Generation Y: Evolution or Revolution?

Florian Heinemann (08514423) 5 December 2008

Recent studies regarding Generation Y revealed that the

emerging workforce might not be as different as assumed.
This research paper explores the possible implications for
change leaders and highlights the differences from prior
generations. First and foremost, it focuses on the various
sources of resistance.

Who are Generation Y?

Generation Y are born roughly between 1980 and 2000 and
are also often referenced as Millennials. They are the
successors of Generation X (1965 ~ 1980) and Baby
Boomers (1945 ~ 1965), which still dominate today's
workforce in Western countries. However, due to the high
age of the Baby Boomers (43 to 63) this figure will change
significantly within the next years. (Crumpacker &
Crumpacker, 2007, p. 351)

While there is no general agreement among experts on the

exact dates of their birth, most authors state that they grew
up in a world of instant communication, television and
internet. (Crampton & Hodge, 2007, p. 18)

As for the attitudes and habits of Generation Y, many

authors emphasize the similarities to Generation X. Both are
considered to be technologically keen, independent and
flexible. Likewise it is assumed that they are entrepreneurial

Generation Y: Evolution or Revolution?

and work hard to achieve their ambitious goals, but try to
find a better balance between work and life than their
parents.

On the downside, it is said that Generation Y feel entitled and

that they expect supervisors to ask them about feedback.
Although they want to be challenged, Generation Y do not
like to lose competition. Moreover, Generation Y members
expect continuous feedback and recognition. This is coupled
with interpersonal communication skills and problem-
solving skills, which are both below average. (Crumpacker &
Crumpacker, 2007; Johnson & Lopes, 2008; Wieck, 2007)

It is important to notice that most of this research was

conducted in the United States or other Western countries.
Therefore, these concepts are not necessarily applicable to
other regions without modifications. In addition, Johnson
and Lopes introduce the idea of “cuspers” - Individuals who
were born within the time of a certain generation, but had
different experiences which influenced their world view in a
way that does not conform to their generation.

How accurate are these stereotypes?

There are three general points of criticism concerning the
cited studies about generational stereotypes. Firstly, most of
the popular research was not scholarly work but conducted
by marketing and consulting companies (Johnson & Lopes,
2008, p. 33). This implies a strong contradiction of interest
which is the reason that the results of those studies should
be implemented by managers with great care. According to
Johnson one of the most regularly cited book concerning

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Generation Y: Evolution or Revolution? Florian Heinemann (08514423)
Preboomers Baby Boomers
Respect for me as a person Respect for me as a person
Good pay Good pay
Opportunity to do Getting along well with
interesting work others on the job
Feeling my job is important Feeling my job is important Chance for promotion
Opportunity for self- Opportunity for self-
development and development and
improvement improvement
Large amount of freedom Large amount of freedom
on the job on the job
Table 1: Most important factors for job satisfaction (Montana & Lenaghan, 1999)
generational differences (Generation X by Douglas Coupland)
is a work of fiction (p. 33).
Secondly, Johnson state that there is no solid evidence that
those generational stereotypes are indeed able to be
successfully transformed into management decisions (p. 33).
The strongest point of criticism is that Generation Y have
still not fully entered today's workforce. Therefore, most of
the research was conducted among pupils in primary,
secondary and high schools (Johnson & Lopes, 2008, p. 33).
It is debatable if the results of such studies are really
applicable to the behavior of Generation Y in their future
workplace.
Several other factors blur the outcomes of such studies.
Arnett states that in the United States, the average age of
marriage and first childbirth has increased significantly.
Additionally, the ratio of young people with tertiary
education has changed from 48% in 1970 to 60% in 1993
(Arnett, 2000, S. 268). As Arnett says, these shifts have
created a new period of life between adolescence and
adulthood, which he calls emerging adulthood (late teens
and early 20s). Due to the different context, he argues that
for current generations, this period is characterized by a
high degree of change, experimentation and instability. In
contrast, for earlier generations this was a period of entering
more stable adult roles. However, this shift is not a character
trait which is specific to Generation Y but a long-term trend
that has evolved over the last decades. A study comparing
young adults of the Baby Boom generation with Generation
Y should consider this and consequently compare 20 year
old Baby Boomers with older members of Generation Y. Due
to the young age of Generation Y, only the most recent
studies can consider this. This might be one reason for the
often cited stereotype that Generation Y are more willing to
take risks and are more independent than earlier
generations.
Chart 1: Level of Independence
5 December 2008
Generation X Generation Y
Steady Employment Steady Employment
Respect for me as a person Respect for me as a person
Good pay Good pay
Chance for promotion
Opportunity for self- Opportunity for self-
development and development and
improvement improvement
Large amount of freedom Large amount of freedom
on the job on the job
Results of more recent studies
Hudson and Montana conducted both studies with older
individuals of Generation Y (Hudson Highland Group, 2005;
Montana & Lenaghan, 1999). The study of Montana is from
1999, but focused solely on the first undergraduate students,
who were members of Generation Y. It asked 150 students
to rank six out of 25 factors they consider the most
important. Eventually, Montana compared the results with
similar research in the 1960s and 1970s. Hudson, on the
other hand, conducted an in-depth study with several focus
groups, which were each interviewed in form of moderated
discussions of 90 minutes length. The results of both studies
are largely in strong contrast to earlier studies:
Hudson concludes that Generation Y and Generation
X are more motivated by steady employment than
any other recent generation. Both, Generation Y and
X, stated this as their highest priority. Participants in
the 1960s and 1970s have not even ranked this topic
within their top six. (See Table 1)
Furthermore, they found that, apart from the
importance of steady employment, all four
Generations have chosen almost exactly the same
factors which are important to them.
Montana explains the discrepancy between common
stereotypes about Generation Y and his result, with
Herzberger's theory of motivation. His opinion is that in
times of right sizing and mergers, employees lose their most
important motivation, which is, according to his study,
steady employment. He says that this leads to high turnover
rates as people try finding a job with better long-term
prospects. This is supported by Schmidt, who sums up that
anxiety about loosing a job have increased during the last
decades (during comparable economic situations). She
states the assumption that employment relationship might
have changed (Schmidt & Svorny, 1999, S. 139).
While Montana compared mainly Generation Y and X with
earlier generations, Hudson focused its efforts on the
distinctions between Generation Y and X. Like Montana, they
state that there are more similarities than differences
between generations and that it might be “unwise to base
strategic workforce decisions solely on anecdotal evidence
or popular literature” (Hudson Highland Group, 2005, S. 13).
However, while both generations have a strong request for
feedback and appreciation, Generation Y score these even
higher. Likewise, Generation Y doesn't make such a clear
distinction between managers and leaders and expects even
more that their leaders are also role models and teachers.
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Generation Y: Evolution or Revolution? Florian Heinemann (08514423)
Also, Generation Y is more comfortable with giving feedback
upwards.
Hudson suggests that those minor differences are probably
based on the different life stages of the participants of
Generation Y and X (p. 13). Additionally, they say that, based
on this result, it is not justified to alter management
strategies to fit generational stereotypes (p. 27).
Conclusion of Generation Y's stereotypes
Given these more recent studies, the number of doubtlessly,
academically supported stereotypes have decreased
significantly. Instead of being remarkably independent it
seems that the opposite has become true and job safety is a
top priority of Generation Y.
Even so, this is one of the few stereotypes left that is based
on a different mindset. Managers should be more aware of
gradually evolving shifts of general facts and figures: Most
members of Generation Y will enter the workforce later than
their predecessors but will be better educated. When
comparing Generation Y with peers of equal age from prior
generations, it must be remembered that they are in an
earlier life stage which might result in more risky behavior
during the first years of working. That computer skills are
predominant in younger employees is broadly
acknowledged.
Older Studies Recent Studies
Ambitious goals
Work & Life Balance
Do not like to lose
No difference to prior
competition
generations
Bad Communicators
Problem-Solving skills
below average
Flexible
Shifted life stages and desire
Independent
for steady employment
Entrepreneurial
Good education
Desire for feedback (both directions)
Technological keen
Table 2: Comparing the particular characteristics of
Generation Y according to older and more recent studies
How does this affect Change
Management?
Based on the disputable, popular stereotypes there are some
articles available which try to estimate the possible impact
on Change Management. Wieck suggests, using the example
of hospital nurses, that change processes should be altered
significantly (Wieck, 2007). For example, he recommends
handling reward schemes differently for younger and older
nurses (p. 369). Furthermore, he is of the opinion that
younger employees have a deep-rooted dislike of meetings
and prefer emails to communicate about the change process.
Likewise, he says that rewards for ideas and participation in
the change are anticipated and therefore necessary. McGuire
et al. even states that ignoring the different needs of
generations could lead to the “assimilation” (McGuire, By, &
Hutching, 2007, S. 598) of one group.
3
5 December 2008
Crampton et al. ask if “the traditional hierarchically-based
systems of management [are] outdated?” (Crampton &
Hodge, 2007, p. 21). They recommend a review on
management policies but admit that they need more
research.
Taking into account the more recent studies about
generational behavior, these recommendations appear
exaggerated and likely to miss their target.
In the following, the broadly accepted sources of resistance
to change (Spector, 2007, p. 36; O'Connor, 1993; Lee, 2008)
are linked to the recent studies about Generation Y.
Complacency
There is no evidence that Generation Y behaves differently
in terms of complacency. However, younger employees (like
trainees) might be more interested in participating in
change processes due to the shifted life stages. At this age
they are more prepared to take risks and to experiment but
on the other hand they might change jobs quickly, which
jeopardizes the sustainability of a change process.
Self-Interest / Change is anticipated as threat
Considering the increased importance of job security, self-
interest might become a major topic for future managers,
who will deal with older members of Generation Y.
Especially turnaround efforts which involve lay-offs have to
be planned even more carefully. Montana suggests investing
in training and career development in order to increase the
sense of job security. They assume that such efforts will
convince employees that they are valued and valuable. Even
in case of lay-offs, this will help employees to switch to
another company faster (p. 30). Additionally, development
programs expand the skills and motivation of the workforce
and foster the efficiency of a company. Leaders should
communicate strongly to avoid (or at least weaken) rumors
about possible downsides of a change process.
Different assessment of the risks and gains
Here as well, there is no proof for significant shifts in
behavior apart from job security. However, it might prove
useful that future generations are better educated than any
other generation before. This will ease communication
between managers and front-line workers and partly avert
misunderstandings.
Different opinions about the best way forward
Generation Y was born in a world of computers and high-
tech. Therefore, recommendations and ideas of Generation Y
employees will be more likely based on technology.
Considering Robert Solow's famous anecdote “You can see
the computer age everywhere but in the productivity
statistics”, managers should be aware of possible downsides
of computerized solutions. Additionally, a better educated
workforce will also be able to challenge management's
proposals with more self-confidence and therefore improve
but also lengthen organizational diagnosis.
Lack of trust between employees and managers
As mentioned before, Schmidt expresses her concern that
the relationship between employers and employees might
have changed in a negative way. Smith suggests better
communication about changes and meaningful involvement
in the change process to build up the required trust (Smith,
Generation Y: Evolution or Revolution? Florian Heinemann (08514423) 5 December 2008

2005). One possible approach is storytelling which is said to Montana, M. J., & Lenaghan, J. A. (1999). What motivates and
create emotional links that build up trust and create a vision matters most to generations X and Y. Journal of Career
for the future (Beslin, 2007; DeLarge, 2004). Planning & Employment , 59 (4), 27-30.

O'Connor, C. A. (1993). Resistance: The Repercussions of

Executive Summary Change. Leadership & Organization Development Journal , 14
Recent studies of the first Generation Y members to have (6), 30-36.
entered the workforce reveal significant differences to
previous studies, which were mostly conducted on pupils or Schmidt, S. R., & Svorny, S. V. (1999). Long-run trends in
based on assumptions. It seems that Generation Y is not as workers’ beliefs about their own job security: evidence from
different as assumed and the impact on organizations might the general social survey. Journal of Labor Economics , 17,
be less noticeable. The often cited independence of 127-141.
Generation Y cannot be underpinned by the latest studies,
which reveal that job security is the most important Smith, I. (2005). Achieving readiness for organisational
motivational factor for Generation Y. However, long-term change. Library Management , 26 (6/7), 408-503.
trends within the workforce alter the behavior of employees.
Future generations are better educated and will join the Spector, B. (2007). Implementing organizational change:
workforce later than their predecessors. Communication, theory and practice. Pearson Prentice Hall.
training and participation become even more important in
order to avoid resistance to change. Since the relationships Wieck, K. L. (2007). Motivating an Intergenerational
between employers and employees are not as trustful as Workforce: Scenarios for Success. Orthopaedic Nursing , 26
before, managers should take steps to rebuild trust. This (6), 366-374.
points out that the essential tools of change leaders are still
the same and Generation Y is not the predicted revolution
but a slight evolution. Essentially, change management is
about adaptivity, flexibility and creativity. To be successful it
has to be close to the individual and adopt quickly -
Generation Y might be a good starting point to do so!

Words: 2151

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