Looking beyond the challenges of a multigenerational workforce

Published: December 10, 2024 | Simon White, MBA

Much has been written about multigenerational workforce challenges, given the inherent complexities of four generations — Baby Boomers; Generation X; Generation Y (aka Millennials); Generation Z — now regularly working side by side.

In addition, we also find ourselves within an era of rapid change to workforce demographics. The World Health Organization estimates that between 2015 and 2050, the proportion of the world’s population aged over 60 will almost double from 12% to 22%. In the UK, CIPD analysis from 2020-21 showed that workers over the age of 50 accounted for 32% of the workforce, up from 21% in the early 1990s. This means that a huge proportion of jobs will shift to older workers, a change that will bring new challenges for businesses as they learn how to support and retain this element of their diverse workforce.

However, HR leaders often focus more on the pain points of a mutigenerational workforce than the opportunity and benefits. Why is that, and how real are those generational differences?

Dispelling the generational myth

The major challenges often discussed relating to multigenerational workforces stem from perceived differences between generations and their working styles. However, a decade ago, Wharton Business School Professor Peter Cappelli dispelled this myth as simply untrue in his book, “Managing the Older Worker: How to Prepare for the New Organizational Order.” He states, “There is no evidence that 35-year-old managers today are any different from 35-year-old managers a generation ago.”

Yes, there are “interesting nuances,” but not much difference. Professor Cappelli’s research is backed up by many other academic studies, as well as more recent McKinsey & Co research, which shows “that across ages, people’s expectations and needs at work are largely the same, and they often don’t match the generational stereotypes that seem ubiquitous.” Instead, differences between team members and intergenerational conflict more often stem from a lack of empathy and understanding than any material variance.

Finding similarities between generations

Finding similarities between generations is key, and it needs to be widely recognized by leaders and employees alike. Find the similarities, and you will be amazed at the possibilities that present themselves in terms of effective collaboration, skill-transfer and an improved sense of belonging.

For this reason, Professor Cappelli doesn’t advise the roll-out of a specific generation-based affinity or Employee Resource Group (ERG). Unless they’re set up to find cohesion between generations, ERGs commonly reinforce stereotypes by constructing generalizations purely according to broad demographic segments such as year of birth and therefore have limited utility.

This is especially important for multinational corporations given that, in the face of globalization, they will likely have an employee mix from a wider variety of cultural backgrounds. In this situation, it is better to focus on the employment factors and characteristics that matter across all age groups, such as, but not limited to, culture, race, or gender.

A defense of Gen Z

If you cast your mind back to the 2010s, you’ll realize that today’s criticism levelled at Generation Z (or Gen Z) for being “difficult,” “needy,” or lacking motivation is remarkably like the negatives previously directed at Millennials. Those same Millennials who today make up a significant proportion of people manager communities around the world and show few signs of such behaviors. This points toward these criticisms not being a core generational characteristic, but instead being about level of experience. In short, every new generation is described negatively and then proves itself differently with time.

However, where Gen Z does differ from generations before is in relation to COVID-19. This generation entered the workforce at a time of enormous upheaval and unprecedented levels of change. If you combine lack of experience with the pandemic and its impact on organizational culture and employee experience, you are left with younger employees who have far less experience with office etiquette, as well as fewer opportunities to network and be visible.

Subsequently, Gen Z employees do not understand as well as those more experienced than them how to navigate their way through day-to-day matters. Add into the mix that Gen Z employees also have to deal with the skyrocketing cost of living, pay off enormous higher education debt and grapple with lightning quick advancements in technology, and you’ll soon be able to better understand their attitude and outlook.

Cultural consequences of COVID-19

A commonly accepted legacy of COVID-19 has been a shift in attitude across generations toward addressing work-life imbalance, but perhaps this shift has been most sharply exhibited by Gen Z. During my MBA dissertation research interviews, several accounts emerged from line managers of Gen Z employees not being prepared to use their personal time for work-related growth and development projects, for example, or not being willing to take on an additional task without gaining something in return.

People manager interviewees identified these traits as generational differences, but given the research in this area, this is unlikely. In the UK, those older generations with decision-making responsibilities have been taught by experience, and therefore believe it to be axiomatic, that a major method used to succeed at work is to take on extra responsibility and work longer hours for no immediate or even near-term recognition. That’s why if Gen Z employees fundamentally disagree with this strategy, tension and dissatisfaction ensues.

But here’s the punchline. On reflection, those same line managers frequently commented that they would love to not use their personal time for development and would also appreciate recognition when they take on tasks in addition to their already busy day jobs. Again, we find common ground between generations. The difference instead relates to how these wishes are communicated.

Communication styles

One trait that younger workers exhibit (and again, a trait that was levelled at Millennials in the 2010s) is talking openly about their thoughts and feelings. These generations have been encouraged to do so for decades and older generations may find that irksome. Not necessarily because they disagree with what is said, but because the act of sharing is often seen as unprofessional.

For example, we hear a lot about Gen Z’s financial woes, their subsequent diminished economic mobility, and consequently, their wish for a financial return on any additional responsibility. Does this mean that money is more important to this generation than others? No. The difference is that Gen Z talk about money, whereas older generations have a different communication style, as they were raised in an era where they were told not to discuss compensation.

But again, perhaps if you peer under the surface there are more similarities between generations than we initially think. Talk to Baby Boomers (born between 1946 and 1964) or older members of Generation X (born from 1965) about their retirement plans and you will soon get onto the subject of money. Similarly, discuss the importance of flexibility, the dislike of a one size fits all approach, and significance of meaningful work and you start to build bridges.

Actions for those managing a multigenerational workforce

Given the fast-growing shift in workplace demographics, the frequent misunderstandings thanks to generational biases, and changes in employee needs and expectations because of hybrid working, much needs to change to effectively manage multigenerational dynamics. However, this also presents a great opportunity for collective learning.

The diversity offered by a four-generation workforce allows people managers the opportunity to improve cohesion and develop diverse teams in a psychologically safe work environment. To do this, leaders must:

• Educate their teams regarding the myths of false generational stereotypes.
• Facilitate open dialogue and find common ground between generational cohorts, especially regarding work-life balance expectations and attitudes towards reward and additional responsibility.
• Aid networking by arranging both traditional and reverse mentoring opportunities across age groups to help share knowledge and skills.
• Be flexible by discouraging a one size fits all approach across generations and instead adjusting HR policies, as well as management and communication styles, as necessary.

This won’t always be easy, so it will have to involve compromise on both sides, with younger generations adapting as well as executive leaders learning from less experienced employees as cultural norms develop. But the outcome will be well worth it, with shared empathy across generations helping to drive operational effectiveness, enhance problem solving skills and build longstanding resilience.