Upload
doannhu
View
230
Download
2
Embed Size (px)
Citation preview
Copyright UCT
MBA Research Report Page 1
DEFINING THE EMPLOYEE VALUE PROPOSITION FOR EMPLOYEES IN
OLD MUTUAL SOUTH AFRICA: A GENERATIONAL PERSPECTIVE
A Research Report
Presented to
The Graduate School of Business
University of Cape Town
In fulfilment of the requirements for the
Masters of Business Administration Degree
By
Nerisa Naidoo
December 2010
Supervisor: Dr Linda Ronnie
Copyright UCT
MBA Research Report Page 2
CONTENTS
LIST OF TABLES .......................................................................................... 4
1 INTRODUCTION ................................................................................ 5
1.1 RESEARCH AREA AND PROBLEM ................................................................................... 5
1.2 RESEARCH QUESTIONS AND SCOPE .............................................................................. 6
1.3 RESEARCH ASSUMPTIONS ........................................................................................... 7
1.4 SIGNIFICANCE OF THE STUDY ....................................................................................... 7
1.5 RESEARCH ETHICS ..................................................................................................... 8
2 LITERATURE REVIEW ........................................................................ 9
2.1 GENERATIONAL DEFINITIONS ....................................................................................... 9
2.2 EXPECTATIONS OF DIFFERENT GENERATIONS ............................................................. 10 2.2.1 GENERATION Y .................................................................................................................... 10 2.2.2 GENERATION X .................................................................................................................... 11 2.2.3 BABY BOOMERS ................................................................................................................... 11
2.3 CONTRARY VIEWS ..................................................................................................... 14
2.4 CONCLUSION ............................................................................................................ 15
3 RESEARCH METHODOLOGY ............................................................ 16
3.1 RESEARCH APPROACH AND STRATEGY ........................................................................ 16
3.2 RESEARCH DESIGN, DATA COLLECTION METHODS AND RESEARCH INSTRUMENTS ............ 17
3.3 SAMPLING ................................................................................................................ 20
3.4 DATA ANALYSIS METHODS .......................................................................................... 21
3.5 VALIDITY AND RELIABILITY ......................................................................................... 21
3.6 LIMITATIONS OF THE STUDY ........................................................................................ 22
4 FINDINGS ....................................................................................... 23
4.1 BABY BOOMERS ........................................................................................................ 23 4.1.1 PROMOTIONAL OPPORTUNITIES ................................................................................................. 23 4.1.2 MOST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 24 4.1.3 LEAST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 26 4.1.4 EXPECTATIONS REGARDING FACTORS OF EMPLOYMENT .............................................................. 28 4.1.5 REASONS FOR LEAVING JOBS ..................................................................................................... 30 4.1.6 REASONS FOR REMAINING IN JOBS ............................................................................................. 31
4.2 GENERATION X (GEN X) ............................................................................................ 32 4.2.1 PROMOTIONAL OPPORTUNITIES ................................................................................................. 32
Copyright UCT
MBA Research Report Page 3
4.2.2 MOST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 33 4.2.3 LEAST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 36 4.2.4 EXPECTATIONS REGARDING FACTORS OF EMPLOYMENT .............................................................. 37 4.2.5 REASONS FOR LEAVING A JOB .................................................................................................... 42 4.2.6 REASONS FOR REMAINING IN JOBS ............................................................................................. 43
4.3 GENERATION Y (GEN Y) ............................................................................................ 44 4.3.1 PROMOTIONAL OPPORTUNITIES ................................................................................................. 44 4.3.2 MOST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 45 4.3.3 LEAST IMPORTANT FACTORS WHEN SELECTING A JOB .................................................................. 48 4.3.4 EXPECTATIONS REGARDING FACTORS OF EMPLOYMENT .............................................................. 50 4.3.5 REASONS FOR LEAVING JOBS ..................................................................................................... 54 4.3.6 REASONS FOR REMAINING IN JOBS ............................................................................................. 55
5 DISCUSSION OF FINDINGS .............................................................. 57
5.1 COMPARISONS ACROSS THE DIFFERENT GENERATIONS ................................................ 57 5.1.1 PROMOTIONAL OPPORTUNITIES ................................................................................................. 59 5.1.2 MOST IMPORTANT FACTORS WHEN CHOOSING A JOB ................................................................... 59 5.1.3 LEAST IMPORTANT FACTORS WHEN CHOOSING A JOB ................................................................... 60
5.2 GENERATIONAL VALUES AND BEHAVIOURS ................................................................... 61
5.3 INTERNATIONAL FINDINGS .......................................................................................... 62
6 THE EMPLOYEE VALUE PROPOSITION FOR THE DIFFERENT GENERATIONS IN OLD MUTUAL ................................................................................. 63
6.1.1 HYGIENE FACTORS ................................................................................................................... 63 6.1.2 GENERATION AND JOB TYPE SPECIFIC FACTORS ........................................................................ 63
7 FURTHER RESEARCH OPPORTUNITIES ............................................. 64
8 CONCLUSION .................................................................................. 65
9 REFERENCES ................................................................................... 66
10 APPENDIX 1 – RESEARCH QUESTIONNAIRE ..................................... 69
10.1 DEMOGRAPHIC INFORMATION ..................................................................................... 69
10.2 WORKPLACE ATTITUDES ............................................................................................ 70
Copyright UCT
MBA Research Report Page 4
LIST OF TABLES
Table 1 – Generational Definitions
Table 2 – Attributes of the Different Generations
Table 3 – Research Design, Collection Methods and Research Instruments
Table 4 - Comparisons across the different Generations
Copyright UCT
MBA Research Report Page 5
1 INTRODUCTION
1.1 Research Area and problem
While many organisations have acknowledged the change in their employee demographic,
few have understood the nature of the change and the impact it has on their current
policies. As such, few organisations have been able to adapt their people practices fast
enough to cater for the needs of the changing workforce. Organisations need to gain
insight into the expectations of the different generations present in their workforce, in Old
Mutual South Africa particular, to help them better understand the changes which they
need to make to adequately satisfy the needs of their changing employee base. “Are they
better, worse or just different? Opinions vary. Whatever you think, they are entering the
workforce, quickly replacing the Baby Boomers; and are therefore the future of your
company” (Coleman, 2008, P1) aptly describes the changes in the workplace and
highlights the fact that these changes cannot be ignored, irrespective of your view.
In the past, employment in Old Mutual South Africa, like all other companies, used to be
about having a job for life; these were the characteristics that people looked for in their
preferred employer. The workforce of Old Mutual South Africa epitomised these
characteristics with loyal, hard working individuals hired, with the expectation that this was
their job until they retired. “With baby boomers heading for retirement and dramatic global
demographic shifts, the insurance industry can no longer afford to ignore the needs of
younger, more diverse generations- both as customers and as future leaders”
(Liakopoulos, 2010, P1) identifies that the different generational groups may have different
needs and wants from their employer. Liakopoulous (2010) feels that many young
professionals find the insurance industry dull and uninviting, mainly due to the perception
of a limit to growth potential. He further felt that traditional insurance companies are not
equipped to deal with Generation Y, when reflecting on their talent strategies.
In the words of singer, Bob Dylan, “the times, they are a-changin.” In order to maximise
the value that different generations can add to the workplace, much work needs to be
done to understand how the generations differ regarding their expectations of their
Copyright UCT
MBA Research Report Page 6
employers and thus what employers need to do in order to maximise the output from these
employees.
Liakopoulous (2010) highlights the importance of leaders of insurance companies taking
notice of the needs of Generation Y. With Generation Y three times more likely to change
jobs than Baby Boomers (Anderson, 2009), and a workforce which is reducing in size due
to lower birth rates, developing a suitable value proposition for Generation Y will become a
competitive advantage for whoever gets it right (Liakopoulous,2010 ). A survey done by
Deloitte in their September 2009 Special report revealed that 50% of the Generation Y
respondents were planning to seek new employment in the 12 months post the survey.
The purpose of this study is to identify the expectations of the different generations in Old
Mutual South Africa, and define what the value proposition for each generation should
look like.
1.2 Research questions and scope
The question that this study aims to explore is:
What does the employee value propositions for Baby Boomer, Generation X and
Generation Y employees, in Old Mutual South Africa, look like? This encompasses
what each generation expects from their employers, from a financial, career and
personal perspective in order to maximise their potential.
The paper will not look explicitly at how to retain these employees, but rather at what they
value or consider important in an employee value proposition. A comprehensive analysis
has been carried out to look at why each generation attach value to certain workplace
practices.
The study will not aim to define the different generations in the South African context.
Rather, it will present a number of conflicting definitions to illustrate the difficulty that
employers face in identifying which value proposition to offer to which employee. For the
purposes of this study, definitions selected are those used to define the population of
Australia. The reason for this is that research on generational differences has primarily
been conducted in developed economies, as can be seen by the literature reviewed later
Copyright UCT
MBA Research Report Page 7
in this study. From these developed nations, Australia is the country that most resembles
that of the South African culture. Commenting on the similarities and differences between
South Africa and Australia, Clive Prevost, Managing Director of BMW Finance South
Africa listed numerous similarities between these two countries, including their origins, the
source of their population, positions in business and industry, access to the rest of the
world, and social and cultural dynamics. This view is supported Harcourt (2004) and
several websites dedicated to exploring the similarities between South Africa and
Australia.
The study does not aim to define employee value propositions for the different generations
outside of the sample group in Old Mutual South Africa. All research was conducted
inside Old Mutual South Africa, and hence the findings are applicable only to this sample
group.
1.3 Research Assumptions
This study assumed the following regarding the definition of the various generations
(Cennamo and Gardner, 2008):
Table 1 – Generational Definitions
Generation Defining Time Period
Baby Boomers 1946 – 1961
Generation X 1962 – 1979
Generation Y 1980 – 2000
In making this assumption, I can now compare the attributes, wants and needs of each of
the generations, across countries, without worrying about any distortions, which may arise
as a result national differences or definitional differences.
1.4 Significance of the Study
This study is of value to not only Old Mutual South Africa, but also to the entire financial
services sector in South Africa, all sectors in South Africa and economies around the
world, especially emerging markets. Even though the outcomes of this document may not
Copyright UCT
MBA Research Report Page 8
be used to generalise the employee value propositions across different sectors and
economies, the convergence or divergence of the findings from the findings of the
literature provides an indication of whether the different generations in South Africa, can
be stereotyped with the applicable generations from developed countries. The shift in
expectations among generations is a phenomenon affecting economies around the world.
The studies conducted in this area of research have been confined to the developed
world. This study will attempt to investigate the expectations of the different generations in
a developing economy, something that has not been done extensively.
1.5 Research Ethics
In line with the UCT/GSB Ethical guidelines, an ethical clearance form has been
completed, submitted and approved. This is because of the study involving people, and
as such, ethical clearance will be required to ensure the integrity of the study.
In order to ensure that the study was conducted in an ethical manner, participants were
not led to answer questions in a manner that supports the literature. The viewpoint of the
literature was not disclosed to the participants prior to the focus group. In addition,
respondents were allowed to choose whether or not they wanted to participate in the study
and were in no way forced to participate. The information supplied by the participants was
kept confidential and the respondents were kept anonymous, and this was communicated
to them in my request for information.
Copyright UCT
MBA Research Report Page 9
2 LITERATURE REVIEW
The aim of this research study is to examine the expectations of the different generations
of employees that make up a sample group of the Old Mutual South Africa employee
population. Two distinct areas of research have emerged from this single question:
What is the definition of the different generations; and
What are their expectations of employers?
2.1 GENERATIONAL DEFINITIONS
The definition of what constitutes different generations seems to differ throughout the
literature. Glass (2007) defines Generation Y as people born between 1977 and 1992,
while Herbison and Boseman (2009) define Generation Y as people born between 1978
and 1999. Hewlett, Sherbin and Sumberg (2009) make use of a definition for Generation
Y of people born between 1979 and 1994. Cennamo and Gardner (2008) and Sujansky
(2009) agree on 1980 being the start date for their definition of Generation Y however,
they do not agree on the end date.
The above are but a few instances in the literature of non-agreement on the actual
definition of Generation Y. In a recent article for Deloitte Review, Hole, Zhong and
Schwartz (2010) propose that the definition of the different generations differs across
countries. They explain that generations are defined by major events in a society; hence,
the definition of a generation will vary. Davis (2007) felt that using the generic definitions
of Generation X, Generation Y and Baby Boomers would lead to significant
inconsistencies especially regarding their values and behaviours, as he believed that the
various generations are not homogenous, but rather a generation made up of different
cohorts, which tended to be similar, within the cohort.
While Hole, Zhong and Schwartz (2010) provide valuable insight into the definition of
generations for different countries, I feel that they have negated a few very important
factors in South Africa. They define the Baby Boomer generation as being those
individuals born between 1943 and 1970, Generation X being those individuals born
between 1970 and 1989 and Generation Y as being those individuals born between 1990
Copyright UCT
MBA Research Report Page 10
onwards. If one were to identify the major events in South Africa‟s history, they would
include the implementation of Apartheid in 1964, the 1976 Soweto uprising and the
democratic elections of 1994. Given these major events in South Africa‟s history, it then
raises the question of exactly how were the generational splits arrived at and how
accurate are they. Davis (2007) raised the concern that most studies into the generational
splits across the world tend to focus on those individuals who wield economic power and
those who reside in the urban areas of the country being studied. Given that the majority
of South African population hold very little economic power and reside in rural areas, one
begins to question how representative a study this is.
With all of the noise around the definition of the different generations, for the purposes of
this research study, I will adopt the generational definitions from Cennamo and Gardner
(2008), which is used to define the Australian population. It is my opinion that this is a
close representation of the defining moments for the South African society, and that the
Australia has similar cultural values and way of life to South Africa (Prevost (2010),
Unknown (2008)).
2.2 Expectations of Different Generations
Most of the literature agrees that there are distinct differences between veterans, Baby
Boomers, Generation X, Generation Y and Generation Z. Glass (2007) cites the main
differences between the different generations as being work ethic, methods of
communication, perceptions of the organisation and their attitude towards change. She
goes on to define the personal characteristics of the different generations and how this
influences their expectations from their employer and job. Kim, Knight and Crutsinger
(2008) believe that the differences between Generation Y and other generations has to do
with their work ethic, their proactive attitude towards their careers, the emphasis which
they place on training and development and their need for meaningful work.
2.2.1 GENERATION Y
Wong, Gardiner, Lang and Coulon (2008) echo much of what is asserted by Kim, Knight
and Crutsinger (2008) and Glass (2007) by highlighting that Generation Y is an optimistic
generation, who are driven and demanding of their work environment. Yet they do not
Copyright UCT
MBA Research Report Page 11
seek out job security; they prize skills development and are always looking for challenges;
they are highly confident and value team interactions as well as the opportunity to take
responsibility and make decisions. They are most motivated by career advancement, are
the most demanding of all generations and are focused on achievement. HR Focus
(2008) noted that salary in support of Generation Y„s lifestyle was very important to them,
including benefits and career satisfaction. However, they are willing to accept lower
salaries if they believe in the long-term future of the company and they are directly
involved in designing that future (Glass, 2007). She also found that Generation Y
favoured fast track leadership programmes, collaborative decision-making and being
rewarded for their efforts. A new trend that she identified is the increased emphasis being
placed on corporate philanthropy and social awareness by Generation Y. She also noted
that while Baby Boomers prefer cash rewards, Generation Y were more willing to bet on
the future of the company as long as they could influence the future of the company.
2.2.2 GENERATION X
Wong et al., (2008) highlight that Generation X seeks out work-life balance and tend to
chase higher salaries and benefits; they are generally independent and are more cynical
and pessimistic. Like Generation Y, Generation X requires feedback that is more
frequent; they too are focussed on career advancement but exhibit a greater external
locus of control than Generation Y. Glass (2007) supports the views of Wong et al.,
(2008) and adds that Generation X seeks out flexibility in addition to work-life balance and
places emphasis on training, learning and self-improvement.
2.2.3 BABY BOOMERS
Wong et al., (2008) felt that Baby Boomers valued job security, were more idealistic, and
were likely to remain loyal to their organisations. They are highly respectful of authority,
favoured consensus and a stable working environment. Like Generation X, Baby
Boomers are seen to be motivated by power. They are seen as the generation that is
least focused on their career and social awareness. Almost all of the literature seems to
agree that job security is a major expectation from Baby Boomers. Glass (2007) found
Copyright UCT
MBA Research Report Page 12
that this generation prefers a fixed salary and would prefer cash in their hands as opposed
to stock options.
Table 2: Attributes of the Different Generations
Generation Y Generation X Baby Boomers
1 Values diversity/workplace
culture
Prefer to sit and listen before
they do
Seek long term
employment
2 Regarded as fickle, self
focussed, and disloyal
Easily distracted Planned and
focussed
3 Value work-life balance Focus on group outputs Decisive
4 They like change Strong sense of
empowerment
Independent and
self reliant
5 Value communication and not
authority; thrives on
immediate feedback
Want formal and non-formal
recognition
Makes decisions
based on fact and
data
6 Motivated to stay with the
employer if training is
provided
Want monetary and non-
monetary rewards
See organisations
as a vehicle for
their career
7 Are encouraged to challenge
and think independently
Not interested in following in
the footsteps of their parents
Employment
contract built on
loyalty to the
career
8 Empowered Want work-life balance Loyalty is rewarded
with money
9 Expects to be treated as
equals to others
Demand flexible work
schedules
Most rewards must
be monetary
10 Expect to have a role in
decision making
Want independence and
autonomy
Value
achievement,
status and material
success
11 Poor management is a Desire interesting work Social recognition
Copyright UCT
MBA Research Report Page 13
reason they leave an
employer
is important
12 Prefer a coaching and
consultative approach to
management
Desire professional growth Sense of
accomplishment is
important
13 Value honesty, reliability and
loyalty in their leader
Thrive on open
communication
Sacrifice
themselves to
ideals
14 Loyal to their friend, peers
and careers rather than a
company
Do not believe in paying
dues
15 Remuneration is not an
important factor, as long as it
is within average range of
their peers
Seek to acquire skills and
expertise
16 Yearn for recognition Regard personal goals as
important as work goals
17 Want constructive feedback Prefer equitable salary
among other remuneration
options
18 Expect to be promoted within
2 years of starting a job
19 Short tenures due to desire
for variety, challenge and
change
20 Has strong relationship ethic
21 Easily distracted
22 Want to work in teams
23 Has different domestic
responsibilities
24 Want flatter organisations
25 Optimistic and upbeat
Copyright UCT
MBA Research Report Page 14
26 Tech savvy
27 Full of contradictions
28 Connected 24/7
29 Strong informal networks
30 Are not confident that they
will achieve as much as their
parents
31 Hard working of they are
engaged with their work
32 Don‟t expect to have a job for
life
33 Highly self reliant
34 Willing to sacrifice money and
titles for work-life balance
35 Focussed on their rights
36 Highly educated
37 Seeks meaningful work
Source: McCrindle (2006, 2008), Holleran, PCM & CPSM (2008), Davis (2007), Loughlin
& Barling (2001), Smith (2009) and Jorgensen (2003).
The above table serves as a summary of the attributes of the different generations, as per
the reviewed literature. It further highlights the vast number of differences as well as some
similarities among the generations.
2.3 CONTRARY VIEWS
Hewlett, at al., (2009) argue that Generation Y and the Baby Boomers want the same
things in the workplace. The authors believe that both want flexible working
arrangements, want to contribute to society, value the social nature of work, are loyal to
their organisations and value other non-monetary rewards over the conventional monetary
rewards. They do however believe that the reasons behind these expectations are
different. HR Focus (2008) asserts that one of the chief factors of concern for Generation
Copyright UCT
MBA Research Report Page 15
Y is finding a job and keeping it. Macky, Gardner and Forsyth (2008) found that the top
motivators for Generation X and Generation Y to be the same. These motivators included
steady employment, promotional opportunities, job security and a lower need for social
approval. Hole, Zhong and Schwartz (2010) found that the expectation and behaviours of
the different generations tended to differ based on the country‟s social experiences. They
point out distinct differences in the expectations of different generations in the East and
the West, and between countries exposed to long periods of democracy and those who
experienced communism.
2.4 Conclusion
The most common criticism of the literature that aims to demystify the expectations of
specific generations is that generations are shaped by the times they live through and
hence their expectations will differ based on the location of your sample population. While
the findings across the western world seem to be consistent, there are still several
contradictions that exist in the literature. This highlights some of the limitations to my
research such as my research is based on the urban South African population. In
addition, South African specific events and changes such as the focus on employment
equity, the current skills shortages and high unemployment rates are indicative of an
environment very different to that of the general Western world, where the various studies
were conducted.
Copyright UCT
MBA Research Report Page 16
3 RESEARCH METHODOLOGY
3.1 Research approach and strategy
This study was conducted with the aim of defining the employee value proposition for the
different generations that make up the Old Mutual South Africa workforce. The study was
not based on a preconceived notion of what the proposition might be. Rather, the purpose
of the research was to build theory in this field of study. In observing the attitudes and
beliefs of a sample group of individuals, the study attempted to define this employee value
proposition. The observations from a sample group are used to infer the value
propositions to larger groups of people. Hence, the study takes an inductive approach to
build the theory of this topic (Leedy and Ormrod, 1993).
The strategy selected for this study was a mixture of a quantitative and qualitative
approach. Little information exists on this subject in South Africa; hence, the quantitative
strategy was used to identify those factors that are important to the different generations in
the work place, while the qualitative portion took the form of focus groups and one-on-one
interviews, which sought to explain the reasoning behind the chosen factors. Qualitative
research is used when you have unknown variables and the data needs to be rich in order
for you to be able to explain something which lacks theory, whilst the quantitative
approach is used to focus the qualitative discussion, as these may sometimes be very
broad (Leedy and Ormrod, 1993). Hence, both a quantitative and qualitative study can
assist in defining these expectations (Leedy and Ormrod, 1993).
Using a mixture of the qualitative and quantitative research strategies will also assist in
ensuring the validity and reliability of the data, through the process of triangulation of
findings (Bryman & Bell, 2003).
The drawback of the qualitative approach is that it is fairly time consuming compared to
pure quantitative research. The upside of qualitative research is that the focus groups will
create a richer source of information, which is more apt to inductive research (Leedy and
Ormrod, 1993). The benefit of the quantitative research is that it is easy to administer, and
one can gather a range of data in a shorter space of time. The drawback of this
methodology is that in the data collection phase, one may experience an ontological issue
Copyright UCT
MBA Research Report Page 17
that is the respondents perceptions of the question or statement which they are meant to
answer may differ (Bryman & Bell, 2003).
3.2 Research design, data collection methods and research
instruments
Table 3: Research Design, Collection Methods and Research Instruments
Contextualise the
research
Collect Quantitative Data Collect Qualitative Data
1. Conducted a literature
review to identify the key
themes and variable
1. Designed a
questionnaire for
participants of the
focus group
1. Facilitated focus
group discussion,
with 39 people,
across generations
2. Tested the
questionnaire
2. Record the views of
the respondents for
each focus group
and interview
3. Sought approval of
questionnaire from
supervisor
3. Collated the data from
all focus groups and
interviews, as well as
the online survey
4. Identify focus group
and interview
participants
4. Identified common
themes and reasons
for these themes
5. Administered the
survey via e-mail
There were two methods of data collection that were employed. The first method was
data collection from the participants, prior to the focus groups and interviews, collected via
an e-mail questionnaire, which is included in Appendix 1. This questionnaire aimed to
Copyright UCT
MBA Research Report Page 18
capture demographic details of the participant, and a listing of their expectations from their
employer. This information was used to inform the questions which were used to
stimulate the discussion of the focus groups and interviews. Permission was sought from
the various department heads to send out the questionnaire to their staff, and the study
was positioned to both the department heads and the staff as an MBA study as opposed
to an Old Mutual South Africa study. The questionnaire was sent out to a larger number of
individuals, as it was anticipated that some individuals might not be comfortable in
participating in the study.
The next method of data collection was focus groups and interviews. Cross-generational
participants from Old Mutual South Africa, who completed the questionnaire, were invited
to participate in either focus groups or one-on-one interviews. This was done to ensure
that the environment was conducive to the participant to facilitate optimal sharing of
information. The focal areas of the data collection was to find out what kind of work the
participants were engaged in; a discussion ensued around the factors that they listed as
most and least important expectations from an employer. Throughout the data collection
process, participants were ensured that the information that was shared with me would not
be, in any form, conveyed to their line manager or anyone from Old Mutual South Africa,
and would be used solely for the purpose of the study.
Once the focus groups were completed, the insights were consolidated to give a view of
the expectations of the different generation, in the sample group, in Old Mutual South
Africa, focusing on the similarities and differences between these groups. These results
were compared to the insights gained from the literature, to ascertain if there was any
difference in expectations between the difference in the generations in Old Mutual South
Africa and generations of people, internationally.
The major constraints to this research approach was the time required to conduct the
focus groups and interviews, the objectivity of the interviewer, and the fact that if people
know they are being studied, they behave differently, known as the Hawthorne Effect
(Bryman & Bell, 2003). In addition, in focus groups, one runs the risk of getting the views
of a few people and not others in the group; one must be careful not to allow the group to
form a group opinion on this topic as the richness of the data then becomes compromised.
Leading the group into a particular direction is also a drawback of this method of data
Copyright UCT
MBA Research Report Page 19
gathering. Focus groups can also become difficult to control, the data is also difficult to
analyse, and organisation of these can be problematic (Bryman & Bell, 2003)
The upside to qualitative interviewing (focus groups and one-on-one interviews) is the
flexibility it gives to the interviewer to probe the interviewees on certain points, which may
have otherwise been missed, the ability to do retrospective interviewing, greater breadth of
information, and focus the discussion.
A quantitative approach on the other hand will just identify the factors without the
corresponding explanation for the importance of the choice. This method, while may leave
you with many respondents, is not as rich as the qualitative data.
Questionnaire Design
The questionnaire utilised, which is included as Appendix 1, was based on the work by
Brown, Carter, Collins, Gallerson, Giffin, Greer, Griffith, Johnson and Richardson (2009),
which will sought to identify the expectations of the different generations, from their
employers. The questionnaire consisted of both open and closed questions, with the
questions around demographics making up the closed questions, included in Appendix 1,
section 10.1, whilst the open-ended questions would be the exploratory questions,
included in Appendix 1, section 10.2. To maintain the anonymity of the respondents, they
were not asked to provide their names anywhere in the questionnaire.
Focus Groups and Interviews
The focus groups and interviews concentrated on exploring the themes, which emerged
from the questionnaire. The themes emergent from each group‟s feedback on the
questionnaire were explored with that group as well as any major findings from other
groups. Focus groups and interviews were not conducted within the Old Mutual South
Africa premises, and this was done to further assure people that the study was not for Old
Mutual South Africa.
Copyright UCT
MBA Research Report Page 20
3.3 Sampling
A sample of 39 participants, from Old Mutual South Africa, was invited to participate in the
study. The sample included participants across the different generations to establish if
there were differences across the generations regarding their expectations from
employers. The sample consisted of people at different levels in the organisation and
from different business units to ensure the sample is representative, hence ensuring the
validity of the data.
Currently, Baby Boomers make up 10.3% of Old Mutual‟s workforce, Generation X make
up 62.9% of the workforce, and Generation Y make up 26.7% of the workforce. The
sample group chosen was representative of the current generational split in the Old
Mutual South Africa workforce.
The sample group consisted of four Baby Boomers, seventeen Generation X individuals
and eighteen Generation Y individuals. Baby Boomers seemed to lack interest in
participating in this study. In general, Baby Boomers were reluctant to participate in the
research, as they did not want their expectations of their employer to be exposed as they
saw no benefits in this, but only fear of possible repercussions. Comments made
included:”I don‟t want my manager to know that all my needs are not being met because
he may find someone younger to replace me.” Other reasons for the low participation
include their fear of a mismatch between their expectations of their employer, and the
change in employment contracts (both psychological contracts and legal contracts); many
Old Mutual white Baby Boomers are facing early retirement due to the company wanting
to fill these positions with younger employment equity candidates. This has left these
Baby Boomers bitter and unhappy, and they no longer feel as though they are part of the
company. One of the prospective respondents said:”Why do you want to know what I
want from my employer. They are not interested in me anymore. They are only interested
in giving young people like you what you want.” However, Generation X and Y
respondents were keen to participate in the study as they saw it as an opportunity to voice
their opinions. One respondent commented:”The questions you are asking should be
asked of people when they join the company so that they know how to structure your
packages.”
Copyright UCT
MBA Research Report Page 21
3.4 Data analysis methods
Once the pre-session surveys had been completed, the responses were examined for
common themes regarding the expectations of employees in Old Mutual South Africa, by
generation. These were examined through content analysis (Bryman & Bell, 2003),
making use of coding (for discrete variables) and general content analysis for all other
variables. The reason for the mixed data analysis methodology is there were some
variables that had discrete answers, such as gender, age and many others. Other
questions such as “the reason for leaving your last job” fell into the realm of general
content analysis.
The data was compared to the literature, again using content analysis, to establish
differences or similarities to the international research done in other countries.
3.5 Validity and Reliability
The research utilised both a quantitative and qualitative strategy. This meant that the data
collected was triangulated, and hence addressed the question of the reliability of the data
and by extension, the internal validity of the data (Leedy and Ormrod, 1993).
Participants in the focus group were chosen to be representative of Baby Boomers,
Generation X and Generation Y. In addition, the sample was not drawn from just one
business unit or just one job type in Old Mutual South Africa, but rather from different job
types in different business units across Old Mutual South Africa, to prevent any bias to the
view of particular employees. These two factors ensured that the sample I chose was
representative of the population I intended to make inferences about, hence ensuring the
external validity of the data (Leedy & Ormrod, 1993).
The research findings also used the findings from the literature review to triangulate
(Bryman & Bell, 2003) the findings from both the quantitative and qualitative sources of
data collection.
The data collected was also shared with the participants of the focus groups and
interviews once the conclusions of the study had been reached in order for them to
Copyright UCT
MBA Research Report Page 22
validate the outcomes of the research, thus further ensuring the validity of the data (Leedy
and Ormrod, 1993).
3.6 Limitations of the study
The study was limited to Old Mutual South Africa, one of the largest financial services
companies in South Africa. The study was not intended to deliver generational value
propositions across all sectors in the South African market. It was also not intended to
define the generational groupings, but has rather selected a definition to work with and
has focused on the expectations of these predetermined groups. The study only aims to
define the value proposition for the sample group, and in no way is an indication of the
general Old Mutual South Africa workforce.
The timeframe within which the study was required to be completed did not allow for the
sampling of hundreds people. Ideally, given the size of Old Mutual South Africa (employer
of approximately 15 000 people in South Africa), I would have liked to extend the study to
a larger group of people. A small group of participants (relative to the size of the
company) was used and this may have limited the extent of the feedback received. To
mitigate this, the participating sample was selected to include all relevant generational
groups.
Copyright UCT
MBA Research Report Page 23
4 FINDINGS
This section looks at the responses received from respondents. Their responses have
been clustered in the different generations, that is Baby Boomers, Generation X and
Generation Y, focussing on key expectations they have of an employer such as
promotional opportunities, the most important and least factors considered when choosing
a job, expectations regarding various factors of employment, and the most common
reason cited for leaving or remaining in a job.
4.1 Baby Boomers
Four Baby Boomers participated in the study. Respondents in this group fall between the
ages of 49 and 64 years. The respondents were all white, and married. The respondents
consisted of three males and one female. Of the four respondents, three were in
management and one respondent was in sales.
Generally, the Baby Boomers interviewed were not positive about their work environment
and displayed disillusionment with their careers. In addition, the Baby Boomers
interviewed were not comfortable with focus groups and requested individual interviews
instead as they did not feel comfortable talking about their expectations in a group. One
respondent commented:”I don‟t want the whole world to know what I want. Some people
may use that against me to get me out of my job.” Another respondent felt: “These young
people will not understand my expectations, and I don‟t want people to make snide
comments about my expectations.”
4.1.1 Promotional Opportunities
The Baby Boomers in management felt that on average, they were willing to wait
approximately three years before receiving a promotion. All of them felt that this was a
reasonable amount of time to assimilate enough experience in the job in order to
command respect from their peers and subordinates, and to become fully competent at
their job. Their expectations are that they would progress to roles deemed to be similar to
their current roles, but with more seniority. One respondent remarked, “I need to prove
Copyright UCT
MBA Research Report Page 24
myself to management, my peers and my subordinates before I can be promoted. If I
don‟t prove myself, they will have no respect for me.” One Baby Boomer respondent in a
sales related job expected a promotion in a year of assuming a job. She felt that a year is
enough time for one to prove whether they can make it in the industry or not. She
commented:”In a normal year, it should be easy to see if someone can make it in sale; you
just see if they are making their targets. One year is enough time for you to prove
yourself.” She also felt that she does not see promotions as necessarily a change in job,
but it can also be a salary increase.
Out of the Baby Boomers interviewed, none of them expected to receive any more
promotions in their career at Old Mutual and was quite disappointed with this.
Furthermore, none of them anticipated moving to another company as they felt that they
would find themselves in a similar position as they are in at Old Mutual. One respondent
felt: “I can‟t move to another company; no one wants to hire a 54 year old white male. You
have to be really lucky to get another job offer at my age. Plus, I am comfortable at Old
Mutual; little stress and I know my job. I don‟t want stress or change at this stage in my
life.” All of the respondents echoed these sentiments.
4.1.2 Most important factors when selecting a job
There was consensus among the respondents regarding what was important to them
when selecting a job. Most felt that challenging work is imperative, and career satisfaction
played a huge role when selecting a job. These respondents felt that having a job that is
challenging is what makes them want to come to work; once the work ceases to be a
challenge; they lose the motivation to come to work. One respondent noted, “When I have
a challenging piece of work to do, I want come to work; when the work is boring and
monotonous, I really don‟t feel like being here.” After years of service (generally to Old
Mutual), many felt that it was only respectful of Old Mutual to recognise not only the
contributions that they have made in the past, but also the contributions they can continue
to make. They bring with them rich institutional memory, which is an enabler for them to
deal with the challenges of today. One respondent said: “I may be old, but my brain is still
young. I have been here since before you (referring to me) were born. I have seen things
Copyright UCT
MBA Research Report Page 25
change repeatedly. I can provide insight into problems, which you have never
experienced.”
Monetary rewards, both short and long term, were also cited as very important to Baby
Boomers. Most felt that not only should they be paid in line with their current jobs, but also
receive recognition for their service and loyalty to the company. It was noted that there
was some resentment of newly appointed, younger people in the business who earned
salaries and were paid bonuses equivalent to that of the Baby Boomers. A comment that
was made was:”I have worked here for 27 years and I earn as much as some of the 27
year olds in this business. I don‟t feel valued because of that; my service here means
nothing to the company.” Some felt that this was not an issue as these younger
individuals were performing functions similar to the one the Baby Boomers were
performing, whilst others were not happy with this.
Being part of a high performance team was also seen as quite important, as the Baby
Boomers enjoyed soliciting the views of others before making decisions. Comments
included‟ “I want to be part of an ambitious team; they tend to have the high performers. I
feel I can share my views more openly and like hearing the views of others,” and “I like
teamwork, but only when it is with a team geared towards delivery.” It was acknowledged
that the workforce of today is far more diverse than it ever has been in South Africa, and
the Baby Boomers believed that this is something that needs to be exploited. On the other
hand, they loathed team members who they viewed as “token individuals”. They believed
that every individual needed to contribute to the success of the team, and felt that this did
not always happen in the organisation. They stated, “I would have no problem with
diversity, as long as people are in positions because of their aptitude and not their colour.
It is stimulating chatting to people with different views, but I loathe people being hired just
to fix the EE (employment equity) scores.”
Training and development, and job security were only mentioned as important attributes
by the respondent in the sales environment. She believed there was still a substantial
amount of training that she could undergo to improve her performance, whereas the other
respondents did not see the need for them to be undergoing further training and
development if they have reached a ceiling. The respondent in the sales environment
said:”There are many more courses I could attend to improve my performance in my job.
Copyright UCT
MBA Research Report Page 26
If I was given the opportunity, I would definitely attend these. I wish people would stop
considering me too old to learn.” She also said, “Given my current situation (she is
undergoing performance management), job security is a big concern for me. I‟m not sure
if I will have a job in a few months, but I‟m not ready to retire.” Job security was not a
concern of the Baby Boomer managers as they felt that the company would either offer
them lucrative packages for a graceful exit or just let them keep working until retirement.
Vacation time was cited as being quite important to this group. It was noted that although
they enjoyed their work, they deeply value time to relax with their family and to do the
things they want to. They believe that if they give one hundred percent at work, then they
should be allowed sufficient vacation time and would not trade this for anything, including
money. Comments made included, “I have worked hard my whole life. Now that my
children are grown and independent, I now have the time and money for my wife and I to
enjoy ourselves” and “I need time to enjoy my family and my life. Through my career, I
have not had much time to spend with them. Now is the time I get to enjoy family life.”
This group also showed a preference for working in teams as opposed to working by
themselves and tended to prefer longer-term roles. They disliked the idea of rotations
every eighteen months as they believed that it would take people anywhere between three
to five years to develop sufficiently in a job. Regarding their preference for working in
teams, one respondent said, “Working in teams is great; you get people with different
expertise to work on a common problem. Not only is it much easier to get work done in a
group, but it is also more interesting.” On the issue of longer-term role, respondents said,
“It is impossible for someone to master a job in eighteen months. You need a few years of
experience before you are ready to progress.”
4.1.3 Least important factors when selecting a job
There was agreement from all respondents that childcare facilities and corporate
philanthropy was least important to them. Reasons cited for this is that they all have
grown children and no longer need to worry about childcare facilities. Respondents
remarked, “My children are old enough to take care of themselves; even if I had young
children or even grandchildren, I would opt for a private nanny, or a place closer to my
wife.” Even if they had little children, most believed felt that they would hire private
Copyright UCT
MBA Research Report Page 27
childcare facilities and not make use of facilities offered by OM as they felt they would be
more comfortable with this approach. They felt that corporate philanthropy did not have
an impact on their jobs, and hence made no difference to them. One respondent
commented: “The charitable organisations which Old Mutual supports are good, but I do
not feel a connection to them. I would rather give to a charity of my own accord.”
Reduced working hours, sick leave and study leave were also seen as unimportant to the
respondents. Most reflected that their job at Old Mutual is their only job, and they had no
interests in other businesses or any other external interests. Some also commented that
they enjoyed their jobs and hence would like to spend as much time as they can at work.
One respondent stated, “I love my job; I have been doing this for nearly thirty years. All I
have is my work and my family. I want to leave a legacy here at Old Mutual so that I am
remembered when I am gone. That is why I work as much as I do.” They also believed
that they could complete any non-work related task, during normal working hours, as this
generally did not require massive amounts of their time. One respondent stated, “My
working hours are flexible, and people in my department understand that there are some
personal things that have to be completed in work hours; I can go to the bank, the doctor,
etc, during work hours. That saves me massive amounts of time over the weekends and
afternoons.” It was also mentioned that they were used to working these hours, and some
even longer hours. Having done this for so many years, most felt that it would be difficult
for them to change; they felt that staying at home would only result in boredom for them.
The respondents shared that in their careers, they had never made excessive use of their
sick leave, and anticipated this trend to continue. One respondent mentioned that: “I am
healthy and very rarely am overcome by the common cold; I have to be half dying to stay
in bed”; another stated “I am strong and rarely get sick. Besides, my manager never asks
me to claim sick leave, so it never gets used.” This is the reason that sick leave is not a
major consideration for them when choosing a job.
Study leave was seen as unimportant in choosing a job, as most of the respondents do
not anticipate studying any further, and hence this benefit is useless to them. This is
further substantiated by the lack of interest expressed by the majority of the sample group
for training and development. Some views expressed included: “I am too old to be
Copyright UCT
MBA Research Report Page 28
attending courses; it doesn‟t add any value to my job,” and “I am at a stage in my life
where I am not interested in studying; hence, study leave is useless to me.”
4.1.4 Expectations regarding factors of employment
a. Expected Working Hours
Baby Boomers are willing to work between five to twenty hours extra per week, provided
they are compensated for this, in either monetary terms or some other form of recognition.
Respondents commented that: “If I work more hours than required, I expect some sort of
acknowledgement from my manager. Paying me overtime would be great, but if that is not
possible, a simple thank you would do.” The female respondent in the group was however
not willing to work extra hours as she felt that it was important for her to be with her family,
and hence would not be willing to work extra hours. She said, “My family comes first; I
need to be home to take care of them and be with them.”
b. Taking work home
Respondents indicated that they were willing to work from home, but all indicated that they
preferred not to. They felt that their work and home life should remain separate, and
working from home would compromise that. Some respondents responded by saying:”I
will take work home if it is absolutely necessary; in most instances, my work can wait till
the next day,” and “I would take work home if I haven‟t finished something by the due date;
but I would rather work late than take work home. It‟s just easier to work at work. When
I‟m at home, that‟s either my time or family time.”
c. Vacation time
Most respondent were not likely to accept a job that offered minimal vacation time.
Respondents were adamant that, “I need my time away from work,” and “I need to
recharge my batteries; minimal leave is for workaholics and I am not one of them.”
d. High stress environments
All of the respondents were comfortable with working in high stress environments, with the
exception of the respondent involved in sales. Most noted that they already worked in
Copyright UCT
MBA Research Report Page 29
high stress environments, hence this was not a problem for them. Respondents in favour
of high stress environments stated, “I have worked in a high stress environment all my life;
I am quite comfortable with this kind of environment.” The respondent who was not in
favour of a high stress environment stated, “I don‟t like stress; I am an easy going person
and a stressful environment is not an environment here I can perform well in.”
e. Excessive travel and an excessive commute
This group did not favour excessive travel as they felt that this was a waste of valuable
time. Most respondents echoed the sentiment of a statement made by one respondent,
“Travel two to three times a week is a waste of time; in my day, you never had to do that.
You could get everything you needed from around you. Plus, when we flew somewhere, it
was an occasion, so we got to fly business class, so you were comfortable”. They
preferred not to travel, and would only be willing to do so occasionally. They would also
only be willing to travel on their own terms, that is, they felt that the travel policy of the
company made travelling very uncomfortable for them, as they were not afforded any
luxuries while travelling. One respondent commented, “I drive a Mercedes Benz, but
when I travel, I get one of those small cars, like a Hyundai Atos, in which I can barely fit.
It‟s ridiculous!” Another issue is that this group was not used to travelling excessively, and
found it to be tiring, especially at their age.
The group was split on whether an excessive commute was acceptable or not. Some did
not mind the excessive commute, in favour of living in an area that they were comfortable.
One respondent commented: “I live in Constantia. It is a great area. It‟s quiet and private.
It is a bit of a trek to work, but I don‟t mind that.” Another respondent commented: “I hate
sitting in traffic, hence I need to be as close to work as possible.” However, all
respondents were against working in one city and living in another.
f. Stability but little progression
All of the respondents felt that they would not accept a job that offered stability but little
progression. They all felt that the prospect of progression is what made a job worthwhile.
One respondent commented that: “Having a job without the prospect of progression is like
constantly being on the bench in any competitive sport. Would you be happy just being on
the bench constantly, knowing that that is as far as you are going to get?”
Copyright UCT
MBA Research Report Page 30
g. Separation from family
Separation from their family was something that they are unlikely to entertain. They did
not see any benefit in them doing such a thing at this stage in their lives. One respondent
stated, “I have been married for thirty years, and have never been away from my wife. I
don‟t intend to be away from her now.” The female respondent in the group remarked:
“My family is what gives me strength; I would not be able to cope with the stress of work
without them.”
h. Constant studying
Constant studying was seen as something that the respondents, with the exception of the
respondent in sales, would prefer not to do. As with training and development, some felt
that they were too old to be studying, whilst others felt that there was still room for them to
improve their skill set.
i. Type of work
The respondents seemed to have an affinity to working in team rather than working on
their own. One respondent commented that: “Working in teams is great; you get so much
more done than if you were working alone. Plus, you don‟t have to know everything or
even keep up to date with every single thing. You can get people on your team who can
help with that.” The group was averse to job rotations every six to eighteen months; they
felt that one needed more time to become fully competent at their job. One respondent
noted, “You cannot rotate someone out of a job which they have not mastered into another
job; it just does not make sense. That‟s what happens with these job rotations.”
4.1.5 Reasons for leaving jobs
Several themes emerged as to why BB‟s leave jobs, with the sales respondent adding a
few different reasons. In general, most cited the following reasons for leaving a job,
together with the actual comments made:
Better opportunities
o “I was offered a job which was a step up from what I was doing.”
o “I found a job which seemed so much better than my job at the time.”
Copyright UCT
MBA Research Report Page 31
Lack of career progression
o “I was stuck in the same job for ten years; I could not take it anymore.”
o “Only younger people were being promoted; I needed to find something
where I was valued and offered the same opportunities as younger people.”
Remuneration
o “I found a job that paid me more for doing the same thing I was currently
doing”
o “Someone offered me more money for doing less than I was doing at my
current job.”
Poor leadership
o “I felt that my manager was directionless, which meant I could not do my job
properly.”
o “My leadership team was dishonest and unfair.”
The respondent in sales also felt that lack of support and complacency from the company
and staff were reasons for leaving a company. She remarked, “I want to work for a
company that supports me and makes my job easier. When I don‟t get this support, or
when the company feels it does not need to improve, I cannot sell them.”
4.1.6 Reasons for remaining in jobs
Themes emerged from discussions with the Baby Boomer respondents regarding why
they would choose or have chosen to remain in jobs. These were consistent across the
different employment levels and are ranked in descending order of the popularity of that
particular theme. The main themes, which emerged, were:
Brand of the company
Remuneration including benefits
Challenging work environment
High performance teams
Growth and development opportunities
Pride in the company and their job
Doing something that was worth their while, and value adding
Copyright UCT
MBA Research Report Page 32
4.2 Generation X (Gen X)
Seventeen Generation X employees participated in this study, of which there were six
females and eleven males. These respondents are between the ages of 31 and 48 years
old. This sample group consisted of a spread of people from sales, administration and
management. The group consisted of four people in sales, seven people in administration
and six people in senior management. Eleven of the respondents were white, four were
coloured and two were African. This group of respondents were far more optimistic of the
company and their careers.
4.2.1 Promotional Opportunities
Generation X respondents believe they should receive a promotion between one to five
years of starting a new job. The reason for the wide range is that the expectation of
receiving a promotion varied between different job types.
People in administrative roles believed that it takes people anywhere between one to five
years to master a particular job, and that people should only receive promotions once they
have proven themselves fully competent in their current role. Most of the respondents in
this category fell into the older half of Generation X. One respondent felt that: “It has
taken me four years to become fully competent at my job, and I am a fast learner. I have
not expected a promotion until I proved myself as fully competent.”
Sales staff felt that they should receive a promotion after two to four years of being in a
job. Here again, the argument was around how long it takes someone to become fully
competent in their role. The younger the Generation X respondent was, the sooner they
expected a promotion, as they felt they were ready for a new challenge sooner. Some
respondents even felt that in the sales environment, promotion was not important at all.
They believe that if you are a good performer in the sales environment, it is more lucrative,
from a financial standpoint, to continue with your job as is. In these instances, the
respondents expected more recognition for their excellent sales rather than a promotion.
One respondent noted, “I have been on several offshore and onshore trips because of my
good sales. I do not need to be promoted, as long as long as I am recognised for my
Copyright UCT
MBA Research Report Page 33
work. In sales, we do not get promoted, but your status among other sales people rise as
your sales performance improves.”
Respondents in management positions expected to wait between two to three years
before receiving a promotion, with more senior positions falling in the lower end of this
range and the more junior management roles expecting to wait about three years for a
promotion. Respondents in senior roles felt that the exposure and growth, which they
receive in their roles, develops them faster than in the junior roles. In addition, the nature
of the work becomes more strategic as one moves from the junior roles to the more senior
roles, which the senior management respondents felt to be more stressful and demanding,
and hence needed a change sooner. It was also felt, by both junior and senior
management that as one climbs up the corporate ladder, the number skills that they need
to develop reduces, hence why senior management expected promotions faster. One
respondent in senior management stated, “I have been at Old Mutual for many years, and
have moved from administration, to where I am today. As I moved up in the organisation,
I notices that the complexity of the work increased. This was due to senior management
being responsible for making decisions and acting on uncertain information, where at the
lower levels, you have defined processes and procedures. The more complex the work,
and the more decision making capability you have, the quicker you learn.” In addition, the
sheer quantity of people at these various levels means that at senior management level, it
is easier to recognise when someone is ready for a change than at lower management
levels. A respondent in senior management reported that, “When you are at the junior
levels of the organisation, you are competing with many more people for promotions; as
you move up the organisation, the skill set becomes more precise, and the levels of
experience required increases, and hence the pool of people you have for these jobs
decrease. So, good performance stands out, and people are able to command
promotions easier.”
4.2.2 Most important factors when selecting a job
Challenging work, career satisfaction, opportunity for progression and remuneration were
rated as the most important factors to Generation X when choosing a job. These factors
were true of the respondent group as a whole, with their job type not being a critical factor.
Copyright UCT
MBA Research Report Page 34
One respondent asserted, “What makes me satisfied at work is if I have work that
challenges me, and takes me out of my comfort zone. I feel if I work on projects which are
challenging, then I can prove my worth to my manager, and make it easier to get a
promotion.” Other respondents felt, “The most important factor for me is remuneration,
mainly salary. I have a family to take care of and I need to earn a decent salary to do
that,” and “I am engaged with other activities outside work, which I need to fund; that‟s
why my salary is important to me.”
People felt that if their jobs were not challenging and if they did not enjoy what they did,
then they would become frustrated in their jobs. One respondent felt, “I enjoy challenges
in life; my job is no different. If I am not challenged in my job will leave and look for a job
that offers me that challenge.” However, some people were willing to give up job
satisfaction and challenging work in favour of remuneration. The thinking here was if the
person was paid a reasonable remuneration package, which could support his or her
lifestyle, then, they would do just about any job. This was the main trade-off that some of
the respondents were willing to make. One respondent remarked, “Job satisfaction and
challenging work will not feed my kids. I need money, and I need it now.”
Job security was also seen as an important factor by most respondents as they were
conscious of the fact that they had families to take care of. This factor was consistent
across the different job types, irrespective of their level in the organisation. Respondents
felt, “Now that I have a family and commitments, I need to make sure that I can support
my family and meet my commitments. I would like to be adventurous, but that is
something for the youngsters,” and “Call me old fashioned, but I like knowing that I have a
job and an income.”
Other non-financial benefits such as medical aid and retirement funding are also seen as
important; however, medical aid is seen as more important than retirement funding, as its
benefits are more immediate and directly benefits the employee‟s entire family. People
felt, “It‟s important to have medical aid, especially since doctors are so expensive. It‟s nice
when the company subsidises you fully or partially,” and “Medical aid and retirement
savings are important, but if I had to chose between the two, I would say medical aid,
because my family can benefit from it now.” Those respondents who were dissatisfied
with the current benefits they were receiving from the medical scheme cited medical aid as
Copyright UCT
MBA Research Report Page 35
an unimportant. Respondents stated, “Medical aid is important, but I wish we had a better
medical aid. It is difficult to have a family of five on our medical aid. I end up paying for
going to the doctor in any case, so I don‟t see the use of our medical aid.”
Having good managers and mentors is viewed as important to the vast majority of the
respondents involved in sales and management. Good managers were seen as key to the
success of the respondents and mentorship was seen as an important value add to their
careers. One respondent noted, “My ideal job would be to work from my laptop wherever I
might be. I like to be left alone to work, but with a manager available with an open door
when you need to consult or get guidance. They still need to be hands-on enough to
know what you are working on and what kind of job you have done.” While having good
managers seemed important to most of the respondents, having mentors is especially
important to those respondents in middle to senior management positions. They felt that
having mentors would help them progress quicker through the business than they would
be able to on their own. A respondent stated, “Having a mentor has helped me to
understand parts of business which I have not yet experienced for myself. They help you
to think beyond today, about your career and your life. They can also be instrumental in
getting you noticed by the people in power.” Respondents involved in administration felt
that good managers and mentors were not as important, as their jobs are routine and
“boring”. One respondent felt, “My job is the same today as it was yesterday; having a
good manager or mentor won‟t change that.”
Training and development are seen as very important to respondents in administrative,
sales and junior management positions, but regarded as less important for those in middle
to senior management. Respondents in middle to senior management felt that their
growth would come from interactions with people senior to them, and mentors, and not
from studying and entry level training programmes. They were more vocal about on the
job experience as opposed to classroom based training and development programmes,
however, they did acknowledge that they would be willing to attend training and
development which was relevant to their job and which was practical. Respondents in
senior management stated, “I would not waste my time with theoretical programmes; if it‟s
a programme which is practical, then I do not see value in me attending these training
interventions,” and “On-the-job training is the best kind of training as it is always relevant.”
Respondents in junior to middle management felt, “I need training to improve my business
Copyright UCT
MBA Research Report Page 36
knowledge; for instance, I would like to do an MBA because it prepares you for general
management,” and “The more training courses I attend and develop my skills, the greater
my chance of being considered for a promotion.”
Long-term incentives are viewed as important across the range of respondents, even for
those who have never received these. They felt that a good balance between short term
and long-term incentives is important to provide for the later stages of their lives. They
also felt that long-term incentives would also keep them loyal to the company and a lack
thereof meant that they were free to move whenever they pleased and were under no
obligation to the company. Respondents stated, “If I received share options, I would be
less likely to leave the company. I also would also have an interest in the success of the
company,” and “Long-term incentives make you want to stay with a company. If you
wanted to leave, you need to get your new employer to compensate you for your lost
shares and share options. That can be difficult, especially if it is the equivalent of a large
sum of money.”
4.2.3 Least important factors when selecting a job
Most people, with the exception of two, felt that corporate philanthropy was not important
to their choice of job or company. Many felt that they would rather engage in philanthropic
activities by themselves, as some felt that the philanthropic activities of the organisation
might not align to their interests. They also felt that corporate philanthropy had no material
impact on their job and hence was not very important to them. Respondents commented,
“The philanthropic activities of the company are not important to me. I want an employer I
can rely on to take care of me,” and “The community activities of Old Mutual are good, but
I prefer to be actively involved in these activities, so I choose to do them myself.”
Leave (annual, study and sick leave) did not seem to be very important to the
respondents, across all the job types. All the respondents felt that leave has never been a
deciding factor in the acceptance of a job, and they do not anticipate it being a swing
factor in their choice of a job in the future. The respondents said, “Everyone gets leave.
Why should that be a big deal,” and “The only leave I use is my annual leave. As long as I
get my twenty-two days a year, I am happy. If a job paid me enough, the number of
Copyright UCT
MBA Research Report Page 37
leaves days I was allocated would not stop me from accepting it. I don‟t care about sick
leave and study leave.”
Flexible working hours and working from home was also not a swing factor in choosing a
job for most respondents. The respondents felt that a job, which offered proper office
space, was far more favourable than one that did not. They felt that working from home
would only work for people who are disciplined enough to separate their work life and
home life. The respondents also felt more comfortable with defined working hours so that
they can separate their work life and personal life. The respondents stated, “I need a
proper working space; I can‟t work from home. My children would drive me crazy and I
would get nothing done,” and “I like to leave my work at the office when I leave in the
afternoon. It helps me balance my life better.” There were a few respondents who did
value flexible working hours. One respondent stated, “I‟ve selected to take the reduced
working hours option because I enjoy doing things with my life outside of work, such as
sport. I‟m a squash player and wanted to be able to focus more on the sport, among other
things.”
4.2.4 Expectations regarding factors of employment
a. Expected Working Hours
The expected working hours for Generation X respondents differed across the different job
types. Respondents involved in administrative work were willing to work, on average, 50
hours a week. Although the respondents in administrative jobs were willing to work on
average 50 hours, if required, most did not think they should be working those hours.
Respondents commented that, “I will work more hours if my manager asked me to, but I
don‟t think he should be asking me to do that; after all, I don‟t want him to think I‟m lazy
and I don‟t want to lose my job. I do understand that sometime we have to finish certain
tasks before a particular time, but I think we should have more staff for those periods.”
There were however a few outliers, and the main reason given for the willingness to work
between fifty to sixty hours a week was the perception that if the respondent worked more
hours, they would be deemed fit for promotion or other new opportunities. The respondent
said, “If I work longer hours, my manager would recognise me as a hard worker, and I will
Copyright UCT
MBA Research Report Page 38
be recommended for some sort of reward. Managers like people who do more than they
are supposed to.”
Respondents in management were willing to work between 40 and 60 hours a week.
They felt that there was an expectation from the company that managers should be willing
to work longer hours, if required. They felt that with more authority come more
responsibility, and this sometimes meant doing more than was stated in their formal
employment contracts. Again, the more senior the manager, the more hours he or she
expected to work per week. The respondent commented, “My job does not have set
working times. There are times when I have to work eighteen-hour days; there are times
when I work three-hour days. You have to learn to take the good with the bad.”
Sales respondents overall felt that they would not be willing to work more than the
expected number of hours per week. Respondents felt that if they worked more than the
expected forty hours, it was a reflection of poor time management on their part. In
addition, sales personal are remunerated mainly via variable structures; hence, they felt
that they would work for as much time as it took them to make the amount of money they
wanted. They felt that the required 40 hours a week was more than sufficient to get to the
remuneration levels they desired. One respondent commented, “If I can achieve my sales
target in ten hours as opposed to the recommended 40, why should I work 40. After all,
work today is about output and not input,” and “I think there‟s a lot one can do before one
should have to work long hours.”
Overall, the respondents preferred not to work more hours than was expected of them, but
many felt that they have to in order to do their job well.
b. Taking work home
Sales and administration respondents did not mind taking work home, as long as it was
not all the time. They preferred to take home with them, rather than having to work late in
the office. This way, they could be with their family, and still complete any required work.
One respondent noted, “I do take work home with me from time to time, but I do not make
it a habit. I have a four year old, and he is full of energy. I need time to be with him, so I
try not to take work home.” Management respondents on the other hand were not willing
to take work home. They felt that they spent insufficient time with their families, by virtue
Copyright UCT
MBA Research Report Page 39
of the amount of time they spent travelling. As a result, they prized the time they spent at
home with their families, and felt they needed to be one hundred percent present with their
families when they are at home. One respondent noted, “I spend four days out of five
away from home. I hardly see my family. I am not willing to work during the little time I
have with them.”
c. Vacation time
Vacation time is important to this group of respondents. Although it was rated as
unimportant in choosing a job, most expected to get at least twenty days of leave per year.
As long as they were awarded this, leave was not an issue. A respondent commented, “I
need my time to relax with my family and be away from work. I value my time off. I give
one hundred percent when I am at work, and need time to relax one hundred percent.”
d. High stress environments
All of the respondents were willing to work in high stress environments. However,
managers and sales respondents were more accepting of a continuous high stress
environment, whereas administration respondents were willing to work in high stress
environments, as long as it was not sustained for long periods. A respondent in the
administrative environment felt, “Stress should not be ongoing; it‟s bad for your health.‟
Respondents in sales and management said, “Stress is part of the job. It‟s why we get
paid the salaries we do, “and “No stress means you are not pushing your boundaries and
out of your comfort zone.”
e. Excessive travel and an excessive commute
All of the respondent groups were willing to accept excessive travel, but for different
reasons. The group of respondents in the management category felt that this was part of
their job, and hence did not mind the excessive travel. They displayed a preference to live
close to work; however, their needs for a comfortable family home and access to good
schools for their children superseded their need to live close to work. One respondent
remarked, “Travelling is part of my job. I need to travel around the country every other
day, and out of the country quite often. I knew this when I accepted this job, so it is taken
as part of the job. I would prefer to be as close to work as possible; but more important is
Copyright UCT
MBA Research Report Page 40
to have a comfortable house for my family, near a school for my children.” Others felt that
the excessive travel often took them to places they never knew existed and allowed them
to meet people they ordinarily would not have met. One respondent felt, “I have been able
to travel around the world with my job, and I have met weird and wonderful people. If I
had not been willing to travel, I would not have been able to do that. I would prefer to live
close to work as long as it is affordable.” Hence, travel was seen as an opportunity to
broaden their horizons, though many did feel that the travel does take its toll on you. One
respondent noted, “Travel is good for the first few months. Then, it becomes a chore.”
Sales respondents felt that travel was necessary for them to either conduct their business
or increase their business; hence they did not mind the excessive travel. One respondent
felt, “Excessive travel or commute is necessary for me to either get to my clients or attend
training. I have to be willing to do both to maximise my earning potential.” Respondents
involved in administration, who do not travel as much as the other two groups felt that
travel would be exciting, hence their favourable attitude towards this. One respondent
noted, “I would love to travel; I have never been on a plane, and wish my job involved
some sort of travel so I could see different places.”
f. Stability but little progression
None of the respondent groups was willing to accept stability as a substitute for
progression. Although stability was highly valued among the Generation X respondents,
progression was still very important to them. All the respondents felt that they expected
stability in terms of them having a job and in terms of their remuneration. However, the
prospect of progression is what propels them to work hard in the hope that they will be
able to achieve more. Many felt that there should be a balance between stability and
progression, and those who have found this felt that they would not change employers,
even if they were offered more money. Responses included, “I want to know that my job
is secure, but that I will have an opportunity to further my career. I also need to know that
my salary is secure. I can‟t have it changing every month as I have commitments.”
Another respondent noted, “Some employers are able to offer you a stable job, but with
the prospect of moving up in the company. I would find it hard to leave an employer like
this.”
Copyright UCT
MBA Research Report Page 41
g. Separation from your family
All of the respondents who have spouses, partners and children were vehemently against
being separated from their family, for long periods. They felt that wherever they went, they
would prefer to take their family with and that long periods of separation from their family
would be quite stressful for both themselves and their family. However, most did not mind
being separated from their extended family, including their parents, brothers and sisters.
Some felt that if they were separated, they would expect the company to foot the bill for
frequent travel for either them, or their family. Respondents stated, “I do not think that I
would be comfortable being separated from my immediate family. I would worry too much
about their health and safety. I would not be able to concentrate on work if were
separated from them for long periods of time,” and “I don‟t mind being separated from my
extended family, but I need the support of my immediate family.” Overall, Generation X
respondents will tend not to accept jobs, which require them to be separated from their
immediate family for long periods.
h. Constant studying
Respondents in management positions are far more likely to accept jobs, which require
constant studying, provided whatever they are studying can be readily applied to their
jobs. One respondent noted, “If I am expected to study something which I can apply to my
job, I will do it. But if it‟s not practical, then I am not interested.” However, the willingness
to study seemed to depend on experiences with regard to studying, and this is a thread,
which was common among all respondents. The main reason for people not wanting to
study is they felt either that studying was not for them or that they did not want the stress
of studying again. Respondents felt, “I hated school and studying; I never want to study
again,” “Studying is a waste of my time; I‟m not good at it, and I am not going to put myself
through that hell,” and “I don‟t mind studying. I loved it at school; I just wish I had the
money to continue with my tertiary education.” This was mainly the sentiment expressed
by those in sales and administrative roles, while those in management positions
understood that work experience and education played a role in their progression.
Copyright UCT
MBA Research Report Page 42
i. Type of work
Across the range of respondents, there was agreement that they would prefer to be in
jobs, which offered them a balance of thinking and doing. They felt that they had a lot to
contribute to any business and would be offended if they were thought of as mere worker
bees. One respondent remarked, “I expect to be given direction by my manager; but I
also expect to be given the freedom to act on my own.” They are happy in jobs where
they get to work in teams, and alone as they believed that, they could fare well in both
instances. However, this seemed to vary across different personality types and not across
different job types. Respondents felt, “One of the challenges of working with colleagues
from different generations is that overtime and long hours often seem to be viewed as part
of the job. At times like this, I prefer to work alone,” and “I love working in a team. The
diversity of talents and ideas is refreshing. I don‟t think I could achieve half of what I have
achieved to date, if I had to work on my own.” Respondents involved in administration and
management were open to job rotations, every two to three years, and felt that this added
excitement and opportunities in a company. Sales respondents however felt that job
rotations were not necessary. They felt that if you are a good sales person, you should
stick to sales; if not, you should find another career. Hence, they felt job rotations would
not be suitable to their particular job type. A respondent in the administration job type felt,
“Rotations every two to three years would be a good thing; people like me would have the
opportunity to try different jobs to see what jobs we are best suited to.”
4.2.5 Reasons for leaving a job
The main reasons cited by the respondents for leaving jobs, in descending order of the
number of mentions received, together with actual quotes from them, were:
Remuneration (mainly short term) and benefits
o “I found a job that would pay me more.”
o “Even though I was getting a good package, my take home salary was low,
so I found a job where my take home salary was higher and my benefits
were lower.”
Copyright UCT
MBA Research Report Page 43
Finding better prospects
o “I found a position better suited to my talents.”
o “I was offered a more senior position, coupled with a higher salary,”
Lack of inspirational leadership
o “The leadership team did not motivate me, nor could I associate with them.”
Job satisfaction and lack of progression opportunities
o “I had reached a ceiling in my job and I was frustrated.”
Family reasons
o “I spent too much time on the road, and was not able to spend enough time
with my family.”
o “My husband got another job, and the whole family needed to relocate.”
4.2.6 Reasons for remaining in jobs
Irrespective of the type of job, the respondent was involved in, the reasons for remaining
in a job was consistent. The main reasons cited for remaining in a job, in descending
order, are:
Remuneration
Job satisfaction and progression opportunities
Stability
Brand of the company
Growth and development opportunities
Inspirational leadership
Copyright UCT
MBA Research Report Page 44
4.3 Generation Y (Gen Y)
This group of respondents consisted of individual between the ages of twenty-three and
thirty, and is substantially more representative, demographically, of the South African
population. There was good diversity of the respondents in terms of race and gender.
There were thirteen female respondents and five male respondents. This sample
consisted of six African respondents, five Asian respondents, three coloured respondents
and four white respondents. The breakdown of respondents into job type revealed that
approximately sixty percent of the respondents fell into the technical/professional
category, with the remaining respondents split between sales (24%) and the remaining
twelve percent in administrative roles.
4.3.1 Promotional Opportunities
Generation Y respondents felt that they were willing to wait between one and three years
before they expected a change in their role. While the range is an indication of the overall
expectation of the group, it was noted that on average, Generation Y respondents
believed that they should expect a change in their role in approximately two years. It is
important to note that they did not necessarily expect a promotion after two years, but they
expected at least a substantial salary increase, if they were doing their jobs well. An
interesting nuance is that respondents in administrative roles expected promotions or
salary increases within a year of starting their jobs, while respondents in the sales
environments expected to receive a promotion or salary increase in approximately three
years of starting a job. Respondents‟ views included, “I think that I can reach an
acceptable level of competence within two years of starting a job. I immerse myself in my
job, which is how I am able to build my competence levels quickly. Even if I do not receive
a promotion within two years of accepting a job, I do expect at least a substantial salary
increase in recognition of the amount of my time I devote to the business,” and
“Administration jobs are easy to learn. I only took this kind of job to get into Old Mutual. I
expect to move out of this role in the next six months; I have been here for about nine
months already, and feel like I am almost ready to move to something bigger and better.”
Copyright UCT
MBA Research Report Page 45
4.3.2 Most important factors when selecting a job
Out of the eighteen respondents, only three did not include financial rewards (salary,
bonus and other incentives) in their choice of the top eight most important factors when
choosing a job. Incidentally, all of those who did not consider remuneration as highly
important to their choice of job instead rated the willingness of the company to pay for their
studies as being important. Respondents commented that, “I joined Old Mutual straight
out of university; they paid for my studies. I am grateful that they assisted me with my
studies. I may not have been able to study had I not received a bursary from them,” and
“Old Mutual is currently paying for my CFA. It is important to my career that I am able to
complete this qualification and I am glad Old Mutual has offered to pay for this.”
Many of the respondents felt that they need to be adequately compensated for the fact
that they have a tertiary qualification (and other professional qualifications), and for the
contributions they make in their jobs. They noted that they did not expect that their
salaries would be the best in the industry but they needed them to be, at the very least,
comparable to their peers in the industry. While many did not expect to earn millions in
their early working careers, they felt that their salaries should be a reflection of the amount
of work they do, and the quality of their outputs, as opposed to their length of service.
Respondents felt, “My salary should reflect my contribution to the company. I studied for
four years, which is not cheap, and I need to be compensated for the investment I made in
my education, for which the company now derives benefit,” and “Being highly paid is not
all that matters; as long as my salary is comparable in the industry, I am happy. I hate
knowing that I have been getting a raw deal from a company.”
Training and development is viewed as a particularly important factor, especially for the
professional Generation Y respondents. Not only did they feel that this is an important
factor, but they also felt that it was a sign of good faith from the company to pay for any
additional training, which the respondent may want, as long as it pertains to his or her job.
They felt that if a company spends money on training and developing them, then the
company sees potential in them, and that is a factor, which contributes to them wanting to
accept a job or remain in a certain job or company. Respondents commented that, “If a
company is willing to invest in me, then I know that that company recognises the value I
can add to their business. I would stay with a company like this, as I would be able to
Copyright UCT
MBA Research Report Page 46
expand my knowledge base, and would enjoy a level of satisfaction in my job,” and
“Training and development is important for me. I need to be constantly stimulating my
mind to maximise the value I add at work.” Training and development was seen to matter
more to Generation Y professionals, and not as much to respondents administrative and
sales jobs. Tuition reimbursement seemed to be important only to those respondents who
are currently studying or intend to study in the next two years. Respondents noted, “If I
am not planning on studying, why would I worry about tuition reimbursements?” and “I am
currently studying my MBA. I would not have been able to fund this on my own. One of
the reasons I moved to Old Mutual is they offered to sponsor my MBA.” Another
respondent commented, “I‟ve enrolled for the Project Management Course at Old Mutual‟s
business school and it‟s very exciting that I can learn and grow within the organisation.”
Career progression was viewed as very important to all the respondents. The
respondents expressed a sense of ambition and achievement, hence career progression
is so important to them. When asked what kind of jobs they foresee themselves fulfilling,
responses ranged from “CEO of OMIGSA”, “MD of the business”, “a general manager in
the next few years” and “head of the call centre.” Respondents felt that if they did not
foresee progressing in a company, they would leave without hesitation. They commented,
“If I do not think that I am going anywhere in a company, I will look for another job.” Most
of the respondents felt that they were overlooked for senior positions because of their age.
It is for this reason that many insist on having a clear map of where they are going in their
company. Some respondents on managed programmes, which tend to map out your
career in the organisation, shared how knowing that your career is being actively managed
by someone, allowed them to focus on excelling at their job. Respondents felt, “My age
sometimes gets in the way of me advancing. I have been told that I need five years
experience in this area, and five years in another area, before I can get to a senior
position” and “Being on a managed programme or having a manager who is concerned
with your career helps you map out your career. This takes my mind off things like making
myself known in order to get a promotion; hence, I can focus on doing a good job and
know that everything else will fall into place.”
Work-life balance came across as an important attribute for those respondents who were
married and those who had children. For those respondents who were single, work-life
balance was seen as unimportant. Many of the respondents who were married were
Copyright UCT
MBA Research Report Page 47
actually newlyweds, and those with children had young children. As such, they felt that
they needed to spend time with their families. Respondents felt, “I have only been married
for six months; I don‟t want to be divorced for neglecting my wife”, and “My son is three
years old. He does not get to see much of me because I travel so much. I want to be able
to spend as much time with him as I possibly can.” Those respondents who are single
and found work-life balance to be unimportant felt that they should work as much as they
can, while they can; they felt that once they had a family or a partner, their ability to work
long hours would diminish. A respondent remarked, “I can work all night if I have to. I am
single and have no one to answer to or worry about. Right now, my life is about my career
and I.” Another important point raised is that many respondents interact with other
Generation Y people from their work environment, in a social setting as well. This means
they are working with their friends, and hence work-life balance is also achieved to an
extent. One respondent felt, “I work with my friends; we work hard and party hard,
together.” Some respondents also felt that by sacrificing their social lives, they would be
able to climb the corporate ladder quicker than those people who are unable to do this.
One respondent noted, “If I display commitment and dedication, I will be recognised and
rewarded with progression in the company.”
A good manager was viewed by half the respondents as important, whereas the other half
the group felt that it was unimportant. The respondents who felt a good manager was
unimportant were also the respondents who felt remuneration was the most important
factor in a job. They felt that as long as you enjoyed what you did and you were
remunerated fairly, then a good manager or mentors were inconsequential. They also felt
that they did not have enough interactions with their manager for them to have any
material impact on their jobs. Responses included, “If you pay me enough, I will make
sure the work gets done, irrespective of the kind of manager I have” and “I hardly see my
manager. What kind of impact can he have on my work?” Those respondents who felt a
good manager and mentor were important in choosing a job was made up mainly of
respondents involved in technical work. They felt that a good manager and mentor does
enable them or will enable them to not only perform better in their current job, but also
plan their future career. They also felt that a bad manager was de-motivating for them,
and was reason enough for them to leave a job. On respondent even shared an article,
which he once read which stated that people do not leave companies, but rather they
Copyright UCT
MBA Research Report Page 48
leave managers. Another respondent commented, “I need support and motivation,
especially when things get tough. If you have a good manager, he can coach you and
guide you. I would feel very guilty about leaving a good manager and would not leave
unless I had a really good reason to do so.”
Some people felt that the workplace environment was very important, whilst others felt that
it is unimportant. Those who felt that the environment was important shared previous
experiences of being in unpleasant environments and its negative impact on their
productivity and their overall happiness at work. A comment made was “I have been in
environments where you could cut the tension with a knife. I cannot work like that. It‟s not
the kind of place you want to be in for a long time. It is energy sapping.” Those who felt it
was unimportant felt that you could create your own environment, irrespective of the
general environment. They also felt that one should ignore the environment they are in
and just get the work done, because at the end of the day, that is all that mattered. They
also felt that if you enjoyed what you are doing, then the environment is not important. A
comment made was, “If you create your own Zen space, nothing and no one else will be
able to intrude on your space.”
Flexible working schedules were seen as important, but for different reasons. Some
respondents, who are parents felt they required flexible working schedules to allow them
to tend to their families better, whilst others, especially the respondents in Johannesburg,
felt that flexible working hours helped them to avoid peak hour traffic. Comments
included, “I need to take my son to crèche in the morning. This means I need time to get
him ready. If I didn‟t have flexible working hours, I would have to get up at around 4am
just to get to work in time” and “With the traffic in Johannesburg, I am glad I am able to
start work between 9am and 10am. That way, I avoid the morning traffic and get to work
ready to work.” Others felt that flexible working schedules helped them to deal with their
activities outside work.
4.3.3 Least important factors when selecting a job
Generally, the number of leave days (annual and sick leave) which the respondents were
entitled to was not perceived as important. However, those respondents who were
studying, especially the actuarial respondents felt study leave is very important. They felt
Copyright UCT
MBA Research Report Page 49
it unfair for them not to be allowed time off to study for examinations; they also felt that
they are unproductive at work just before an examination due to the stress they are under.
Comments included, “I don‟t use my sick leave and I often find I have too much annual
leave” and “My studying does not only benefit me, but also the company. Hence, I believe
they need to allow me sufficient study leave for me to perform at my best.”
Childcare facilities were generally unimportant to this group. The reason for this is that
those people with children generally received assistance from their extended families or
hired full time help. This group of parents and prospective parents were also very fussy
about the schools their children attended and hence looked for schools, which possessed
particular characteristics and reputation. A respondent in the group who is a parent
remarked, “I have a nanny to take care of my son. I prefer that; if he was close to me, I
would be tempted to go check on him all day, which would be distracting for me.” Another
parent felt, “I need to get my child into a good school early in her life; if I don‟t they won‟t
accept her later. This means I need to send her to that particular school from nursery
school.”
Share options and other benefits were seen as unimportant to this group. This group felt
that share options are a mechanism to ensure your medium to long term allegiance to the
company. Many felt that they were not sure as to how long they would stay with a
company and share options was not viewed as an incentive to them, but rather as a lock-
in. They believed that they should be rewarded for their efforts, in the short term, and not
have to wait to be rewarded in the long term. In terms of benefits, most felt that added
benefits were not important to them. They felt that retirement benefits were the least
important as many felt that that part of their life is too far away for them to even think
about. However, medical aid benefits were seen in a more favourable light, with many
people feeling that this is something where the benefit is visible in the short term. Most
commented that what was most important to them is how much of money they get in their
bank accounts at the end of every month. Everything else is immaterial. Comment on this
included, “I need to build my life now, so I need as much cash as I can get now. I should
be able to decide if I want to allocate money to a pension fund or retirement fund, and not
have it as mandatory contributions”, and “Share options are inconsequential to me. You
only get to exercise them after a few years, and if you decide to leave, you forfeit them. I
should be incentivised with rewards that I can access now.”
Copyright UCT
MBA Research Report Page 50
4.3.4 Expectations regarding factors of employment
a. Expected Working Hours
Most respondents felt that a fifty-hour week is easily achievable, and most were more than
willing to work up to sixty hours a week, and more if required. However, sales and
administration staff felt that they should not be exceeding their forty-hour workweek. Most
of the respondents either in management or in a professional field felt that when there was
work to be done, one should be able to work until the desired result is achieved. They
would be willing to work long hours, as long as it was not sustained over long periods.
They also felt that they would be willing to work long hours for a period, but they then
expected to be compensated for their time. They expected compensation to take the form
of a few days off, or maybe even just a lunch or dinner by their manager to acknowledge
the work that they had put in. They also believed that working longer hours tends to grab
the attention of management, and is a way for them to display their dedication to their
work. Respondents felt, “I am willing to work long hours if required, but I will not do this
every day. When I do work long hours, I expect to be either given some time off work to
be compensated, or receive some kind of recognition.”
b. Taking work home
Most people did not mind taking work home, as they believed in some instances, one has
to go beyond the call of duty to get their work done. Those respondents who were single
felt that taking work home was not an issue for them at all. Those respondents who are in
relationships however, felt that they would only take work home under exceptional
circumstances. All of these respondents felt that taking work home should not be
something that is done on a regular basis, but rather a once in a while occurrence. Some
comments made were, “I don‟t mind taking work home once in a while. But I do value my
free time, and will not spend all my free time working” and “If I took work home every day, I
am sure my wife will divorce me.” Some respondents were not willing to take home and
these were the individuals who placed a great deal of value on work-life balance. They felt
that they needed a break from their jobs and that their social lives did not allow for this.
They also felt that taking work home once signals that you are willing to do it on a
continuous basis. By doing this, one creates an expectation that this is part of the job, and
Copyright UCT
MBA Research Report Page 51
you even stop being credited for the extra work you put in. One respondent commented,
“I do not get any extra credit for taking work home, so why would I do it. Once you show
your manager that you are willing to work in your free time, they will exploit you. You have
to be firm.”
c. Vacation time
Vacation time is important to all respondents. Most felt that they needed a break from
their job from time to time. Most of the respondents who had moved away from their
families for their jobs felt that they needed vacation time to be with their families. Other
felt that they needed their vacation time to enjoy the money they are earning, by taking
holidays. Overall, all the respondents agreed that even though leave days was not seen
as a determining factor when choosing a job, they expect vacation time, which is similar to
the rest of the industry, just to recharge their batteries, if nothing else. Respondents felt,
“My family is in Durban. I enjoy going down every few months to see my family and
friends” and “I have always wanted to see the world. Now that I am earning a good salary,
I can do that. I need time off to be able to do that.”
d. High stress environments
Most respondents were likely to accept jobs in high stress environments. Some
respondents commented on the fact that they work best in high stress environments;
others felt the excitement of high stress environments is character building, especially for
younger people. Some people felt that there was a greater sense of achievement in high
stress environments than there are in low stress environments. Respondents felt, “High
stress environments get my adrenalin pumping; it gets me on such a high, and I produce
my best work during these times. Although, I definitely need a cooling off period after a
stressful period” and “Stress is like a drug; I can‟t live without it. Achieving goals and
objectives under pressure is more rewarding than under normal circumstances.” A few
respondents felt that high stress environments are not suitable to them. They commented
that they have worked in these environments, and had a general dislike for the
environment, because everyone is excessively tense and can affect both your work and
personal relationships. They further felt that these types of environments are
counterproductive as people are so stressed; they tend to worry more about getting their
Copyright UCT
MBA Research Report Page 52
own work done than ensuring the team achieves its goal. A respondent noted, “In high
stress environments, I make more mistakes and cannot think straight.”
e. Excessive travel and an excessive commute
Most respondents in this group did not mind excessive travel as they felt mobility should
be an expectation of every employee. However, many respondents that do engage in
excessive travel currently felt that excessive travel tires one out quicker, and have an
impact on productivity. They also felt that excessive travel tends to result in people having
to take work home and work flexible hours. One respondent commented, “I travel several
times a week. My travel cuts either into my work time or into my free time. I get really
tired from all the travel; some days I wish I did not have to travel.” Respondents who do
not travel much in their current jobs felt that excessive travel would be exciting and a
chance to see places, at the company‟s expense. One respondent commented, “If I could
travel, I get to see places at the company‟s expense, and stay in fancy hotels. That would
be fun.” Though people are willing to travel excessively for their jobs, very few are willing
to have an excessive commute, which is travel long distances to get to work. People living
in Johannesburg felt that they would never live too far from work due to the traffic
problems there. These respondents measured their willingness to commute in the time
they are willing to sit in traffic. The other respondents were willing to travel distances to
get to work, but tended to want to at least be in the same city as their job. Most people felt
that an excessive commute was a waste of their time, and hence would not accept a job if
they needed to travel excessive distances to get to their job. Comments included, “In
Johannesburg, you have to be willing to commute to work; I cannot afford a house in
Sandton; the area I live in is not far from Sandton, but it takes me two hours to get to work.
It‟s the reality of life in Johannesburg” and “I would definitely want to live and work in the
same city. Otherwise the commute becomes insane.”
f. Stability but little progression
This group of respondents displayed overwhelming support for progression as opposed to
stability. The respondents felt that they are young enough to take risk and make changes,
and many did not have dependant to worry about either. Many compared this situation to
that that of risk versus return in financial markets. This group is also more positive
Copyright UCT
MBA Research Report Page 53
towards change due to their generally optimistic outlook. Many also felt that they had
strong enough support structures in the form of their parents, which allows them to be
more risk taking when it comes to their career. Response included, “I would rather take a
chance with a career change now, while I am young and have no commitments” and “I
don‟t want a job for life; my job is to experience life!”
g. Separation from your family
A substantial proportion of the respondents were willing to be separated from their family
(they considered their family to consist of their parents and siblings), because they were,
single or had no dependants. They felt having no dependants or commitments made it
easier for them to transfer across geographic regions, without much concern, hence
eligible for more opportunities than those with families. A respondent commented, “I
moved to Johannesburg from Durban. It was the first time I was away from home, but I
took the chance, and it paid off” and “I can go anywhere in the world, but my parents will
still be my support structure.” The respondents who either were married or did not have
any dependants were not as willing to be separated from them. Since many of these
respondents are newlyweds or have little children, they felt separation would be difficult for
them to handle. Other respondents simply felt safer and more at ease to stay closer to the
support structures of their parents and siblings, but some did feel that this inhibited their
ability to progress in the organisation. One respondent felt, “My life is in Cape Town; I
don‟t want to leave that behind for my career, even though I know it‟s holding me back.”
h. Constant studying
The respondents were divided on this issue. Some respondents felt that they would not
accept jobs, which required constant studying. Their reasons stem more from their
experiences with studying at either school or university. These respondents felt that they
were not made for studying and that they were people that are more practical and
preferred on the job training and learning, as opposed to studying and writing
examinations. This group consisted mainly of those individuals involved in administration,
sales and a few people from the professional jobs. Comments from this group included, “I
have studied enough; I never want to see another examination in my life” and “I hate
studying; I refuse to do that anymore.” The other half of the respondents were more than
Copyright UCT
MBA Research Report Page 54
happy to accept a job that required constant studying, provided they were given adequate
time and support to study. One respondent felt, “I understand that I need to study to
further my career, and I have no problem with that.”
i. Type of work
The majority of the respondents believed that job rotations are a good idea in business
today. They fully support the concept of moving people between departments to share
knowledge and learning, but also so that people get a better understanding of the overall
business. However, a point for debate which came up numerous times was whether
eighteen months was too long or too short a period for someone to learn anything, to
teach others anything or to make a meaningful difference in that role. Most people agreed
that six months was too short, but agreed that eighteen months to two years was a
reasonable amount of time to make a difference. Comments included, “Six months allows
you to barely scratch the surface of a business, especially if it is a large business. You
would need more time to fully understand the business and leave your mark on the
business” and “Eighteen months to two years is the maximum amount of time I would like
to spend in a business. I find that I get bored after a year to eighteen months in one role.”
4.3.5 Reasons for leaving jobs
The main reasons cited by the Gen Y respondents regarding why they would or have left
jobs, in descending order of the number of mentions received, is as follows:
The work was not challenging enough
o “I was doing stuff that was not stimulating.”
o “I didn‟t need a degree for the kind of work I was doing.”
Little career progression
o “I could not see any room for progression.”
o “The role was a dead end role. I needed more.”
Remuneration
Copyright UCT
MBA Research Report Page 55
o “My salary was not competitive.”
Poor relationships with their direct manager
o “My manager was only concerned with my work outputs, and not my career.”
No opportunities for training and development
o “I was not given the opportunity to attend training, and I felt that my
development was far from optimal.”
Need for a change
o “It was time for me to change. I had been in the same role for too long. I
was getting bored with my job.”
Low level of learning
o “I was not learning anything new in my job. I was being held back from
progressing because I did my job well.”
4.3.6 Reasons for remaining in jobs
The main reasons cited by the Generation Y respondents for remaining in a job are almost
the opposite of that stated in the previous section. These reasons were consistent across
all the respondents, and are stated in descending order of the number of mentions:
Clear career progression
Being values and appreciated
Remuneration
Brand of the company
Location
Culture
Copyright UCT
MBA Research Report Page 57
5 DISCUSSION OF FINDINGS
5.1 Comparisons across the different Generations
Table 4 : Generational preferences across selected factors
Factor Baby Boomer Generation X Generation Y
1. Promotional
Opportunities
3 years 1 to 5 years 1 to 3 years
2. Most
Important
Factors when
choosing a job
Challenging work, job
satisfaction, monetary
rewards, being part of a
high performance team,
vacation time
Challenging work, career
satisfaction, opportunity for
progression, remuneration, job
security, non-financial benefits,
good mangers and mentors,
training and development, long
term incentives
Remuneration, training and
development, tuition
reimbursement, career
progression, work-life balance, a
good manager, workplace
environment, flexible working
schedules
3. Least
important
factors when
choosing a job
Childcare facilities,
corporate philanthropy,
reduced working hours,
sick leave and study leave
Corporate philanthropy, leave
and flexible working hours.
Corporate philanthropy, annual
leave, study leave, childcare
facilities, share options
4. Expected
working hours
Will work extra hours if
compensated
Range from 40 to 60 but differ
by job type
Range for 40 to 60; differs by job
type
5. Taking work
home
Preferred not to Willing to do this, but not often Willing to do this, but not often
6. Vacation Time Important Important Important
7. High Stress
Environment
Expressed comfort with
this, except in the sales
environment
Management and sales
accepting of this; admin staff
will accept this occasionally
Some willing to do this; some
unwilling to do this
Copyright UCT
MBA Research Report Page 58
8. Excessive
travel and
commute
No appetite for this Yes for travel; preference for
commute differed by job type
Yes to travel; commute
dependent on geographic
location
9. Stability but
little
progression
Not acceptable Not acceptable Not acceptable
10. Separation
from family
Not acceptable Not acceptable Acceptable for single people; not
for married people and those with
dependants
11. Constant
studying
Preferred not to, except in
the sales environment
Management far more likely to
accept this than other job
types
Yes for some; no for others
12. Type of work Enjoys working in teams,
averse to job rotations
every 6 to 18 months;
preferred it to be after a
longer period
Preference for team work,
open to job rotations every 2 –
3 years (with the exception of
sales)
Enjoyed teamwork and working
alone. Liked the concept of job
rotations every 18 months to 2
years
13. Reasons for
leaving a job
Better opportunities, lack of
career progression,
remuneration, poor
leadership
Remuneration, finding better
prospects, lack of inspirational
leadership, job satisfaction,
lack of progression
opportunities, family reasons
Work not challenging, little career
progression, remuneration, poor
relationship with their manager,
no opportunities for training and
development, need for change,
low level of learning.
14. Reasons for
remaining in a
job
Company brand,
remuneration, challenging
work environment, high
performance teams, growth
and development
opportunities, pride in the
company and their job,
doing something that is
value adding
Remuneration, job satisfaction
and progression opportunities,
stability, company brand,
growth and development
opportunities, inspirational
leadership
Clear career progression, being
valued and appreciated,
remuneration, brand of the
company, location, culture
Copyright UCT
MBA Research Report Page 59
While all three groups shared some similarities, there were also several distinctions
between the groups, as summarised in Table 4. Table 4 is a summary of the finding
presented in the previous section, with these findings being compared to one another in
this section.
The level of optimism seems to decline as one moves from Generation Y, all the way to
Baby Boomers in the sample. The reason given for this is, in the South African context,
Generation Y is the first generation to participate and contribute to the building of an
inclusive society in South Africa. Given their age, most remarked that they did not
experience the hardships of Apartheid, like generations before them. Their optimism
stems from them being able to shape their own future. The Generation Y sample group
was optimistic as found by Glass (2007). However, the sample group of Generation X
were not cynical and pessimistic, as asserted by Wong et al., (2008). The Baby Boomer
sample group was pessimistic, and this does not tie in with any of the literature reviewed.
5.1.1 Promotional Opportunities
Each of the generations in the sample, had a different view on how long they should wait
before receiving a promotion. This is in line with the findings of McCrindle (2006, 2008),
which found that thirty percent of Baby Boomers expected to be promoted within two years
of starting a new job, compared to 86% of Generation Y. Generation X respondents in the
sample seemed to prefer remaining in a job for a longer period, than the other two sample
generational groups, mainly due to their view of how long it takes someone to become
fully competent in their job, and their need for job security, the latter of which is supported
by Macky, Gardner and Forsyth (2008).
5.1.2 Most important factors when choosing a job
Across the three generational groups, having challenging work, job satisfaction and
opportunity for progression were common threads. This is in agreement with Glass
(2007). It seemed that these factors made the respondents feel valued and motivated
them to work. Though vacation time was not a determining factor when choosing a job,
respondents across the generations expected their employer to award them leave, which
was consistent with the rest of the industry. Remuneration was also important to the
Copyright UCT
MBA Research Report Page 60
sample group, across the generations, with Baby Boomers and Generation Y preferring
cash rewards than long-term rewards. For sample Generation Y, this is a contrast to the
view of Glass (2007) but her findings are in agreement with the findings of the Baby
Boomer sample group. Remuneration was important across all the generation. However,
each generation valued different parts of the remuneration package. Generation Y valued
short-term rewards; Generation X valued a combination of short and long-term
remuneration, coupled with other benefits, and Baby Boomers valued more cash
remuneration than any other type of remuneration. In the sample group, Generation X
was the only group to display a tendency towards job security, which is inconsistent with
the literature. Training and development was important to both Generation X and Y in the
sample, whist Baby Boomers in the sample did not see it as important. As per McCrindle
(2002), the sample of Generation Y valued work-life balance.
5.1.3 Least important factors when choosing a job
Benefits such as reduced working hours, which are contrary to Wong et al., (2008) for
Generation X, and childcare facilities were rated as inconsequential to most respondents,
across the different generations sampled. However, Old Mutual South Africa has recently
invested millions in providing these benefits to their staff.
The inclination for training and development declined as one moves from Generation Y to
Generation X and the Baby Boomers in the sample. The reason for this is that the older
the employee was, the less likely he or she was to participate in training interventions or
focus on his or her development. For the Generation X sample, this is one again
contradictory to the literature. In the sample group, different job types viewed training and
development differently.
Corporate philanthropy received little mention from the sample group, across generations.
This is contrary to the findings of Glass (2007) who felt Generation Y placed increasing
emphasis on the corporate philanthropy of the company.
Copyright UCT
MBA Research Report Page 61
5.2 Generational values and behaviours
The study aimed to gather information from a representative sample of the Old Mutual
workforce. The sample was chosen in accordance with the proportions of the different
generational groupings currently experienced in the Old Mutual South Africa workforce.
The sample increased in diversity, from a race and gender point of view as we moved
from the Baby Boomer generation to Generation Y. This is because of the implementation
of employment equity in the company.
In addition, Baby Boomers, who were approached to participate in the study, were more
reluctant to be a part of the research; Generation X and Y individuals who were
approached to participate in the study were very enthusiastic to share their point of view.
This has led me to conclude that Generation X and Y individuals in my sample are more
open and willing to share their thoughts, ideas and opinions, whilst Baby Boomers, who
were approached for the study, are much more reserved and careful about what they say
and who they say them too. There can be a number of reasons for this, including, the type
of individual the person is, their seniority in the company, issues of confidentiality, etc.
Another interesting observation was that the Baby Boomers in the sample were not happy
to participate in focus groups and preferred to share their views in private. This points to
another characteristic difference between the Baby Boomers in the sample and
Generation X and Y; Generation X & Y in the sample are ostentatious and public with their
thoughts, happy to engage in debates and conversations with others and quite optimistic,
whereas the Baby Boomers in the sample are cautious, private when sharing their views
and quite pessimistic. Generation X, in the sample, like Generation Y, in the sample, were
keen to share their views, though were less optimistic and enthusiastic than Generation Y.
Each generational group consisted of respondents from different job families. However,
what was very apparent is that the Generation Y sample group consisted more of
respondents from the professional job family, but included a small number of sales and
administration staff; Generation X in the sample, consisted largely of respondent in
management, sales and administration, whereas the Baby Boomer sample consisted
largely of individuals in management.
Copyright UCT
MBA Research Report Page 62
Davis (2007) concern that the generic definition for the different generations may lead to
inconsistencies in values and behaviour due to the different cohorts present in each
generation does not seem to be a concern for this research. Within each generation,
there was general homogeneity between the respondents, with differences being noted
per job type and not different cohorts.
Glass (2007) findings are supported by the finding of this study in that the main differences
between the different generations, in the sample, manifested in work ethic (how many
hours they expected to work a week, and their willingness to take work home), perceptions
of the organisation and their attitudes towards change (how often do they expect a
promotion), methods of communication, and their general attitude towards the company.
Kim, Knight and Crutsinger (2008) findings that the attitudes towards training and
development, and proactive attitude towards their careers are also supported by the
findings of this report.
5.3 International Findings
The findings of this study conform to that of the findings of research conducted
internationally. For the sample of Generation Y, the findings of this study mirror that of the
findings of Wong, Gardiner, Lang and Coulon (2008), Kim, Knight and Crutsinger (2008)
and Glass (2007). However, the findings of this report differs when it comes to the
willingness of the sample of Generation Y to accept lower salaries in favour of being
directly involved in the long term future of the company. This sample of Generation Y
respondents have a preference for short-term rewards due to the higher sovereign risk
associated with the country. In addition, this sample of Generation Y is not as concerned
with corporate philanthropy or the social awareness of a company. Their main
consideration is that the company is not doing any harm, and not necessarily that the
company is socially responsible. However, all generations in the sample, including
Generation Y are deeply concerned with the overall brand, reputation and values of a
company.
Generation X in the sample value stability in their jobs, which is not consistent with
international findings. They do however tend to chase higher salaries and benefits, which
are consistent with Wong et al., (2008). They are very concerned with career
Copyright UCT
MBA Research Report Page 63
advancement, which is also consistent with the findings of Wong et al., (2008). Work-life
balance is quite important to this group, as found by Glass (2007).
The sample of Baby Boomers did not seem to value job security as found by Wong et al.‟
(2008), but were likely to remain loyal to an organisation. As noted in some of the
literature, job security was an expectation, and was seen as a standard offering, and not a
value add. The study supports Glass (2007) view that Baby Boomers prefer a fixed salary
and preferred cash rewards rather than longer term rewards. Most Baby Boomers in the
sample expected to receive a promotion within three years of being in a job, which is
longer than what was found in international studies.
6 THE EMPLOYEE VALUE PROPOSITION FOR THE
DIFFERENT GENERATIONS IN OLD MUTUAL
6.1.1 Hygiene Factors
Across all the generations sampled, challenging work needs to be offered to feed their
insatiable appetite for achievement, to service their ambition and make them feel valued.
Opportunities for career progression are also an essential component of the employee
value proposition. While vacation time is not a factor they explicitly look for, there is a
level of expectation that they will receive at least twenty days leave a year. Other types of
leave, especially study leave needs to be tailored to the needs of the individual.
6.1.2 Generation and Job Type Specific Factors
Across the generations in the sample, continuous training and development should be
offered in line with the career goals and ambitions, which the company should be willing to
pay for. Remuneration, especially short-term financial benefits should be commensurate
with the work they are expected to do and should be comparable in the industry. Baby
Boomers and Generation Y should be allowed the opportunity to elect to receive more of
their remuneration in the short term. Generation X should be allowed to allocate more of
their package to long-term structures, like share options.
Copyright UCT
MBA Research Report Page 64
Generation X and Y needs to be actively managed and guided to enable them to
understand and map out their career progression, and what is required to achieve this.
To satisfy their need for constant change, Generation Y respondents need to change their
job, at least every two years, which should be accompanied by either a promotion or just a
salary increase. Generation X and Baby Boomers need to be consulted regularly and kept
abreast of their achievement of competence levels, and expectations need to be managed
regarding their progression.
Generation Y employees should be given an option of whether they want to allocate
money to retirement savings, or have the equivalent cash added to their salary.
Generation X and Baby Boomers should be able to allocate money of their salary to
retirement savings. Medical aid should be a standard element of the value proposition.
The company brand should be emphasised as part of the employee value proposition.
The company needs to emphasise what their company brand can do for the individual,
and why it is important.
7 FURTHER RESEARCH OPPORTUNITIES
I believe that further research can be done, using a larger sample group from Old Mutual
to test the views expressed by the small sample group. This will give more people in the
company an opportunity to express their thoughts on their expectation from their
employer. This research can also be replicated in other companies in the financial
services industry, to test the validity of the outcomes across the industry. However, the
research need not be limited to the financial services sector in South Africa; if the findings
of this report are consistent with the findings in other companies in South Africa, it may
change the nature of employee value propositions in South Africa altogether.
Copyright UCT
MBA Research Report Page 65
8 CONCLUSION
The aim of this study was to define the employee value propositions for Old Mutual South
Africa, from a generational perspective. The study looked at the three main generations
that make up the Old Mutual workforce, namely Baby Boomers, Generation X and
Generation Y. The main findings of the study were that there are some factors of
employment that are considered important by all three generational groups in the sample.
These factors can be referred to as hygiene factors in the employee value proposition and
include challenging work, opportunities for progression and remuneration that is
comparable to the rest of the industry. Other important factors such as promotional
opportunities, appetite for travel, taking work home and expected working hours need to
be tailored not just to different generations, but also to the different job types within
generations. The bulk of the literature merely differentiates the expectations of employees
based on their generational definition and not by job type. In addition, the majority of the
available literature focuses on the developed world, and hence may not be comparable to
the results from this study. This study does however provide evidence that Old Mutual
South Africa should relook at their employee value propositions, across all generations, to
ensure that their value propositions are meeting the needs of their employees.
Copyright UCT
MBA Research Report Page 66
9 REFERENCES
1. Anderson, M (2009) Generational Change: Gen X, Gen Y and Baby Boomers –
Hype or Risk?. Retrieved August 28, 2010, from
http://www.changedrivers.com.au/Articles/generational-change.htm
2. Brown, S., Carter, B., Collins, M., Gallerson, C., Giffin, G., Greer, J., Griffith, R.,
Johnson, E. & Richardson, K. (2009). Generation Y in the Workplace. The Bush
School of Government t and Public Service. Texas A&M University.
3. Bryman, A. & Bell, E (2003). Business Research Methods (2nd ed). New York:
Oxford University Press.
4. Cennamo, L., & Gardner, D. (2008). Generational differences in work values,
outcomes and person-organisation values fit. Journal of Managerial Psychology,
23(8), 891 – 906
5. Coleman, H. Understand What Makes Generation Y Tick. Retrieved on April 23,
2010 from http://ewweb.com/mag/electric_understanding_makes_generation/#
6. Davis, M. (2007). Myths of the Generations: Baby Boomers, X and Y.
7. Glass, A. (2007). Understanding generational differences for competitive success.
Industrial and Commercial Training, 39(2), 98 – 103
8. Gibbs, N. (2010) How Gen Y sees the Gen gap. Retrieved April 23, 2010 from
http://www.connectioneconomy.com
9. Herbison, G & Boseman, G. (2009). Here They Come – Generation Y. Are You
Ready?. Journal of Financial Service Professionals, 33-34.
10. Hewlett, S.A., Sherbin, L., & Sumberg, K. (2009). How Gen Y & Boomers Will
Reshape Your Agenda. Harvard Business Review, July-August 2009, 71 – 76.
11. Harcourt, T. (2004). A Tale of Two Economies: South Africa and Australia.
Retrieved on August 28, 2010, from http://www.austrade.gov.au/A-Tale-of-Two -
Economies-South-Africa-and-Australia/default.aspx
12. Hole, D., Zhong, L. & Schwartz, J. (2010). Talking About Whose Generation.
Deloitte Review. Retrieved April 23, 2010 from www.deloitte.com
13. Holleran, M.J., PCM & CPSM. (2008). The Talent War: Attracting and Retaining
Generation Y Leaders in Professional Services - White Paper. Society for
Marketing Professional Services
Copyright UCT
MBA Research Report Page 67
14. Jorgensen, B. (2003). Baby Boomers, generation X and Generation Y?: Policy
Implications for defence forces in the modern era. Foresight, (2003), Vol 5(4), 41-
49
15. Kim, H., Knight, D.K., & Crutsinger, C. (2008). Generation Y employees‟ retail work
experience: The mediating effect of job characteristics. Journal of Business
Research, 62 (2009), 548 – 556
16. Leedy, P.D. & Ormrod, J.E. (1993). Practical Research: Planning and Design (9th
Ed). New Jersey: Pearson
17. Liakopoulos, A. (2010). Recruiting Generation Y. Retrieved on August 28, 2010,
from http://www.agentandbroker.com/Issues/2010/January-2010/Pages/Recruiting-
Generation-Y.
18. Loughlin, C & Barling, J. (2001). Young workers‟ work values, attitudes and
behaviours. Journal of Occupational and Organizational Psychology 74, 543-558
19. Macky, K., Gardner., D., & Forsyth, S. (2008). Generational differences at work:
introduction and overview. Journal of Managerial Psychology 23(8), 857 – 861
20. Mccrindle research. (2008) Bridging the Gap: Generational Diversity at Work.
[Brochure]. New South Wales: McCrindle, M.
21. Mccrindle research. (2006) New Generations at Work: Attracting, Recruiting,
Retraining & Training Generation Y. [Brochure]. New South Wales: McCrindle, M.
22. Naidoo, N (2005). Managers watch out for „Generation Y‟. Retrieved February 8,
2010., from http://www.busrep.co.za
23. Prevost, C. (2010). Surprising Similarities. Retrieved on August 28, 2010, from
http://www.ceoform.co.au
24. Reed, R.G. (2001). Management and the Generation Gap. S.A.M. Advanced
Management Journal
25. Robbins, M (2008). The young are even more restless than imagined, survey finds.
BenefitNews.com. Employee Benefit News
26. Rollsjo, A. (2009). Attraction and Retention of Generation Y Employees.
Independent thesis Basic Level. Business Administration Major, Organization,
Baltic Business School at the University of Kalmar.
27. Smith, D. (2009). Middle managers quizzed about their current satisfaction levels.
Retrieved April 23, 2010, from
http://www.internalcommshub.com/open/news/negative.html
Copyright UCT
MBA Research Report Page 68
28. STATS SA (2010). Bulletin of Statistics, March 2010, Vol 44, No1.
29. Sujansky, J. (2009). How “Recession-Proof” Will Millennial Worker Be?
HRFOCUS, March, 6 – 7
30. Unknown (2008). This is why I moved to Australia (From South Africa). Retrieved
on August 28, 2010, from http://lifeinAustralia.wordpress.com/2008/05/13/this-is-
why-i-moved-to-australia/
31. Weiler, A. (2004). Information –Seeking behaviour in Generation Y Student:
Motivation, Critical Thinking, and Learning Theory. The Journal of Academic
Librarianship 31(1), 46 – 53
32. Wong, M., Gardiner, E., Lang, W., & Coulon, L. (2008). Generational differences in
personality and motivation – Do they exist and what are the implications for the
workplace? Journal of Managerial Psychology, 23(8), 878 – 890.
Copyright UCT
MBA Research Report Page 69
10 APPENDIX 1 – RESEARCH QUESTIONNAIRE
10.1 Demographic Information
1. Between which years were you born?
1946 – 1961
1962 – 1979
1980 - 2000
2. Indicate your gender
Male
Female
3. Race
African
Asian
Coloured
White
Other
4. Marital status
Single
Married
Divorced
Separated
Widowed
5. Number of dependents :
6. Occupation:
Copyright UCT
MBA Research Report Page 70
10.2 Workplace Attitudes
1. How long do you expect to remain in a job before receiving a promotion?
2. Rank the following 26 factors, from 1 to 26, in order of importance to you in choosing a job:
Factor Rating
Training and development opportunities
Comprehensive retirement plan
Medical aid benefits
Salary
Yearly salary increases
Bonuses
Annual leave
Sick leave
Study leave
Tuition reimbursement and study assistance
Flexible working schedules
Working from home
Reduced working hours
Childcare subsidies or facilities
Career progression
Being part of a high performance team
Job security
Challenging work
Career satisfaction
Share options & other long term incentives
Corporate philanthropy
Work-life balance
Non-financial benefits
Mentors in the business
A good manager
Workplace environment
Copyright UCT
MBA Research Report Page 71
3. Do you expect to work more than 40hours per week? If so, how many?
4. How likely would you be to accept a job that requires the following factors?
Highly
likely
Somewhat
likely
Somewhat
unlikely
Highly
unlikely
Unsure
Work more than 40 hours a week
Take work home
Minimal vacation time
A high stress work environment
Excessive travel
Availability beyond normal work
hours
An excessive commute
Offers stability but little
progression
Separation from your family
Constant studying
More doing and less thinking
Working on your own
Working in teams
Job rotations every 6 months to 18
months
5. What have been or would be the main reasons for you leaving a job?
6. What are the main reasons for you choosing or remaining in a job?
7. Are there any other factors which contributes significantly to your choice of job or employer?
8. What would your ideal job look like?