What are the expectations of Generation X and Generation Y?

As the population ages, competition is increasing to attract talented Generation X (born approximately between 1960–1980) and Generation Y (born approximately between 1980–2000) employees to companies. Employers are realizing that financial rewards alone are not enough to attract and retain younger employees. Jamie Gutfreund from Intelligence Group, who has been studying generational differences for years and is himself a member of Generation X, says that it is important to understand that Generation X is culturally different from the Baby Boomer Generation (born approximately between 1946–1964).

Gutfreund states, “The Baby Boomer Generation was insistent on making its voice heard; as Generation X, we are about half the size of the Baby Boomer Generation and felt like no one was listening to us,” adding, “We thought we had to ‘fight’ to make our voices heard, to make an impact, and to get a share of the power.”

Gutfreund explains that “Generation Y was raised with a different perspective. Their Boomer parents taught them that their opinions matter. Therefore, they have an expectation that they can claim a say in outcomes.”

1. A Different Concept of Authority

Jamie Gutfreund says that Generation X’s bosses saw them as masters with a set of skills and experiences gained through hard work, something that set them apart from others and should be considered; authority was perceived as something with limited access that had to be earned through effort.

In contrast, “Generation Y believes they can talk to the CEO about what’s on their mind on their very first day at work,” surprising Generation X managers. He points out that this stems from Boomer parents raising Generation Y to believe their ideas matter.

Gutfreund adds, “If a manager tells a Generation X employee to jump, they will ask ‘How high?’, but when you say the same to a Generation Y employee, they might respond with ‘Why?’.” Even the brightest members of Generation Y might react this way. “This may seem like rebellion, but it’s not. Generation Y was raised to question authority—why should they settle for less?”

He reminds us that Generation Y are the children of Boomer parents who questioned authority during their formative years, and that managers should recognize the benefits of moving from a “command and control system” to a more inclusive management philosophy.

2. Different Motivations

Gutfreund describes Generation X as “a very individualistic generation. They were very independent. They wanted to get the corner office and be successful.” In contrast, Generation Y “wanted to find the purpose of their efforts and careers—this doesn’t necessarily mean the highest salary or the nicest office.”

He summarizes his observations by saying, “Generation X works to live, Generation Y lives to work.” According to Gutfreund, Generation Y has multiple passions, and considering that 70% have expressed a desire to work abroad at some point, they are more global than previous generations. They focus not only on earning money but on giving meaning to their lives.

While this may seem overly demanding or arrogant to Generation X managers and HR staff, companies now have to accept this reality.

3. A Different Desire for a Work Environment

Generation X tends to be structured—punctual and linear. Generation Y, on the other hand, prefers a less structured, non-linear style, which can be challenging for Generation X to handle. Generation Y is motivated by autonomy. They are not the kind of employees who just wait for the clock to strike five—they’re not lazy; they’re willing to work 24/7 but also see taking a walk away from the desk as their right.

When asked where they want to work, Generation Y often answers: first Google, second Apple, and third, their own business.

Both companies carry a mission to change the world—or at least make it more interesting. Google’s free yet intense and highly productive culture appeals to many Generation Y employees, while perks make the corporate campus feel like a university campus.

However, Gutfreund notes that this interest is “not because of free services like stylish cafeterias and massage therapists, but because of the company culture.” To attract Generation Y, a suitable job description is not enough; the company’s mission and values, as well as leaders modeling them, play a major role in their choice. Generation Y also wants to know how close they will be to managers they can learn from, and they need a clear picture of how working for a company will improve their lives and the world.

4. A Different Concept of Project Development

Generation X often complains that Generation Y is “unreliable.” Gutfreund argues that this is actually the result of speaking a language Generation Y does not understand. “Generation Y is a very fast-moving generation. They think quickly and are used to doing multiple things at the same time.”

As a result, while a Generation X manager might expect a more polished, finished product, Generation Y might quickly present a prototype. In such cases, the manager needs to understand that Generation Y requires regular feedback and coaching during the process and should express their needs more clearly.

Are we ready to make the changes needed to fully unlock Generation Y’s potential in the workplace?

Gutfreund says we are not yet where we need to be: “Most senior executives delay making the necessary changes—such as HR and performance evaluations—due to short-term obligations.” He emphasizes that cultural change should be a priority for long-term growth.

Adapted from Harrison Assessments International Blog.