Talking About Whose Generation? - Deloitte
issue 6 2 010Complimentary article reprintTalking AboutWhose Generation?Why Western generational modelscan’t account for a globalworkforceBy David Hole, Le Zhong and Jeff Schwartz photography by david clugstonThis publication contains general information only, and none of Deloitte Touche Tohmatsu, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services,nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect yourfinances or your business, you should consult a qualified professional adviser.None of Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on thispublication.About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Pleasesee www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.Copyright 2010 Deloitte Development LLC. All rights reserved.
84Talking AboutWhose Generation?Why Western generational models can’taccount for a global workforceBy David Hole, Le Zhong and Jeff Schwartz photography by david clugstonDeloitte Reviewd e l o i t t e r e v i e w. c o m
Ta l k i n g A b o u t W h o s e G e n e r at i o n ?It is 8 pm in Shanghai, andKan, a marketing manager for a largeglobal retailer has just gotten off ofanother call with a headhunter. “I likethis company. I’m rewarded as a topperformer and being considered fora promotion,” he thought. “But mycreativity and drive for taking the business to the next level are simply notappreciated here. My bosses are nicebut old-fashioned, too conservative topromote my best ideas or work withGlobal to implement them. I knowthey see this as a safe approach, butmy former colleagues who took myideas to other firms have been hugelysuccessful.” He stepped back into hisoffice and looked at the pile of files onhis desk. “Should I stay and be comfortable or look somewhere else fora more fulfilling future? I’m only 29– lots of opportunities. I know otherson my team feel the same way. Maybesome of them would love the idea ofgoing to a new company with me.”d e l o i t t e r e v i e w. c o mDeloitte Review85
86Ta l k i n g A b o u t W h o s e G e n e r at i o n ?Meanwhile, the Beijing-based head of R&D for a global pharmaceutical companyis contemplating her talent challenge. “We are so strong in developing new talent; our programs are second to none, and that is my problem. People come to us,scientists and medical professionals straight out of university, because we have areputation for professional development. They stay with us for two years, and thenthey are off. I am the finishing school for our competitors.” She explains that whilethe U.S. parent company has the development process nailed, they are failing todeliver retention strategies that have resonance to young professionals in China.1Each generation that enters theworkforce introduces a unique set ofClaiming that “millennials aremillennials” wherever they arein the world is tantamount toblithely saying that “customersare customers” the world over.motivations and strengths to the workplace. A successful talent strategy canhinge on an organization’s understanding of what makes its employees tickin the same way that broader businessstrategy relies on an understanding ofdifferences between its myriad custom-er groups. Differences between generations can affect the way organizations recruitand build teams, deal with change, motivate and manage people, and boost productivity and service effectiveness. But despite their best efforts to shed false assumptions about a homogeneous workforce, global companies often oversimplify theirtalent strategies. They ground decisions in an incomplete picture of their globalworkforces by assuming the same generations exist across the countries where theyoperate. The characteristics of generational cohorts in the Western countries wheretalent strategies originate do not necessarily address the core aspirations and drivers of behaviors in other parts of the world. Gaining a more complete picture of atalent pool requires companies to understand the generational composition of theirentire global workforce.Throughout the West, organizations tend to divide their workforces into threegenerational groupings: Baby Boomers (born between 1943 and 1964), Generation X (born between 1965 and 1980) and Generation Y (born between 1981and 2001). Each group tends to have predominant, common traits. For example,Boomers are commonly defined as demonstrating a strong work ethic and expecting hard work to be rewarded; Generation X as tending to favor work-life balanceand flexibility; and Generation Y as embracing social technology and diversity.Organizations can bolster their talent management approaches by determiningrecruitment, retention and development strategies that cater to the various needsof each generation.But perhaps these divisions aren’t as straightforward as they appear. After all,Deloitte Reviewd e l o i t t e r e v i e w. c o m
Ta l k i n g A b o u t W h o s e G e n e r at i o n ?87why should the same generational lines and cultural norms apply to workforcesthat exist in otherwise disparate countries, histories and cultures? In and of themselves, the definitions that drive talent strategies are too broad. Consider, for example, the application of these generational divisions in the United Kingdom. Atthe tail end of the Boomer generation are the so-called “Thatcher’s Children” whoentered higher education or the workforce at the outset of the market liberalization. Are they really likely to share the same attitudes as those who were born,raised and employed under societal conditions informed by the post-War socialist consensus? Likewise in France, thestudent riots and the general strike of1968 profoundly influenced the worldviews and aspirations of those of collegeage (the “soixante-huitards”).These two examples raise an important question about the generallyaccepted Western business view of generational differences: even assumingDoes the fact that professionals in New York, London andBeijing display similar outwardmaterial characteristics reflect aconvergence in the aspirations,ambitions, values and attitudesthat drive talent strategies?that the designations of Boomers, GenX and Gen Y are useful across North America and Europe, the socioeconomicand political events that drove societal transformation—and hence, influenced attitudes—were significantly different.If the Western definition of generations is so broadly stated, then how usefulare these definitions in driving business related people strategies on a global basis?Companies that merely transplant U.S.-centric notions of Boomers, Gen X andGen Y tend to average out similarities between generations across geographiesand thereby lose sight of significant differences in a business setting. Claimingthat “millennials are millennials” wherever they are in the world is tantamount toblithely saying that “customers are customers” the world over.Global businesses need to shed the tendency to average out generational differences in favor of a more complex and complete picture of their workforces. Doesthe fact that professionals in New York, London and Beijing display similar outward material characteristics reflect a convergence in the aspirations, ambitions,values and attitudes that drive talent strategies? Put simply, does the fact thatworkers from New York, London and Beijing walk the city streets listening totheir music of choice, wearing designer jeans and drinking lattes indicate anythingdeeper than the outward appearance of convergent characteristics between contemporary generations across the globe? Can we assume similarities in the ways theymake career decisions or perform their jobs?Much of the literature on these issues oversimplifies and overstates the extentd e l o i t t e r e v i e w. c o mDeloitte Review
88Ta l k i n g A b o u t W h o s e G e n e r at i o n ?and depth of generational convergence. While the concept of generational differences is universal, how those generations are defined remains specific to a givensociety. As a consequence, a workforce’s ambitions, aspirations and behaviors manifest themselves in the labor market and the workplace. This should be of interestto all business leaders who seek to enter a market, build global business operationsor maximize the productivity of a workforce across national borders.1945 and All ThatLet’s start with an observation that is at once obvious and overlooked by mostWestern framers of the concept of the three generations (Boomer, X and Y).Year Zero for baselining the modern era is not universally held to be 1945. Thatmay be true in North America, across Europe, in Japan and the original BritishCommonwealth, but it is certainly not true elsewhere. This is important becausegenerational differences in any society are shaped by the political, socioeconomicand cultural events that have a transformative impact on the body politic. If thedefining seismic event that heralds the modern era varies from country to country,then by extension, the definition of generations starts from the principle of variable geometry. Figure 1 illustrates how this variability plays out across selectedgeographies.Figure 1. Global generation Post-60sgeneration(1960-1969)SouthKorea1st “386”generation(1960-1969)Danso 0)RussiaBaby Boomers(1943-1964)BulgariaPost War generation(1945-1965)CzechRepublicBaby l” eration(1990-1999)Gen Y(1981-onward)Gen X and Gen Y(1970-onward)2nd BabyBoomer(19711975)Post Bubble(1976-1987)Gen X(1965-1983)Generation X-“Husak’s Childrengeneration”(1965-1982)Gen X(1970-1989)Democracy generation(1980-onward)Generation Y(1983-2000)Gen Y(1990-2000 )BrazilBaby Boomers(1946-1964)Gen X(1965-1980)Gen Y(1981-2001)U.S.Baby Boomers(1943-1964)Gen X(1965-1980)Gen Y(1981-2001)Deloitte Reviewd e l o i t t e r e v i e w. c o mYutori(1987-2002)Gen Y (Gen “Pu”)(1983-2000)Communist generation(1965-1980)Baby Boomers(1943-1970)ShinjinruiJunior(19861995)
Ta l k i n g A b o u t W h o s e G e n e r at i o n ?Asia’s Many FacesThe four powerhouse economies of Asia—China, India, Japan and South Korea—can be used to illustrate the way generational differences play out inthe workforce. For business leaders to make sense of the generational differences ineach country, it is essential to start with a brief overview of the defining politicaland socioeconomic events that shaped generational attitudes.The defining date of the modern era for China was the foundation of the Peo-ple’s Republic in 1949. This was followed by almost 30 years of economic andpolitical turmoil that had a significant impact on the attitudes, aspirations andfears of the population.From the economic catastrophe of the “Great Leap Forward” in 1960 throughthe Cultural Revolution that lasted until 1976, values in China were based purelyon communism and Maoism. This changed gradually and significantly with theeconomic reforms launched by Deng Xiaoping in 1978. Since then, China hasexperienced nearly continuous growth and relative market liberalization. Beneaththese headlines, however, are other significant social and political developments.China’s adoption of the One-Child Policy in 1980 radically impacted the traditional family structure in many unforeseen ways and resulted in a generation thatgrew up in a family environment of high expectations and minimal competitionfor attention.In 1998, another round of economic reform was introduced by Premier ZhuRongJi, which led to a restructuring of State Owned Enterprises (SOEs) thattrimmed the workforce by 20 percent nationally and phased out state-providedfree housing and healthcare to all workers. Around the same time, college graduates acquired the right to choose their own jobs, and multinational corporations(MNCs) started recruiting on Chinese campuses.This history of accelerated and, at times, cataclysmic change profoundly influences the definition and characteristics of generations in the workplace. Dueto the accelerated cultural and economic transformation, each decade introduceda generational cohort with distinct characteristics. As a result, the U.S.-centricmodel of Boomer, Gen X and Gen Y is meaningless in a Chinese context. Instead,four distinct generational groupings currently co-exist in the workplace: post-‘50,post-‘60, post-‘70 and post-‘80 generations. The characteristics of each generationand the manifestation of the differences between them in the workplace is a hottopic that sparks discussions across Chinese magazines, newspapers, websites andMBA seminars.Consider, for example, just two of the four groupings: the post-‘70 and post-‘80generations. The post-‘70 generation (born between 1970 and 1979) is more Westd e l o i t t e r e v i e w. c o mDeloitte Review89
90Ta l k i n g A b o u t W h o s e G e n e r at i o n ?ern in outlook than preceding genera-africa emergingThe leading economy in Africa is thatof South Africa, a country that has gonethrough tumultuous change, from theestablishment of apartheid by the nationalistgovernment in 1948, the Sharpeville Massacre, and the 1976 Soweto Uprising to theconstitutional changes of the early 1990sand the first democratic election underuniversal suffrage.This emergence from the apartheid era hadan impact on the composition of the workforce and the attitudes of those participating. One of the byproducts of apartheid wasan employment environment in the publicsector that gave preference to white SouthAfricans in certain areas. As South Africa entered the democratic era, affirmative actionwas introduced to hold companies to strictemployment quotas aimed at making theworkforce more reflective of the populationas a whole.As a result, the South African Gen X tendsto be more entrepreneurial, displayingskepticism of corporations and hierarchywhile looking for an outputs-driven workplace. Gen Y, meanwhile, has no memoryof apartheid and seeks a relaxed, informalworkplace that differs from the commandstructure that shaped the boomers.tions, reflecting the fact that it includesthe first college graduates who chosetheir own careers and benefited from oncampus recruiting from multinationalcompanies. It also was the first generation that stopped receiving free housingfrom employers. Meanwhile it is also thelast generation raised in a collective family and educational environment; members of this cohort are typically willingto sacrifice self-interest for the greatergood of the collective group.In comparison, the post-‘80 generation (born between 1980 and 1989) isthe first generation of single children toemerge after the introduction of the OneChild Policy in 1980. As a group, theyhave a reputation of being individualistic and confident but also self-centeredand rebellious. Compared to precedinggenerations, they are regarded as innovative, open-minded toward new ideas andapproaches.The collectivist post-‘70 generationin China’s workplace is often faced with the challenge of managing the individualistic post-‘80 generation. In this context, post-‘70 managers have found that, unlikethemselves, their post-‘80 subordinates typically have little respect for authority,actively seek to manage their own careers instead of having faith in the organization’s system, and are far more likely to leave their job if the environment does notsatisfy them. Furthermore, a recent survey shows that the ‘80s generation considersthe ‘70s generation to be overly conservative, lacking in creativity and reserved tothe point of appearing fake.2 These generational differences introduce new challenges pertaining to talent management, and companies are facing unprecedentedattrition rates among their post-‘80 talent. While Western talent managementbest practices will be helpful in addressing many of these issues, it is essential tounderstand a country’s unique local dynamics. As the head of commercial development for a leading MNC noted, “We need to get smarter in recognizing that onesize fits all doesn’t work for my talent needs. To recruit, retain and get the best outDeloitte Reviewd e l o i t t e r e v i e w. c o m
Ta l k i n g A b o u t W h o s e G e n e r at i o n ?91of sales and marketing professionals I need Corporate to acknowledge that ‘thinkglobal, act local’ should translate into ‘plan local and connect global’. Not only domy young professionals not think like the Americans at Corporate – they don’tthink like me!”3 Reflecting the sentiment behind that observation, global companies such as Motorola, P&G, Unileverand IBM are already considering waysto address the needs of the new generation of workers in China.4Generational differences in Chinaare unique among its Asian neighborsin addition to their stark contrast to theBoomer-X-Y model that permeates theUnited States. Japan’s post-war history.shifting social sands in Japansince the end of World War IIresulted in seven discrete generational cohorts that cannotbe aligned with the Boomers,Gen X and Gen Y, their contemporaries in the West.includes the upheaval of student activism throughout the 1960s, the economic impact of oil crises in 1973 and 1978,and the bubble economy of 1986–1991. This was followed by an “EmploymentIce Age” that lasted from 1993 until 1999. Changes to the education system in the1980s have also created divergence between generations.As Figure 1 illustrates, shifting social sands in Japan since the end of WorldWar II resulted in seven discrete generational cohorts that cannot be aligned withthe Boomers, Gen X and Gen Y, their contemporaries in the West. The ShinjinruiGeneration (1961-1970)also known as the “Bubble Generation” spent its adolescence in the bubble economy of the 1980s.5 The first generation to show clearsigns of individualism, members of this cohort benefited from a shortage of skilledlabor and tended to move quickly up the corporate ladder, often lacking the requisite leadership skills for the positions they held. Their children, the aptly namedShinjinrui Junior Generation,meanwhile were born toward the end of the bubbleeconomy (1986-1995).6 Also known as Generation Z, their attitudes toward employment were shaped by their parents’ struggle with recession. As a result, theytypically demonstrate a clear bias toward stable corporate jobs and have benefitedfrom opportunities created by economic recovery and the retirement of the firstBaby Boomers.The most recent entrants to the workforce—the Yutori—will be of particularinterest to employers in Japan as they adapt to the workplace. The product of amore liberal education due to Yutori education reforms, they are perceived to lackthe focus and discipline of earlier generations.7 Within the workplace, they typically demonstrate greater individualism that can be a source of friction with oldergenerations brought up to accept group thinking. While technically competent,many believe that the Yutori need more coaching and guidance.d e l o i t t e r e v i e w. c o mDeloitte Review
92Ta l k i n g A b o u t W h o s e G e n e r at i o n ?Meanwhile the years that followed the Korean War were filled with tumultuous change, including a military coup in 1961 that heralded nearly three
Deloitte Review deloittereview.com 86 talking about Whose generation? Meanwhile, the Beijing-based head of R&D for a global pharmaceutical company is contemplating her talent challenge. “We are so strong in developing new tal-ent; our programs are second to none, and that is my problem.
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