1. © Grant Thornton LLP. All rights reserved. Managing The Multi-Generational Workforce Social Contracts – Older and Young Workers Doing the Same Work but With Different Benefits, Motivations, and Views NASC Annual Conference Columbia, South Carolina March 19 – 22, 2013

2. © Grant Thornton LLP. All rights reserved. The Premise… There are a number of crises on the horizon that will impact every state government and how to manage them will determine long term viability. It is a problem that effects the heart and soul of governments…the employees…and has multiple facets: Economic Aging workforce Pension plans Healthcare

3. © Grant Thornton LLP. All rights reserved. What we will need to address… Economic issues such as layoffs, outsourcing, insourcing, furloughs the aging workforce and succession planning and retention of skilled workers Pension/healthcare plan modifications including the fact that multiple classes of benefits will become reality Diverse workforce…multigenerational and how to manage them for effectiveness and efficiency

4. © Grant Thornton LLP. All rights reserved. The Changing Landscape of Work For the first time in modern history, workplace demographics now span four generations. This presents both challenges and opportunities!

5. © Grant Thornton LLP. All rights reserved. Generations! World War II/Traditionalists: Before 1945 Boomers: 1946 – 1964 Gen X: 1965 – 1980 Gen Y: 1980 on

6. © Grant Thornton LLP. All rights reserved. The Business Case for Addressing Multi- generational Management The transfer of knowledge between retiring generations of veteran workers and newer workers to the workforce is becoming increasingly more important. The traditionals and baby boomers comprise greater than 50% of the workforce and are either eligible for retirement or nearing retirement. The impending brain drain should cause nightmares for management.

7. © Grant Thornton LLP. All rights reserved. The crashing together of the generations cause significant conflict due to differences in how they view: Work ethic Technology Perspective View of Authority Communication Leadership

8. © Grant Thornton LLP. All rights reserved. Generation Workplace Needs Guess what? People generally want the same things: To be respected To be recognized for a job well done To be coached To be consulted To be connected They just want them delivered in different packages!

9. © Grant Thornton LLP. All rights reserved. WWII Generation/Traditionalists Events –Great Depression –Pearl Harbor –Jackie Robinson joins major league –Korean War Compelling Messages –Stay in line/respect the rules –Sacrifice –Be heroic Work Motto: Hard Work, no option!

10. © Grant Thornton LLP. All rights reserved. WWII Generation/Traditionalists Words that Motivate –Your experience is respected here. Rewards that Motivate –Tangible symbols of loyalty, –commitment and service Management Actions that Motivate –Connect their actions to overall good of organization Communication/leadership Style –Linear, logical, respectful Things they hate –Profanity, slang, poor grammar, disrespect

11. © Grant Thornton LLP. All rights reserved. Baby Boomers Events –Civil Rights –Sexual Revolution –Space Travel –Woodstock Compelling Messages –Be anything you want to be –Change the world –Work well with others –Personal growth Work Motto: Work, Work, Work. Its what we are about.

12. © Grant Thornton LLP. All rights reserved. Baby Boomers Words that Motivate –We need you. You can make a difference. Rewards that Motivate –Personal appreciation, promotion, recognition, status symbols Management Actions that Motivate –Managers get them involved and show them how to make a difference Communication Style –Personable, Informative = Reward Things they hate –Brusqueness, one-upmanship

13. © Grant Thornton LLP. All rights reserved. Generation X Events –Three Mile Island –Berlin Wall falls –John Lennon killed –Chernobyl –Exxon Valdez Compelling Messages –Dont count on it –Get real –Take care of yourself –Always ask why? Work Motto: Work more with flexibility. But work even more? Lets talk.

14. © Grant Thornton LLP. All rights reserved. Generation X Words that Motivate –Do it your way. and There is life beyond work. Rewards that Motivate –Free time, upgraded resources, opportunities for development, bottom-line results, certifications to add to resumes Management Actions that Motivate –Managers give choices and permit work autonomy Communication Style –Direct, straightforward, results-oriented Things they hate –Using time poorly, corporate-speak

15. © Grant Thornton LLP. All rights reserved. Millenials / Gen Y/ Nexters Events –Columbine shootings –Enron scandal –War begins in Iraq –Natural disasters: Katrina and Tsunami –Mandela released Compelling Messages –You are special –Leave no one behind –Serve your community –Connect 24/7 Work Motto: Work flexibly anywhere. Tell me why you want me to do something. Work harder? No way, and Im texting my friends to tell them what a jerk you are.

16. © Grant Thornton LLP. All rights reserved. Millenials / Gen Y/ Nexters Words that Motivate –We respect you here. and What are your goals? Rewards that Motivate –Awards, certificates, tangible evidence of credibility Management Actions that Motivate –Managers connect actions to employees personal and career goals Communication Style –Positive, motivational, personal and goal-oriented Things they hate –Cynicism, sarcasm, condescension

17. © Grant Thornton LLP. All rights reserved. Social contracts with employees must consider a variety of issues…which vary by generations salary work schedules retirement (pension plans) values technology social media etc…but the key to success is in… LEADERSHIP

18. © Grant Thornton LLP. All rights reserved. Building Leaders with the Skills to Succeed is "The Challenge" "Crisis of Leadership" is the norm –Not specific to a market sector, private sector, government, large or small firms General management competencies are evolving –Collaboration –Business Acumen –Global Awareness –Integrity and Trust

19. © Grant Thornton LLP. All rights reserved. Role Based Competencies Organizational role drives needed leadership competencies –Individual Contributor Decision quality –Supervisors Building effective teams –Middle Manager Business Acumen –Executives Strategic Agility

20. © Grant Thornton LLP. All rights reserved. CASE STUDIES

21. © Grant Thornton LLP. All rights reserved. National Air and Space Administration (NASA), Office of the Chief Human Capital Officer (OCHCO) Social Learning Platform Client Issue Address multi-generational issues and leadership including improving communication, knowledge sharing and collaboration. Goal was to improve learner engagement and provide a foundation for sustainable collaboration and knowledge sharing across the workforce. Our Approach Designed, launched and facilitated a web-based, social learning environment to support instructor-led course delivery. Delivery of the web-based course activities shifted away from the traditional, instructor- centric training model to an innovative, learner-centric training model. Addressed expectations of a multi-generational workforce by using social media as a platform for training. This social learning environment supported collaboration, knowledge sharing and networking across generations. Benefit OHCM leadership shifted traditional model of online course delivery to a learner-centric model focused on improving engagement, collaboration and knowledge sharing.

22. © Grant Thornton LLP. All rights reserved. Department of Energy Office of Legacy Management (LM) Strategy Workforce Analysis Client Issue Significant changes in the scope of work impacted the quality of the work performed. The impending departure of several federal employees put an additional strain on department management. The goal was to develop a n accurate and scalable re workforce planning approach. Our Approach Developed a future state organization concept including a business case, succession plan, and a year-by-year cost model of the HPOs optimal federal workforce; including performance metrics to monitor progress. Managers and staff were trained on roles, responsibilities and how to successfully navigate the new requirements Benefits The agency realize short-term and long-term cost savings as well as key program changes to improve communication, knowledge sharing and collaboration across a multi-generational workforce.

23. © Grant Thornton LLP. All rights reserved. Closing Thoughts Leadership is an evolving skill Develop leaders at all levels and roles in an organization Successful organizations have effective leadership The multi-generational workforce is just the beginning – the multi-cultural workforce offers even more challenges and opportunities