Generational Change in the WorkplaceSHRM Report 2014

Three different age groupsMillennials: Born from 1981-1997More than one-in-three American workers today are Millennials

(adults ages 18 to 34 in 2015), and this year surpassed Generation X to become the largest share of the American workforce, -new Pew Research Center analysis of U.S. Census Bureau data

Gen X: Born between 1960 and 1980 (ages 35-50 in 2015)

Baby Boomers: Born between 1946-1964 (ages 51-69 in 2015)

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Cultural shift:Will determine benefits offerings, succession planning and

other aspects of HR’s operations

By 2020, Millennials will comprise 46% of the U.S. labor force, and will be heavily relied-upon to fill leadership gaps at many organizations-University of North Carolina

By 2022 Workers 55 and older will represent 25.6% of workforce-SHRM

Different priorities in what they want (next two slides)

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Most similar M=Millennials B=Baby boomers

Job Security56% M60% BB

Benefits Overall49% M57% BB

Compensation/Pay58% M62% BB

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Most dissimilarDefined Contribution

Plans32% M44% BB

Career Advancement50% M35% BB

Flexibility, Life and Work50% M40% BB

Defined Benefit Pension Plans

33% M45% BB

Health Care/Medical Benefits56% M66% BB

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Impact? (examples)• State of Connecticut: Hybrid approach to retirement plans. Uses

an individualized target benefit approach: “The employee can go through a risk assessment and select a portfolio that is managed by a third party.”

• Recent SHRM research: Employers giving workers more options how they spend their time in and out of the office. Nearly three-fifths (57%) of organizations offer flexible work arrangements: • Full- or part-time telecommuting, flexible scheduling or compressed

workweeks

• Career growth/tracks/options • Learning and development: Move to learner centric (experiential, shared

knowledge, social technologies, portable, accessible, speed)

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Retention keysMillennials will make up majority of the workforce and most likely to change jobs. Keys:

flexibility, cutting edge technology, and a fun work environment -75% of global workforce 2025

Gen Xers are independent and entrepreneurial; foster these skills-Middle of their careers

Baby boomers Solid wages and healthcare options.

Both millennials and gen Xers value flexible work schedules

Baby boomers prefer a stable, but shortened schedule.

Both millennials and gen Xers value mentorships and growth opportunities

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