Association of Local Government Auditors

To many, the economic downturn has rendered the topic of retention virtually moot. As employees see coworkers and peers laid off from positions that were considered stable three years ago, many assume that workers are so thankful they still have a job that they will not leave their position. However, while retention strategy may not currently seem like a pressing issue, it will be, and soon. Furthermore, the "tried and true" retention strategies that were used on the generation of professionals that are currently gearing up for retirement are highly unlikely to work on the generations that follow them. The purpose of this article is not to describe a fool-proof retention strategy. Instead, it is to first explain the value of having a retention strategy, even in tough economic times, and then to highlight why retention strategies should be different across different generations of employees.

There are currently four generations of professionals working together in the auditing community, each with a distinct history, view of society, and professional expectations. Those differences necessitate different approaches toward retaining employees within those generations. Thus, in order to successfully retain employees across generations, audit shops must strategically develop methods of retention that address different generation's needs and expectations.

The Argument for Retention

The argument for retention is simple: hiring someone new is resource-intensive. Particularly in the public sector, there are multiple (and important) bureaucratic steps to take to simply post a job announcement. Then hours of attention must be devoted to reviewing applicants and documenting the decision process. After completing the review of applications, interviewing the applicants, checking references, conducting a criminal history check, and selecting a candidate, you and your staff have devoted weeks to the process. These are just the expenses before the new employee arrives. You then have onboarding, training, adjusting to a learning curve, and filling the gap your former employee left behind. The alternative is not hiring a new employee, leaving the position vacant and increasing the workload of your current staff, potentially decreasing morale and leading to additional retention issues. In summary, the best thing for your bottom line is to retain your current employees and reduce turnover as much as possible.

Overview of Generational Differences

There are four different generations currently in the workplace, and each is generally molded by the norms of child rearing at that time, the national events that occurred during their childhood, and prior workplace experiences. It can be dangerous to make general assumptions of an entire demographic (age group). However, with the caveat that each individual may not have the same outlook or expectations, the knowledge of what contributed to each generation's worldview can be very informative. In fact, knowledge of an employee's influencers and motivators is imperative to maintaining or increasing that employee's morale. The generational perspective provides a starting point for planning and implementing retention strategies. While the birth years for each generation vary somewhat depending on the source, the generations may be broken down in a similar way to Exhibit I.

While these generalities are not without exception, there are several characteristics that are unique to each generation of workers. For instance, the Traditionalists grew up in an era of economic uncertainty and world war. Thus, Traditionalists tend to be characterized as workers who desire security and seek to remain with the same organization for a long period of time. Alternately, Generation Y (or "Millennials") grew up in an age of digital media and constant "connection" to others (think Facebook or texting). Therefore, these workers tend to prefer a highly collaborative work environment. If they do not feel connected to their coworkers or organization, they are likely to leave for another employer.

Exhibit II highlights other generational differences in workplace behavior and expectations. Though it is important to explain in general terms the differences between the generations and posit some justification for those differences, it should also be noted that many of these differences have led to negative stereotypes. For instance, workaholic Baby Boomers often describe Generation X and Y as "lazy" and "unwilling to put in the time/pay their dues." Alternately, Generation X and Y might characterize Traditionalists and Baby Boomers as "set in their ways" and lacking in technological skills. Whether or not these stereotypes are true is irrelevant to the issue of retention. The bottom line is that these generations will have to continue to work together, and audit management must adapt to retain each generation accordingly.

Retention Across Generations

The first step to successfully retaining multiple generations of employees is to acknowledge the differences between generations. What motivates a Baby Boomer is highly unlikely to motivate a Generation Xer, and vice versa. This is not to suggest audit shop managers should stereotype based on the age of an employee. Adapting retention strategies to different generational norms is not about judgment, but about acknowledging the value of diverse perspectives and ensuring the sustainability of your audit shop. In other words, your assumptions about employees based on their generation should not replace getting to know them as people, and using different motivational tactics based on their individual personalities.

The next steps are to stop begrudging these differences, realize the value of diverse generations, and create a retention strategy. Instead of bemoaning how "high maintenance" your Generation Y employees are, work to acknowledge their unique contribution to the organization. As opposed to annoyance with a Baby Boomer's supposed unwillingness adapt to change, let that employee know how much you value their years of experience and institutional knowledge. These are morale boosters that have much less impact on your budget than hiring a new employee will.  

Exhibit III provides some example retention strategies specific to each generation of employee. While each suggestion must be adapted per individual, these strategies take into account the cultural and professional mores of each generation. Most mechanisms of overcoming generational differences have little impact on the organization's budget. For instance, it is often the case that Traditionalists and Baby Boomers clash with Generation Xers because neither believes the other values their contribution to the organization. A simple solution to this common problem is creating a mentorship program that provides a forum for communication, an opportunity for the more seasoned generation to impart their knowledge on the new generation, and for younger employees to gain a greater sense of collaboration and community.

This leads to another delicate point that must be made. Part of the adaptation that must take place in the auditing profession is to understand that the new generation of auditors typically will not share the same sense of loyalty to one organization as generations that preceded them. This is not to say those generations will not be an ethical and loyal employee in the sense that they wish to contribute to the organization. However, a Generation X or Y employee typically does not view loyalty as an obligation to remain with a single organization throughout their entire career. Switching jobs as many as a dozen times in a professional career is not viewed disloyalty by these generations. Rather, it is seen as a necessity to keep skills and goals evolving in a rapidly changing (and/or highly competitive) professional environment. While the purpose of this article is to encourage more strategic retention practices, it is also meant to inform auditors of what to realistically expect from employees. Employing the strategies mentioned in Exhibit III will improve retention, but turnover is still inevitable. Maintaining open communication with employees will not only help to cater retention strategies for each individual, but also help management have clear expectations.

Conclusion

Retention issues have many causes, including a competitive job market, employee morale, and work environment. Creating a retention strategy is therefore not just about competing for qualified employees (which, currently, may not be an issue for employers), but also about creating an environment that fosters employee growth and positive morale. It might be true that the economic downturn has made retention less critical, but it is equally true that generational differences are currently creating tension in the workplace that necessitates implementing retention strategies now. Instead of dwelling on those generational clashes, audit shops should cultivate a positive and collaborative work environment that taps into the skills and strengths of each generation. Indeed, workplace change is inevitable, and audit shops are in a unique position to set an example and influence positive change not only internally, but throughout their organization.