April 2004 · Volume 86 · Number 3

Building a Workplace That Recognizes Generational Diversity

Glenn Southard and Jim Lewis
Up until a few years ago, generational issues were not being widely discussed by public sector managers. Now, not a month goes by without at least one article in the public sector periodicals on how to manage age diversity in the workplace or addressing the need to recruit the next generation of public servants. Unfortunately, few of these articles actually offer proven suggestions on how to devise an appropriate mix of generations.
Through discussions with 
younger employees, we have 
found that the traditional 
three-month-long government 
hiring process consisting of 
tests, multiple oral boards, 
interviews, and eligibility lists 
detracts from the younger 
generation’s interest in public 
service.
Long before it was popular or even identified as a generational issue, the city of Claremont, California, had a series of programs addressing the needs and desires—personal and professional—of its employees. For more than a decade, we’ve made a deliberate effort to provide our employees with flexibility, professional development, access to technology, mentoring opportunities, a balance between their personal and professional lives, and chances to tackle significant projects early in their careers because we believed this would make for more satisfied, and therefore more productive, employees.
Since then, it’s been determined that each of these offerings resonates differently with each generation. While there are some mutually shared values among generations, that which motivates and appeals to workers from the younger Generations X and Y is somewhat different from what appeals to baby boomers.
As a result, the package of programs we originally developed to help Claremont employees reach their full potential has also become the reason for our success in recruiting the next generation, as well as retaining our experienced baby boomers. 
The Problem
Why has it become so critical that we increase our efforts related to generational issues? Because we need to prepare younger workers for higher-level jobs sooner in their careers than ever before. And why is this? Basically, there are two primary factors. First is the statistical reality that there simply aren’t enough people in the age groups known as Generation X and Generation Y (those born between 1964 and 1985) to replace the baby boomers (1946 to 1963), many of whom are quickly approaching retirement age.
Aggravating this situation are the enhanced retirement packages and options being offered by various organizations, including the California Public Employees’ Retirement System (CalPERS). Because the labor pool is shrinking on the front end, we cannot afford to have all our experienced workers siphoned away at the same time.
We’re sure the generational shift being experienced in Claremont is similar to what’s happening at other organizations. Jointly, baby boomers and the preceding “silent generation” make up 56 percent of Claremont’s workforce. Many of these individuals are already of retirement age, while others plan to retire in the relatively near future. Over the next 10 years, an average of seven employees from our full-time workforce of 176 workers will reach retirement age each year.
We don’t believe it’s possible to recruit enough new young employees to fill the gap completely. Successful strategies for maintaining mature workers are necessary to make up the difference. Only by developing programs and benefits that appeal to each generation will it be possible to attract younger workers and retain longer-term employees.
Claremont’s Approach
The programs we’ve developed in Claremont over the years are the results of some basic research among employees: we asked what was important to them. More recently, we brought some of the leading thinkers of the “generational diversity” field into our organization to conduct workshops and focus groups, which have validated most of our initial findings.
For example, we found that baby boomers are interested in having the flexibility to manage their time and workload in a way that allows them to “do it all.” Gen X workers have an entrepreneurial spirit and are powerful innovators. Our youngest workers tend to have a real sense of independence and are goal-oriented.
We are encouraged by the 
success of our efforts in 
Claremont. In particular, we 
have reduced our attrition rate 
among Gen Xers from 23 
percent to 8 percent.
Our response has been to create a culture that connects the shared values of baby boomers, Gen Xers, and Gen Yers while also recognizing the unique characteristics of each generation. Here is a list of the programs, incentives, and benefits we’ve developed, grouped according to the generations to which they primarily appeal.
Programs for Generation X and Generation Y
People from these two generations have a number of common characteristics, including a sense of independence and a goal orientation. They are more inclined to look for instant gratification, as opposed to making a long-term investment of time and effort. They also desire career challenges, job flexibility, and extensive training and development opportunities. We also know that Gen Xers and Gen Yers are less likely to have strong loyalties to an employer and therefore are more likely to move from job to job than their predecessors—that is, unless they are motivated to stay.
Gen X workers come to us with a strong sense of independence, cultivated during their days as “latchkey kids.” They want to make decisions on their own and to determine when and how they will get their work done. Gen Xers see the ability to control their schedules as being synonymous with their independence. These Claremont programs and benefits have been developed to address the preferences of the Generation X and Y employees:
Employee leadership academy. The city partnered with the nationally recognized Kravis Leadership Institute of Claremont McKenna College to offer a nine-month seminar focused on leadership development. Seminar participants are 15 nonmanagement employees. The curriculum includes guest speakers, readings, exercises, and assessments. The goals of the seminar are to provide employees with experiences their current job assignment may not offer, and to develop these employees so they might become managers in the organization sooner than they would in other organizations.
Mentoring and access. The department heads and city manager are readily accessible to all employees for discussions about careers and professional development. Our organization’s culture strongly encourages the mentoring of employees, if they so desire. It is common for managers to take younger employees with them to professional workshops and conferences, high-level meetings, and community events. Our door is always open to all employees. We enjoy hearing of their professional goals and are committed to ensuring that earnest employees are able to achieve them.
A chance behind the wheel. Part of our culture involves giving younger employees experiences that they probably wouldn’t have in other organizations. Interns and administrative aides are given opportunities to make presentations before the city council. Management analysts chair citywide task forces. When the youngest of this article’s authors was appointed as the city’s budget officer at the age of 27, he had only four years of full-time experience, but he was given the task of putting together and “selling” the city’s $42 million budget. The finance manager/city treasurer was appointed at the age of 31. Our experience has been that, when high expectations are set, these employees are able to deliver. 
Recognition and incentive bonuses. The bonus program includes three levels of recognition, which can be instantly awarded to employees who exceed expectations in their work assignments. The gift-certificate recognition program awards a $25 gift card to employees who go above and beyond the call of duty on a particular assignment.
Employees can nominate each other for a cash bonus of up to $700 for an employee’s performance of an outstanding action not expected for his or her skill level; for outstanding one-time actions; for extraordinary courage, diligence, empathy, and patience; or for a commitment of an employee’s own time. Department heads must approve these bonuses.
The final level of recognition, the City Manager’s Award of Excellence, is a $1,000 cash award presented by the city manager for exceptional performance on a project of great significance to the council and community.
Recruiting in the 21st-century process. Through discussions with younger employees, we have found that the traditional three-month-long government hiring process consisting of tests, multiple oral boards, interviews, and eligibility lists detracts from the younger generation’s interest in public service. Gen Xers and Yers expect to apply for a job and to be hired within two weeks, in a process similar to that found in the private sector.
Little did we know that the programs regarded as innovative a decade ago would now be expected by the next generation of workers, and that these programs would also be a business necessity as we prepare the younger generation to “step up” earlier in their career than others have had to in the past.
We have streamlined the recruitment process by tightening the notification and application period and promptly scheduling interviews. We now are able to hire employees within three weeks of the recruitment closing date. In some cases, for specialized positions, we encourage employees to recruit colleagues directly from other communities. In this situation, individuals are invited to interview with the city. If they accept, the assistant city manager and other members of the management team interview them. If these candidates are a “fit,” they are hired immediately. This streamlined process is extremely appealing to younger workers.
Three weeks of vacation granted after one year of service. During the first year of service, employees receive 96 hours of vacation. As an immediate reward for beginning the second year, the employees’ vacation amount is increased to 120 hours.
Comprehensive intranet site. The organization is making every effort to create an innovative, effective, user-friendly technology infrastructure. In addition to making portable electronic devices and laptop computers available throughout the organization, we have developed an extensive intranet site. The site includes all staff reports, minutes, agendas, administrative policies, codes, and ordinances. It also interacts with the GIS system and includes department-specific sites.
A bulletin board is available for employees to post information. The site is important because it allows all employees access to information, regardless of their positions, and gives them the opportunity to see and comment on what is going on in the organization.
Conversion of administrative leave into cash. To encourage the use of administrative leave, management employees have the option to “cash out” 40 of their 80 hours of administrative leave each December, provided they’ve taken the other 40 hours off during the calendar year. This program encourages the use of leave time and allows the flexibility to each employee to receive additional cash compensation or time off at his or her discretion.
Conversion of our health-benefit cafeteria plan into a 457 Deferred-Compensation Account. Employees receive $878 per month for health coverage. The cafeteria plan covers medical, dental, and vision coverage, along with expanded life insurance. Unlike some plans, our program allows employees to place any unused amount in their deferred-compensation plan. This option is popular with younger employees, who may not have families yet and therefore might not normally be able to use the entire amount.
Programs That Appeal to Baby Boomers
Baby boomers in the workplace are characterized by their hard work, long hours, and commitment to their employers. Boomers are dedicated, extremely loyal, and self-reliant. They value loyalty and often keep their jobs for long periods of time. They have a strong desire to be respected and recognized for the “dues” they have paid.
They also tend to be working parents, single or married, with a strong desire to be active parts of their children’s lives, which entails attending a variety of extracurricular activities, as well as getting kids to the doctor or dentist when needed. As a result, boomers are interested in having the flexibility to manage their time and workload in a way that allows them to “do it all.”
Here are some benefits and programs that are more attractive to this generation:
80-hour longevity leave bonus—a sabbatical. A one-time, 80-hour longevity leave bonus is given on the date of the employee’s 10th anniversary and every five years thereafter. The sabbatical was once awarded at the 15th year but was moved to the 10th to give employees something to focus on sooner. Moving the sabbatical to the 10th year also allows employees to refresh and refocus earlier. Employees are encouraged to take longevity leave in conjunction with vacation time to make for a month-long “mini-sabbatical.”
Increased vacation. Beginning with the 14th year of service, another 40 hours of vacation are awarded to employees, bringing total vacation hours to 160 hours per year.
Deferred-compensation incentive match. This program was established to provide tenure and savings incentives for employees. Beginning with an employee’s third consecutive year of service, the city will match up to 1 percent of base pay, payable into the deferred-compensation account. This percentage increases to 2 percent at the beginning of a person’s fifth year, 3 percent at the beginning of the sixth year, 4 percent at the beginning of the eighth year, and up to 5 percent at the beginning of the 10th year. The employee’s match may come from any excess health benefit.
Fitness benefit. The city will reimburse up to $200 per year ($1,200 for management employees) toward the cost of a fitness/exercise or health-related program. Studies consistently show that a healthy workforce is happier and more productive. To qualify, employees must be enrolled in an exercise program on a regular basis and/or be involved in a program to increase health. While this program is extremely popular with both boomers and GenX/GenY employees, members of the baby boomer generation tend to be more aware of the importance of health as they grow older and tend to spend more on health-related efforts. The average sick-leave use citywide is fewer than 40 hours per year.
For more than a decade, 
we’ve made a deliberate 
effort to provide our 
employees with flexibility, 
professional development, 
access to technology, 
mentoring opportunities, a 
balance between their 
personal and professional 
lives, and chances to tackle 
significant projects early in 
their careers because we 
believed this would make for 
more satisfied, and therefore 
more productive, employees. 
Some-time worker program. We are in the process of developing a program that will allow recently retired baby boomers to return to work to serve as consultants, laborers, recreation leaders, or reserve police officers within CalPERS system guidelines. This program will allow retired employees to work part-time with the organization and continue to be recognized for their expertise while providing value to the organization. It allows the city to retain the expertise rapidly being lost by the retirement of experienced workers and to use these experienced workers to continue to train and mentor younger workers.
Programs That Appeal to All Generations
Not surprisingly, some characteristics cut across generational lines. We’ve also found that some programs appeal to two or more generations, though not always for the same reason. Following are programs found to be of interest to all ages of workers. And of course, all of the preceding programs are available to employees regardless of their ages.
Alternative work schedule. Depending on the area of assignment, employees, with approval from their supervisors, may schedule an alternate workweek that works best for their personal and family needs. The city does not have an established alternative workweek applicable to all employees.
Telecommuting. Working from home, as needed, is acceptable if arranged with an employee’s supervisor. Laptop computers are available for employees to check out, and dial-up access aids employees in connecting to the city’s network from home.
Home computer program. Once a year, Claremont offers employees the chance to buy a desktop, laptop, or tablet computer system through an interest-free, two-year loan program. Computers are ordered through the city’s technology division and conform to the city’s technical specifications; this facilitates telecommuting and connection to the city’s network. Having a comparable system at their residence allows employees to work effectively at home, assisting them with maintenance of their personal-professional balance. Payments are automatically deducted biweekly from an employee’s paycheck.
Employee assistance program. The city cares about the emotional and physical well-being of its employees and their families and therefore offers this service, which provides free counseling services to all employees.
Floating holidays. Instead of setting all regular holidays for employees, the city offers three floating holidays per year to be used at each employee’s discretion. This flexibility recognizes the different backgrounds and desires of our employees.
Performance-based pay. In addition to the immediate bonuses, employees have the opportunity to receive a lump-sum bonus of up to 5 percent (10 percent for managers) of their base pay as part of the annual evaluation process. Upon recommendation of the department head and approval of the city manager, bonuses are awarded to employees who maintain a consistently high level of performance, have a strong record of attendance and punctuality, provide a high level of customer service, display a positive attitude, and possess other attributes that benefit the organization.
Increases based on merit. Our organization does not offer any cost-of-living increases. A merit increase of up to 10 percent may be granted to an employee, based on an annual evaluation of his or her performance. A merit increase must be recommended by the first-line supervisor and approved by the division head and department head.
The amount of a merit increase is based on the employee’s achievement of personal, divisional, departmental, and city goals and, if applicable, the accomplishment of work program items included in the city’s budget. This program individually recognizes each employee’s work product. Recognition for a job well done is important to both boomers and Xers.
Conclusion
It is now a business necessity that we continue to recruit the best and the brightest while retaining our experienced workforce. Offering benefits and generating a work environment that is appealing to members of each generation will assist us in meeting this goal. We are encouraged by the success of our efforts in Claremont. In particular, we have reduced our attrition rate among Gen Xers from 23 percent to 8 percent.
All of this must be an ongoing effort. Along these lines, we recently hosted a series of focus groups to determine what, if any, additional benefits and programs our employees wish to have. With a rapidly dwindling labor pool, it is critical that we work proactively to keep our team on the field. 
Glenn Southard has been the city manager of Claremont, California, since 1988 and is 52 years of age. Jim Lewis is the assistant to the city manager, has been in Claremont since 1998, and is 28.