HRDF News 2013

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Ministry Of Human Resources

Ministry Of Human

Resources

SME Training Carnival

HRDF Conference & Exhibition 2013

HRDF Annual Gala Dinner

HRDF NEWS 2013

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Ministry Of Human Resources

HARNESSING THE POTENTIAL OF A

MULTI-GENERATIONAL

WORKFORCE IN MALAYSIA By: Professor Sattar Bawany

The New Realities Changes in the demographic characteristics of the Malaysian workforce deserve more

attention from academics, employers, employees, and policy makers. Today many

organisations have four generations worked side by-side in the workplace.

Never before have four generations worked side by-side in the workplace. After World War II,

the Traditionalist generation, born 1922 to 1945, tended to work at the same employer for an

entire career. Beginning with the Boomers, born 1946–64, women and ethnic groups began

entering the workforce in increasing numbers, bringing different needs and perspectives to the

workplace. As the Gen Xers entered the workforce, they increased job hopping in an effort to

increase their income and/or to balance their lifestyle. Although some employers made

accommodations in response to the demographic shifts, the basic work model — top down,

command and control, one size fits all, 8–5 workday — did not radically change. Now, the

emergence of the digital-savvy Millennials or Gen Yers has the potential to change the face of

work to be more collaborative, to use virtual teams, to use social media, and to offer more

flexible work hours. The Fifth generation, Gen Zers or The Linksters will be coming into the

workforce in the next 5 years. The five generations and their birth years are depicted in Table 1.

Generation Years Born Work Perspectives

Traditionalists 1922 - 1945 “Company loyalty” - Believed they would work for the same

company their entire career.

Boomers

1946 - 1964 “Live to work” - Believe in putting in face time at the office.

Women enter the workforce in large numbers.

Gen X-ers

1965 - 1980 “Work to live” - Believe that work should not define their

lives. Dual-earner couples become the norm.

Gen Y-ers

(Millennials)

1981 - 1994 “Work my way” - Devoted to their own careers, not to their

companies. Desire meaningful work.

Gen Z-ers

(Linksters)

1995 to

present

“Living and Working their way” - Their struggles in the work

environment are tied to their youth and inexperience.

Desire for change, stimulation, learning and promotion that

will conflict with traditional organisational hierarchies.

Table 1: The Multi-Generational Workforce (Bawany, 2013)

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Challenges in Managing a Multigenerational Workforce A major challenge for today’s Traditionalist and Baby Boomer managers is to figure out how to

develop younger workers into tomorrow’s managers under a new business environment. A

pivotal question for managers is, “Do we want our legacy to be of mentoring and empowering

the next generations, or of fighting them tooth and nail?” Organizations that embrace

generational differences in values, ways of getting things done, and ways of communicating

will thrive.

Organisations struggle with the challenges of effectively managing a more diverse workforce.

These challenges often relate to variation in perspective, values and belief systems as a result of

generational differences and are further complicated due to the age differences between

managers and employees. The assumption - that people of varying ages will understand each

other or have the same perspective and goals, is far from true. In order to be successful,

managers need to understand and value the diversity resulting from generational differences,

varying perspectives and differing goals.

Each generation brings different experiences, perspectives, expectations, work styles and

strengths to the workplace. Despite the perceived "generation gap" from differing views and

potential conflict, organisations have the opportunity to capitalise on the assets of each

generation to achieve competitive advantage.

Like any other generation, Gen Z or the Linksters it brings its own mind-set into the workforce.

They are called Linksters because no other generation has ever been so linked to each other

and to the world through technology. Their struggles in the work environment are tied to their

youth and inexperience. They are complete digital natives and cannot function without

communicating through social media. They desire for change, stimulation, learning and

promotion that will conflict with traditional organisational hierarchies.

Leading and Engaging a Multigenerational Workforce When employees join an organization, they're usually enthusiastic, committed, and ready to be

advocates for their new employer. Simply put, they're engaged.

But often, that first year on the job is their best. Gallup Organization research reveals that the

longer an employee stays with a company, the less engaged he or she becomes. And that

drop costs businesses big in lost profit and sales, and in lower customer satisfaction. In fact,

Gallup estimates that actively disengaged employees -- the least productive -- cost the

American economy up to US$350 billion per year in lost productivity.

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Impact of leadership effectiveness on employee engagement and

organisational success

Organisations need to deliver service value and build good customer relationships in order to

generate sustainable results through their satisfied and loyal customers. Employees being at the

forefront of the service delivery chain hold the key to building this satisfied and loyal customer

base (See Figure 1).

Employees who are engaged and motivated are instrumental in delivering the service

experience for the client which will results in customer engagement. The level of employee

engagement is dependent on the “Organisational Climate” (sometimes known as Corporate

Climate), which here simply refers to “how employees feel about working in the

organisation/business unit/department/division.” Organisational climate is the process of

quantifying the “culture” of an organisation. It is a set of properties of the work environment,

perceived directly or indirectly by the employees, that is assumed to be a major force in

influencing employee behaviour and engagement.

We know that leaders create, transform and manage organisational cultures. The leader’s

values, beliefs and leadership styles will impact the organisation’s climate. We need “Level 5

Leaders” who demonstrate ontological humility and possess emotional mastery. They also

need to possess essential integrity in discharging their day to day role and responsibilities

towards engaging the employees.

Employee satisfaction Employee loyalty

Policies on CSR, Sabbatical

Rewards and flexibility

Culture, esprit de corps

EQ/EI competencies

Managerial skills

Leadership styles

Profitability, ROI

Cost optimisation

Employee turnover/retention

Customer satisfaction

Service value/relationship

Organisational Results

Customer Engagement

Employee Engagement

Organisational Climate

Leadership Effectiveness

Figure 1

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Level 5 refers to the highest level in a hierarchy of executive capabilities. Leaders at the other

four levels may be successful, but are unable to elevate companies from mediocrity to

sustained excellence.

Level 5 leadership challenges the assumption that transforming companies from good to great

requires larger-than-life-leaders. The leaders that came out on top in Collins' five-year study

were relatively unknown outside their industries. The findings appear to signal a shift of emphasis

away from the hero to the anti-hero.

According to Collins, humility is a key ingredient of Level 5 leadership. His simple formula is

Humility + Will = Level 5. "Level 5 leaders are a study in duality", notes Collins, "modest and wilful,

shy and fearless."

Conclusion

Increasing generational diversity and technological change is causing a transformation in the

way employers must manage human resources. The homogenous human capital model of the

past simply will not work with such diverse cohorts in the workforce. It is time to throw out the

one-size-fits-all model of talent management and embrace a more flexible model.

The diversity in the workforce today may be a challenge to HR and business leaders. However,

they do provide an organisation with a positive force as they each bring varied sets of skills and

life experiences to the workplace. If managed properly, organisations can definitely see

improved productivity and employee engagement.

Managers who harness this unprecedented opportunity for growth, development, and

collaboration, and build bridges between generations, will thrive. For managers who have four

or five generations of employees sitting in a meeting or working on a project, it can seem like

each generation has its own worldviews, priorities, career models and motives. Managers need

to develop an understanding of generational characteristics and the impact of their own

management practices on these groups. They also need to leverage the strengths of each

generation. Taking full advantage of the multi-generational workforce will enable employers to

effectively attract and retain employees, build teams, deal with change, and increase

employee engagement.

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Pembangunan Sumber Manusia Berhad (545143-D) Human Resources Development Fund (HRDF)

National Human Resource Centre (NHRC)

Ministry of Human Resources, Malaysia

Wisma HRDF, Jalan Beringin, Damansara Heights, 50490 Kuala Lumpur.

PSMB Contact Centre : 1 800 88 4800 G/Fax : (03) 2096 4999

Website: www.hrdf.com.my www.nhrc.com.my

Email: support@hrdf.com.my

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Ministry Of Human Resources