Organizations are more diverse than ever, not just in terms of ethnicity and gender but also age. 

As HR leaders, understanding how to engage employees across different generations – each with unique values, communication styles, and work preferences – is crucial for fostering a productive and inclusive work environment. 

I’ll  explore tailored engagement strategies for various generations, focusing on their needs and values and how organizations can bridge generational gaps to create a more cohesive team.

As you’ll see, the key to engaging and retaining the emerging workforce – primarily Gen X, Gen Z and Millennials – is understanding how their needs and preferences align with modern HR practices.

The Generations in the Workforce

Before diving into engagement strategies, it’s essential to understand the generational landscape. Especially in larger (and older) companies, you’ll find multiple generations: Gen Z, Millennials, and Gen X.

Generation X (Born 1965-1980)

Generation X’s unique upbringing – characterized by higher divorce rates, two-income households, and less adult supervision – earned them the nickname the “latchkey generation.” They became self-reliant, often caring for younger siblings and figuring things out independently.

Having lived through significant geopolitical and economic changes, like the Cold War, the fall of the Berlin Wall, the dot-com boom, and multiple recessions, Gen Xers are resilient, adaptable, and independent. Their practical, “can-do” attitude is embodied by figures like Elon Musk. 

Gen X tends to be laid-back and composed, appreciating recognition without seeking it out. They are tech-savvy, having played a key role in shaping the internet era. Still, they remain grounded in their pre-digital world experience, understanding its advantages and drawbacks.

As per Pew Research Center research, during the housing crash in 2018, Gen X was the only generation to recover the wealth lost after the housing crash, which spoke a lot about this group’s resilience:

Known for their independence, adaptability, and desire for work-life balance. This generation makes up about 20% of the US population. They are sandwiched between the Baby Boomers (born 1946-1965) and Millennials. 

Millennials/Generation Y (Born 1981-1996)

As the largest generation in the US workforce, Millennials are driving significant changes in work culture. Managers must recognize and adapt to their unique workstyles, especially since this age group is the most likely to switch jobs. 

According to Gallup's research, How Millennials Want to Work and Live, 21% of Millennials reported changing jobs within the past year – more than three times the rate of non-Millennials. Gallup estimates that Millennial turnover costs the U.S. economy $30.5 billion annually. 

The report also reveals that many Millennials are actively seeking new job opportunities, with 60% open to different roles – 15% more than non-Millennials. Additionally, 36% plan to pursue new positions within the next year if the job market improves, compared to 21% of non-Millennials.

“In nearly every corner of the U.S., business executives, community and civic leaders, marketers, and managers are talking about Millennials and their behaviors, attitudes, and beliefs,” according to Gallup's “How Millennials Want to Work and Live.”

However, the tendency for job-hopping or the willingness to leave for greener pastures is not the only thing that’s worth noting when it comes to discussing Millennials, whose  concept of corporate loyalty focuses more on work-life balance (especially after the pandemic), personal growth, meaningful work, and financial security, as shown in a research by Deloitte.

Did you know that according to  2024 Ford research, 55% of millennials worldwide are willing to sacrifice a hefty 20% of their paycheck to achieve a better work-life balance? This emphasis on work-life balance could be a key indicator for leaders in finding the right incentive to retain their Millennials employees.

A majority of Millennials globally agree with the statement that businesses “have no ambition beyond wanting to make money,” according to a 2021 survey by Deloitte. Another 2018 survey by Great Place To Work found that “when Millennials believe their company has a high-trust culture, they’re more than 22 times more likely to want to work there for a long time.”

Generation Z (Born 1997-2012) 

Finally, there’s Generation Z – the group everyone seems to be talking about, both in and out of the workplace. The defining characteristic of Gen Z is their tech-savviness, independence, and their hunger to do meaningful work while being recognized for their work

According to a 2023 Different Generations in the Workplace study by LiveCareer, Gen Z rated themselves as the most computer-literate generation. They’re highly collaborative workers who need clear expectations from their employers to stay motivated and excel in their jobs. 

And as the youngest of all age groups in the workforce, Gen Z brings to the table a different set of values, behaviors, and expectations than prior generations: Gen Z puts more emphasis on immediate work-life balance, ethical considerations, mental health, diversity, and adapting to rapid technological changes.

This is in contrast with  Millennials, who tend to prioritize long-term career growth, financial stability, and a more gradual adaptation to new trends, according to a Deloitte research about Gen Z and Millennials.

This closely aligns with findings from Roberta Katz, a former senior researcher at Stanford, who conducted a multi-year study on Gen Z. 

The study revealed that what matters most to Gen Z includes expecting change, being pragmatic, wanting to make a difference, valuing teamwork and collaboration, and rejecting hierarchy for hierarchy’s sake. Instead, they prefer leaders who guide by consensus.

Engaging All Generations in Your Organization

If it wasn’t clear yet, there isn’t one way to engage all generations because of their significant differences. Instead, you’ll quickly find out that tailoring your engagement strategies to each generation has the most significant impact.Below, I’ll share data and thoughts on how to engage with each generation:

How to Engage with Gen X?

To sum it up, Gen X values a strong company culture that is open, friendly, and supportive, rather than formal, stuffy, and hierarchical. They prioritize the ability to work in teams based on strong interpersonal relationships, opportunities for growth and development, work-life balance and flexibility in how and where they work.

Data from Visier in 2022 showed that Gen X led the Great Resignation, with 37% more 45- to 50-year-olds leaving companies in Q1 2022 compared to the previous year, proving that just like any other generation, Gen X could quit if their needs are not being met.

One reason for Gen X to quit is not being able to adapt to technological advancements, most notably AI in the workplace. Gen X could quit if they get discriminated against due to their age or the ability to adopt new technologies:a 2022 AARP report showing that roughly 80% of workers between the ages of 40 and 65 reported having either witnessed or personally faced age discrimination at work.

Therefore, consider the following tips to effectively engage and retain Gen X employees:

Avoid Micro-Managing: Give them the freedom to perform their roles efficiently without constant oversight. Trust them but offer support when needed.

Provide Honest Feedback: Offer direct, regular feedback and listen to their input, tapping into their experience and knowledge.

Respect Their Time: Avoid pointless meetings and unnecessary late hours due to poor planning.

Communicate Openly: Use face-to-face or digital channels to communicate effectively about company and individual performance.

Offer Learning Opportunities: Provide training to enhance their roles or management skills, as Gen X remains open to learning despite their experience, especially when it comes to using technology.

Competitive Financial Compensation: This is key for Gen X workers, who report the highest levels of anxiety and the lowest levels of hope compared to other generations. Thirty-two percent feel financially uncertain, and only 8% are satisfied with their economic situation.

Fair pay and benefits play a major role in boosting job satisfaction for Gen X more than any other generation. Ensuring fair compensation is critical, especially since 70% of Gen X are dealing with credit card, mortgage, or home equity loan debt.

How to engage with Millennials?

Research shows that Millennials are expected to make up more than half of the workforce in two years, and approximately 75% by 2025. Employers aiming to attract and retain top talent must better understand what motivates this generation.

As shown above, Millennials want a good work-life balance with a clear career progression path and opportunities to learn, according to a Millennials At Work report by PwC and a survey by Deloitte. 

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So here are some tips that you can  use to engage with and retain Millennials in their workplaces:

Understand Their Motivations: Prioritize fair pay, transparency, flexibility, career development, and a values-driven workplace to meet Millennials' expectations.

Create a Values-Driven Workplace: Align your company's mission with social or environmental causes and provide opportunities for community involvement.

Prioritize DEI: Even though SHRM may have decided the “E” is no longer relevant, Millennials will like to see genuine commitment to diversity, equity, and inclusion.

Leverage Their Tech Savviness: Utilize Millennials' technology skills and preference for collaboration by offering the right digital tools.

Provide Regular Feedback: Support Millennials' desire for continuous improvement with regular, constructive feedback and mentoring programs.

Adopt a Flexible Leadership Style: Inspire rather than micromanage, empowering Millennials to innovate and adapt in their roles.

Offer Flexibility and Trust: Value flexible workspaces and schedules, and maintain trust and transparency in the workplace.

Keep Them Inspired: Avoid repetitive tasks, offer growth opportunities, and ensure strong team collaboration, even in remote work settings.

How to engage with Gen Z?

Gen Z is set to continue disrupting the workplace and shaping the future of work. According to Business Insider, by 2026, Gen Z will surpass Millennials as the largest generation, making up over 27% of the workforce. 

And according to Microsoft's Work Trend Index Annual Report, 51% of Gen Z employees are more likely to prioritize health and well-being over work. 

Their top three priorities are a positive culture, mental health and well-being benefits, and a sense of purpose and meaning. 

This comes in response to Gallup research in 2023 showing that Gen Z is feeling disengaged and disenfranchised. They feel less supported and less encouraged in their development, leading many to rethink the role they want work to play in their lives.

With all this in mind, here are some tips you may find useful in engaging with this generation:

Provide Free Food: Gen Z values perks beyond standard benefits. Offering free lunches or snacks can boost engagement and foster a sense of community, although they are quickly becoming the norm. 

Keep Hours Reasonable: Gen Z prioritizes work-life balance more than previous generations. Limit overtime requests to avoid burnout and keep them motivated. 

Support Mental Health and Work-Life Balance: Provide flexible schedules, promote work-life balance, and prioritize mental health to meet Gen Z’s expectations for a healthier work environment.

Foster Collaboration and Leadership by Consensus: Gen Z values teamwork and prefers leaders who guide by consensus rather than hierarchy. Encourage a collaborative environment where everyone's voice is heard.

Offer Continuous Learning Opportunities: Gen Z seeks growth and skill development. Provide regular training and development opportunities to keep them engaged and motivated.

Provide Autonomy: Gen Z thrives when given the freedom to explore and innovate. Offer them room to experiment and make informed decisions. This autonomy can lead to surprising and improved outcomes.

Offer Continuous, Constructive Feedback: Instead of relying solely on annual reviews, provide ongoing, specific feedback with actionable steps. Use real-life examples to help them understand what’s working and what needs improvement, showing your investment in their success.

The Bottom Line

Having grown up in different times and circumstances, age does matter when it comes to positively engaging your teams. Understanding the unique characteristics of each generation and activating them accordingly will help you create a positive employee experience.  

At the same time, while there are plenty of differences, they are all people. Regardless of age, your people perform best when they feel heard, fairly compensated, trusted, and treated with kindness and respect. In particular, similarities include: 

• Desire for Work-Life Balance: All three generations value work-life balance, though they may approach it differently. Gen X often seeks balance to juggle family and work responsibilities, Millennials prioritize it for personal growth and well-being, and Gen Z emphasizes it for mental health and immediate quality of life.
• Value Continuous Learning and Development: Across the generations, there is a strong interest in growth opportunities. Gen X values development to stay relevant in a changing workforce, Millennials prioritize career progression, and Gen Z seeks skill-building and learning to grow in their roles.
• Need for Flexibility: All three generations appreciate flexibility in how and where they work. Gen X values flexibility to manage responsibilities, Millennials prefer it for better work-life integration, and Gen Z sees flexibility as a way to ensure their well-being and autonomy in the workplace.

Engaging these common values effectively can help create a more cohesive, motivated, and productive multigenerational workforce. 

To ensure your engagement strategies evolve with your people, practice employee engagement best practices and perform regular employee surveys (you can check out our favorite employee engagement survey providers here.)

I’m always willing to learn more and exchange ideas. If you have any questions or feedback, please let me know here. 

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