robert Half.
Danielle van Bakel has a Bachelor’s degree in Communication and Information Sciences and a Master’s in
Management. She specialises in social media strategy and implementation. John Harinck has a Bachelor’s
degree in Economics and a Master’s in Management. He is currently working for Robert Half Management
Resources as a Consultant, specialising in the staffing of interim finance professionals.
Robert Half International Danielle van Bakel John Harinck
Robert Half, specialist in financial & administrative staffing, has facilitated thousands of hiring and retention click on icons above to view LinkedIn profiles
programs across a range of companies over the years. A major challenge facing organisations today involves
understanding the motives of the new generation entering the workforce and balancing it with the expectations
of the existing generations on the work floor. Often, misinterpretations are experienced amongst line
management and HR, sometimes leaving a question mark as to the ‘new generations’’ application. Whilst
working with different generations can create conflict, shifting towards cross-generational diversity results in
an opportunity for the organisation to leverage everyone’s unique contribution. Stemming from an Interview
Simulation Day with the students of Nyenrode University, Robert Half seized the opportunity to collaborate with
John & Danielle towards the common goal of understanding more about Generational Leadership expectations.
(see Page 2 for more information on Workshops)
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www.roberthalf.nl/
Workshops generations
Robert Half has developed the (free) workshop ‘Different generations on the workfloor’ to identify the
distinguishing characteristics of Baby Boomers, Generation X and Generation Y as individuals and colleagues.
Over the course of 2 hours, you will come to understand the motivations and aspirations of each generation and
practical advice and recommendations will be given when you return to the work floor. A workshop can also be Robert Half Structure
tailored to your organisation’s specific situation.
Practical Information
• Min. participants: 8
Join the conversation
• Location: In-house (your office)
• Duration: 1.5 – 2hrs (depending on size of group)
For more information, visit www.roberthalf.nl/generaties or email : generations@rhi.net
Tools & publications
Locations
0800 0900 000
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