SHL Study Reveals US Companies Require Talent Measurement Overhaul to Address Generational Diversity Issues Impacting the Workplace
With Company Loyalty Slipping 30% from Boomers to Millennials, Understanding Motivational Differences Between Age Groups is Now Critical to Corporate Survival
ATLANTA, March 12, 2013 /PRNewswire/ -- Global talent measurement leader SHL, has released new research from its annual Talent Report, which revealed differences in motivational factors between generational groups in today's workforce. Based on a sample size of more than 1.12 million people across 200 countries and territories from executives to frontline staff, the Landscape of Diversity study exposes how the dramatic age diversity in organizations, both in the US, and globally could significantly stunt leadership growth – as well as succession planning, employee performance, and overall business outcomes – if not properly managed.
"Sustaining career progression is the singular challenge facing organizations today. Companies need to develop a plan to energize and retain talent that takes into account the diverse interests of varied generational groups in today's workforce - Boomers, Gen Xers and Millennials," explained Eugene Burke, Chief Science & Analytics Officer, SHL. "If they don't, they risk fracturing the knowledge transfer from incumbent leadership to new leadership, and falling short on the ROI of their talent programs over time as retention withers among top performers."
As SHL's study reveals, only 20% of Millennials plan on staying with an organization for their entire career, compared to 65% of Boomers. While Boomers are motivated most by reward and recognition, Millennials are driven by progression and personal growth. The study also shows negligible differences between generational groups in the talents required to "develop the vision" and "share the goals" effectively, but significant and substantive differences appear in the talents required to gather support of ideas and proposals (favoring Boomers), and in successfully turning those ideas into actions and deliverables (favoring Millennials). In further examining the workforce, the study finds that 1 in 11 Millennials exhibit "leadership potential," compared to 1 in 13 Gen Exers and only 1 in 16 Baby Boomers.
The new research was released as a call to action for corporate leadership. With work becoming more complex, matrixed, and collaborative, the profile of a successful leader has changed in more than 89% of organizations, according to CEB, SHL's parent company. In order to have effective leaders in place for tomorrow, organizations must have a plan to identify and shape them today, within an evolving management structure, without alienating those already holding those positions. Understanding generational differences when it comes to job motivation and career development is essential to the success of this plan.
"It is critical that managers, despite the affinity towards their own generational group, identify and fully understand the differences between the age groups within the context of their workplace," added Burke. "Designing and deploying the right talent measurement program can ensure that organizations stay on track, balancing the need to manage for generational motivation and performance today, with the need to identify and groom leaders for succession tomorrow. Their corporate survival just might depend on it."
To find out more about SHL's Landscape of Diversity study and download your free copy of the SHL Talent Report visit: http://www.shl.com/us/forms/content/the-shl-talent-report
About SHL - People intelligence. Business results.
SHL is the leader in talent measurement solutions, driving better business results for clients through superior people intelligence and decisions - from hiring and recruiting, to employee development and succession planning. With a presence in over 50 countries, SHL delivers more than 30 million assessments annually in over 30 languages - allowing over 10,000 business customers to benefit from both global expertise and local insight. Along with its world-class consulting practices and 24-hour support center, SHL clients can access over 1,000 assessments through an easy-to-use technology platform. SHL was acquired in 2012 by CEB, the leading member-based advisory company. By combining the best practices of thousands of member companies with advanced research methodologies and human capital analytics, CEB equips senior leaders and their teams with insight and actionable solutions to transform operations. Headquartered in London, UK, SHL has offices in North and South America, Europe, the Middle East, Africa, Asia and Australia/New Zealand. For more information, visit www.shl.com.