SHINING A LIGHT ON GEN X
We’ve talked about “Gen Z” workers several times this fall. They are the generation of workers who are now entering the workplace or are still in school, preparing for their futures. They are America’s most diverse generation and have already proven that they think and act differently than their older peers. In January, we’ll explore Gen Zs who decided to forego college and enter directly into the workforce when the Cincinnati Workforce Innovation Center publishes its second of two reports based on their research about Gen Z. For now, let’s talk about another generation in our workforce: Gen X.
“Who?” you might ask because they are the generational “middle children.” Sandwiched between the behemoth Baby Boomers and the trend-setting Millennials, Gen Xers were born between 1965 and 1980 and are the smallest generation in the workforce. They may often be overlooked, but they bring a unique set of characteristics important to note.
Gen X may be best known as the first latch-key kids, meaning both of their parents worked outside of the home and they fended for themselves after school. As a result, they are considered fiercely independent and sometimes skeptical of authority figures. They are flexible, which is great for employers but may not be as loyal to their employer as their older Boomer colleagues. They were the first generation to talk about work/life balance.
Although they are not “digital natives” like Millennials, they were exposed to technology as they transitioned to adulthood. They experienced the change from analog to digital technologies and can embrace both. Technology went from being a luxury to being a daily necessity as their careers took off. “Digitally savvy” is a phrase often used to describe Gen X.
They are a retailer’s dream. They grew up in malls and largely had access to disposable income through their increasingly affluent, two-income parents. Their penchant for spending has had consequences. As a group, they reportedly still live paycheck to paycheck and have little to no retirement savings. This is partly because they entered the workforce as companies moved away from pension plans in favor of defined contribution plans (e.g., 401K plans), which required them to invest to reap the maximum benefit toward retirement. They also experienced several economic downturns over their careers, including the bust of the “Dot-Com” industry and more impactful, the Great Recession of 2008.
The Great Recession had an enormous impact on them. Their net worth tumbled to almost half of its earlier value. They had more debt than the older generations and fewer assets, most notably less equity in their homes. Per the Pew Research Center, the median net worth of Gen X households declined 38% from 2007 ($63,400) to 2010 ($39,200), while the typical wealth loss for the older Boomer and Silent Generation households was 16% and 14%, respectively (Gen X the only generation to rebound from Great Recession in wealth).
But Gen X’s most defining characteristic –resilience – has served them well since the recession. They keep pushing forward. They reinvent themselves. They have shed their reputation as workplace “slackers” and have become known as hard workers. They regained the wealth they lost in the Great Recession and more. Most of them are now at their peak earning age of 45 to 54. Significantly, they tend to be entrepreneurs. 46% of small business owners in the US belong to Gen X while only 41% are Boomers, 13% are Millennials, and 1% belong to Gen Z (Guidant Financial, 2021). Though small, Gen Xers are vitally important to our continued economic growth.
Their flexibility has also served them well in the workplace. Gen Xers are valuable employees because they are equally comfortable working in teams or alone. As Millennials and Gen Z have entered the workplace, they have become the bridge between older and younger workers. They have slowly and quietly risen to leadership positions in their companies and now fill the greatest percentage of leadership roles globally (Meet Your New Boss: Gen X | Psychology Today). As the Boomers fully exit the workplace over the next decade, the impact of Gen X will continue to increase.
So, let’s turn the spotlight on Gen X. You may be small, but you are mighty. Gen Xers, we applaud your contributions and look forward to seeing what trails you will blaze in the coming years. As business leaders and owners, you may be facing workforce challenges. Let NKY Works help. NKY Works is a collective impact workforce development initiative dedicated to helping employers address their workforce talent challenges. If you need assistance, NKY Works can connect you to a broad array of resources to meet your comprehensive workforce needs. Call 859.657.9757 or email NKYWorks@nkadd.org for more information.