Canada: Report that Gen X Workers Getting Squeezed in Multigenerational Workforce

A report finds that baby boomers are making up less of the Canadian workforce than they used to, but it is the Gen Ys who are benefiting more than the Gen X workers. According to the PwC report "Value through your people: Workforce performance in Canadian banking," between 2006 and 2010, the ratio of Baby Boomers to Gen Y employees at Canadian banks shrunk fr0m 6:1 to less than 2:1, while Gen X is by far the largest generational employee group for Canadian banks, comprising a "quiet majority" of between 55% and 60% of the total workforce. Nevertheless, while promotion rates for Gen Ys held steady at close to 20% over a three-year period and Boomers’ promotion rates fell from 5% to 3%, Gen X promotions rates also fell from over 11% to less than 10%.

[Dr. Philip Hunter, a director in PwC’s People and Change practice] believes that Gen Xers are perhaps being "squeezed" by older workers delaying retirement, and younger, more aggressive Gen Ys intent on rising through the ranks quickly. "Other contributing factors may include changes to operating models that favour relationship skills rather than management expertise, and career paths characterized by more stringent promotion criteria at more senior levels, which would disproportionately impact Gen Xers," he says.

Karen Forward, a director in PwC’s Financial Services People and Change practice, suggests that "[b]anks and other industries with multi-generational workforces have to be taking a different approach in thinking about career progression, the formal promotions process and changes to their operating model." In addition, she says that banks need to focus on what expectations they have around each of the generations in the workforce and "to look at collaboration tools, skill transfer programs and address the Gen X 'squeeze' to keep these key employees engaged."

Source: PriceWaterhouseCoopers Press Release (March 15, 2012)

Research: Financial and Insurance Industries Ahead of Others in Preparing for Aging Workforce

According to the latest in a series of industry-focused looks at employer preparedness for an aging workforce, researches at Sloan Center on Aging & Work at Boston College report that , the finance and insurance sector in the United States is potentially better prepared for the aging workforce than other industries. In "Talent Pressures and the Aging Workforce: Finance & Insurance Sector," the Center reports that, despite low morale following the economic downturn, firms in this sector have greater awareness of employees’ career plans, work preferences, retirement rates, and are further along in developing succession plan.

The percentage of workers in the financial and insurance industry aged 55-64 has increased by about 38% from 2000-2007, and the proportion of workers aged 65 and over has increased by about 10%, according to the research.

Source: Sloan Center on Aging & Work at Boston College Publication News (August 2010)