Managing Generational Diversity: Gen X, Gen Y, and Inclusion

Introduction

Recognizing diversity is one of the most important factors that managers and businesses face today (Wong & Chin, 2016). Diversity is a part of the human experience in the global environment and persists in virtually every setting around the world. Diversity is not just a matter of culture, however; it is also a matter of generation. As more and more generations converge in today's workplace, understanding the differences that set them apart and the ways in which they can most effectively be managed is crucial to successful leadership. This paper describes the issues and challenges faced by Generation X while managing Generation Y, explains how Maslow's hierarchy of needs theory can be used to improve diversity, and highlights three large U.S. companies at the forefront of effecting change through diversity and inclusion.

Issues and Challenges Faced by Generation X While Managing Generation Y

Generation X has been defined as one of the most misunderstood and ignored generations of the past (Wong & Chin, 2016). Members of this generation are generally skeptical and tend to look out for themselves. They will leave an organization if they feel it is in their best self-interest to do so, especially if they perceive the organization as untrustworthy or potentially problematic.

Generation Y, on the other hand, has grown up "to be self-reliant, self-assured, goal-oriented" (Wong & Chin, 2016, p. 167). They are focused on getting ahead, using technology to achieve their objectives, and are accustomed to having freedom and choice as a result of extensive exposure to the Internet of Things. They are digital natives, unlike Generation X. They also see far more opportunities for themselves than prior generations did. Because of their confidence and the many opportunities afforded them, "they are often being misunderstood by the older generation and being labeled as unpatriotic, over-confident and capricious" (Wong & Chin, 2016, p. 167). Generation Y also wants to be heard, and members of this cohort tend to feel dismissed when management does not take their ideas to heart. Generation Y considers itself educated, experienced, and innovative: its members understand the rapid pace of change in today's digital world and believe it is necessary for organizations to keep pace. Generation X does not always appreciate the urgency of that need.

These differences make it difficult for Generation X managers to lead Generation Y workers effectively. One of the main challenges Generation X faces is acknowledging the new ideas that Generation Y brings regarding efficiency and the use of tools and technology in the workplace. Due to a lack of interest in or familiarity with these concepts, Generation X managers can tend to dismiss them outright, which discourages Generation Y employees and leads them to view their managers as incompetent and out of touch. This is particularly problematic because Generation Y has a strong need to feel like they belong. When a Gen X manager dismisses a Gen Y employee's idea or recommendation, that employee's need for belonging goes unmet, which can undermine workplace motivation and hinder performance (Wong & Chin, 2016).

Another challenge Gen X managers face is that Gen Y workers want more flexibility in their work schedules. They are accustomed to the flexibility afforded by the Internet of Things and expect that same flexibility in the workplace. They understand that if they can complete their work on time from anywhere in the world, the requirement to be physically present in an office from a fixed start time to a fixed end time can represent an outdated way of doing business. The Internet has made it possible for digital natives to work remotely, carry work with them on the go, and maintain a more flexible lifestyle in general.

There is also the issue of professional development. Gen Y workers do not want to be confined to a single role; they would rather create multiple roles for themselves in order to strengthen their resumes and become more versatile professionals. They want opportunities to engage in systematic developmental procedures, as they are accustomed to learning in structured, systematic ways. They actively seek organizations that provide these avenues for growth.

Finally, Gen X managers must determine how to lead Gen Y workers effectively by selecting a leadership style that is compatible with the needs and orientation of that generation. An autocratic leadership style is unlikely to be effective, yet Gen X managers may not naturally gravitate toward servant leadership, which would be better suited to ensuring that Gen Y workers have their needs met. This mismatch in leadership styles therefore presents a significant challenge.

According to Kultalahti and Viitala (2015), Gen X managers could overcome these challenges by offering Gen Y workers more "flexible time structures, systematic and individual development procedures, and a coaching form of leadership" (p. 101). First, a flexible time structure would appeal to Gen Y workers' preference to complete their work on their own schedule rather than one imposed from above, eliminating the need for an arbitrary 9-to-5 framework. Second, systematic and individual development procedures would give Gen Y workers the pathways to personal and professional growth they seek. Third, a coaching form of leadership would allow Gen X managers to channel their directional instincts in a way that still centers the Gen Y worker's development. Gen Y employees do not want to be dictated to; they want to feel supported and encouraged. They already believe they understand a great deal about how the modern world operates. When guidance from an older generation does exist, they want it delivered in a manner that is respectful and appreciative—more like coaching than commanding—so that they feel supported from behind as they go out and succeed using the talents and skills they know they already possess.

Using Maslow's Hierarchy of Needs to Improve Workplace Diversity

Maslow's hierarchy of needs places physiological and safety needs at the base of the pyramid, belonging and esteem needs in the middle, and self-actualization at the top. For Gen Y workers, this translates into three primary areas: physiological needs, safety needs, and esteem needs—which encompass belonging and self-actualization. Gen Y workers, in other words, have a comparatively greater need for physiological security, safety, and esteem inputs than prior generations (Wong & Chin, 2016). Gen X managers can apply this theory to improve organizational diversity by mapping the needs hierarchy to each subset of the workforce and ensuring that every group feels welcome and satisfied in the workplace.

The application of this theory to diversity improvement involves using the needs hierarchy with the explicit goal of making every possible group feel safe, welcomed, and capable of having their esteem and self-actualization needs fulfilled. In practice, this would require developing a detailed map of the needs hierarchy for the various groups present in the workplace—whether organized by generation, gender, ethnicity, or cultural background—and using that map to guide policy and culture decisions.

One approach would be to promote the amplification of diverse voices within the organization through a corporate social responsibility program that encourages, fosters, and rewards contributions to social justice. Recognition could be given to individuals who educate colleagues or facilitate seminars on topics such as mitigating micro-aggressions, reducing harassment, and promoting mental health and physical safety in the workplace.

Within the workforce, organizations should establish support policies that help diverse groups adapt to the workplace, as well as training programs that help existing employees adapt to new and diverse colleagues. Training and mentoring are two effective means of onboarding workers and advancing a culture of diversity (Kruskal et al., 2018). They help create an atmosphere in which inclusivity is a primary goal and respect for all individuals is the accepted norm. Respect, inclusivity, and a sense of belonging are important qualities to foster, and all can be cultivated by applying Maslow's hierarchy of needs theory to workplace culture.

Attracting talented new workers also depends on whether the workplace culture has become a place people genuinely find comfortable, inviting, and hopeful. A comfortable culture facilitates ease and familiarity for individual workers and makes them feel safe no matter where they are within the company or with whom they interact. An inviting culture appeals to diverse individuals through its openness to multiple perspectives and orientations. A hopeful culture actively advocates for a better future by demonstrating a genuine commitment to diversity.

Strategies for promoting a more inclusive workplace culture include cultivating cultural awareness among all types of workers. Managers can pair workers together to build cross-cultural understanding, coordinate teams that include members from different cultures or generations, and organize work events that combine training with socialization. The inclusive workplace is built on the principle that people are accepted—and acceptance requires understanding. Training seminars and workshops can be organized to raise awareness of differences and help workers recognize how those differences can be assets. For example, because Gen Y workers are inclined to engage in systematic development procedures (Kultalahti & Viitala, 2015), managers would benefit from establishing mentorship programs that pair older-generation workers with younger ones, enabling the latter to learn the nuances of the role while gaining from the experience of their mentors.

By implementing Maslow's hierarchy of needs theory, managers can improve organizational diversity by assessing the needs of various worker groups and designing a suitable platform within the workplace to meet those needs. From this platform, the vision of an inclusive culture can be communicated and implemented, with the manager applying the leadership skills that correspond to the needs assessments of each group. The manager should focus in particular on fostering security and self-actualization: security makes diverse populations feel safe, while self-actualization empowers them to be motivated by a personal drive for accomplishment. Together, these conditions help all workers relate more positively to one another and demonstrate authentic respect and appreciation for diversity.

Conclusion

In conclusion, the challenges Gen X managers face when leading Gen Y workers center primarily on Gen Y's desire to be treated as knowledgeable and capable individuals. Generation Y workers want to be coached, not commanded or dismissed. Their needs—including the need to belong and to feel secure—can be identified and addressed using Maslow's hierarchy of needs theory. By applying that framework, managers can design workplace policies that foster a more welcoming and inclusive culture for all employees.

Companies that are currently leading the effort to promote diversity and inclusivity in the United States include AT&T, Disney, and Starbucks. All three have demonstrated meaningful commitment to advancing diversity and inclusion—not only within their own organizations but also in the communities they touch. Through mentorship programs, advocacy partnerships, race-conscious dialogue initiatives, and inclusive media content, these companies illustrate that a genuine commitment to diversity requires both strategic intent and sustained action.

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