Did you know that organizations with age-diverse teams outperform their peers in problem-solving and innovation? With multiple generations working side by side, age diversity has become a major part in success for today’s companies today.
According to Josh Bersin, his research shows that inclusive companies are “1.7 times more likely to be innovative,” and his research also shows that they get “2.3 times more cash flow per employee.”
Generational diversity has become an important factor influencing organizational success. With multiple generations working side by side, each brings unique perspectives, skills, and experiences that can drive innovation and growth. Understanding and using this diversity is important for a harmonious and productive work environment.
Workplaces today are more diverse than ever, not just in terms of background and skills but also in age. However, this diversity also comes with challenges, such as communication gaps and differences in expectations. Understanding generational diversity in the workplace can help businesses create an environment where employees of all ages feel valued and can collaborate effectively.
What is Generational Diversity in the Workplace?
Generational diversity in the workplace refers to the inclusion and collaboration of employees from different age groups or generational cohorts within an organization. Each generation brings its own unique values, communication styles, work habits, and expectations, which together can enrich a company’s culture and performance when managed effectively.
Breaking down these generations-
Baby Boomers (1946-64)
Baby Boomers, born between the end of World War II and 1964, are typically between the ages of 55 and 75 today. Unlike previous generations, many Baby Boomers are choosing to stay in the workforce longer rather than retire. This shift is due to various factors, including financial stability, career fulfillment, and changing attitudes toward retirement.
Growing up in a time of economic prosperity, many Baby Boomers had access to higher education, stable jobs, and the rise of a strong middle class. They witnessed major societal and technological changes, from the first moon landing to the introduction of personal computers. These experiences shaped a generation that values hard work, long-term career planning, and goal setting. They tend to be highly dedicated to their roles and appreciate recognition for their efforts. While they respect workplace structures, they also value teamwork and collaboration.
Baby Boomers bring years of experience and industry knowledge, making them valuable mentors to younger employees. They tend to prefer in-person communication over digital interactions, as they built their careers in an era where face-to-face meetings and phone calls were the norm. Many of them are open to learning new technologies but may appreciate guidance in adapting to digital tools.
Generation X (1965-1980)
Generation X, born between the mid-1960s and early 1980s, is currently at the peak of their careers. Many are in leadership positions, balancing work responsibilities with family life. Having witnessed events such as the dot-com boom, the 2008 financial crisis, and rapid technological advancements, they have learned to be resourceful and adaptable.
Unlike Baby Boomers, who often had one long-term employer, Gen Xers tend to value independence and career mobility. They were the first generation to grow up with both parents working outside the home, which made them self-sufficient from a young age. As a result, they appreciate flexibility in the workplace, whether it’s remote work options or a results-driven approach rather than strict office hours.
Despite holding over half of leadership positions in today’s workforce, Gen Xers are sometimes overlooked in discussions about workplace trends. Studies have shown that they receive fewer promotions compared to younger employees, even though they play an important role in organizations. While they are loyal workers, they also seek opportunities for growth and recognition. Companies that support their career advancement and acknowledge their contributions are more likely to keep them engaged.
Millennials (1981-1996)
Millennials, born between 1981 and 1996, make up the largest generation in today’s workforce. They have grown up in a fast-changing world, shaped by major events like 9/11 and the 2008 recession. Many entered the job market during a period of economic uncertainty, leading them to prioritize financial security while also seeking meaningful work.
Unlike previous generations, Millennials are digital natives, having grown up with the internet, smartphones, and social media. They are comfortable with technology and expect workplaces to be tech-savvy as well. Collaboration and open communication are important to them, and they often prefer workplaces with flat hierarchies rather than rigid corporate structures. One thing that is important to Millennials is diversity.
According to a survey by Deloitte, 39% of Millennials feel businesses need to address age diversity. A 2018 Ranstad Wormonitor study showed that 86% of workers prefer to work on multi-generational teams (defined as those who are at least 10-15 years apart in age).
One common misconception is that Millennials are job-hoppers, but research suggests that many of them switch jobs out of necessity rather than a lack of loyalty. They look for employers that align with their values, offer career development opportunities, and support a good work-life balance. They also appreciate feedback and mentorship, making them eager to learn and grow within their organizations.
Generation Z (after 1997)
Generation Z, is the newest group entering the workforce. Unlike Millennials, who witnessed the transition from dial-up internet to smartphones, Gen Z has grown up in a world where digital connectivity is the norm. They are the first generation to experience online education, remote work, and social media from an early age.
One key difference between Gen Z and Millennials is their approach to work and financial stability. While Millennials value purpose and job satisfaction, Gen Z tends to prioritize salary and job security. They saw older generations struggle with student debt and economic downturns, making them more financially cautious.
Diversity and inclusion are also important to Gen Z. They expect workplaces to be open, accepting, and representative of different backgrounds. Companies that demonstrate genuine diversity not just in hiring but in leadership and company culture are more likely to attract and retain Gen Z employees. They also value flexibility, whether in work arrangements, career paths, or the ability to learn new skills.
The Benefits of Generational Diversity
1. Broader Skill Sets
Each age group brings a unique set of skills to the table. For instance, Baby Boomers often excel in leadership roles due to their experience, while Millennials and Gen Z could bring the newer trends around the industry to the table and provide better analysis in technology.
Example: A company working on a marketing campaign can combine the storytelling experience of Baby Boomers with the digital marketing expertise of Millennials, forming a well-rounded strategy.
2. Improved Problem-Solving and Creativity
Teams with diverse age groups can approach problems from different perspectives. While older employees may rely on traditional problem-solving methods, younger employees may bring in creative, out-of-the-box solutions. This would also mean different perspectives over the kind of target audience that has to be approached.
Example: For launching a new mobile, older employees might ideate over what kind of strategies would work for their age group in the market and the younger employees with the Gen Y & Z respectively.
3. Mentorship Opportunities
Age-diverse workplaces provide natural mentorship opportunities. Experienced employees can mentor younger colleagues, while younger employees can offer reverse mentoring in areas like technology and social media.
Example: A Gen Z employee teaching a Baby Boomer how to use AI tools for efficiency exemplifies how mentorship flows in both directions.
4. Enhanced Employee Retention
When employees from all age groups feel valued, job satisfaction and retention improve. Recognizing the contributions of each generation creates a harmonious workplace culture that boosts morale.
Example: Organizations that provide tailored benefits, such as leadership opportunities for the Gen z, flexible working for Millennials and retirement planning for Baby Boomers, often experience higher retention rates.
Challenges of a Multigenerational Workforce
1. Generational Stereotypes
Assumptions like "Baby Boomers are resistant to change" or "Gen Z lacks a strong work ethic" can create unnecessary barriers and misunderstandings. Stereotypes about older generations' learning abilities can interfere with the training they receive.
Trainers having lower expectations from the boomers can result in poor quality of training than to that of a young person. The potential consequences of this ageism are alarming as inferior training can result in reduced learning and ultimately interfere with employees’ job performance.
According to this Glassdoor survey, older workers aren’t the only ones who have to endure age bias. Employees of age 18-34 have 13% more chance to face this age- discrimination in the workplace than the people of age 55 and more.
2. Communication Gaps
Different generations often prefer different communication styles. According to the Harvard Business Report, while younger employees like the millennials may want to communicate with coworkers through instant messaging tools, Baby Boomers don’t text and might prefer face-to-face meetings.
3. Adapting Training Programs
Creating training programs that cater to various learning preferences can be challenging. For example, Baby Boomers may prefer hands-on training, while Gen Z may excel with digital learning platforms.
With the advent of covid and the current economic situation of the globe right now, The New York Times reports that people of age 55-64 have rejoined the workforce at higher rates than that of the younger candidates between 2020-2022 and that 55% of retired employees joined back the workforce population due to financial concerns alone. With the comeback of this age group, certain training is required given that technology and the pattern of working has been changing.
How to Promote Generational Diversity in the Workplace?
With multiple generations working side by side, companies may face challenges in communication, work preferences, and leadership styles. However, these differences can be turned into strengths with the right approach.
1. Inclusive Recruitment Practices
Adopt skill-based hiring approaches, like those supported by WeCP, to focus on talent and potential rather than age. One thing that everyone in particular the Boomers face problem in, is respect that is often denied due to bias or discrimination.
The EEOC estimates that almost 1.5 million workers between the ages of 55 and 64 have dropped out of the workforce, some because their age was seen as a barrier to finding a job. And this lack of respect can lead to a high turnover rate. The fact is, turnover is expensive.
The Society for Human Resource Management (SHRM) reported that, on average, it costs a company six to nine months of an employee's salary to replace him or her. To avoid both these human and monetary tolls, diversity and HR departments need to focus on generational diversity.
2. Flexible Work Arrangements
Provide options like remote work, job sharing, and flexible hours to accommodate the needs of employees across generations. According to the same HBR, millennials and gen z would have to be given remote and flexible work options, while the older generation would probably want a traditional work- day.
3. Tailored Benefits
To make the most of a diverse workforce, companies need to go beyond generational labels and focus on individual strengths. Rather than assuming what each group wants, businesses should engage with employees directly to understand their needs. Surveys, open discussions, and feedback sessions can help organizations design policies that work for everyone.
Employees have different needs depending on where they are in life, not just their generation. A well-rounded benefits package should check various life stages to ensure employees feel valued and supported. At WeCP, we believe in offering benefits that align with employees' personal and professional goals like
- Experienced Professionals (Baby Boomers & Older Employees): Flexible transition-to-retirement options, leadership development programs, mentorship opportunities, and financial planning and healthcare support.
- Mid-Career Employees (Gen X): Healthcare, wellness programs, performance-based incentives, and childcare assistance to support work-life balance along with financial security.
- Early-Career Professionals (Millennials): Student loan assistance, mental health resources, career growth opportunities, and hybrid work options for greater flexibility.
- Emerging Employees (Gen Z): Skill development programs, mentorship networks, financial literacy education, remote work flexibility, and access to digital healthcare services.
4. Open Communication
Encouraging employees to share their ideas, experiences, and concerns helps create a more inclusive workplace. Managers should create spaces where employees feel comfortable expressing themselves and provide regular feedback to ensure everyone is aligned with company goals.
Experienced employees can share their knowledge with younger colleagues, while younger workers can introduce new technology and fresh ideas. This creates a learning culture where employees of all ages benefit from each other’s expertise.
5. Encourage generational collaboration
Break the ageism and the stereotypes attached behind it and encourage training programs where the employees could help each other out. In fact, it is interesting that according to Pew Research Center, while most millennials are considered the “digital natives” for growing up with the widespread use of technology, the Baby Boomers are also adapting pretty quickly. Boomers who were 25% of the phone owners in 2011, are now up to 68%.
Training and career development should also be a priority. Every generation benefits from learning opportunities, whether it’s leadership training for Gen X, technology workshops for Baby Boomers, or professional development programs for younger employees.
By investing in continuous learning, companies can help employees grow while keeping them engaged.
5. Recognise and celebrate
Gen Z often feels unrecognised as they are often termed as “unready” for promotional positions despite experience due to an older employee. This must be broken by encouraging skill based and positional promotion through which organisations can also maintain employee retention.
According to a CNBC report, Gen X leaders on average had only 1.2 promotions in the past 5 years, much lower than their millennial colleagues (1.6 promotions) and senior boomers (1.4 promotions) during the same time.
6. Be Dynamic
One should recognise that being an organisation is never a static position and it should keep evolving to meet the needs and expectations of the workplace by the time. This could be helped by taking feedback and having an adaptive and communicative culture.
7. Priorities through different Ages
According to Hubspot, Gen Z values different things in the workplace than Millennials. While Millennials put more emphasis on clear career direction and vacation days, 65% of Gen Zers say salary is their top priority.
Workplace flexibility is another key factor. While Baby Boomers and Gen X may appreciate structured work environments, Millennials and Gen Z value remote work and flexible schedules. Instead of applying the same rules to everyone, businesses can offer different options based on individual needs.
8. Workplace Inclusivity
A Forrester report shows that when employees feel a sense of belonging at work, it leads to a 56% increase in job performance. They feel a sense of belonging and they feel respected which also improves retention.
A survey by Deloitte revealed that only 18% of organizations consider age in their diversity and inclusion initiatives. But according to EY, 63% of employees from different age groups reported that they would prioritize DEI programs when it comes to choosing which company to work for.
Therefore, inclusivity is key while employee hiring, not only for the organisational diversity but also to ensure good employee value.
9. An Age-Inclusive Hiring Process
Creating diverse teams across different age groups strengthens the bond of a team. One way to build age-inclusive teams is by eliminating biases in hiring. Skills-based hiring, like the solutions offered by WeCP, ensures that candidates are evaluated based on their abilities rather than assumptions linked to age. This can be done via
- Blind Hiring Techniques: Removing age-related details from resumes helps recruiters focus solely on candidates' skills and experiences.
- Skill-Based Assessments: At WeCP, we enable businesses to assess candidates through customized skill tests that replicate real job tasks. This allows hiring managers to make informed decisions based on merit.
👉 Refer to this blog for more details on skill-based assessments- https://www.wecreateproblems.com/blog/skills-assessment-test
Conclusion
As the workforce continues to evolve, with Generation Z entering and older generations remaining active, organizations must stay adaptable. Generational diversity is not going away as people will keep getting recruited and retired with the cycle of life so if we want to create long-lasting businesses, we need to learn collaboration.
Rather than focusing on differences, businesses should find ways to unite employees across generations, allowing them to learn from each other and grow together and create a competitive advantage.
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