There’s about to be a shift in the workforce.
According to a report by Glassdoor Economic Research, Gen Z is set to overtake Baby Boomers in the full-time workforce in 2024. While Millennials and Gen X still make up the majority of the full-time workforce, Gen Z’s approach to work and business is an important component that many companies now consider.
With multiple generations in the workforce, and even some of the Silent Generation still working full time, it’s more important than ever that leaders understand generational diversity and how to harness it to increase productivity, collaboration and goal achievement.
It is important that leaders understand how to positively approach generational diversity in the workplace since most organizations include a wide range of age groups.
“We're thrust into different generations regardless of where we are,” says Gretchen Oltman, JD, PhD, Master of Science in Organizational Leadership program director at Creighton University. “Thus, we need to value people for who they are and what they can bring to a given situation.”
As with most things, there are both benefits and challenges with generational diversity in the workplace.
Diversity of thought and talents
Each generation brings its own lived experiences and insights to the workplace, informing both how they make decisions and the tools and technology that they use. For example, someone with more lived experience may bring time-tested methodologies and streamlining processes to the table, while a less-experienced yet more modern professional could offer outside-the-box ideas using tech-driven approaches. Put together, this could lead to new ways of solving problems.
“When we recognize and embrace diverse talents and skills, we open the door to both personal and professional growth,” Oltman says. “You have to be open to the notion that your way isn’t the only way.”
Increased productivity
A report by the Organisation for Economic Cooperation and Development (OECD) notes that organizations with the appropriate policies and practices in place are more productive if they have more older professionals than the average organization. Their research found that this is due in part to turnover rates.
The OECD found that turnover is 4% lower at companies that have a 10% higher share of workers over 50 years old. A lower turnover rate can also increase stability in a company.
“If we invest in our employees throughout their careers, when they get into the later stages, they are more likely to stay,” says Oltman. “This is beneficial because these employees can then use their expertise and knowledge to help inform the next generation of talent.”
Boosted knowledge and expertise
The OECD report also found that “the experience of older workers helps younger workers perform better, thereby boosting firm productivity directly and indirectly."
“Experienced professionals can bring a confident, reassuring perspective based on lived experience and knowledge, while novice colleagues bring an energy and excitement that promotes innovation and creativity, which can breathe life into some mundane and routine tasks,” Oltman says.
Understanding a wider client base
According to an article by diversity and inclusion learning platform Aperian, “A generationally diverse workforce is one that can effectively market a company’s projects and services to the widest group of people.” On the other hand, a workforce entirely made up of one generation may be at a disadvantage when trying to ideate products or marketing collateral for buyers of other generations.
Besides bringing in new clients, a diverse workforce can also be helpful for building strong organizations that are sustainable over time. Different age groups may prefer communicating in different ways; whether it’s a Baby Boomer preferring a phone call or a Millennial preferring text messages, an age-diverse team can help your company put its best foot forward with each client.
Relying on generational stereotypes
Peruse social media long enough and you’ll see plenty of memes and posts about commonly held beliefs on generational differences. While they’re often shared for a laugh, “such beliefs can have a negative impact on individuals, institutions and society,” according to The Cambridge Handbook of the Changing Nature of Work. Unfortunately, these ideas can still permeate the workplace.
“Just because someone is from a certain generation does not mean that they fit the stereotypical categories or assumptions,” says Oltman. “Assumptions can cause obstacles to achieving goals. Instead, purposefully seek out the positives as a way to build meaningful relationships.”
Not listening to the expertise of other generations
When people rely on generational stereotypes, they may also feel less inclined to listen to what some team members have to say.
“Those kinds of preconceived notions can lead to thoughts such as, ‘You don’t understand today’s thinking,’ or ‘You’re too young to know how this really works,’” says Oltman. “It’s important to remember that we can learn from each other. In fact, the more we are willing to listen and learn from each other, the stronger our organizations become.”
Differences in communication preferences
Different generations tend to prefer to communicate in different ways. For example, an article in Online Media and Global Communication reports that Baby Boomers may prefer phone calls or face-to-face meetings, while Generation X may prefer email for regular communication and in-person meetings for important discussions.
As with anything regarding generational differences, this may not be true of all people within that age group. But when preferred communication methods differ, it can lead to conflict.
“It is a fantastic learning experience to work beside and with colleagues from different generations. We should be willing to learn who they are, how they best work, and how we can best partner with them to meet organizational goals,” says Oltman. “We can all benefit from these interactions, and if we navigate them well, we find lifelong connections.”
Professional development needs differ
According to AARP, the youngest and oldest workers have traditionally been the least likely to receive training from their employers. More recently, organizations are starting to realize that all of their employees could benefit from access to training opportunities. However, employers should consider the experience and professional journeys of their employees when considering professional development, especially when it comes to soft skills.
“Generational diversity requires varied professional development opportunities—not a one-size-fits-all approach,” Oltman says. “We need to be more cognizant about employees’ professional growth needs as those can change throughout the various stages of their career. As professionals spend more time in the organization, more opportunities for personalized and individualized development should be available.”
“The foundation of organizational leadership is seeing colleagues, employees and partners as individuals,” says Oltman. “This includes recognizing the talents and skills of each person, regardless of generational identity.” The master’s in organizational leadership program at Creighton aims to help students achieve that mindset.
“At Creighton, our Jesuit principles teach us to be compassionate and do purposeful work for and with others,” she says. “It means I'm willing to see the value in the people that I'm with and help create an environment where they can reach their full potential.”
The program also teaches students about having a growth mindset. The term, first coined by Stanford psychologist Carol Dweck based on her and her colleagues’ research, is defined as “the belief that a person’s capacities and talents can be improved over time,” according to Psychology Today. It is the opposite of a fixed mindset, in which a person believes that they are limited in their capacity to learn or grow.
In this case, it means being open to different viewpoints, perspectives and experiences. “It’s important to recognize that others can bring ideas that may have never entered your mind,” says Oltman. “This is a positive aspect of professional growth, not a detriment.”
According to Oltman, other tools taught in the master’s in organizational leadership degree program that help prepare students to work cross-generationally include:
Learning these skills and values in Creighton’s organizational leadership degree program could also help employees stay ahead of workforce trends.
In fact, a report by the OECD found that “70% of employers report that they would likely [support] or at least explore multigenerational workforce policies.” Additionally, a joint report by OECD, the World Economic Forum and AARP found that “83% of global executives recognize that a multigenerational workforce is key to business growth and success.”
“It is encouraging to see organizations [make] collaborative efforts to strengthen all professionals in their unique career stages,” says Oltman. “We need to see our colleagues and employees as humans, recognizing their individual talents and skills. Every generation brings something different.”
It's more important than ever for current and aspiring leaders to be prepared to lead and help build more generations of leaders. Creighton University’s online Master of Science in Organizational Leadership degree program can help.
Through this program, students will learn the skills needed to handle adversity, collaborate and lead positive change in the workplace. They’ll also be immersed in the program’s mission to develop moral and ethical leaders who use their skills to promote social justice and societal and organizational change—so closing the generational divide is just the start.
If you’re interested in growing your leadership skills, learn more about Creighton’s online Master of Science in Organizational Leadership, or reach out for more information.