Because there are now five generations in the workforce for the first time:
- Traditionalists—born 1925 to 1945
- Baby Boomers—born 1946 to 1964
- Generation X—born 1965 to 1980
- Millennials—born 1981 to 2000
- Generation Z—born 2001 to 2020
The challenge to create and provide a 401(k) plan is arguably more difficult now than it ever was.
401(k) plans are part of the big picture which includes dealing with such questions as
- What kinds of challenges are present for today’s employers?
- How do generational workforce differences affect our ability to manage people effectively?
- What are the traits, beliefs, and life experiences that mark each generation, influencing how they work, communicate, and respond to change?
Dr. Bea Bourne, DM, is an expert on generational differences and generational responses to organizational change. She is a faculty member in the School of Business and Information Technology at Purdue University Global. In the infographic that follows, she shares her research regarding:
- How today’s talent stacks up by generation, including their defining values, beliefs, and worldviews
- The significant historical events that shaped each generation
- How to best motivate and manage workers from each generation
In the 401(k) and 403(b) world, we’ve got a tool. It’s called Plan Design and it’s been significantly enhanced by the recently passed SECURE 2.0 legislation. There will be more about that to follow as IRS guidance and recordkeeper platform capabilities develop.
In the meantime, here’s that infographic: