The Engineering Workforce: Gearing for the Digital Natives

By BARB SCHMITZ | Published: FEB 13, 2012

There are many changes brewing for engineering organizations. For one, with an impending wave of baby boomers retiring in the near future, engineering organizations are going to experience a serious “brain drain” at the top of the engineering department’s food chain.  Over the next 20 years, 10,000 baby boomers will retire every day, leaving a gapping hole at the top of engineering departments worldwide as engineering executives, directors and managers will leave their posts and start focusing on more pressing concerns, such as lowering their golf handicaps.

As these seasoned engineering veterans walk out the door, they take with them a tremendously valuable amount of knowledge, corporate know-how, and experience, which, quite frankly, is nearly impossible to replace.  As this reality takes hold, manufacturing organizations must look to future generations of engineers to one day fill these important posts and hopefully drive the future of their engineering efforts.

The reality, however, is that these younger generations of workers are vastly different from the previous generations. They work differently, think differently, and view the world differently than the previous generations of workers. Often referred to as “digital natives,” this generation was born after the advent of digital technology. They have never lived in a world without the Internet, cell phones, and mobile computing devices.

Let’s take a look at some of the characteristics of these “digital natives” to better understand how the workplace must evolve to best leverage their strengths while mitigating the chances of ensuing culture clashes between them and older engineers, often referred to as “digital immigrants.”

Highly influenced by technology. These natural multi-taskers seamlessly switch between their social and professional lives; thrive on instant, fluid communication; want constant access to the web; and are faster, more intuitive learners who are highly adaptable to change.

Change jobs frequently. Studies show that this generation will hold five to seven jobs before retirement. Digital natives often prefer to work as contractors rather than employees and view work stability as less important than stimulation and satisfaction.

Like to keep it casual. This generation dislikes bureaucracy, paperwork, and formalities. They have different views of corporate hierarchy and authority; don’t recognize the lines of proprietary between people of different ages, social statuses and positions of power. Prefer to work intermittently and remotely (coffee chops, cafes, home) versus in cubicles.

Believe transparency yields trust. Digital natives live their lives publically through social media and value knowledge sharing and expect the same of companies, both as an employee and customer.

The Google effect. Though they excel at researching, managing and assimilating vast quantities of data, the aforementioned cognitive bias (Google effect) leads them to work less on retaining information because they can just “Google” it.

Be social. Use social media (Facebook, Twitter, youTube) and various other digital technologies (smartphones, tablets, etc.) on a daily basis. They are also very peer-oriented and more socially conscious and responsive to intrinsic motivations as a result of involvement with social networks.

Just email it. This group prefers email as opposed to the phone as a means of communication, which facilitates multi-tasking and establishes a permanent record of communications. Perhaps as a result, this generation is less prepared to write in a professional manner.

Next week we’ll talk about how organizations can adapt the workplace to best leverage the unique skill sets of digital natives as well as how they can prevent culture clashes between this group and the older generation tasked with preparing them for leadership roles in the future.

Engineering Brain Drain: Dealing with Retirement of Boomer Generation

By barb schmitz | Published: July 6, 2011

The workforce today is getting older, with more than half of all U.S. workers over 40. Consider this daunting fact: over the next 20 years, 10,000 baby boomers will retire every day. The patriarchs of engineering departments are most likely members of this baby boomer generation and are likely approaching retirement age and dreaming of days spent golfing or fishing.

The economy might likely delay some of those retirements. An US News article citing a PEW research report indicates that 60% of employed adults 50-61 years old may have to delay retirement because of economic hardships brought on by the recession. Additionally, 35% percent of those age 62 and older say they have already pushed back retirement plans.

Despite this possible respite, manufacturing organizations must devise a plan to deal with the “brain drain” or knowledge loss that will most likely accompany this eventual exodus of experienced engineers.  This group makes up a large proportion of senior engineers and engineering managers, since later generations were much smaller in number. The number of baby boomers (the generation born after World War II) is double that of the Generation X that follows them.

Unlike their younger counterparts—who experts estimate will hold five to seven different jobs before retirement—most boomers have spent most of their careers in one company, building up years of company-specific technical experience and knowledge. So what happens to an organization when all that knowledge walks out the door?

Many companies are dealing with it by luring them back from retirement. According to a study conducted by AARP, more than 60% of U.S. companies are currently bringing back retirees as contractors or consultants. In lieu of that, companies must utilize tools and put standardized processes in place that enable them to retain or transfer knowledge from their engineers to younger engineers, well before they retire. Organizations must be proactive about encouraging experienced engineers to share and capture their experience and knowledge long before they retire.

Some organizations use knowledge retention tools and methodologies—deployed internally or through specialized consultants—to facilitate their ability to retain knowledge. This engineering know-how can be divided into two components: explicit and tacit. Explicit refers to the information that can be easily explained and, therefore, stored in databases, repositories and manuals. Knowledge management systems can help put databases in place to track this type of knowledge. To encourage experienced engineers to capture such information and add to databases or repositories, companies should measure such efforts on performance reviews.

Tacit knowledge, on the other hand, is much harder to capture because it is more intangible. These might include on-the-job experience, stories, impressions, and creative solutions, things that are obtained as a result of years of experience. Dorothy Leonard, professor emeritus of business administration at Harvard Business School and coauthor of “Deep Smarts: How to Cultivate and Transfer Enduring Business Wisdom,” argues that companies should concentrate on re-creating tacit knowledge, rather than focusing only on transferring it. For example, an experienced engineer planning to retire within the next year should have a younger engineer assigned to shadow him, working side by side. It is only through such daily interactions and observations that tactic knowledge can be passed to younger protégés.

Establishing a formal mentoring program can also facilitate knowledge transfer. The benefits can be two-fold. Protégés benefit from observing first-hand the “lessons learned” by seasoned and experienced engineers, which are often things that are not taught in traditional engineering programs. Mentoring programs make both mentor and protégé feel invested and engaged, a key component of retaining employees. It is critical, however, to choose a mentor not solely on their technical skills, but also for their ability to communicate effectively.

Many companies are turning to software and other technology tools to help predict future departures and determine crucial knowledge that could be lost.  Succession planning or talent management software helps companies get a feel for who is working for them, how they are performing and how long they before they retire. Intranets, videoconferencing, peer-to-peer technology and podcasts can connect workers over distance and varying time zones so they can develop virtual relationships to share ideas, solve problems, and transfer knowledge.

Whenever possible, companies should also integrate engineers of all age groups on teams and projects—thus ensuring knowledge and skill transfer. Organizations must work on balancing the more gradual transfer of knowledge from older to younger engineers with the need to capture some crucial expertise quickly before it’s too late. Mentoring, training and passing on knowledge are all important things that can’t be rushed so organizations must plan ahead to stay ahead of the rising tide of retirements.