Recruiting

Generational Diversity in the Workplace

Curse or Blessing?

6 min read

Up to four different generations now meet in the world of work: the Baby Boomers, Generation X, Generation Y (also known as the Millennials) and Generation Z. The arrival of the younger generations in particular has brought about a shift in values that presents managers with entirely new challenges: instead of hard work and loyalty, their agenda is about individualism, self-fulfilment and free time. With generations this different colliding, conflict seems inevitable.

But is that really the case? Or can companies also use multi-generational teams as an opportunity? We set out to find out.

**How do the generations differ?

**

The oldest generation still active in the labour market is the Baby Boomers. They represent the large post-war birth cohorts and were born between 1956 and 1964. The fierce competition that awaited them in the labour market gave them skills such as strong assertiveness and teamwork (Oertel, 2021). They are also said to be highly performance-oriented and driven to succeed (Kupperschmidt, 2000). It is no coincidence that the term "workaholics" is associated with them. They are comfortable with authority and hierarchies, and compared with younger employees they are considered particularly loyal. Among other things, this shows in their long tenures with a single employer (Oertel, 2021).

With the following Generation X (1966-1980), it was already apparent that self-reliance and independence were coming increasingly into focus. Hierarchies in the workplace were questioned more critically, and leisure time became more and more important (Jurkiewicz, 2000; Twenge et al., 2010).

This trend is also evident among the Millennials (1981-1995), and it intensifies. It is reflected above all in the work-life balance. Without an adequate balance, jobs are no longer seen as attractive. The result: their own interests come first (Buzza, 2017).

The picture is similar for Generation Z (1996-2010), currently the youngest generation in the labour market. Also known as the "Internet Generation", they are regarded as hyperconnected, efficient and good at multitasking (Iorgulescu, 2016). Yet although they have a great deal in common with the Millennials, managers are also facing new demands and expectations here. Discussed under the term "regrounding", a return to tradition can be observed, as job security, for example, appears to be becoming much more important to employees again (Sortheix et al., 2019).

To sum up: the Boomers work hard, strive for success and are loyal. Generations X, Y and Z are markedly more individualistic and put personal interests more firmly in focus. The work-life balance has to be right, otherwise they will look for something new on the job market. This phenomenon is called "job hopping" and currently has rather negative connotations. It seems as if the younger generations simply want to find the job they truly enjoy. However, this need not be a bad thing, because in line with their work values, they are searching for their true calling, in which enjoyment and compatibility with their life situation take centre stage (Winner, 2018).

It is clear, then, that work values are prioritised very differently depending on the generation. This affects not only how long people stay in a job, but also the behaviour of managers. Younger employees in particular have given managers reason to rethink their leadership concepts. While hierarchies are a matter of course for the Boomer generation, the Millennials and Generation Z tend to reject traditional leadership styles (von Ameln & Wimmer, 2016).

Generational Diversity: A Source of Conflict and Stress

Today, several generations meet who, according to Kast (2021), "have never before had to get along with such different ideas about the value and design of work". Indeed, it can become problematic when, for example, Baby Boomers are willing to work overtime but find that their Generation Z colleagues leave the office on time to pursue their leisure activities. The same goes for a Generation Z team member who relies on digital technologies for communication while the Baby Boomer prefers the analogue alternative.

The fact that younger generations feel less attached to their employer and change jobs more frequently is also likely to strike Baby Boomers as a sign of a lack of loyalty and insufficient staying power. While open communication and constructive criticism tend to seem helpful and appreciative to younger employees, they could send the opposite signal to members of the Baby Boomer generation.

Potential for conflict has been demonstrated in studies (Hillmann, 2014), and one thing is certain: generational conflicts cause stress for managers and can have a counterproductive effect on team performance (Deyoe & Fox, 2012). Even team morale and employees' health can suffer as a result (Wegge, 2016).

Give and Take

Nevertheless, multi-generational teams can be seen as a great opportunity, because the wealth of experience and expertise of the Boomers, combined with the innovative strength and fresh perspective of the younger generations, offers countless advantages. Collaboration in age-diverse teams should be viewed as give and take, in which the different generations enrich one another (Kast, 2021). All that is needed is to ensure that the synergies are used properly and that the teams are led optimally.

Our Conclusion:

Despite the potential for conflict that arises when different generations meet in the workplace, managers should see generational diversity as an opportunity. It is important that they recognise the different value orientations and respond to the respective needs accordingly.

They should also make employees aware of the benefits of multi-generational teams.

Sources:

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Hillman, D.R. (2014). Understanding multigenerational work-value conflict resolution.Journal of Workplace Behavioral Health, 29(3), 240-257.

Jurkiewicz,C. L. (2000). Generation X and the public employee. Public Personnel Management, 29(1), 55-74.

Kast, R. (2021). Herausforderung Führung – Führen in derMehrgenerationen- Gesellschaft. In M. Klaffke (Ed.), Generationen-Management.Konzepte, Instrumente, Good-Practice-Ansätze (293-313). Wiesbaden:Springer Gabler.

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Twenge, J.M., Campbell, S. M., Hoffman, B. J. & Lance, C. E. (2010). GenerationalDifferences in Work Values: Leisure and Extrinsic Values Increasing, Social andIntrinsic Values Decreasing. Journal of Management, 36 (5), 1117-1142.

von Ameln, F., & Wimmer, R. (2016). Neue Arbeitswelt,Führung und organisationaler Wandel. Gruppe. Interaktion. Organisation.Zeitschrift für Angewandte Organisationspsychologie (GIO), 47(1), 11-21.

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