Chapter 8: Some of my Best Friends at Work are Millennials: Leader–Member Exchange in the Face of Evolving Generational Diversity in the Workplace

The purpose of this study is to explore leader–member exchange across baby boomer, Generation X, and Millennial generations. A total of 132 U.S. employees were interviewed with 22 leaders and 22 followers of each generation. These interviews were coded for patterns of action and interaction. Our analyses produced seven themes. We found that Gen X workers believe work is less important than both baby boomers and Millennials. Differences between generations were found in perceptions regarding leader–member exchange (LMX) and its four dimensions: affect, loyalty, contribution, and professional respect. Gen Xers were intent upon their followers following directions and simply doing what they are told. Baby boomers and Millennials exhibited more interest in a follower’s exhibition of independence and the individual’s ability to give and receive feedback. Our data showed little evidence from the Millennial transcripts that supports entitled/narcissistic tendencies. We found little evidence of ill will toward Millennials from the baby boomers, but some evidence from the Gen Xers. Baby boomers were more willing to work with Millennials than Gen Xers were, stating excitement for the opportunity to learn from those who are young and eager to have more experiences. Many baby boomers also preferred to have younger leaders. We believe this is the first study of LMX across multiple generations, and we offer that understanding the characteristics of the Millennial generation and how they lead and wish to be led is a critical step in managing the way business is conducted in today’s fast-paced and digital environment such that all generations may thrive at work.