Last night in Leeds, Mervyn King, governor of the Bank of England, told business leaders that he is concerned about rising unemployment and falling house prices and for the first time used the “R” word… stating ‘It now seems likely the UK economy is entering a recession’. 
This was not an entirely unexpected statement and now that the realities of the financial crisis and credit crunch are hitting people in the streets, we are giving consideration into what this means for the various generations. Below is a small extract from a study and article that we are currently writing:
The Silent Generation, now in their late 60’s are the only economically active generation still alive to have experienced the Great Depression. Many of them have been waiting for the next crash, for them it has been a matter of when not if. This is a generation that trusts organisations with a long historical and stable track record so it will have unnerved them that some of the most respectable institutions such as RBS and Barclays have come so close to crashing. Silents are conservative by nature but the recent events will have them hiding money under the mattress, and for the time being maybe that is the safest place.
Baby Boomers are resourceful, they are also the most in debt generation of all time. Boomers are entering or closing in on retirement. Many are going to expect paybacks in the form of pensions, shares and equity in houses that just don’t have the value they expected right now. They are the sandwich generation having to fund their kids’ education and help support their parents who are living longer than expected and eating into “their inheritance”. The crisis is going to be a stressful time for Boomers. Companies need to be focusing on helping them as employees and customers to retain their commitment and loyalty.
Generation X grew up during a period of huge turmoil that defined the 70’s and 80’s. They have been anticipating this crisis for some time and if not financially, they are at least emotionally prepared. Generation X are survivors and comfortable with change. We expect them to become more focused on themselves, their family and what is important to them. Companies should not expect loyalty or handouts from this generation, the WIFM or “what’s in it for me” factor will become even more pronounced in this generation. They will be skeptical of your “agenda”, and need to be engaged relationally.
Millennials or Gen Y has never experienced an economic downturn. They are optimistic and confident. Many may not even be prepared for the implication of a downsized economy, less money and fewer jobs. They however, will not care. Gen Y has the confidence and access to the resources from parents - and particularly grandparents - to give anything a go. Expect Gen Y to take the crisis by the scruff of the neck, drive their own agenda and be central to societies changes. Don’t back off from being ethical or green during the downturn, they won’t buy your excuses.
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