New Data Show Distinct Skills Gap As Gen X Managers Replace Baby Boomers

MINNEAPOLIS, Jan. 30 /PRNewswire/ -- Personnel Decisions International (PDI) today announced new research that shows companies face a substantial employee skills shift as 22.5 million baby boomers are on schedule to retire during the next 10 years and company leadership transitions to Generation X managers born between 1964 and 1979 who will bring a new, distinct skills set to the workplace.

"Research shows Gen X managers may struggle to fill the baby boomers shoes if companies expect them to have the same big-picture view of the industry and technical knowledge as their predecessors," explains Brian Davis, executive vice president, practice areas at PDI. "Companies need to be aware that a smooth transition to Gen X leadership may mean a shift from the expectations they had for baby boomers."

The PDI Pulse on Leaders research surveyed the competencies of nearly 24,000 mid-level managers in 20 skill areas. According to the data, both groups are able to meet performance outcomes, although they arrive at those outcomes very differently.

Baby boomers received higher ratings from their managers in 10 out of 18 competencies. They were nearly 18 percent more likely to be rated as "knowing the business" and 10 percent more likely to use technical or functional expertise on the job. Baby boomers also rated substantially better in their ability to coach and develop and their ability to manage execution. On the other hand, Gen X managers are more likely to receive higher ratings in self development, work commitment and analyzing issues than their older counterparts.

The skills below were significantly different between the two groups. For example, when rated by their managers, baby boomers score 17.74% higher on knowing the business than Gen X.

   BOOMER SKILLS             Managers rate  GEN X SKILLS     Managers rate
                                boomers                           Gen X
                               X% higher                        X% higher
                              than Gen X                      than Boomers

   Knowing the Business            17.74%   Developing Oneself      9.81%
   Coaching and Developing         14.47%   Showing Work Commitment 6.56%
   Managing Execution              12.13%   Analyzing Issues        5.92%
   Using Technical/Functional               Demonstrating
    Expertise                      10.18%    Adaptability           5.57%
   Displaying Organizational Savvy  9.85%   Drive for Results       3.10%
   Establishing Plans               9.17%   Speaking Effectively    3.02%
   Managing Disagreements           7.51%   Listening to Others     2.40%
   Providing Direction              6.78%   Building Relationships  2.33%
   Fostering Teamwork               6.09%
   Using Sound Judgment             3.93%


   Based on this data, PDI says companies have two primary options:
   1) Identify when specific skills such as "managing execution" are crucial
      to success and train members of the younger generation in those areas
      in which they are weaker. Subsequently, companies should consistently
      screen potential leaders for grasp of these skills
   2) Prepare for new management structures and practices based on the Gen X
      skills set

A new management structure would likely result in a shift from the baby boomers' more hierarchical, directive leadership style to a new, collaborative approach relying on collective buy-in as Gen X assumes more management positions.

Baby boomers can help facilitate the shift to Generation X's leadership by involving younger managers in problem solving in order to broaden their job scope. At the same time, boomers can benefit by working on communication and collaboration skills as modeled by Generation X.

"Both the baby boomer and Gen X competencies are valuable tools in the marketplace," said Davis. "But it's important to prepare for the changes that will result from these differences as companies transition to the next generation of managers."

  MEDIA NOTE
  Look for future data releases from the PDI Pulse on Leaders.

The PDI Pulse on Leaders analyzes different workplace questions on a regular basis and can be used as a source for gaining insight on the inner values of talent management and leadership development.

About PDI (Personnel Decisions International)

Personnel Decisions International (PDI) is a global human resources consulting firm with distinctive expertise in building leadership talent that provides real competitive advantage. With more than 725 team members in 28 offices around the globe, we partner with the world's leading organizations, enabling them to make consistently effective decisions about leaders.

Using field-tested strategies, systems, and tools that are unique in the industry -- we help clients identify, develop, and deploy superior leaders. Our aim is simple -- the well placed confidence that your current and future leaders are distinctively stronger than the competition, resulting in sustained, superior performance.

For more information, contact PDI client relations at 800.633.4410 or visit PDI's Web site at http://www.personneldecisions.com/ .