Benefits and Challenges of Adopting a Multigenerational Workforce

As companies undergo tremendous transformations due to new technologies, workforces are also being transformed due to the presence of different generations at work. Today’s workforce is genuinely multigenerational. This creates challenges due to different communication styles, work practices, and employer expectations. Likewise, it also creates significant opportunities as different generations bring different experiences and skills to the table.

This article explores the meaning of a multigenerational workforce, its challenges, and its advantages for fostering collaboration and productivity.

What is a multigenerational workforce?

A multigenerational workforce comprises employees from different age groups working together. As of today, the current workforce consists of five generations:

1. Traditionalists (1928–1945): This is the oldest generation, often retired but sometimes involved as consultants or part-time workers.
2. Baby Boomers (1946–1964): Known for their strong work ethic and commitment, they often provide valuable insights and stability to the team.
3. Generation X (1965–1980): Independent and adaptable, they have witnessed significant technological advancements and bring a pragmatic approach to problem-solving.
4. Millennials (1981–1996): Having grown up amidst rapid technological changes, they value work-life balance, seek purpose in their career, and thrive in collaborative environments.
5. Generation Z (1997–2012): These are true digital natives, having been raised with technology at their fingertips. They offer fresh perspectives and creativity, particularly in the digital realm.

Benefits of having a multi-generational workforce

• Multiple perspectives 

Each generation has its own cultural background, unique life experiences, and ways of thinking, which lead to diverse perspectives. This diversity fosters creativity and innovation, enabling businesses to solve problems more effectively. Moreover, it helps organizations to adapt to changing markets more quickly.

• Knowledge sharing

Different generations enable knowledge sharing and skill transfer within the organization. Older and experienced employees can pass on valuable insights to younger colleagues, while younger employees can introduce new technologies and fresh approaches to work. This synergy enhances learning and organizational growth.

• Broader market understanding

A workforce representing multiple generations can better understand and serve a diverse customer base. Insights from different age groups ensure more relatable products and services. Varied approaches and thinking styles lead to comprehensive solutions, benefiting the customer and the organization together.

• Sense of community

When people from different backgrounds collaborate, it creates a stronger sense of team unity and belonging. It can foster empathy, respect, and understanding.  Additionally, it can create an atmosphere of inclusion and fairness.

• Increased employee engagement

When managed effectively, a multigenerational workforce can boost employee engagement. And when employees are engaged, they’re more likely to remain loyal to their organization over the long term, reducing the costly and disruptive cycle of hiring and training new staff. 

Moreover, engaged employees are less likely to suffer from burnout, as they benefit from better relationships inside and outside work when compared to employees who are not engaged. This can positively impact the organization’s overall work culture.

Challenges of a multigenerational workforce

• Communication style

Each generation tends to have its preferred communication style. Older generation may lean toward formal, face-to-face meetings, while younger workforce prefer quick, informal messages through digital platforms like Zoom or Microsoft Teams. Choosing the right communication channel for all is tricky.

• Different working style

Older employees may prefer structured work environments, while younger generations might thrive in flexible, collaborative spaces. Aligning these preferences can be challenging.

• Resistance to change

Older generation might resist adopting new technologies or processes, whereas Millennials and Gen Z often embrace change readily. Bridging this gap requires careful management.

• Stereotyping and bias

As with any type of diversity, people have preconceived notions about those in a different age group. Older generations may assume that younger people are entitled, oversensitive “snowflakes.” Youthful employees may presume that those that are older than them are inflexible and afraid to embrace change. Such negative stereotypes might lead to toxic company culture, disparate treatment, ageism, and legal problems.

• Differing expectations

Different generations have different expectations from the organization. Baby Boomers and Gen X may prioritize long hours and job stability, while Millennials and Gen Z seek flexibility and a strong work-life balance. Likewise, older generations might value job stability and traditional career paths, but younger employees often prioritize growth, learning opportunities, and rapid advancement.

Hence, to ensure successful collaboration between multiple generations, leaders need to adopt tailored strategies that accommodate diverse preferences and work styles. According to research, currently the top five workforce trends include: 

1. Salary: Competitive salaries and regular merit matter the most for all employees, except Gen Z, to a certain extent.
2. Flexibility: In today’s digital world, people want to pick when and where they can work — this is especially true for Gen Z. However, post-COVID, professionals across the generations say working from home offers considerable advantages over a 9-to-5 at the office.
3. AI skills: Workers across all generations are worried about AI and are interested in being trained/upskilled to better understand and utilize it. 
4. Contract work: Full-time contract roles appeal to many people because it allows them to take on a variety of assignments and build skills and connections.
5. Transparency: Regardless of age, employees want to know their exact roles and responsibilities. This is non-negotiable. 

Across all generations, these five trends are the motivators and influencers for people making career decisions. 

Is your organization fostering generational diversity in the workplace?

Studies says you might not be:

• According to the Society for Human Resource Management (SHRM), around 67 percent of companies face conflicts between different ages at work.
• Deloitte’s study shows that 60 percent of workers think their company doesn’t talk well to all ages.
• The ADP Research Institute found that 58 percent of employees deal with age-related conflicts, mainly because of different talking methods.
• A survey by Deloitte found that only 6 percent of leaders know how to manage teams of different ages well.

Fixing these problems is key to making work better for everyone. As work dynamics change, companies need to find ways to help people of all ages work well together. They should focus on sharing knowledge, learning from each other, and solving conflicts.

The goal is not to cater to one generation at the expense of others but to foster a workplace culture where every employee, regardless of age, feels valued, engaged and empowered to contribute their best work. This balance ensures leaders are prepared to meet the needs of today’s multi-gen workforce and are well-positioned for future growth. By being adaptable, thoughtful and data-informed, leaders can lead their organizations to thrive in an increasingly complex and competitive business environment.

In brief

Building and managing a multigenerational workforce is complicated, especially as workforce demographics and priorities shift. Ultimately, all professionals want to feel supported and valued. Understanding what makes different generations happy and striving to create a work environment that addresses their various needs can go a long way in improving employee engagement, productivity, and retention.