Businesses must harness the power of generational diversity or be left behind and that means finding balance across the generations. To attract and retain Gen Z – with their adaptability, flexibility and intuitive understanding of technology, AI and social media – older generations must be pragmatic, understanding, welcoming and not assume that their greater experience in years trumps Z’s essential future skills. However, new Gens will challenge the status quo and be disruptive, if they feel stifled, restricted or ignored.
There is little doubt that organisations across the globe have been experiencing the full impacts of that long identified acronym VUCA, which was first identified 36 years ago (Bennis & Nanus, 1987). But as this new era of work unfolds, there are impacts and consequences that could provide businesses with significant advantage, if they have the acumen and foresight to capitalise. A case in point is that much[1]debated phenomenon, five generations in the workforce, which surely represents a fantastic opportunity to leverage diversity-of-thought, to help optimise outcomes from change and enhance business capabilities. If organisations develop the capacity to take advantage of this generational diversity, they will benefit from the transformational power of divergent thinking, doing and working practices. However, this is not something that will happen organically, active support is required to help the generations to understand and accept each other’s values, world views and ways of working, to implement strategies to leverage strengths and moderate conflict. But many firms are still struggling to understand how to deal with generational diversity and they are missing out on a critical edge.
In 2020, Millennials surpassed Baby Boomers for the first time and, by 2030, these hyper-connected, tech-savvy Millennials will make up 75 percent of the workforce. In the same timeframe, Gen Z will become a force to be reckoned with (European Commission, 2023) and where Millennials were originally seen as leading the generations on pop culture, activism and all things technology, Gen Z is unquestionably the holder of future’s flame. However, Baby Boomers still believe they are in control and Gen X is holding on to its entitlement to rule and as these two groups still hold most of the power, they are defining future strategy and the direction of organisations across the globe. So, it is clear that leveraging a diverse workforce requires a shift in the traditional behaviours of leaders and a critical starting point will be to enhance their capacity to lead diversly. Without effective leadership, companies will fail to leverage the power of diversity and achieve their potential. Leaders not only need to understand new generations, they also need to find new and innovative ways to integrate them. The fact is, many frameworks and leaders are simply not ready for the influx of Gen Z and the change that comes with it and so it is time to meet the challenge head-on and support people to make the moderations necessary. So, what are the critical things that must shift, in order to fully embrace generational diversity in the workplace?
Ensure diversity is the focus for all recruitment, retention and promotion activities: We have known for a long time that diversity has a positive impact on business outcomes (Herring, 2009) and yet there are still many companies that have a limited focus on workforce diversification. Diversity appears to be noticeably absent at senior levels. It is time to stop talking about diversity and start implementing practices that ensure it”.
Educating the five generations on the value of the other generations: There is a driving imperative to educate people and implement strategies to enhance the understanding of generational differences and diversity. The top companies have been doing this consistently for a long time, but many businesses still pay little or no attention to these issues.
Bringing greater balance to generational impact: Baby Boomers and Gen Xs are still dominating in the halls of power, but Millennials and Gen Zs must be given a voice that is greater than their positional power allows. Businesses must make the time and space for all generations to have a voice and influence strategy and decision-making, if they want to stay ahead of the curve.
Supporting greater flexibility in working practices and hours: Hybrid and flexible workplaces will not only be in higher demand with the younger generations, it will be expected. Millennials and Gen Zs increasingly demand workplace flexibility and hybrid working arrangements (Gatton 2021). Organisations must shape jobs differently and offer greater flexibility in working arrangements and practices.
Assisting Gen Z to integrate into the workforce: Based on the findings of the Generational White Paper, Gen Zs tend to be more impatient, instant-minded, lack the ambition of previous generations, have acquired attention deficit disorder in higher numbers, have a high dependency on technology, reduced attention span, are more individualistic and more entitled. The onus is going to be on leaders to support Gen Zs integration into the workforce and assist them in building a realistic understanding of the responsibilities of work life and the requirements of succeeding.
Supporting Gen Zs to manage their resilience: Evidence suggests that the pandemic has caused a wellbeing crisis in young people (Owens, Townsend, Hall, Bhatia, Fitzgibbon and Miller-Lakin, 2022). Businesses will need to support Millennials and Gen Zs in resilience building and provide services for mental health. This is even more important for those who want to progress to leadership roles, as research shows that without resilience, it is impossible to lead others (Folan, 2019).
Keeping abreast of the changing face of technology, AI, social media and the VUCA world: Gen Z is the first ‘digitally native’ generation living in a VUCA world (Kandar Futures, 2022) and was born to swipe and has an incredible capacity to teach other generations. Businesses must not only stay ahead of the changing nature of technology, but also support older generations to embrace learning from younger people. Organisations must create more engaging organisational cultures and be mindful that Gen Zs prefer transparency, self-reliance, flexibility and personal freedom. Not providing a culture in which they can flourish is likely to result in reduced morale and a lack of engagement. They also expect to be informed, allowed to give opinion and to have their responses heard and acknowledged. It’s time to rethink culture and ensure businesses are places that provides the right environment for younger generations to thrive. Having five generations in the workforce provides an exciting opportunity to leverage diversity and enhance outcomes. However, organisations must ensure that they are balanced and calibrated to take advantage of this generational constellation.
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