The multigenerational workforce – and why we should stop labeling generations

Key insights

• The term "multigenerational workforce" refers to the growing age diversity within the working population, aligning with the broader trend of an aging workforce.
• In this context, various (often negative) stereotypes are assigned to different generations, potentially hindering effective collaboration in age-diverse teams.
• Individuals from different generations differ in their attitudes, but the impact of life stages and individual experiences is frequently underestimated.
• Rather than perpetuating generational stereotypes, it is more constructive to emphasize shared objectives and individual strengths and expertise as the focal points for collaboration.

The multigenerational workforce – an aging workforce

First of all: It is crucial to note that the classification of generations – X, Millennials, Z, and Alpha – lacks empirical foundation. Scholars and demographers have advocated for discarding generational labels, equating them to no more than astrological signs in providing meaningful information about an individual.

However, the term "multigenerational workforce" captures critical reality: The elongation of working lives due to increased life expectancy is reshaping the composition of our workforce. According to the Federal Statistical Office, the labor force participation of individuals aged 65 to 69 has surged from 11% to 19% over the past decade. In the United States, one in four individuals aged over 65 remains active in the workforce. Projections from the U.S. Bureau of Labor Statistics paint a picture of further shifts, anticipating a labor force participation rate of 10% for individuals over 75 by the year 2032. This underscores the evolving nature of our workforce and the imperative to adapt to these demographic changes.

Attitudes and personalities change throughout a lifetime

To what extent do generational disparities truly exist? Stepstone conducted a survey encompassing individuals of varied age groups to discern their key considerations when selecting a new job, excluding the factors of salary and job security (Stepstone, Silent Resignation, 2022). Notably, 60% of those under 30 prioritize robust career and development prospects, closely followed by a preference for flexible working hours. Meanwhile, individuals aged 30 to 50 prioritize work-life balance and family friendliness (62%), flexible working hours (59%), and adaptability in work arrangements, such as remote work (57%). The dynamics shift among those over 50, where emphasis leans towards the meaningfulness of the job (59%), flexible working hours (53%), and the leadership style of their manager (51%). Do these findings support generational theories?

Empirical evidence for generational differences, if any, is mixed: many studies have failed to find differences in values and attitudes across generations. Even if differences were identified, no precise distinction was made between "age" in the sense of life development and "generation". The priorities of an individual who prioritizes good career and development opportunities in their mid-twenties are likely to evolve over their lifespan. The significance of one's profession in shaping personal identity tends to increase with time, and as individuals accrue professional experience, the alignment between job requirements and individual skills improves (The Stepstone Group, The Engagement Advantage, 2023).This development underscores the valuable contribution of older employees. Simultaneously, it should not diminish the worth of those entering the workforce. The persistent desire for career and development opportunities among young professionals challenges the stereotype of their purported lack of motivation. Consequently, it is imperative to move beyond viewing individuals through the lens of a specific generation and acknowledge the heightened significance of unique, individual differences.

Leveraging the benefits of age diversity

Age diversity encompasses more than just variations in the year of birth. According to Prof. Dr. Thomas Ellwart, Professor of Business Psychology at the University of Trier, a team’s diversity is best understood by considering characteristics that are related to age but only become visible through communication, such as individual motives, knowledge, and experience.

Effective communication and working towards a common goal are key factors in harnessing the full potential of age diversity. Teams that frequently highlight differences, be it age or gender, risk the formation of subgroups. When team members identify more strongly with a subgroup than the team at large, it can impede communication. Focusing on a common goal fosters greater team cohesion.

Furthermore, the success of age-diverse teams is contingent on their ability to recognize and actively leverage the diversity in expertise and experience. Facilitating knowledge exchange enhances interpersonal relationships. Designing tasks that necessitate the exchange of knowledge among team members can be a strategic approach to promoting collaboration and realizing the benefits of diversity.

What does this mean for companies?

The prevailing term "multigenerational workforce" underscores a significant trend: Given demographic shifts, the diversity of ages within companies is bound to expand, necessitating collaboration among individuals in various life stages. In the face of increasing complexity and a rapidly evolving work landscape, where smaller teams are tasked with achieving more, it becomes imperative for companies to adeptly navigate the management of diverse teams.

However, the rigid categorization of generations overlooks the richness of individual experiences and unique needs. An approach that acknowledges individual experiences and lifelong development far outweighs a categorical distinction between generations. Managers should therefore articulate a shared objective and enhance awareness while capitalizing on diverse expertise and experience through heightened collaboration. If this can be achieved, a successfully managed multigenerational workforce can be a key to overcoming skills shortage.