Recruiting and Retaining a Multigenerational Workforce: How Generational Cohort Impacts Job Satisfaction

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For the first time in U.S. history, four generations of workers are sharing the professional workplace. HR executives are challenged to recruit and retain members of multiple age groups, each with unique world views, values, and associated behaviors. Literature and conventional wisdom tell us different generations respond differently to workplace dynamics, implying leaders should tailor the work environment to match the expectations of each generational cohort to improve employee engagement, satisfaction, and retention.

In 2008, a comprehensive study of more than 1,500 Baby Boomers and Generation Xers at a large, not-for-profit health care system looked at whether generational cohort is a predictor of overall job satisfaction—a factor which is itself the most accurate predictor of employee retention (Lambert, Hogan, Barton, 2001). Using employee survey data, the study revealed generational cohort does not predict overall job satisfaction or satisfaction with job opportunities, but does have a slight impact on how employee perception of the organization influences satisfaction with the work environment. These findings suggest organizations can improve employee satisfaction (and perhaps improve retention rates) by understanding factors influencing employees’ perceptions of the organization.

Generational Diversity
The four generations represented in many workplaces today span nearly 80 years. They are the Veterans (1922 and 1943), Baby Boomers (1943 and 1960), Generation X (1960 and 1980), and Generation Y (1980-present). Each generational group is molded by a common experience of world events and circumstances—economic changes, wars, political ideologies, technological innovations, social upheavals—and tends to display unique behaviors and values which can impact the way they perceive their employer and work environment.

When entering the workplace, employees of all ages encounter particular organizational norms that either reinforce or challenge their attitudes and, to some extent, their values (Westerman & Yamamura, 2007). When employees from different generational cohorts interact in their work environment, their conflicting values are more readily exposed which can lead to tension, ineffective work relations, employees not feeling valued by the organization, and lower job satisfaction (Kupperschidt, 2000). Collectively, these dynamics can result in reduced profitability, difficulty recruiting and retaining valuable employees, higher payroll costs, and poor customer service. It is critical then to understand which factors impact employee satisfaction with the organization and work environment within and across generations.

A Survey of Generations
A study of Baby Boomers and Generation Xers—the two largest cohorts in the workforce—at a large health care organization was conducted to gain insight into job satisfiers by generational cohort. Based on their self-reported age, 1,572 Generation X and Baby Boomer employees representing all levels of employment (e.g., senior leaders, managers, supervisors, professionals, clerical, and ancillary support personnel) participated in the study.

Results of the study showed (1) the impact of coworkers on an employee’s overall satisfaction, satisfaction with job opportunities, and satisfaction with the work environment did not vary by generation; (2) the impact of a supervisor on an employee’s overall satisfaction, satisfaction with job opportunities, and satisfaction with the work environment did not vary by generation; (3) the impact of an employee’s perception of the organization on overall job satisfaction and satisfaction with job opportunities did not vary by generation; and (4) the impact of an employee’s perception of the organization on satisfaction with the work environment did vary by generation, with Generation X employees having a better perception of the work environment and, therefore, greater satisfaction with the work environment than Baby Boomers.

The increased level of satisfaction among Generation Xers at this particular site may be explained by the organization’s focus on factors and qualities that appeal to this cohort. According to research, Generation X is most satisfied with the work environment when they are given freedom and autonomy along with support when requested (Howe and Strauss, 2007). Also, when given clear goals and the help that they need, employees feel they have more control over their job and will thus experience more job satisfaction (Madlock, 2008). The organization employing those surveyed in this study engages employees at all staff levels in Six Sigma projects, stretch assignments, and team projects. Employee opinion surveys provide staff opportunities to give personal feedback to leadership. Training in communication, motivation, cultural sensitivity, and goal achievement also provides leaders with the knowledge and tools they need to create satisfaction with the work environment.

Implications for HR Leaders
Understanding generational differences is critical to making them work for the organization and not against it. The identification and measurement of work conditions and the study of the relationship of these conditions to job satisfaction can provide an organization with valuable data to incorporate into the development of programs that align expectations with organizational qualities, encourage retention, and promote satisfaction in the health care workplace. Recent evidence indicates that, once in the workplace, what satisfies a worker of any age is remarkably stable (Johnson & Lopes, 2008). Connecting employee perceptions with specific policies, procedures, and practices provides an actionable framework for implementing changes that directly respond to employee concerns and offers opportunities to transform an organization’s culture and effectiveness. By aligning workplace dynamics with employee preferences and expectations, leaders can improve the work environment in targeted ways that maximize satisfaction for each generational cohort over the long-term.

The cultural change that organizations may need to undergo to create an environment that recognizes, accommodates, and appreciates its workers of all ages requires a reassessment of workflows, scheduling, facilities, and management style (Cohen, 2006). One example concerns flexible scheduling. While Baby Boomers have earned a reputation for working long hours and equating work with personal identity, Generation Xers value time above all other factors and strive for work-life balance. An effective scheduling system would need to accommodate both approaches to a meaningful, productive work schedule. Furthermore, it is necessary for organizations to find ways to engage Generation X employees in what they are doing, to show them how they fit in, and to coach them in how they can begin to collect experience and learn skills that will serve them in the future (Meredith, Schewe, & Heim, 2002). In this way, leaders can address employees’ issues, improve their engagement, reduce turnover, and increase productivity.

Multiple Approaches to Understand Employees
In addition to studying workplace conditions specific to an organization, it is important for HR leaders to view employees through multiple lenses to gain insight into factors impacting their satisfaction. Two examples flowing from this study are life stages and individual employees.

Life stages: Career progression is usually correlated with lifecycle changes, and movement through a career is accompanied by changes in what is required of the job at that time (Likert, 1961). Employees’ personal lives are affected by changes in the demands of the workplace as their jobs evolve. Therefore, all relationships and interactions within an organization should help individuals feel the organization, supervisors, and coworkers are supportive of their needs throughout the various cycles of their lives.

Individual employees: While members of a generational cohort may share similar characteristics and worldviews, it is imperative that leaders still view employees as individuals. Organizations should not consider generational cohort as the only filter for understanding employee behavior or the only tool for determining employee needs; rather, HR leaders should partner with frontline leaders to identify individual perceptions of what makes a work environment desirable.

Conclusion
Health care organizations need to leverage job satisfiers to counter anticipated conditions resulting from the transformation of the industry and U.S. workforce over the next few decades, including (a) the loss of intellectual capital as large numbers of Baby Boomers retire, (b) the shortage of highly skilled labor in specialty areas, and (c) the shift in work values from a rigid to a more flexible, balanced work ethic.
Maintaining productive, qualified employees in the workplace is paramount to organizations if they are to succeed in an increasingly competitive, global economy. These challenges are especially apparent in the health care industry and highlight the need for leaders to understand job satisfiers across generations and to implement effective programs that attract and retain the most talented employees of all generations.

Jane Ryan is a registered dietitian and Corporate Director of Clinical Nutrition for Virtua Health in New Jersey.

References
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Lambert, E., Hogan, N,. & S. Barton. (2001). The impact of job satisfaction on turnover intent: A test of a structural measurement model using a national sample of workers. Social Science Journal, 38(2), 233-250.

Likert, R. (1961). New patterns of management. New York: McGraw-Hill.
Madlock, P. (2008). The link between leadership style, communicator competence, and employee satisfaction. Journal of Business Communication, 45(1), 61-78.

Meredith, G., Schewe, C., & Hiam, A. (2002). Managing by defining moments. New York: Hungry Minds.
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