Wisepreneur had an opportunity to catch up with Jim Finkelstein the co-author of Fuse: Igniting the Full Power of the Creative Economy. In his book he answers the question of how can a company take people with generational differences and form a well-functioning, competitive organization.
W: In your book you state, “Organizations need to create a mashup of the 20th century workplace and the 21st century workforce.” Do you think this is always true or does it depend on the type of business? Are the Millennials more geared to the “new economy” or the “creative economy?”
Jim: The truth is that every business will find itself with a workforce replete with millennials and boomers. Boomers tend to rely on old habits – picked up in the 20th century workplace and try to apply it in the 21st century. Some of it just doesn’t work. Technology and the need for speed require new skills. The “new economy” emerged in the 1990s as a knowledge- and idea-based economy. In the new economy, the key to success and prosperity was the extent to which technology could be utilized, quality provided, and ideas and innovation embedded in all sectors of the economy. But the creative economy incorporates artistic, cultural and societal components which Millennials are all about as well. So – maybe it is better to refer to it as the “new, creative, economy!”
W: In Fuse, you refer to mashup which sounds like a mixture of two different things. What do you think it would be needed to get the best of the Millennials and Boomers rather than just a mixture?
Jim: Think of a mashup as a blend… a super mixture. It is about the creation of something new by taking two or more things and leveraging their attributes. As you know, the concept is being used extensively in music and technology. Our hypothesis in the book is that it is the wisdom and experience of the Boomers combined with savvy and boundless energy of the Millennials that will create a new workforce culture – one in which conversations about generational “differences” are replaced by understanding how the blend of talents makes for a more effective and efficient frontier. It is all about having the right conversation… one that doesn’t polarize, but one that engages and embraces the assets.
W: You give practical advice for motivating young people. You say, “If they are motivated by praise, give it to them. Words are cheap.” But later you state, “Millennials have excellent BS detectors. They’ll know it if you shine them on.” How should an employer praise a young person when it might be perceived as insincere?
Jim: This question is about authenticity. Praise for praise sake doesn’t work with any generation – unless there is sincerity and authenticity. The difference is that Millennials can find the truth – quickly. They Google it! You give them a factoid that they don’t believe and they can prove you wrong faster than you can say Bing! This also works for their “feeling state”. Tell them how wonderful they are when they don’t believe that they did anything wonderful, and you are discounting any future praise. So – how do you praise a young person? Show them how whatever it was they did that was wonderful had a concrete impact on your life!
W: We found the section on emotional intelligence to be particularly intriguing. You observe a shift from intellectual intelligence to emotional intelligence. Are you aware of any evidence that says Millennials are more emotionally intelligent than Boomers? What do you see as the implications of the shift?
Jim: I have not seen any evidence that Millennials have more EI than Boomers. In fact, I would be surprised if there were generational differences. In fact, there are many consulting firms offering EI training which implies that it can change. EI is more about the ability or capacity to perceive, assess, and manage the emotions of one’s self, and of others. According to John Kotter of Harvard Business School, “Because of the furious pace of change in business today, difficult to manage relationships sabotage more business than anything else – it is not a question of strategy that gets us into trouble; it is a question of emotions.” The implications of developing EI? Better opportunity to play well in the sandbox…
W: You suggest connecting work to meaning as a way to keep Millennial employees. Why do you think Millennials place a lower value on pay than Boomers?
Jim: I think that Millennials are placing money in a different perspective than Boomers. They both need it to survive, but Boomers who thought that they would be living in retirement very soon, have realized that they are not close due to the economic downturn and their spending/saving habits. Hence, the prioritization on pay is much higher due to environmental circumstances than for Millennials. The key question, though, is will Millennials have the same material needs that the Boomers have had. Evidence shows that this is much less. Hence, compensation is lower on the priority list than meaning of work and work-life balance, for example.
W: In the later part of the book you state that Millennials are merit-driven. How does this mesh with the idea that they need more meaning in the work and what should an employer do considering that pay for performance does not work?
Jim: The operative words are recognition and celebration. When they do well – let them know! They are also more team oriented – team rewards are good. There are ways for pennies to rain down on their “desks” which has more motivational impact than traditional once a year, “pay-for-performance” schemes.
W: You mention that on an inflation-adjusted basis, new college graduates earn less than they used to. If we buy into supply and demand, then does this suggest that Millennials bring less value to the workplace than other workers?
Jim: This is an interesting question which may be more about economics or the perceived value of college education than generations. Currently, the economy is a buyers’ market. Demand is down, supply is up. You can attract people for less – even on a non-inflation-adjusted basis. Boomers also made less in 2009 inflation-adjusted as well. And, one might question – what do college graduates really know these days? What skills do they bring to work? For example – we did observe that those with technical degrees made more than in the previous year… the generalist, liberal arts majors didn’t fare as well.
W: We know that you are an organizational development expert. What specific types of organizational development activities would you recommend companies do to span the gap between Millennials and Boomers?
Jim: There is the old phrase – before you criticize someone, you need to walk a mile in their shoes. This is at the essence of what needs to happen from a workforce development perspective. Positional rotation aka job swapping which allows people to look through each other’s lenses is really important. Several notable organizations are already doing this – FedEx, Virgin Blue and Virgin America (did a multi-cultural swap).
About Jim Finkelstein
Jim Finkelstein is President and CEO of FutureSense, Inc., a management advisory and consulting firm that specializes in organization development, compensation and communications. Jim has an MBA from the Wharton School. See www.futuresense.com
