Vital Factors Solutions

While describing the different age groups in the workplace, she incidentally gave us some fascinating insights on the generations that include ourselves, our children or our grandchildren.  Her talk was interesting to us as small business owners but also as parents and grandparents of today.  To expand on these insights, this reporter has done some additional research to show how these generalizations apply in our own lives. 

To hire and to retain good employees, management has to know what motivates them to give a good performance.    These “good employees” are known as “vital factors,” and according to the Pareto Principle, they make up no more than 20% of any work force.

According to Vilfredo Pareto, an Italian economist around the 1900’s,  this “law of the vital few,” states that for many events, roughly 80% of the effects come from 20% of the causes; that is, 20% of employees produce 80% of the work.

This observation also can be applied to distribution of wealth and income.  Interestingly, Pareto developed this principal by noticing that 20% of the pea pods in his garden contained 80% of the peas.

Thus, the 80-20 rule says that 80% of your workers could be classed as “trivial,” and only 20% “vital.”  Identify that 20% and concentrate your efforts on them. They are your most vital asset.

For the “trivial many,” work can be delegated.  The 20% on top will learn how to make the decisions.

Imagine a scale of workplace conditions, where one extreme is like a jail, and the other extreme, a country club.  On one end you have rules and regulations with no exceptions, micro-management and high turnover.  On the other end, there is a relaxed, almost “goof-off” atmosphere, lack of control or management and a “que sera” attitude.  Neither extreme gets the job done as well as it could be done.  How then, to find the happy medium? 

Studies show that good workers thrive on accountability, being given job descriptions, flexibility in management for taking corrective actions, recognition of good work and consequences along with recognition, such as promotion.

 Interestingly, in all the studies for all types of generations, pay is historically one of the lowest motivators.  Quality of the workplace instead, rates high.           

Over the years, there have been shifts in motivational values and needs, from Baby Boomers to Generation X’ers and now the Milleniels.

Boomers, roughly those born between 1945 and 1965, value respect for themselves as persons, quality of co-workers, a balance of work and life experiences.  They want the opportunity to contribute, and appreciate flexibility of work schedules.

Baby boomers respect employers who have established policies and who treat their employees fairly. Their parents (“The Greatest Generation”) were of a era that had a strong employee/employer commitment. Watching their parents have that kind of mindset, baby boomers desire to work for companies that are loyal to employees and that value years of hard work and dedication.

With baby boomers representing 37% of the US workforce, it’s imperative that organizations understand these valuable employees, their mindsets and how to effectively engage them. 

One, give them titles and authority commensurate with their ability.  Why: They are motivated by position and power.

Two, provide them opportunities to mentor the younger generations.  Why: they seek meaning and balance.  Providing them with ways to teach younger generations holds extra value in that they can share their experiences and transfer their knowledge within your company, thus building the skill sets of other employees.

Three, encourage them to attend conferences and participate in related professional activities.  Why:  they enjoy networking with colleagues and maintaining a professional connection with their peers. Furthermore, it instills confidence when you show interest in their professional growth.

Gen Xers, born between 1965-80, have similar values, but they are the offspring of the famous baby boomers. Many grew up as "latch key" kids, home alone after school while both of their parents worked, and/or they were raised by a single parent.

They saw their parents married to the workplace, often devoting long hours to factories, the office or on the road. Their parents sacrificed time at home with their families. In the economic downturn of the 1980s, many of these hard workers lost their jobs.

The result? The Gen X kids learned to become more pragmatic and they want room to grow.   Gen Xers tend to have a "work hard, play hard" mentality. Since this generation has become accustomed to "fending for themselves," they want options--options for task selection, options for challenges, options to formulate new processes, and options to develop creative, yet appropriate, conclusions. They want the freedom to use their own resourcefulness.

Milleniels, or Gen Y, were born between 1980 and today, who are ages 18 to 33 in the workforce, value self-esteem.  They have had what is known as helicopter parents, that is, they were hovered over as children. 

Generation Y's transition from college and grad school into the working world has been a bumpy one, to put it politely. "Extended adolescence" is real, "helicopter parents" are real, and organizations that hire twenty-somethings are finding that many of them don't walk and talk and act like adults. Making them fit for the professional world now falls on the shoulders of corporate America, where older and wiser managers are struggling to find the best ways to recruit, manage, "professionalize," groom, and retain them.

 Give them feedback. This generation is obsessed with feedback. Half the time, they're not even hungry for new feedback; they just want to hear, over and over again, that the memo they wrote was well done, or that the presentation they gave was effective. What you think of as needy, they think of as a totally natural. And if they're not doing well on the job, they're handing you the perfect opportunity to tell them so, because they do respond well to constructive feedback and mentoring. That hunger for feedback.

Give them teams. In fact, they can't work without teams. And if you don't let them work in teams, they'll find a way to build them anyway, without any input from you. They hate making decisions by themselves, and they don't like to do things without getting six or eight opinions.

Give them lots of small deadlines.

Be prepared to negotiate.  Since these young adults could talk, they have been negotiating with a generation of parents who've had a real distaste for imposing rules and who have been loathe to serve as authority figures.

Flatter them.  Reward them intelligently.

To them, work is what supports their life style.  They are comfortable with technology, and they want to “make a difference” with their lives.

The way to work with these key employees, in a way they will appreciate and will cooperate with, is management by objectives.  That is, set goals, as a team, that are measurable; after implementing the methods, measure them, then review, evaluate and modify, until you get the desired results, be they increased productivity, cash flow, or increased customer service.

Our speaker outlined what she said was a guaranteed-to-be-successful ten minute meeting strategy.  She feels that decisions should be arrived at by teamwork, if they are to be acceptable to everyone. 

In her ideal team meeting, there should be an agenda.  Discussion should be limited to goals and controls, and it is essential to stick to the agenda.  The first five minutes should begin with the “goal owner” presenting the problem, then everyone suggestions solutions.  This should be done in a brain-storming non-critical method, with the “problem owner” silent and not commenting such things as, “We tried that before and it didn’t work.”  Everyone feels free to offer ideas.   You can go around the room quickly several times, with ideas being tossed out, but not shot down.

The second five minutes should be spent selecting actions and setting target dates.  All this time, the leader does not speak a word, except to call on people and tabulate ideas.  The leader in conclusion can thank the participants for their help, or say he/she will take the ideas under consideration, or not.  This kind of problem-solving is different and maybe difficult for the older levels of management.  But in today’s world, team action can achieve a good solution and produce an unexpected gem.