4 Keys to retaining a multigenerational workforce

Today's multigenerational workforce offers a
much wider talent pool of employees with
different work styles and motivations.

With many experts predicting that the insurance industry will soon face a significant talent shortage as thousands of baby boomers retire over the next few years, finding ways to solidify their current workforces while creating opportunities for long-term success has become an increasingly important issue for many firms. As the demographics of the industry change, so do the expectations of the workforce. What is important to older, more experienced employees like Generation X, isn't necessarily what's important to younger millennial employees.

With so much diversity in the workforce, figuring out how to create a work environment that appeals to all groups becomes a difficult balancing act. Some companies remain too firmly entrenched in maintaining the status quo to keep their more experienced employees happy. This makes them appear staid and old-fashioned to younger employees.

Others lean too far in the direction of creating offices that appeal to millennials, alienating the more established industry professionals. The key is to recognize the value of both groups and then identify ways to appeal to them without favoring one over the other.

While not every person will perfectly match the characteristics of a particular group, understanding the general traits and motivations associated with each generation helps firms identify which strategies will appeal to them.

Appealing to Generation X

Gen Xers are generally well established in or approaching the later stages of their careers. They want to be seen as leaders in the industry, and seek recognition and respect among their peers, not just their colleagues. This group also values being able to work independently, a trait that makes them well-suited for the insurance industry.

When it comes to keeping Gen Xers happy at work, employers should seek to provide opportunities for these employees to demonstrate their knowledge, either by recommending them for speaking engagements or asking them to share insights with other team members. Traditional employee recognition strategies like performance bonuses and promotions are also a good way to encourage them.

Appealing to millennials

The entrance of millennials into the workforce has been extremely well chronicled to the point that what they want seems ubiquitous: A “Google-like” office, bosses who are more like friends and a technology-centric work experience are just a few of their preferences.

But these are part of the sensationalized persona of this generation. Millennials desire to feel connected to the work they do and to see its impact, to have a sense of camaraderie with their coworkers, and to feel valued for their contributions. Despite all of the press, millennials are hard-workers when motivated, and many feel like their work is a large part of their identity (something they have in common with the retiring baby boomers.) These younger workers are willing to start at the bottom, work hard and gain experience, but only if they can see a clear path to the career they want. If they don't, they’re willing to move on to a job that does offer one.

To attract and retain millennials, employers should focus on providing job-based training and personal development opportunities. Firms might consider showing their commitment to and investment in their millennial employees by sending them for external training or to conferences, or encouraging them to enroll in leadership or business courses.

With many millennials starting families later in life, having a company culture that encourages teamwork and offers opportunities for employees to socialize can be a real perk for younger employees. Having frequent discussions with millennial employees about performance and career opportunities, as well as how their individual role fits into the success of the company will help provide them with the personal validation they want.

Striking the right balance

The key to effectively managing a multigenerational workforce is to recognize the value that each group brings to the organization. An all-millennial agency may lack industry knowledge and the insight customers want, while an all-Generation X agency may not be able to quickly capitalize on the opportunities new technology offers.

Consider this: A millennial employee's social media savvy can help build the company's online presence, while a Gen Xer's expertise may result in opportunities for speaking engagements that increase brand awareness among key customer groups. Both skillsets offer opportunities to increase the agency's exposure, just in different ways.

Companies seeking to retain employees from multiple generations should begin by looking at strategies that allow them to meet the needs of these groups. These guidelines can provide some direction:

1. Reward both performance and tenure. It's customary for employers to recognize and reward employees differently based on seniority. This strategy may backfire in a multigenerational work environment, as highly productive, younger employees may start to feel resentful of the time it takes to reap rewards they may feel they’ve earned. A company with multiple incentive strategies will ensure that all employees feel equally rewarded for their work.
2. Tailor reward and recognition efforts appropriately. When recognizing a Gen Xer, do so in private since they prefer a little less fanfare. Rewards should include professional development opportunities or extra time off. Millennials prefer experiences to certificates, but tend to like the fanfare that goes along with a company-wide awards ceremony. If possible, allow high-performing employees the opportunity to choose their own reward from a pre-determined list, or offer enough varied recognition events to appeal to both groups.
3. Mirror communication to employee preferences. Millennials tend to value accessibility and constant communication in the workplace, and have a need for consistent validation from managers. However, Gen Xers prefer to operate more independently and don't want or need as much “face-time” with managers. Leaders working with both groups should be aware of their communication styles, and try to accommodate those preferences whenever possible.
4. Offer some flexibility. Flexibility is one benefit that is important to both generations and they will seek out employers who offer the ability to work from home, control their own hours and provide generous leave policies.

Companies that find a way to create work environments that appeal to employees from multiple generations will not only have an advantage when they need to recruit new employees, but will also have lower employee turnover and greater employee retention.

Deanna Bretado has worked in the San Antonio, Texas office of G&A Partners as a human resources client advisor for more than 5 years. She holds a degree in human resource management, as well as an SPHR Certification from the HR Certification Institute and an SHRM-SCP certification from the Society of Human Resource Management. 

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