Managing diverse and multigenerational workforces
There are many benefits to embracing multigenerational workforces. However, there are also several challenges that come with having a diverse age spectrum. Discover how an effective management approach can help overcome these challenges, increase productivity and drive innovation.
In our What Tech Workers Really Want report, we found that 31% of employees consider a diverse team to be a factor in creating and maintaining a good company. Diverse workforces drive innovation as they benefit from different points of view, experiences and ideas. In the tech landscape in particular, products and services become more multidimensional and less biased than with a more homogeneous workforce.
A 2021 McKinsey report revealed that companies that focus the most on racial and ethnic diversity are 36% more likely to have financial returns that are above average for their industry. Likewise, according to a report published by the OECD, companies that embrace a multigenerational workforce experience higher productivity overall.
Whereas younger workers are typically accustomed to working with developing technologies and adapting to the changes they bring, older workers usually have the experience to guide decision-making. Combined, the collaboration of older and younger workers enables a company to consider multiple perspectives, and solve problems more effectively.
What is a multigenerational workforce?
A multigenerational workforce is comprised of people across the age spectrum. Today, we have the widest age diversity we’ve ever seen in the UK, with young people working side-by-side with those who are four to five generations older. Each generation is identified based on the years they were born, as follows:
- The Silent Generation (Traditionalists)– born 1928-1945
- Baby Boomers– born 1946-1964
- Generation X– born 1965-1980
- Generation Y (Millennials)– born 1981-1996
- Generation Z– born 1997-2012
Employers that embrace a multigenerational workforce expand the talent pool from which they can recruit – which should be a top priority in today’s candidate-driven market. However, many companies aren’t taking advantage of these benefits.
A 2021 survey by Deloitte revealed that less than 5% of employers have policies designed to support older workers, and only 6% strongly agree that their organisations have the tools to support a multigenerational workforce.
The challenges of managing a multigenerational workforce
Despite the many benefits of managing a diverse, multigenerational workforce, there are several challenges that employers need to overcome to ensure success. Perhaps the most challenging factor is finding the best way to communicate with team members. Whereas younger workers will be used to communicating by instant messaging and video calls, older employees, may prefer face-to-face discussions and phone conversations. Employers need to establish how they’ll communicate with teams to ensure everyone is kept up to date, and to avoid communication breakdowns.
Another challenge is breaking down stereotypes. As with any type of diversity, people have preconceived ideas about different age groups. For example, young people may think of older workers as being inflexible and unwilling to use technology. Whereas, older workers may think of young employees as being inexperienced and entitled.
These types of sweeping generalisations can lead to a toxic working environment and a negative company culture. Employers need to remove bias from the working environment and encourage positive collaboration.
Similarly, different generations may have different employer expectations. At CWJobs, we know that young people value training and development, being able to use the latest technology, and having flexibility in their roles. However, older people might have differing expectations, and be more concerned with company benefits, and pension packages.
Because people from different generations may not hold the same expectations, employers need to ensure that they’re flexible in how they manage teams, and in the opportunities that they offer.