Retaining a Multigenerational Workforce from Boomers to Gen Z

The workforce today is a unique, multigenerational landscape that spans five distinct groups that generally have different kinds of working preferences, profiles, and outlooks on work. It’s also where generations in the workplace are blending like never before. From the seasoned experience of Baby Boomers to the tech-savvy insights of Gen Z, the multigenerational workplace is the future.

While this diverse age range brings a valuable diversity of experiences, perspectives, and skills to your organization, it can also present its own set of unique challenges. But here’s the silver lining: leaders can overcome these challenges. In fact, by understanding the defining characteristics of each generation and finding commonalities, you can create strategies that foster success, harmony, productivity, and growth.

As humans live and work longer, it’s important to consider how generational differences affect employee experiences, attitudes, and expectations. Taking time to understand what incentivizes and motivates different generations in the workplace can help companies recruit and retain a diverse generational employee pool.

This article will consider what generations make up the modern workforce and four ways you can create an inclusive workplace where every generation feels valued and understood plus approaches to employee retention for everyone.

The Importance of Understanding Each Generation

A variety of generations creates a more diverse and inclusive organization as each cohort brings its own unique background, perspectives, and experiences.

Companies can harness each generation’s expertise and skills to build more effective, cohesive teams. Knowledge sharing helps! Older generations can share their valuable institutional knowledge and experience gained over the years, and in turn, younger generations can assist in optimizing new processes and technologies that can make some of those experiences more efficient.

Understanding what appeals to each generation can extend beyond employee pools and help attract more diverse generational clients. Employees from each generation can provide insights into the behaviors and preferences of their respective age groups to help with consumer insights, tailored marketing, and product development.

Without understanding how each generational group operates, companies can unknowingly create disruption within the workplace.

What Are the Five Generations?

Currently, there are five generations are working side-by-side in the workplace.

Each generation is made up of generally applicable strengths and characteristics that change how they interact in the workplace. Let’s go through them before we go into some general retention tips afterward.

(Note: We know know not every person of a certain generation fits the same profile! These are generalizations that have been studied and applied as millions of workers have gone through their careers. But as a leader at work, it’s important to get to know and understand the specific habits, ethics, and work styles of your workers.)

The Silent Generation (“Traditionalists”):

Born from 1922 to 1945
Make up approximately just 2 percent of the current workforce
Defined as being dependable, straightforward, and loyal
Have a worldview of respecting hierarchy, obedience, and seniority
They’re, at the youngest, in their late 70s, so those still working may be coming up fast on retirement time

Traditionalists lived through significant historical events (something many of us can now relate to post-2020), such as the Great Depression and World War II, which greatly influenced their values and work ethic. They’re known for their strong sense of duty, loyalty, and adherence to traditional values and rules. In the workplace, you may see that Traditionalists value:

Stability
Consistency
Formal recognition
Clear hierarchies
Face-to-face communication
Written documentation

Respecting their long history in the workforce, acknowledging their vast experience, and providing the right tools and training to navigate modern workplace technologies can help integrate them seamlessly into a multigenerational team.

Baby Boomers:

Born from 1946 to 1964
Make up approximately 25 percent of the current workforce
Generally have a worldview shaped around making sacrifices for success.

Baby Boomers emerged after World War II during a period marked by a rapid increase in birth rates known as the “baby boom.” While the number of working Baby Boomers has decreased over the years, they remain a significant portion of the workforce. In fact, according to the U.S. Bureau of Labor Statistics, workers age 65 or older are the fastest-growing segment of the workforce.

In the workplace, Baby Boomers might be known for their strong work ethic, loyalty, and dedication. They grew up in a time when staying in a single company for an entire career was more common, so they may value job security and stability. They might also appreciate:

Face-to-face communication
Personal recognition for their achievements
Opportunities for professional development

Many have adapted to and embraced technological advancements and value a blend of traditional and modern approaches in the workplace.

Generation X:

Born from 1965 to 1980
Make up 33 percent of the current workforce.
Are seen to have a worldview that favors diversity

Generation X, or Gen X, is made up of individuals born between 1965 and 1980. They grew up between the pre-digital and digital eras when societal values started to shift, and technological advancements began. They were there during the wave of technology use growth in the workplace. Having been working since the 1990s, they may have advanced to middle and upper management after years of experience.

Gen X may value a balance between work and personal life in the workplace and is often credited with the push for more flexible work conditions. They may appreciate autonomy, continuous learning, and skill development since they had to adapt to numerous technological and societal shifts throughout their lives and careers.

Feedback and clear communication may also be important to them, and they can be collaborative and team-oriented workers and leaders.

Millennials:

Born from 1981 to 1996
Make up 35 percent of the current workforce
Seen as being civic-minded, competitive, achievement-oriented, and open to people and experiences

Also known as Generation Y, Millennials were born between 1981 and 1996. They’re sometimes referred to as “digital natives” because they grew up during the rapid advancement of the internet and digital technology. They’re the largest presence in the modern workforce by volume, and are sometimes seen as drivers of changes in culture and expectations.

When it comes to workplace values, Millennials might prioritize purpose and meaning in their jobs. They may want to work for companies that align with their personal values and have a positive impact on the world. They might prefer roles that offer flexibility like hybrid options or remote work, flexible hours, and work-life harmony.

Some Millennials may value professional growth and development opportunities as a top priority. They may also appreciate:

Regular feedback
Transparent communication
A collaborative work environment

Generation Z:

Born from 1997 to the early 2010s
Make up 5 percent of the current workforce but is rapidly growing as they reach adulthood
Seen as entrepreneurial, progressive, racially and ethnically diverse, and global-minded
Have a worldview that is still maturing, but they seem to prefer innovative technologies and individualism
They have gravitated towards Millennial management styles and prioritize diversity, personalization, and creativity over rigid structure

This generation is the newest in the workforce and is sometimes characterized by their upbringing in a fully digital world. They’ve rarely known a time without the internet, smartphones, or social media as adults. While they’re one of the smallest generations in the workforce, their perspectives may be already impacting workplace dynamics.

Some members of Gen Z greatly emphasize diversity, equity, and inclusion (DEI). They may seek workplaces that implement and uphold these values. They may also value flexibility and prioritize continuous learning and upskilling in technology and digital innovation.

Like Millennials, Generation Z may enjoy transparent, authentic communication from their employers. Some may also value a company culture that promotes collaboration, innovation, and mental well-being.

Steps to Retain Each Generation in the Workplace

Each generation is concerned about work-life balance, communication, and pay/benefits, but how they voice their needs and the sacrifices they’re willing to make to get them varies.

A generational study by GoodHire found that higher wages were a uniting multigenerational desire, but Gen X and Millennials are more likely to sacrifice pay for better work-life balance than their Baby Boomer colleagues. Also, despite reporting being the happiest and most fulfilled with their jobs, Millennials are the most likely generational group to switch jobs in the next 12 months.

So, what steps can employers take to support a healthy multigenerational workforce?

Inclusive Policies

Review and update company policies to ensure they are inclusive of the needs of each generation. This includes things family-friendly policies and age-appropriate benefits.

Have members from each generation weigh in on the company policies to ensure they address each unique cohort’s needs.

Mentorship Programs

Encourage cross-generational mentorship programs that allow employees to learn from colleagues outside of their generation.

Mentorship programs can go both ways. For example, Baby Boomers could structure leadership training for Gen X and Millennials. Gen Z can offer technology trainings for their older cohort colleagues who may be less versed in some newer technologies.

Flexible Work Arrangements

Each generation may value a varying degree of flexibility.

Consider implementing flexible work arrangements such as alternating schedules, hybrid work environments, annualized hours, or compressed workweeks to accommodate each generation’s need for work-life balance.

Training and Development

Offer tailored training and development programs that align with each generation’s career goals and learning preferences. This includes targeted training that considers each generational group’s career stages, technological proficiency, and professional development goals.

Ensure that training formats resonate with the right generation. Baby Boomers may prefer in-person workshops, whereas Gen Z could lean toward online interactive modules.

Note: Older generations still want to develop! Career growth doesn’t stop at 35, 45, or 55, or 65.

Multigenerational Teams

Make an effort to staff multigenerational teams where employees can collaborate, share knowledge, and work directly with colleagues of various generational backgrounds.

Some teams may inherently skew younger due to the newer fields and job types. But still try to find ways to bridge generational gaps by having teams work cross-departmentally or hiring leaders from other generations who can offer insight and business knowledge.

Recognition and Rewards

All employees want to be recognized. Find ways to offer recognition for employees of all generations by rewarding merit, contributions, and tenure. According to a 2022 Zippia survey, 83 percent of employees are happier when they receive recognition for their work. Furthermore, 63 percent are unlikely to leave their jobs when they receive appropriate recognition—regardless of age. And over half of employees from all generations rate job prestige as their highest work priority. So, it’s worthwhile to consider creating a robust employee recognition and reward program that includes all these avenues of recognition to appeal to every generation.

Younger generations, such as Gen Z and Millennials, may not have long tenure or leadership positions but could appreciate being celebrated for their individual contributions to a project or team’s success. Gen Xers who have worked their way up to positions of power may appreciate their merit being recognized. Baby Boomers and Traditionalists who have provided loyalty and years of service may tend to value tenure-based recognition.

Maintain a Multigenerational Workforce

Hiring and retaining a multigenerational workforce is incredibly rewarding.

Each generation can bring so much to a team and company. Creating intentional efforts to boost and retain employees across every working generation shows that your business is willing to invest in its people and has a commitment to and inclusive work environment.