Engaging Your Multigenerational Workforce

Today’s workplace can have members from five generations working alongside one another. For HR leaders who want to put together a competitive benefits package, understanding the needs and priorities of different groups of employees is essential.

Reviewing demographic research and trends, as well as some of the social, political, cultural and financial events that have shaped the experience of generational groups, can provide nuanced insight into segments of your work population. However, generalizing about age groups is often rife with bias and can risk labeling people based on a shared experience at the expense of their individuality. Demographers at the Pew Research Center recommend treating generational categories as reference points rather than scientific fact or universals.

What do the different generations want?

The good news is that employees of all ages have more in common than you might imagine. A Korn Ferry workforce report notes that it’s nearly universal for people to respond favorably to robust benefits, cash rewards and recognition for a job well done – and much more.

Many of the latest workforce reports indicate that employees of all ages value flexible work options, flexible paid time off, professional development opportunities and mental health resources.

Traditionalists

Traditionalists are employees in their mid-70s and older and who comprise a small (roughly 3%) but growing portion of the workforce. Americans are living and working longer than ever before. As the cost of goods and services goes up, many older adults are choosing to postpone or come out of retirement. The US Bureau of Labor Statistics projects labor force participation rates for people 75 and older to continue to increase, rising to as much as 11% by 2030.

Traditionalists at work

Shaped by the post World War II reconstruction and the Cold War, Traditionalists tend to be responsible, dependable and loyal. They highly value demonstrations of respect and recognition at work, and bring a personal touch to communications, preferring face-to-face interactions over video conferencing, texts and emails. They also prefer to work onsite, where they can meet directly and cultivate relationships.

Incentives that motivate them

As a group, Traditionalists are often impacted by financial and health considerations. They are motivated by a range of perks that include health benefits and flexible work schedules that give them some control over their schedules yet still allow them to regularly work onsite.

Baby Boomers

Baby Boomers – or Boomers, for short – range in age from mid-50s to mid-70s and make up 25% of the labor force. Born when there was a spike in birth rates, boomers formed the largest generational group in US history until recently and are also the longest-living generation. Sometimes called the “Me” generation, this group has redefined what it means to age, staying active and making substantial investments in their own health and well-being. Increased life spans and healthier lifestyles have allowed boomers to remain in the workforce longer than the generations before them.

Boomers at work

Workplace experts describe this older generation as competitive, hard-working and deriving both identity and pleasure from work as compared to younger generations who are more likely to report feeling stressed at work. The Pew Research Center finds that older workers are increasing in number, working longer (62% are working full time) and earning more than in years past. They’re also more likely to be receiving benefits such as pension plans and health insurance, unlike younger workers.

Incentives that motivate them

For younger Baby Boomers, many of whom continue to support adult children and their families, adequate compensation remains a top priority. But like their younger counterparts, meaningful work and workplace flexibility are also listed as the top reasons why they choose to stay in their current job. One industry survey finds that 40% of Boomers support working remotely, either at home or in different locations.

Gen X

Gen X employees range in age from early 40s to late 50s and make up one-third of the workforce. This generational group was shaped by the information revolution and grew up with rapid technological innovation, from web browsers and computers to widely available internet connections, social media and streaming music. They grew up at a time when there were more divorces, single-parent families or in households where both parents worked (the “latchkey generation”). They’re the least prepared to retire than previous generations having been hit by three economic upheavals: the Dot Com bust, the financial crisis of 2008 and the Great Recession.

Gen X at work

Broadly, and perhaps as a result of experiencing boom-and-bust cycles, including corporate implosions such as Enron, this generational group has trust issues. They are more questioning of employers’ decisions and motivations than previous generations. Having learned how to be resourceful and comfortable spending time on their own, they tend to prefer to work independently and enjoy a great deal of autonomy. This generational group is under stress. Referred to as the sandwich generation, many Gen Xers are caring for aging parents and supporting adult children (impacted by inflation, rising housing costs and the pandemic) – all while having lower levels of wealth than their parents.

Incentives that motivate them

Gen Xers are motivated by stability and knowing their employer is investing in them for the long term. Benefits that connect with them include flexible work, mental health resources – including insurance and workplace counselors/therapists – and flexible paid time off.

Millennials

Millennials, also known as Gen Y, range in age from late 20s to early 40s. They are now the largest generational group in the workplace, making up about 35% of the workforce. This generation has been shaped by 9/11, Columbine and the rise of school shootings, as well as digital media. Millennials and Gen Zs are the most ethnically and racially diverse cohorts and value diversity as well as responsibility to a global community and the planet. Millennials cut their teeth on the internet. They are tech savvy and accustomed to the frequency, speed, convenience, ease and ongoing nature of digital communications and networks.

Millennials at work

Millennials have a reputation for changing jobs. A recent Gallup report finds that three times as many Millennials have changed jobs in the past year than any other generational group. And while it’s true that 6 in 10 say they’re open to new opportunities, it’s also true that their generation has seen stagnant wage growth combined with significant student loan debt and inflation, putting financial independence (not to mention home ownership) out of reach for many younger Millennials. Moreover, when the pandemic hit, many found they could do their jobs remotely as well – if not better – than when they went into the workplace. With employees being called back, Gallup reports that more than half (55%) of Millennials say they’re emotionally disengaged at work. Other surveys find them to be the least satisfied with their compensation of all the generational cohorts.

Incentives that motivate them

Millennials need to feel engaged, valued and well compensated in the workplace, and view work-life balance as a top priority. Employers may want to consider a compensation package that includes the following benefits: flexible work options, flexible time off and mental health resources along with opportunities for developing their strengths such as upskilling.

Gen Z

Gen Z, or Zoomers, describes the youngest generational group in the workforce, those who are in their mid-20s and younger and who make up about 12% of the workforce. Gen Z had a rocky start, entering the labor market at a time of turmoil – the pandemic, rising inflation, the Great Resignation and threats of a recession.

Gen Z at work

Like the generation before them, these digital natives are tech savvy and respond well to ongoing mentorship and conversations rather than annual reviews or feedback after the moment is gone. They expect to stay connected through communication platforms such as Slack, Zoom and Teams – not to mention a host of social media platforms – and to do so at any time and from anywhere (along with any administrative functions like editing and timesheets) via their mobile phone. A 2024 Deloitte survey finds that 8 in 10 Gen Zs say that having a job that gives them a sense of purpose is important to their overall satisfaction. They gravitate to companies that have a clear mission and values that align with their own, prioritize people over profits, and strive to make a positive impact on society and the environment. A McKinsey survey found that younger workers prioritize work-life balance as well as support for their mental health.

Incentives that motivate them

With a proactive interest in health and wellness, Gen Z is seeking employers who offer flexible work options and mental health resources. Moreover, these young workers are more vulnerable to job loss and seeking opportunities with companies willing to invest in their growth and development.

Set yourself up for success by offering a solid and proven benefits package that includes flexible work strategies and commuter benefits to meet the needs of your current and future workforce.

Georgia Commute Options—a program made possible by the Atlanta Regional Commission and Georgia Department of Transportation—works with employers at no cost to develop commuter programs that move the needle on air quality in the Atlanta region. Let’s discuss how we can help.