Generation Clash Within the Workforce

Dave Heilbron, Head of Talent Acquisition & Employer Branding, AEGON

Dave Heilbron is the Head of International Talent Acquisition & Employer Branding at Aegon. He leads a diverse team of 15 specialists in Talent Acquisition, Employer Branding & Talent Development. With a global focus, he attracts, recruits, and retains top-tier Senior, Management, and Executive Talent across various sectors including Finance, Agile, Big Data, IT, Legal, Banking & Investment, Portfolio Management, and Insurance. Dave's expertise extends to international team leadership and implementing inclusive, diverse, and agile recruitment practices worldwide, while successfully implementing a new corporate recruitment strategy on a global scale.

In just over one year, we will look back at the first quarter of this century. I have been in the workforce since 1 April 1999, and things have changed in these 25 years. Most of us started our careers as specialists: whether you are an HR officer, Accountant, or Marketing officer, each of us commenced as individuals focusing on one project, theme, or job. In my view, this has not changed much for recent graduates or individuals entering the professional workforce. However, the environment in which things have been changing and developing has been mind-blowing in the last 5 years. One thing will be certain: the next 25 years will see generations that will have difficulty in liaising with each other. This is called a “Generation Clash” at all levels within public and private companies. A clash which CHROs or Management Boards should be addressing as of today.

The best example in which a Generation Clash is happening is the automotive industry. This industry has always been led by engineers. The car industry has been focusing on redesigning and improving the engine motor of a car. Without the engine, a car simply cannot drive. Naturally, without the design, services, and marketing of the brand, a car company cannot be successful. However, without a combustion engine, the automotive industry would be dead. Therefore, most of the investment and focus has always been on the engine and the engineers in relation to retaining talent. This has been the objective of the last 100 years.

Recently, VDLNedcar, the only independent car producer in the Netherlands, announced that it would most likely have to lay off most of its 3,800 employees in the Netherlands. VDLNedcar has been producing cars for brands such as Volvo, Mini, and BMW. But these car brands have been pushed to change their way of production altogether due to the United Nations Paris Agreement, in which CO2 levels have to drop considerably. Car Companies are one of the major contributors to improving climate change. Tesla has been in the forefront of this change and is now regarded as being one of the largest car manufacturers in the world. But Tesla does not produce a motor engine: they produce a brand, and its motor is not an engine but software.

Companies like VW, Mercedes, and Volvo have suddenly been forced to gradually kick out the motor engine and hire more and more software and electrical engineers. Most of this high-tech workforce is predominantly the GenZ and Millennial generation, whilst the motor engines are being (redesigned) by the X and Boomer generation. How are these generations going to work together in producing and building new cars? They do not speak the same language and work on two different techniques that are impossible to merge. The VDLNedcar case illustrates this: the 3,800 are “old-fashioned” car manufacturing engineers, and their leadership forgot to combine, let alone retrain, these engineers in becoming more and more software engineers.

“The Internet has reached maturity, and now Artificial Intelligence (AI) will have an enormous impact on how we work. As the Boomer and X Generations are pre-internet career starters, millennials and GenZ will be the pre-AI workforce.”

Another big impact on the Generation Clash has been the Internet. Most employees stay for at least 5-10 years with their employers when they reach the age of 35-40. This was nothing new until Covid hit all of us in 2020. During the epidemic, most of us worked from home, and MS Teams, Skype, and Zoom were the driving forces for continuing our employment. But suddenly the great resignation happened across the globe, and people of all ages left their employers suddenly. Resignation will continue to evolve. The GenZ workforce started their professional careers at the beginning or during covid. They have seen the benefits of being flexible and not having to be in the office. The leaders of major companies want their employees to physically come back to the office. Furthermore, these leaders are encountering that the traditional workforce is gradually retiring, and the new generations are not willing to fulfill these roles. Most hospitals are having a tremendous time hiring new nursing staff. Schools have difficulty in finding new teachers. Insurance organizations have a hard time in fulfilling traditional underwriting and claims positions. Oil and gas companies are having a hard time attracting GenZ talent to their organizations.

All these traditional organizations have one thing in common: they are all led by the Boomer and X Generations. These leaders are not willing to change or even adapt to the new generations. They are driven by share- or stakeholder value. However, without changing their approach to attract and retain talent, their employees will leave and/or retire. Look at what has been happening at major airports and airline companies around the world – the CEOs of Schiphol and Jeddah Airport were forced to quit their jobs, and the management teams were not focused on retaining and attracting GenZ or Millennial talent at all levels.

The Internet has reached maturity, and now Artificial Intelligence (AI) will have an enormous impact on how we work. As the Boomer and X Generations are pre-internet career starters, millennials and GenZ will be the pre-AI workforce. It took companies approximately 20 years to incorporate the internet into all processes. The workforce had the time to adjust. It is anticipated that AI will only take a maximum of 5 years to be fully incorporated into our daily lives. How are all these generations going to collaborate to make AI a success?

These examples show that the leadership of organizations will need to incorporate a so-called Chief Generation Officer. Companies should reassess the way they work. The Covid crisis, the climate crisis, and the retirement crisis have brought a shock to the 4 generations. However, each generation is adapting in its own way while they are not working together to challenge for new outcomes. It is up to the Chief Generation Officer to harmonize generations at corporates through learning engagement and excitement.

Some Talent, Learning, and Workforce strategies that organizations can consider:

1. Bridge the knowledge gap: Provide training and development programs focusing on upskilling and reskilling the older generation of software and electrical engineering engineers. This can help them understand the new technologies, tools, and processes involved in the production of software-driven vehicles.

2. Foster intergenerational collaboration: Create opportunities for knowledge sharing and collaboration between different generations. Encourage mentorship programs where experienced engineers can guide and support younger engineers in adapting to the changing industry landscape, while the younger generation can share their technological expertise.

3. Promote a learning culture: Establish a culture of continuous learning and professional development within the organization. Encourage employees from all generations to embrace new technologies, acquire new skills, and stay updated with industry trends. Provide resources such as online courses, workshops, and seminars to facilitate learning.

4. Encourage open communication: Facilitate open and transparent communication channels within the organization. Create forums or platforms where employees from different generations can share their perspectives, ideas, and concerns. This can help bridge the communication gap and foster understanding between generations.

5. Embrace diversity and inclusion: Recognize and value the diverse skills, experiences, and perspectives that different generations bring to the table. Encourage collaboration and teamwork among employees from different generations to leverage their unique strengths and create innovative solutions.

6. Adapt organizational structures: Consider restructuring teams or departments to facilitate cross-generational collaboration. Create multidisciplinary teams where engineers from different generations can work together on projects, combining their expertise and knowledge.

7. Leadership support and guidance: Ensure that organizational leaders understand the importance of managing the generation clash and provide support and guidance throughout the process. Leaders should act as role models and promote a culture of respect, understanding, and collaboration among employees.

By implementing these strategies, organizations can minimize the generation clash, leverage the strengths of different generations, and create a more inclusive and productive work environment. It is crucial for management boards to recognize the changing dynamics within the workforce and take proactive steps to address these challenges for long-term success.

I look forward to what the next 25 years will bring about for the workforce. In 2040, I will hopefully retire, but until that time, I want to contribute to the development of talent within the various generations. My role is that of Talent Leader, making sure that all generations cooperate effectively and efficiently.

Automotive

Artificial Intelligence

Agile

Big Data

Legal