FOR the first time in history, four generations of workers are congregating around the water cooler and companies are scrambling to figure out how to get these fundamentally different groups to effectively and harmoniously work together.

From varying views of authority and collaboration to how each group views their physical workspace, companies are realising that this potentially explosive dynamic or, on the other hand, possible creative gold, is something that they just can't ignore.

In an effort to address the generational convergence and make it work so that it benefits everyone's bottom line, A.F. Smith, office product supplier and workplace effectiveness designer, invited Bruce Simoneaux, principal of Steelcase Applied Research & Consulting to present his highly sought-after seminar "GenTrends - Trends and Generations in the Workplace" to Bermuda's commercial interior designers.

"We regularly liaise with Bermuda's Society of Interior Designers to understand the topics that are of interest to local designers," said Tim Smith, CEO of A.F. Smith. "We agreed to organise and host a continuing education unit (CEU) seminar given by Steelcase and 22 designers representing virtually all design firms on the island attended."

Steelcase, one of A.F. Smith's product suppliers, is the a leading office furniture leader with 13,000 employees world wide in 28 locations, however, their Applied Research & Consulting department focuses on conducting research and developing methodologies that allow businesses to effectively meet the growing needs of their employee base while reaping the financial benefits of a happy workplace.

Their approach has gained global attention evidenced by their client roster, which includes some of the world's most recognisable companies, including Boeing, General Motors, Fedex and RadioShack.

What they've been working on for the past few years is the emergence of the generational trend, which includes four distinct groups of employees currently in the workforce: Traditionals born between the years of 1928-1945, Boomers born 1946-1964, Gen Xers born 1965-1980 and Millennials born 1981-1999.

Each has their own set of characteristics and have been influenced by separate historical and cultural events that have shaped who they are and how they approach work.

Traditionals, the war veterans and still at the heads of many companies, are described with such words as sacrifice, hard work, delayed reward, tenure, frugality, adherence to rules while Boomers, the "me" generation, are described as putting process ahead of results, are term oriented, want personal gratification and aren't as budget conscious as their predecessors. Gen Xers, the thirty-something, latch-key kids put results ahead of process, are global thinkers, informal, self-reliant, technological and entrepreneurial while Millennials, also called Gen Yers, are described as optimists, socially conscious, confident, are easily bored and always connected.

When you combine all of those traits, it's easy to see that businesses have their hands full when trying to balance each group's assets and their challenges.

How does a company keep up their employee retention rates when one group, let's say, Boomers, who as a group, are tentative when it comes to technology, are reluctant to disagree with peers and sensitive to feedback is put in the same room with Gen Xers who are generalised as tech-savvy, un-intimidated by seniority and are quick to criticitise?

"Companies are starting to see some conflicts arise," said Mr. Simoneaux. "At first it was between the Boomers and the Gen Xers because the Boomers grew up in an environment that was very process oriented, in other words, if I don't see you at your desk, I don't believe you are working.

"Then the Gen Xers came along and say 'I've stayed up till 2 a.m. in the morning, the project is done, why do you care that I'm not here at exactly 9 a.m. in the morning'?"

The generational conflict doesn't just stop with the groups' different approaches to their workload, it also extends to employee hiring and retention.

"My first client that really had an issue with generational differences was Axium back in 1998," explained Mr. Simoneaux. "And they wanted to attract and retain Gen Xers, however, were having a hard time getting people past the first interview.

"From our research even back then, we knew that Gen Xers when they were looking for a job, they wanted to work in a place that is global, technologically advanced and a place where they had access to upper management. Which was unheard of for Boomers as they were tentative about technology and tended to hide out from their bosses.

"After observing the interview process at Axium, what we found out was that they were interviewing these individuals in a physical space that screamed 'We are full of Boomers' - oceans of cubicles with big, mahogany offices where the manager sat behind a big desk.

"So we created an interview café where we set up three flat screen TVs, where the heads of other international locations could be called up during the interview. 'What did that do without saying a word'? It demonstrated to the Gen Xers was that this company was global, high-tech and they could connect with upper management."

As a result, Axium's hit rate, the rate at which interviewees were hired and stayed (for six months or longer), went from six per cent to 100 per cent. According to Mr. Simoneaux, the next 36 candidates that walked through the door, took the job.

Mr. Simoneaux, a Boomer, brought along his elder, Gen X daughter Regan, who also works at Steelcase as a workplace consultant and his Millenial, younger daughter, Landry, a student, to clearly illustrate the stark cultural, behavioral and technological differences between the three groups.

"Even in terms of how we treat technology, you can see the differences," explained Mr. Simoneaux. "I view my computer is an investment,

"I treat it with ultimate care. I almost died when I saw Regan eating and drinking coffee over hers and Landry's age group they toss their lap tops around like cell phones."

The difference, he explains, is that the Gen Xers and Millenials are "natives" to technology in that they have grown up with these advancements and would have a hard time living without them. Traditionals and Boomers, on the other hand, are what he calls "immigrants" to technology and have had to play catch up in order to survive in today's workplace.

Preferences regarding physical office space also differ between the groups.

How do businesses develop a floor plan if one group, such as Traditionals, like privacy and division of labour - meaning that they are more comfortable with managers in offices and assistants at outside desks while Millenials might work more effectively sitting on a beanbag with their lap top and ten other people sitting next to them?

The Axium project, said Mr. Simoneaux, showed them that there is a specific connection between a company's physical space and attracting and retaining the best candidates for the job.

In this economy, however, some might think that people are lucky to even have a job so employees should just tough it out. Who cares where they sit? But, according to Mr. Simoneaux, that approach breeds low retention rates and decreased productivity.

"Making sure an office space is designed to increase performance absolutely affects business' bottom lines," he said.

"But that's not the only thing affecting a company's performance. Managers have to be acutely aware of the generational divide and the diversity that makes each group unique.

"The number one reason for an employee to leave a company is a bad relationship with their direct manager," explained Mr. Simoneaux. "So managers need to celebrate their differences and understand the power of creative abrasion (theory that diversity creates sparks that ignite a 'wildfire' of ideas or innovation)."

So, in other words, if Boomer boss can't figure out how to take advantage of a Millenial employee's strengths; the best multi-tasker of all four groups, who can answer the phone, listen to his iPod, type a document and answer her questions all the same time; trouble is on the horizon.

These dilemmas can be addressed, according to Mr. Simoneaux, through employee input, altering the physical workspace and mentoring, among other things.

Bermuda faces similar challenges and Mr. Smith felt that local designers at the GenTrends seminar were in agreement that many workplaces here exhibit the same age diversity as the U.S.

"With this age diversity we see a variety of work styles. Companies have to respond to these if they want a high-performance work environment.

"The challenges facing local and Bermuda-based companies, are universal - shortage of skilled workers, eroding worker loyalty, resistance to change, pervasive use of technology, increased competition, and so on," he said.

So the next time coworkers gather around the water cooler to chat, it could now be in a central office café with lounge chairs aside a coffee and snack counter. According to Mr. Simoneaux, it's the wave of the future.

"People exchange the best ideas and have truly collaborative moments when they are around the 'water cooler'," he said. "The different generational groups can inspire each other.

"Positive things happen when companies realise they can take advantage of that diversity."