Understanding the Impacts and Opportunities of a Multigenerational Workforce

This article is part of Benefits Broker Confessional, where we talk shop with the leading minds in HR and break down the latest in benefits.

Five generations now exist in today’s rapidly evolving workplace, and each generation brings unique experiences, values, skill sets, and expectations to the table. With baby boomers delaying retirement, Gen Xers assuming leadership roles, millennials becoming the largest generational group and Gen Z entering the workforce, there has never been a more diverse mix of age groups collaborating within companies.

This rich blend of perspectives and experiences can lead to innovative ideas and fresh approaches to problem-solving. However, it also presents challenges, particularly in terms of communication preferences, working styles, and crafting benefit plan offerings that help gain, maintain, and motivate top talent.

In this blog post, we’re exploring some of these key multi-generational differences and strategies to help you bridge the generational gap and engage and recruit for the future of your workforce.

1. Traditionalists (born before 1946)

The traditionalist generation, also known as the Silent Generation, brings decades of wisdom and experience to the workplace. Traditionalists are accustomed to hierarchical structures in the workplace. They respect authority and appreciate clearly defined roles and responsibilities.  They are more likely to follow established protocols and procedures.

When it comes to communication, traditionalists tend to prefer face-to-face or phone conversations with colleagues, clients or superiors. They value professionalism and often favor more formal communication channels over informal ones. This generation is also big on personal interactions and therefore appreciates in-person meetings, networking events or handwritten notes to convey their thoughts and express gratitude.

Stability, loyalty and a sense of security are of high value to traditionalists. Employee benefit offerings that include retirement plans and financial planning assistance often appeal to them as they near retirement. Comprehensive healthcare coverage is also very important to this generation as they enter their later years, as is life insurance, which can provide peace of mind and financial security for their families.

2. Baby Boomers (born between 1946 and 1964)

Baby boomers have witnessed significant technological advancements and evolving workplace norms. They’re similar traditionalists in their appreciation for face-to-face communication and the opportunity to have direct conversations, build relationships, and gauge nonverbal cues during interactions. However, they also rely on phone calls and emails as primary communication channels.

Like the generation before them, baby boomers are accustomed to hierarchical structures. They value teamwork and collaboration in the workplace and appreciate working together with colleagues to achieve common goals and solve problems. Having accumulated significant experience throughout their careers, they often rely on their expertise when making decisions.

While baby boomers are known for their strong work ethic, they also recognize the importance of achieving a work-life balance. As a result, part-time schedules or remote work options can be very appealing. As this generation approaches or is already in their retirement years, employee benefit offerings like retirement plans, financial wellness programs and comprehensive healthcare coverage are likely to be appreciated.

3. Generation Xers (born between 1965 and 1980)

Generation Xers (Gen Xers for short) are known for their independence, adaptability and self-reliance. This generation is considered the "bridge" generation between analog and digital technologies. Gen Xers adapted to the rapid advancements in technology and are comfortable using various digital tools and communication platforms in the workplace. They prefer clear and concise communication, whether it's in-person conversations, emails or instant messaging and they value efficiency, feedback and autonomy.

Having witnessed significant shifts in the workforce and the emergence of new industries, Gen X is adaptable and open to change. They’re results-oriented and focused on achieving tangible outcomes. While Gen Xers were among the first to advocate for work-life balance, they also recognize the integration of work and personal life. They may appreciate the ability to handle personal matters during work hours as long as they maintain productivity and meet their commitments.

Many Gen Xers are concerned about balancing work and family responsibilities, so family-friendly benefit offerings such as paid parental leave, childcare assistance, and flexible work arrangements often resonate well with them.  As they focus on planning for their future retirement, robust retirement plan offerings and tools to help manage finances and plan and track retirement goals can also be of high value. Since Gen Xers are at a stage where health and wellness become increasingly important, consider offering healthcare plans that include preventive care, wellness programs, gym memberships and access to mental health resources.

4. Millennials (born between 1981 and 1996)

Millennials, also called Gen Y, are the first digitally native generation. Often characterized by their entrepreneurial mindset, millennials are innovative, creative, and resourceful. They value transparent interactions and rely on digital channels, such as email, instant messaging, and video conferencing, as their primary means of communication.

This generation seeks diverse and inclusive work environments where different perspectives are acknowledged and respected. Millennials like working in teams and value the exchange of ideas and opportunities for brainstorming, feedback and collaboration. They desire purpose-driven careers that align with their values and employers that invest in their skill enhancement and career advancement.

Unlike the generations before them, they prefer more work-life blend than work-life balance. Their boundaries between work and personal life are often blurred, and they may engage in work-related activities outside of traditional office hours.

Millennials often face financial challenges such as student loan debt and high living costs. Benefits like retirement savings plans, financial planning resources, student loan repayment assistance and competitive salaries are important to their financial well-being. Being the first digitally native generation, millennials also appreciate workplaces that embrace technology. Benefits like technology allowances, digital communication tools and modern human capital management platforms can appeal to them and help enhance their productivity and efficiency.  

5. Generation Z (born after 1996)

As the newest entrants to the workforce, Gen Z brings a fresh perspective and a deep understanding of technology. As another digitally native generation, they’re fluent in social media and online communication. They prefer short, concise messages and gravitate towards informal communication channels such as texting, chat apps and video conferencing. Gen Z is also heavily reliant on mobile devices, so it’s important they can manage work-related tasks on the go.

The similarities between Gen Zers and millennials go beyond their digital fluency. They, too, exhibit an entrepreneurial mindset and seek opportunities for growth and skill development. Many are interested in pursuing freelance or entrepreneurial ventures. Like Millennials, Gen Zers also thrive in collaborative, inclusive, and purpose-driven work environments and tend to favor a work-life integration approach.

Given Gen Z's financial challenges, benefits that provide transparency and stability are appealing. Clear information on salaries, competitive wages, retirement savings plans, financial wellness resources and student loan assistance are valued by this generation. Gen Z is also known for its focus on mental health and well-being, so benefits such as mental health resources, counseling services, mindfulness programs and stress management initiatives may also be attractive to them.

Bridging the Multigenerational Gap for Success

It's important to note the generational characteristics described in this piece represent general tendencies, and individual employees may vary based on their personal experiences, aspirations and cultural backgrounds.

To foster effective communication and collaboration across generational lines, organizations can consider adopting the following strategies:

• Embrace Technology: Provide training and support to ensure that employees of all generations are comfortable using digital tools and platforms for communication, collaboration, training and more. Encourage the use of project management software, human capital management platforms,  video conferencing toolsand instant messaging apps to facilitate seamless interaction and streamlined processes.
• Foster a Culture of Respect: Encourage mutual respect among employees of different generations. Emphasize the value of diverse perspectives and create an environment where everyone feels heard and appreciated. Encourage open dialogue and active listening to bridge any communication gaps.
• Promote Reverse Mentoring: Establish reverse mentoring programs where younger employees mentor older ones in areas such as technology, social media or new trends. This allows for knowledge sharing and creates opportunities for cross-generational learning and collaboration.
• Provide Communication Training: Offer training programs that focus on effective communication skills, including; active listening, adapting communication styles and understanding nonverbal cues. These programs can help employees navigate generational differences in communication preferences.

Today's multi-generational workplace presents both opportunities and challenges when it comes to communication and working styles. By understanding and appreciating the unique characteristics and preferences of each generation, organizations can create more inclusive and engaging work environments and build organizational success across generations.