It's time to get real about the multi-generational workforce
The laws of human behavior tell us that each generation will bring its unique attitudes, perspectives, and values to the workplace. So why are we always so surprised to discover it?
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
As much as we like to believe we can all get along, the reality is that conflicts sometimes erupt when different generations collide in the workplace. In fact, just few months back, we wrote about the potential for both conflict and synergies when company veterans find themselves working side by side with the new kids on the block ("hot shots and old codgers," May 2010). But our world isn't really quite that simple.
Frankly, we sometimes enjoy the posturing of "General" Larry Platt singing "Pants on the Ground" on American Idol. And we confess to occasionally fantasizing about a seasoned supply chain professional dressing down some callow youth the way Gordon Ramsay would eviscerate an errant sous-chef. In reality, though, the issue is more nuanced than a confrontation of old fogeys and young whippersnappers.
This generational thing permeates all of business and society. And it has profound implications for how well we plan and execute in the realm of supply chain management.
X and Y
Much of today's management theory focuses on the best ways to motivate and manage the relative newcomers to the workforce: the so-called Generation "X" and Generation "Y" workers. David Javitch wrote an excellent column on the subject for the May issue of Entrepreneur magazine. In it, he described some of the traits of Gen X and Gen Y workers, which we have adapted as follows:
• Generation X: Gen Xers are those born between the mid-1960s until 1980. They were often "latchkey" kids who experienced the first big wave of single-parent rearing.
The children of Baby Boomers, Gen Xers tend to have been disillusioned by their parents' work and life imbalance, and saw firsthand the consequences of eroding corporate loyalty to employees.
What they want out of work is room to grow, goals with some latitude, and a chance to develop new skills and knowledge. They also seek control over task/assignment selection; the freedom to make their own career/project/life choices; and success on their own terms. Though they're eager for mentoring and feedback, what they really want is managerial relationships without micromanagement.
• Generation Y: Gen Yers were born from the mid to late 1970s through the late 1990s. For them, any gratification slower than instant is a letdown. They expect lavish praise and believe that any level of participation entitles an individual to a certificate of appreciation.
Gen Yers have been adept at concurrent activities since early childhood, and their parents are often accused of over-scheduling them. Some say their sense of entitlement runs wide and deep.
What they expect out of work is assigned multi-tasking; projects that involve collaboration (with group, rather than individual, accountability); and structure, with clear guidelines and well-defined/documented processes. They seek access to the latest and greatest technology; challenge, even if accountability is murky; and plenty of positive reinforcement.
Are we watching the right ball?
Effectively managing these two disparate generations within the larger workforce can certainly be a challenge. And that's just the half of it. Oftentimes, there's the added complication of integrating them with the leftover Baby Boomers (for all the hoopla, they've only just begun to retire) and Gen Cs (Codgers), who refuse to quit because they're having too much fun. Full disclosure: Your intrepid authors are both card-carrying members of Gen C and defy generational stereotypes—although it should be noted that one of us believes that Bluetooth is evidence of poor dental hygiene.
Let's take a look at what these two groups bring to the workplace:
• Baby Boomers: Boomers were born from about 1945 into the early 1960s. The offspring of Codgers, they were often "married" to their jobs. They were usually willing to sacrifice family considerations in favor of the demands of bosses, clients, or their own perceptions of duty.
They understood organizational politics better than the preceding generation and tried to follow a progress/advance/win career path. But many were caught off guard by late-career job losses when they discovered corporate/employee loyalty was sometimes a one-way street.
• Generation C: Gen Cers were born from the late 1920s through the mid-1940s. Depression-era kids, their workplace experience was straight out of "The Man in the Gray Flannel Suit" and "The Organization Man." (In those days, men worked and women—even those with jobs—were hand-maidens.) These, not the Boomers, were the three-martini-lunch types we enviously watch on Mad Men.
They were generally loyal to employers, often feeling lucky to have any job at all. They took comfort in—and counted on—the stability of lifetime employment, in a single field if not at one company. Orderly progression up the career ladder was virtually guaranteed to those who managed to refrain from taking off all their clothes at the office Christmas party.
The Gen C crowd is tough. The babies of parents from the Jazz Age, they aren't all that far removed from the values of the frontier, the opening of the West, and the rise of great American cities.
They can relate to the Boomers. Not so much to Gen X, and they experience involuntary spasms when encountering Gen Yers and the behaviors that come with the new package. Think texting in church and collecting friends, fans, followers, and frauds on social networking sites. Boy, do the Codgers have a lot to learn. They also have a lot to teach, if succeeding generations are willing to listen.
What next?
We talk about Gen X and Gen Y as if they are new phenomena. Wake up! Gen X is aging. Gen Y has been in the workforce for, what, 10 years now? Some are in their 30s, on the cusp of supervisory and management roles if they haven't assumed them already.
So here's where our next game-changing, game-winning challenge lies. Once we figure out how to succeed, organizationally, in this parti-colored world of mixed generations, we've got to get ahead of the wave.
We've got to watch little kids growing up and track them through high school and university. We need to suss out how to motivate, manage, and teach them before they enter the workplace, so we can avoid the confusion and conflict that have delayed the full and effective integration of prior generations into our social and economic engines.
Let's stop "discovering" that change has taken place after the fact. Instead, in this continuum of generational shifts, let's try informed and intelligent anticipation. Whatever the next—as yet unnamed—generation acts and looks like, we must be more ready for it than we were for its predecessors.
What's at stake? How well—or not so well—we compete in the brutal arenas of global supply chains, global economics, and global geopolitical contests. We had best be at our best in this game.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."