Let’s start with defining the ages of each generation in 2020:

• Boomers 56-74 years old
• Generation X 41-55 years old
• Millennials 24-40 years old
• Generation Z 10-23 years old

Working in manufacturing for over two decades I have heard the entire time we can’t find people. In 2001 the panic began as baby boomers left the industry because they could find less stressful work and were young enough to become the financial advisor, insurance agent, or open their own businesses and do it their way. What happened, many came back to work from 2004-2012 as manufacturing went through amazing growth. The boomers worked very hard and made a lot of money and are now being begged to stay on and sacrifice their retirement and family.

What did the manufacturing business owners do to plan for the succession of skilled labor? They banked on the Millennial generation to fill the gap, guess what that did not work. We saw the lure of Higher Education. Universities exploded in growth and became the place to be. Putting out educated people that no longer wanted to work with their hands. Technology exploded, start-ups making millions came and went. Why get dirty when I can work on a computer. Here is an interesting fact from the US Census Bureau, as of 2017 56% of millennials are in the workforce, and we do not expect that number to increase any time soon. So where is your staff going to come from?

GENERATION Z- this is where Manufacturing and Trades have one last opportunity. This generation is over 90M strong and are getting into the workforce now. They have parents still paying off student loans and wanting something better for their kids. The value of learning at a University is decreasing as technology brings the world to our phone! Supporting this hypothesis is an article from a Forbes on August 20, 2019 “The University of Michigan Ross School of Business experienced the worst drop, an 8.5% decline…” "For the second consecutive year, the top ten schools all saw significant declines in applications," says William Boulding, dean of Duke University's Fuqua School of Business. " (Byrne, 2019)

So how is Generation Z different. In doing some research an article in Inc Magazine by Ryan Jenkins provides some insights for manufacturing and skilled trade employers to work on.

• Seventy-seven percent of Generation Z say having a Millennial manager is their preference over Generation X or Baby Boomers; this is an increase from 67 percent in 2017. (Jenkins, Inc, 2019)
• More than 90 percent of Generation Z prefer to have a human element to their teams, either working solely with innovative co-workers or with co-workers and new technologies. (Jenkins, Inc, 2019)
• 72 percent of Generation Z want to communicate face-to-face at work. (Jenkins, Inc, 2019)
• The top two most important factors for Generation Z at work are "supportive leadership" and "positive relationships at work." (Jenkins, Inc, 2019)
• Forty-three percent of Generation Z learners prefer a fully self-directed and independent approach to learning. (Jenkins, Inc, 2019)
• Sixty percent of Generation Z want multiple check-ins from their manager during the week; of those, 40 percent want the interaction with their boss to be daily or several times each day. (Jenkins, Inc, 2019)

Let’s look at the current state of ownership. According to the U.S. Census Bureau, half of the 5.2 million privately-held employer firms are majority-owned by someone born between 1946-1964, or Boomers. So how can an industry overcome so many barriers and perceptions? Communication, communication, communication. Boomers and Gen X need to make the change in how they lead and communicate. It will seem stupid and a waste of time to you, however to the Gen Z person it will be invaluable. The days of “This is the way have always done it” or “Do it because I said so” are long gone! We need to change the messaging, the frequency, and the content of messages from the owners all the way down the organization structure. If not, you will continue to have turnover costs through the roof, or capital investments into automation that may or may not be sustainable.

Gen Z, once they feel like they are appreciated and can see a career path, they will be less likely to leave than the previous generation. Generation Z is not afraid to do the hard work and drive results. They are not afraid to “fail fast” learn from it and make the needed changes to get it right. This scares the sh@! out of most Boomer and Gen X led organizations. Gen Z is the first full generation that has grown up using technology, they are used to things changing, and do not want to waste effort.

So, what can a Boomer led machine/fab shop, tool and die shop, distributor, contractor or home builder do to draw Gen Z to them?

• Define your purpose, your why. Promote it to let people know. Become comfortable being uncomfortable delivering this message. Value alignment may seem foolish to you, and it is important to them?
• Develop micro careers. No one is signing up for a 30-year career path. How can you create 1-2-year experiences in your organization, that keeps them for 30 years? I don’t want to sound like a broken record, not important to you, and it is to them.
• Get social, let people know the charities you support, the organizations you donate time to, allow your team to get involved. How is your organization making the world better?
• Get your process up to speed. Gen Z will not put up with sweeping and paperwork for 12 months before they get to do some real work.
• Embrace change and be inviting. Gen Z can become the next set of loyal employees. Be the leader, facilitator, and cheerleader for your team. It will be very difficult going forward for you to be the Owner, Employee, and Teacher. It may be time to start letting go.

These are some of the hard things facing business owners today. It is easy to write about and hard to do. We are here to support you to get these hard things done, eliminating stress and creating a stronger more attractive company. The change begins with you!

• Forbes, Aug 20, 2019, 06:09 pm It’s Official: The M.B.A. Degree Is In Crisis- John Byrne
• Inc, JAN 15, 2019 How Generation Z Will Transform the Future Workplace-Ryan Jenkins
• Generation Z Statistics: New Report on the Values, Attitudes, and Behaviors of the Post-Millennials-Kelvin Claveria