Generational Differences in the Workplace

By Misti Mukherjee and Raabia Cheema

Today’s workplaces employ five generations of workers, ranging from the “Silent Generation” (born between 1928 and 1945) to “Gen Z” (born between the mid-to-late 1990s and early 2010s). A sixth generation, “Generation Alpha” (born between 2010 and 2024), will soon join. Imagine all of the very real and very distinct social, political, and cultural norms across the past century, and the effect of combining all of those varied experiences into one organizational ecosystem. Diversity in individual lived experiences strengthens any organization; to successfully lead, engage, and retain a multigenerational workforce, leaders must listen, adapt, and reinforce human commonalities.

As is the case with most employment issues, the key lies in leadership. Here are some thoughts to consider:

Remote Work. 2024 has seen a greater shift towards returning to on-site work, but according to a recent Protiviti study, workers across all generations continue to value flexible work hours and hybrid/remote workplaces. Remote opportunities remain a preference, with 34% of Millennials and 73% of Gen Z employees wanting permanent flexible work alternatives. Older generations have also become accustomed to the flexibility associated with post-pandemic hybrid and remote workplaces.

How to respond? Understand and don’t ignore employee expectations about flexibility, work location, and work hours. While business needs will dictate the availability of flexible work options, encourage company leaders to be creative, to adapt, and to communicate effectively with employees about business needs. Effective communication means being direct, honest, transparent, and empathetic, clearly communicating potentially unpopular news while also acknowledging potential negative reactions and providing context to help people understand the decision-making process. Remaining open to hearing different perspectives broadens a leader’s understanding of issues, helps them to identify their own biases, and fosters the kind of trust-based communication that creates loyalty, engagement and retention.

Social Change and Activism. According to the Society for Human Resource Management (SHRM), environmental, social, and governance (ESG) initiatives are important to workers of every generation. ESG initiatives such as the reduction of waste and pollution, the improvement of employee health and safety, and improvement in ethical protocols and leadership diversity are considered important to almost half of the workforce polled, and 75% of polled executives believe that ESG initiatives have a positive impact on employee engagement. Younger employees expect their employers to advocate and invest in a sustainable future and they value the opportunity to participate in employer-led initiatives.  As an example, according to the Deloitte Global 2022 Gen Z & Millennial Survey, only 18% of Generation Z and 16% of Millennials are confident that their organizations are strongly committed to doing their part to fight climate change. 

Workforce activism is also rising, as social media, geopolitical conflict, and online activist platforms expose organizational action and inaction, and employees feel a new power dynamic between their employer’s position on activism and their own individual identities. In Leading in an Age of Employee Activism, MIT Sloan Review researchers Megan Reiz and John Higgens observe that employees expect managers to engage on topics like climate change and racial equity, and leaders need to be ready to respond to employee activism. Millennials believe that they can make a greater impact on the world than can their leaders, and are ready to change jobs when organizational stances do not reflect their values. 

How to respond? Find out what really matters to your employees: understand, be curious, and be humble. If leaders ignore or are callous about social issues, or are performative, they will face reputational and workforce backlash from a workforce comprised of mostly Millennials. Consider the company’s approach to communication – how does it share information and decision-making? Do leaders develop skills in active listening? What are the platforms available to receive employee feedback? Do leaders understand the organization’s approach to mission alignment on social justice issues?  Do employees understand that approach?  What written policies and practices exist regarding social media, crisis management, and engaging in respectful conflict and dissent?  Ignoring dissent is a direct path to misunderstanding, conflict and activism. 

Artificial Intelligence. The rapid development of artificial intelligence (AI) is directly impacting employees in the workplace. 85% of workers have used AI tools to perform tasks at work, with millennials leading the charge. On the other hand, 74% of employees state that they are fearful or anxious about the adoption of artificial intelligence in the workplace, citing fears of lower pay or even replacement.

How to respond? Do you have a sense of where AI is being used at work?  Develop targeted workplace policies, norms, and training to address employer expectations about the use of AI at work. Explain the issues, manage compliance, monitor concerns, and ensure that workers are not only prepared for but also able to leverage the changes that AI brings.

Mental Health. According to the Deloitte 2024 Gen Z and Millennial Survey, 40% of Gen Z employees and 35% of Millennials report high feelings of stress all or most of the time. Major stressors include job-related factors, such as working hours or lack of recognition. And fewer than six in ten employees feel comfortable speaking with their managers about stress or other related mental health challenges. Younger workers continue to feel stigma around mental health in the workplace. While older generations may be less vocal about mental health issues in the workplace, similar stressors exist for them as well, for example, adapting to new technologies, health concerns, and perceptions about lack of career development opportunities.

How to respond? Leaders should make consistent, vocal commitments to stigma-free workplaces and offer mental health resources that are readily available to employees. The Deloitte survey highlighted that for many people, their relationship with their manager has a significant impact on their mental health, on par with the impact of their partner, and even greater than the impact of their relationship with their doctor or therapist. Strengthen the skills of managers to better lead, communicate, and inspire trust with their teams ~ this investment will have with an impactful ripple effect on the health, alignment and productivity of your workforce. Senior leaders should also feel empowered to speak up about prioritizing mental health in their organizations.   

Growth and Development. Across the board, employees thrive when they do purpose-driven work. For an overwhelming majority of Gen Z and Millennial employees, a sense of purpose in their work is tied to overall job satisfaction and personal well-being. In fact, the overall post-pandemic workforce has a desire for meaning, purpose, and growth at work. Opportunities for professional growth are also key to attracting talent intergenerationally—learning and development opportunities are one of the top three factors considered by Gen Z and Millennials when choosing an employer. Organizations that emphasize professional growth and career development are far more likely to enjoy improved business outcomes.

How to respond?  Reinforce organizational purpose at the workplace and tie organizational purpose to individual workers’ personal sense of purpose. Emphasizing that the work of an individual worker is important and tied to the overall success of the organization will boost employee engagement, innovation, and retention. Invest in the development of employee skills. Employees who are confident in their work and who are provided opportunities for career progression are more likely to stay with the organization. Communicate with managers and employees to identify where additional training is needed. Consider mentorship programs that cultivate shared learning, professional development, and trust-based communication.