Age Diversity and Generational Differences in the Workplace

The Benefits, Challenges, and How to Embrace Them

By Kimari Pitman

Age is nothing but a number when it comes to personal limitations. But when it comes to organizational diversity, that number can be incredibly important. Increasingly, organizations attach great value to diversity and inclusion (D&I) in the workplace. While D&I efforts tend to gravitate towards creating environments that support differences in gender, race, and sexual orientation, they frequently overlook age as an indicator of diversity. However, age diversity offers the same overall benefit as gender, race, and sexual orientation—it adds diversity of thought to an organization.

An analysis conducted by the Pew Research Center in 2017[1] determined the following distribution of generations comprising the U.S. labor force:

Statistically, this information is important because we have broached a timeframe in which the workforce is influenced by five different generational mindsets at one time—with each mindset representing people who share birth years and a collective personality shaped by specific historical experiences. But what does this mean in real terms for organizations looking to support a diverse workforce?

The Challenges

According to one study, two thirds of the 10,000 companies that researchers polled felt that older age was a competitive disadvantage for their company[2]. Companies may express this sentiment based on the following stereotypes of employees from older age groups or generations:

Older age groups might be less adaptable or less capable in certain skillsets, like their ability to use technology. Older employees may not feel comfortable adapting to changing work environments (e.g., “going virtual”) or using new technology. For example, older employees used to putting on a suit and going into the office every day for a 9-5 job might find it undesirable to collaborate with their colleagues only through virtual means (and/or at odd hours of the day if their colleagues work flex hours).
Age differences can lead to miscommunication between older and younger cohorts because of their different cadences. For example, a Baby Boomer might be offended when a coworker from Gen Z (aka, a “Zoomer”) tells them their idea “slaps.” Understandably, the Baby Boomer might hear this word, which has an historically negative connotation (i.e., “slap”), and immediately think the younger coworker is insulting their idea. In reality, “that slaps” is slang for “that’s impressive,” so the younger coworker is actually complimenting their older coworker.

The Benefits

Despite these potential challenges, an age-diverse workforce provides even more significant benefits to a company:

Age-diverse companies are more innovative and well-rounded. Older individuals bring with them more acquired social capital, expertise, and experience. As a result, they can minimize an organization’s generational skills gaps, benefitting its overall capabilities, resources, and innovative solutions. One example arises from generational subject matter strengths: Millennials and Zoomers tend to be more adaptable and tech savvy, while Baby Boomers and Gen Xers tend to be more business savvy. In this case, each group can help the other better understand how to use technology or improve business practices, respectively.
Age-diverse companies enjoy less employee turnover. Employing different age groups can also help a company to stem high turnover rates and increase employees’ job satisfaction. For example, a “2020 study in the Journal of Applied Psychology showed that being a part of a mixed-aged workplace group increased motivation for both older and younger colleagues and increased their intent to stay with the organization.”[3] Each generation feels valued when they are provided the opportunity to share their unique perspectives.
Age-diverse companies see higher business revenue. In that same vein, companies that hire employees over 55 experience higher engagement rates and less turnover. A 2015 AARP study found that workers aged 55+ felt 5% more engaged at work than their younger colleagues. An increase in engagement rates results in increased retention rates, ultimately translating into a 3% increase in incremental business revenue growth—upwards of $150 million more revenue for a $5 billion company.[4] In other words, employing older cohorts positively impacts a company’s bottom line.

How to Leverage the Benefits of Age Diversity

Leadership’s approach sets the tone for how an organization’s employees see their age-diverse colleagues. Think about the energy that goes into working with individuals from a different culture: you expect and accommodate cultural differences, communication gaps, and the potential for misalignment in perspectives. Leaders should commit to that same level of effort when engaging with a generationally diverse workforce, employing patience, and ultimately looking to understand one another. Here’s how:

Offer continued professional growth to all employees. While millennials and Gen Xers may be more vocal about their desire for professional opportunities, that desire is not limited to them. Ensure that your organization is offering the same type of professional development opportunities to Baby Boomers as it is to other age groups.
Build relationships across age groups through:

Mentorship programs. Pair new employees with subject matter experts, regardless of age, to spur conversation and increase interactions.
Cross-functional teams. Encourage idea-sharing and building the capacity to communicate productively across teams.
Ice breakers. Use an icebreaker to build connection at your next team meeting—one like the “Diversity Flower” exercise. In this exercise, separated groups label the flower center with their similarities and petals with differences. The exercise sheds light on commonalities and differences in a fun way while encouraging connection.

When supported with intention, age diversity can be extremely powerful in fostering knowledgeable and creative environments. Generational differences are not just preferences that govern an employee’s perceptions—they represent an employee’s needs. When leaders meet the needs of age-diverse employees and look at these needs as benefits, they strengthen their workforce’s ability to learn from one another and ultimately increase their productivity.