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The opportunities and challenges for fast-growth businesses building multi-generational workplaces

We often hear the phrase – ‘your greatest asset is your people.’ This is true in any company; without them, you will fail! But fast growth in businesses can all too often come at a high cost to the people on your team, and it’s hard to grow organically and consistently without some things going under pressure.

In a study conducted for Hawthorn, we spoke to leading executives across high-growth businesses to understand their challenges, the opportunities that exist, and the continued need to put people first.

The findings identified four key areas of focus for fast-growth businesses:

  • Attracting and retaining talent
  • Building and maintaining culture
  • The changing face of leadership
  • Ensuring effective communication

These are challenges being faced by many organisations, but they are exacerbated by the pace at which businesses are growing.

Attracting and retaining talent

How you treat your people is paramount. People now expect much more from their employers, and so employers must work harder to attract and retain top talent – it’s no longer just about pay and bonuses, they are looking for career growth, a positive work culture, and work-life balance.

A third of respondents said they have experienced challenges attracting talent to their fast-growing company. Over three quarters said they have found employee retention to be more of an issue since the pandemic, with almost a third saying that retaining the right people has been a significant problem for their business.

At the same time, business leaders are facing a subset of challenges created by a multi-generational workplace. Despite the reported challenges with Generation Z fueling the Great Resignation, respondents said that Millennials and Generation X were the two generations they find most difficult to retain, leaving them with skills and experience gaps in their businesses.

Despite all of this, 71% of respondents have not changed their methods of employee retention over the last 12-18 months, which is surprising considering the clear need for fast-growing businesses to retain top talent.

Businesses would do well to now focus on factors that will contribute to workers’ overall experience, and ensure they have an up-to-date and relevant Employee Value Proposition that meets the needs of their current and future talent.

Building and maintaining culture

Building and maintaining culture is reported as a key challenge for fast-growth businesses. This is likely a result of leadership being more firmly focused on growing their business, coupled with the fact that once you’ve surpassed a certain number of employees, your culture begins to change and becomes more difficult to control. This is further exacerbated by workers of different generations bringing their expectations, core values, and ideas of what constitutes a positive workplace culture.

More surprisingly, three-quarters of respondents felt this is an area that is already taking up too much of their time, and they would like to be able to spend less time focused on it.

The changing face of leadership

The findings clearly show that people and culture are two of the main challenges faced by fast growth businesses. They also indicate that dealing with these issues are among the most important roles for leaders in the business. Therefore, it is surprising that only 15% of respondents felt that defining a purpose, vision, and goals were an important role of the leadership team in a growing business. In fact, it was last on the list!

However, when asked what the impact had been of the challenges they faced when growing fast or at scale, 23% of respondents cited poor leadership.

Leaders must work together to meet the needs of the business, building an inclusive and high-performance culture, discussing growth regularly, engaging employees on their journey, and communicating any changes.

Ensuring effective communication

As befits the current and future need for emotionally intelligent leaders, respondents identified communicating at pace as the most important aspect of all the duties of leaders in fast-growing organisations. Additionally, 24% of respondents identified being a good communicator as the foremost quality a good leader should have.

Yet, the findings indicate that this aspect of running a fast-growing business may have been overlooked. Just 15% of respondents said that they have improved communications to address the challenges they’ve been facing as they’ve grown, making this the least common response. This is despite the generational problems they are facing regarding talent attraction and retention, and the fact that 28% have struggled to manage different communication styles in a multi-generational workforce.

Conclusion

High employee turnover and poor communication has an impact on culture that cannot be understated. Indeed, according to respondents, the biggest negative impact of the challenges they are facing centres around culture. Specifically, 25% said they either found it difficult to maintain culture or prevent a toxic culture from developing. Interestingly, only 15% have improved their communications in response to this. Not only do these directly affect a business’s ability to perform, but they could also severely affect its reputation.

Despite the acknowledgment that leadership plays an important role with regard to people and culture, and despite the challenges they are facing in these areas, respondents feel that they cannot afford to spend any more time addressing these issues.

An organisation’s culture is embodied and maintained by its people. Take every opportunity to engage with your workforce, understand them, and capture their views on how the company is performing. Ensure you have leaders with the new skills and capabilities needed to lead and inspire your workforce because effective leadership will help you make the most of the opportunities creating sustainable growth for the future.

Amid all the excitement and potential of business growth, it can be easy to lose sight of what initially made your venture special and set you on the path to success. Recognising and understanding the potential challenges and how to overcome them is essential if your business is to continue to grow and thrive. Not doing so, will continue to have a negative impact on your business as it grows, as it will become much harder to resolve the more time goes by and the larger the business becomes.

If you would like to know more about the findings of our study or how we at Hawthorn can help you identify and address these challenges, then please contact our Head of Employee Communications & Engagement, Sarah-Jane Wakefield at s-j.wakefield@hawthornadvisors.com.

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Navigating Intergenerational Dynamics: A Conversation with Dr. Eliza Filby, Expert in Generational Intelligence

Dr Eliza Filby, is an academic, lecturer, renowned author, podcaster, and speaker who specialises in ‘generational intelligence’ helping companies, governments, and services understand generational shifts within politics, society, and the workplace. Eliza has spoken at the EU’s Human Rights Forum on Teenagers and Technology; the Financial Time CEO Forum on the Future of Work, and to the UK’s House of Lord’s Select Committee on Intergenerational Unfairness.

I had the great pleasure of spending some time with Eliza discussing the increasing gap between generations, the multi-generational workplace, and the practical things companies can do to support a multi-generational workforce. Here’s some of the highlights from our discussion.

You can read more about Eliza’s work and her insights at www.elizafilby.com

Q: Eliza, you describe yourself as someone who specialises in ‘generational intelligence’, can you tell us a bit more about what it is you do?

I study society through the prism of age and generations – from Baby Boomers to Generation Alpha – examining how the traditional lifecycle is being reordered and remade in the 21st Century. I think this itself is quite a restrictive analysis and way of viewing society, but it’s a starting point that I use to analyse the different ways in which society is changing in terms of its consumers, its citizens, and its workers.

I’m interested in looking at the way in which the different generations are evolving because we’re not static as human beings. So, what their narratives are, what events, trends, and values have shaped them, and then really how that’s playing out in the workplace, education, politics, the economy, and society as a whole.

Q: It feels like the division between generations has got greater in a way I haven’t felt before. Is this true? If it is, how we begin to the bridge that gap?

It certainly does feel like the gap between generations is greater than it’s ever been and at times that can feel very divisive. However, we are predisposed as human beings to be ageist and if you could create a thread throughout history, the one constant would be that the old have always criticised the young as being lazy, privileged, and entitled.

You bridge the gap by building understanding and empathy across the generations. One of the things that I spend a lot of my time doing is helping companies understand that we are all a product of our time. Different values, technologies, and experiences have really shaped generations and explain why they are the way they are, for example what it’s like for a Gen Z to have grown up with a smartphone in their pocket since they were 13, or for a Gen X woman to have entered the workplace as the only woman in the office, or what it’s like for a Millennial to be the first generation to go to university and then graduate extensive debt and a declining level of opportunity.

Being able to acknowledge that we are all a product of our time and understanding the impact of that is a great place to start.

Q: We are now in a world where we have four, and in some cases, five generations in the workplace, so how should companies be thinking about their workforce?

Research has found that within the workplace you are more likely to make friends with people of a different gender, sexuality, or race than you are of a different generation or age. This statistic is key to recognising not only the importance of age diversity within an organisation, but also the challenge it brings.

Ageism can be a really corrosive force, so it’s important to think about the practical things you can do to bring the generations together, particularly in a hybrid working environment where we are seeing less of each other. The absence of this can fuel greater levels of misunderstanding and prejudice because we’re just not colliding as much.

We really need to think about ways in which the different generations are heard in the workplace and by this, I mean all generations. I’m not a massive advocate for Gen Z boards because you’re giving a voice to yes, the generation that expects it the most, but you’re actually alienating others – particularly older workers who already feel a sense of dislocation and displacement.

You need to consider and encourage not just cross-generational dialogue, but dialogue that gives everyone a voice and enables everyone to listen including multi-generational boards, reverse mentoring, skills swaps, and effective communication.

Q. You mention that hybrid working means we are seeing each other less, what impact is that having on a multi-generational workforce?

One of the challenges with hybrid working is that all the learning through osmosis that used to happen naturally when people are in the same place is just not happening through Zoom/Teams calls anymore.

So much of the older generations’ experience is not being transported down the generations. Therefore, it’s really important not only for companies to bridge the generational gap, but also help up-skill the young by forcing different generations to be in the same room together, so that informal learning to take place.

Whether it’s talking to a client, dealing with a problem, or having an uncomfortable conversation – those things need to be observed if you’re young because that’s how you learn.

But equally, it’s really important that we recognise that you have a generation coming in who for the first time in history, have higher technological skills than the people that are managing them. That knowledge also needs to be passed upwards through the generational chain in the workplace.

So, companies need to be consider how they can develop an educational policy and culture that really encourages cross-generational learning.

Q: We are increasingly living and working longer. What role do organisations have to play in ageing societies?

One of the key areas that organisations need to focus is on how they care for their employees. I have a very holistic and open understanding of what I mean by care. A lot of companies have thought about care firstly in terms of parental leave, maternity leave, and helping parents, but actually if we’re talking about equipping and supporting our workers for the demands of the 21st century, our care responsibilities as individuals are changing. Women are having fewer babies, they are having them later, closer together, and fathers and grandparents are more involved than ever, so do company policies reflect this.

But then also a major responsibility for Gen X and very soon Millennials will be looking after their parents. Do companies have a policy that really is inclusive and helps people look after older people as much as young people and enable them to fulfil those duties? This is crucial, because elder care will be much longer and arguably more disruptive and intrusive to people’s work than looking after children.

Care also includes self-care, which covers everything from mental and physical to financial well-being. So, when companies are talking about care, they need to understand that they are talking about something that is multi-generational and much more expansive than just support for parents or mental health awareness days. This is what employers need to demonstrate.

Q: What causes the significant disparity between generations in the workplace, considering that family is highly valued outside of work? Why is it challenging to reconcile these differences within a professional setting compared to outside of it?

We know that the baby boomer generation are the exceptional generation. They accumulated an awful lot of wealth to the extent that one in five baby boomers in the UK is a millionaire – mostly on paper in property. They own 70% of the nation’s wealth and that money is already trickling down the generations. The bank of Mum and Dad is the sixth largest mortgage lender in the UK and that money is going to their millennial kid and grandparents are supporting their grandchildren. But also, there’s a sense that because we’re living longer, we’ve disrupted what expectations come with a certain age, particularly middle-age and old-age. We therefore feel more in touch with our children, and you’re seeing this with Gen X who are friends with their Gen Z children.

On the family side, the reasons are economic, whilst on the work side they are cultural. There’s a bigger generational gap because of technology, Gen Z are questioning the cultural corporate norms that have existed for Boomers and Gen X. Additionally, Gen Z are looking at Millennials going, you’ve worked really hard…but what have you got to show for it? They’re the generation that will not live by one salary alone and are aware that there are endless possibilities for multiple streams of revenue.

Q: What single piece of advice would you give to any company in how to navigate multi-generational workplaces?

The multi-generational workforce is not going anywhere – it’s the future. Companies need to recognise the new reality, which is we are working longer, we are disrupting the age and stage model of work where before long, if you haven’t already, you will have managers who are 25-years old, managing people over 55. You’ve got a hybrid working model which means generations are colliding less and probably misunderstanding each other more, and a working culture, which I think because of the pandemic, means there are now greater expectations on companies as to what they provide for their employees.

You have to recognise that what worked in the 20th century will not work in the 21st for two very simple reasons. Firstly, technology is changing rapidly and it is changing everything about our lives at an unprecedented pace. Secondly, our ageing society means that the life-cycle is changing and with this comes a whole range of differences, to the 20th century, including different educational needs, and care responsibilities.

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So, the 21st century life cycle really has to be at the forefront of your mind when creating policies for your employees. It’s not about how much can I offer that person or how much flexibility can I give them, but can I give them the support structure they need in order to produce the best work? Can I give them a reason to come into the office. Fundamentally, this means companies need to think about all the things we’ve discussed – understanding, empathy, effective communication, learning and education, and care.

Interviewed by Sarah-Jane Wakefield, Director and Head of Employee Communication and Engagement

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