Generational stereotyping can mislead employers trying to figure out what employees need
Millennials aren't the only ones who become new homeowners, and boomers aren't the only ones who have faced a medical crisis.
The generation a person was born into does not actually reveal anything about how to manage them in a workplace or their ability to retire comfortably, according to a pair of new studies.
Instead of stereotyping or generalizing workers because they were born in the baby boomer or millennial generations, employers need to pay individualized attention to those workers’ needs, says a report from the National Academies of Sciences, Engineering, and Medicine.
“Much of the research that’s been done to date on the differences between ‘Gen Z’ or ‘boomers’ in the workplace has serious limitations, and can mislead employers about what their workers actually need,” said Nancy Tippins, a consultant who chaired the committee that wrote the academies’ report, in a press release.
Similar sentiments were found in the report compiled by retirement plan recordkeeper Empower Retirement, which bluntly stated “… generations are a useless framework for understanding what plan participants need and how to reach them.”
In fact, 80% of the employees surveyed said their views were shaped by experiences and personal characteristics — not by the generation in which they were born. And eight in 10 actually said that they feel a “stronger connection” with groups that align with their lifestyle but who are not of their generation.
“Financial planning and goals should meet people where they are in life, consider their life experiences and personal characteristics, and then lay out a strategy that helps get them to their savings goals,” said Edmund F. Murphy III, the president and CEO of Empower Retirement, in a press release.
Disruptions or changes bring new financial needs and challenges at every age. It is not just millennials who become new homeowners or boomers who face a medical crisis – “all of these big moments occur in every generation,” the report says.
The report from the National Academies noted that other studies have established that there are no common generational traits. The research that has been done is “based on data collected at a single point in time, such as through a survey, and cannot reveal how generations’ attitudes or values have changed or stayed the same.”