The Currency of Influence: How Each Generation Builds Power

AUTHOR | NATALIE ALVAREZ

In today’s multigenerational workplace, social intelligence, or the ability to manage interpersonal relationships, plays a key role in overall collaboration. To understand how different generations perceive and exert influence at work, we conducted surveys in the workplace as part of graduate research across four generations: Baby Boomers, Gen X, Millennials, and Gen Z. We explored network strength, opportunities for direct and indirect influence, and the "currencies" each generation leverages to build influence. This week’s blog post dives into the key findings from our survey, offers best practices for using each type of influence, and shares real-world examples of exemplary leadership.

Generational Trends in Internal and External Network Strength

Employees were asked to evaluate their network strength within their department, outside their department, and outside their company. Across the board, networks are strongest within departments, followed by networks outside the company, and weakest within one’s company but outside one’s department. Baby Boomers had the strongest networks in all categories, likely due to their longer tenure. Gen X reported the weakest networks, which aligns with their more individual focus as a generation. They are also a smaller generation than Baby Boomers and Millennials.

How to Leverage Direct and Indirect Influence Across Generations

We asked respondents to provide real-world examples of direct influence (employee-to-employee) and indirect influence (using one's network to influence). Overall, employees prefer direct influence, though Gen X and Gen Z frequently use both.

Direct Influence:

Direct influence is often used for:

Urgent situations: Resolving conflicts or meeting deadlines.
Task management: Directing work and ensuring efficient completion.
Close colleagues: Working with team members or direct reports.
Strong convictions: Advocating for a specific outcome.

Overall, direct influence is employed when clarity, efficiency, and assertiveness are required. It's often used in situations involving urgency, task management, close working relationships, strong convictions, and specific communication needs.

Indirect Influence:

Indirect influence is often used for:

Navigating hierarchy: Influencing managers or senior leadership.
Collaboration: Building consensus across departments.
Sensitive situations: Approaching delicate matters or appealing to emotions.
External matters: Addressing issues outside one's direct responsibility.

Overall, indirect influence is employed when a more subtle, collaborative, or relationship-oriented approach is needed. It's often used for navigating hierarchy, broader collaborations, less familiar relationships, sensitive situations, and matters beyond one's direct control.

Currencies of Influence

Respondents identified these key "currencies" for building influence at work:

Expertise and knowledge: Demonstrating skills and experience.
Relationships: Cultivating trust and rapport.
Reputation: Being known for integrity and results.

What Shapes Us? Generational Influences on Identity

Survey respondents were asked to evaluate the influences on their behavior, to understand changes in society across generations. These influences reflect what shapes our identity and values, taking share during our formative years.

Influences surveyed include:

Family: Consistently the strongest influence across all generations.
Religion: This is most influential for Baby Boomers yet declining with each subsequent generation reflecting a societal shift to secularism.
Work: Important for each generation - more influential for Millennials, and less influential for Gen X and Gen Z, highlighting alignment between those generations and their attitudes towards work.
School: Most significant for Gen Z as the youngest generation, however, remains influential for other generations reflecting the value of education.
Friends: More influential for younger generations, emphasizing the importance of strong social connections.
Community: A consistent, moderate influence across generations.
Media: Neutral overall, but more influential for Millennials and Gen Z, reflecting increased social media use.

Essential Leadership Qualities for a Multigenerational Workforce

What makes an exemplary leader? Our survey respondents highlighted key qualities of exemplary leaders in their workplace which we are excited to share with you. If you’ve followed our blog series this month, you’ll notice these leadership qualities follow the three foundational elements of trust – empathy, authenticity, and logic. Keep reading to discover how these best practices can be added to your leadership toolbox to foster a culture of trust and collaboration for all generations.

Empathetic Leadership

Empathy is a powerful tool for leaders and the most important element of trust. Here's how empathetic leaders create a supportive workplace:

Active Listening: They truly listen to their employees' perspectives and concerns, paying attention to both verbal and non-verbal cues.
Compassion and Caring: They show genuine care for their employees' well-being, both professionally and personally.
Building Connections: They try to connect with their employees on a personal level, building rapport and trust on an individual level.
Flexibility and Support: They recognize that employees have different needs and circumstances.
Emotional Intelligence: They are aware of and manage their own emotions, while also recognizing and responding to the emotions of others.

Authentic Leadership

Sharing your authentic self is a powerful fool for leaders: Here’s how authentic leaders create a collaborative workplace:

Transparency and honesty: Open communication and vulnerability build trust.
Strong communication: Active listening and clear messaging are crucial.
Leading by example: Actions speak louder than words.
Collaboration and trust: Building a collaborative and respectful workplace.
Vision and action: Inspiring others and adapting to change.

Logical Leadership

Logical leadership is a strategic approach to decision-making that fosters fairness, efficiency, and empowerment. Here's how logical leader create a fair workplace:

Data-Driven Decisions: They rely on facts and objective analysis, not just opinions. They also clearly communicate the reasoning behind their choices.
Strategic Thinking: They think ahead, anticipate challenges, and set clear goals for the team. They also prioritize tasks and manage time effectively.
Clear Communication: They explain the "why" behind decisions and provide constructive feedback concisely.
Fairness and Accountability: They create a just environment with clear expectations, holding everyone accountable while making unbiased decisions.
Empowerment: They understand their team's motivations and strengths, providing opportunities for growth and trusting their employee’s abilities.

Unlocking Your Influence Potential: A Call to Action

Navigating influence across generations requires understanding the preferences and perspectives of each generation. We’ve learned about varying strengths of networks across generations, which shows that generations can lean on each other to unlock new connections and knowledge. Leverage your “currencies” of influence effectively to build stronger relationships throughout your company and industry. OP Community – take a few moments to analyze your network strengths, and the “currencies” you have available to leverage. Then take one of these currencies and reach out and make a new connection!

Author's Bio

Natalie is a proud San Diego native and currently works as a Senior Financial Analyst for Turner Construction Company. Her expertise in construction management includes engineering, project management, preconstruction, and finance. Natalie’s project experience spans the

aviation, commercial and K-12 education market segments in San Diego, Los Angeles, and San Francisco.

Building on her leadership experience across California, Natalie founded the Turner - San Diego Young Professionals group, with the goal of creating a cohesive community of engineering leaders who will become the champions and agents of change for San Diego’s growing market. Through the Young Professionals group, Natalie co-organized a virtual executive coaching session for Turner West Coast staff. Guided by her core values of integrity and equity, Natalie is actively involved in Turner’s Diversity, Equity, and Inclusion initiatives through study action teams, training, and college recruitment efforts. She is passionate about mentoring future engineers and exposing underrepresented students to the industry.

Natalie was recognized by the San Diego Business Journal as a Woman of Influence in Engineering (2021). She serves on the Board of Governors for the USC Alumni Association and is also a board member for The Bishop’s School Alumni Association.

Natalie holds a bachelors and master’s degree in engineering from the Viterbi School of Engineering at the University of Southern California, and a MBA from the Rady School of Management at the University of California, San Diego. In her spare time, she enjoys watching sports, reading, knitting, traveling, and playing golf.