6 tips for CEOs managing a multigenerational workforce

CEOs have always had to manage a multigenerational workforce, however for the first time, five generations are collaborating in the workplace, whereas traditionally, it's only been two or three. Each brings a unique perspective to solving workflow challenges and a different perspective on what motivates them in their careers and what they want from an employer.

When CEOs can effectively leverage the talents of a multigenerational workforce, their organisation thrives.

“Embracing diversity of perspectives boosts productivity, retention, and recruitment,” says Dr. Chip Espinoza, an author and consultant in California, who is recognised globally as an expert on generational diversity in the workplace. “It’s about understanding every generation so you can leverage the best out of the workforce.”

According to an AARP study, over 80% of global leaders agree that having a multigenerational workforce is necessary for growth. Yet less than 50% of global leaders consider it when they think about diversity, and over 95% aren’t doing anything to embrace a multigenerational team.

“We’re admitting we need to address generational diversity, but we’re not taking any steps to think about a multigenerational workforce when we talk about diversity,” says Dr. Katherine Jeffery, CEO of KJ Consulting, generational expert and speaker. “We have to put effort into this, or there will be a lot of tension and miscommunication under the surface.”

Understanding multigenerational diversity

A quick Google search yields countless results describing each generation’s perspectives and preferences. However, Espinoza says that understanding and having fluency in generational quotient (GQ), a framework like IQ and EQ, is essential to deploying your best workforce.

Here’s a look at each generation, their approaches to communication and what they value.

Traditionalists

This generation makes up the smallest number of today’s employees — only one to two per cent — because they were born between 1928 and 1945. These individuals work because they enjoy it and are passionate about sharing their knowledge.

Traditionalists make great mentors and coaches, helping younger generations process things and have a safe place to discuss leadership skills and challenges. In Espinoza’s national survey of employees, Traditionalists were ranked number one as managers.

Baby Boomers

While many Baby Boomers, born between 1946 and 1964, retired in 2020, their generation still comprises about 25 percent of the workforce. Promotions, professional development, perks and praise motivate this generation the most.

“Baby Boomers pretty much dictated the workplace for three decades,” says Espinoza. “They are very much about belonging. Position and title are critically important to their identity in the organisation. They’re optimistic and expect others to respect authority; even when Baby Boomers work for Gen X or Millennial managers, they look for respect and are free with their feedback.”

Gen X

Other than Traditionalists, Gen X represents the smallest proportion of the workforce. Born between 1965 and 1980, Gen Xers prefer working independently and value decision-making opportunities as well as mentoring relationships. Gen Xers account for55 percent of startup founders, the largest proportion of any generation.

“Gen X is very different from Baby Boomers, and they want work-life balance,” Espinoza says. “Because they aren’t a large generation, they couldn’t impose their will like Millennials. Gen X values some of the same things Millennials do but resent them because they were unable to move the needle on things like the younger generation.”

Millennials

Millennials (born 1981-1996) are tech-savvy, value lifelong learning, and highly value positive feedback. They entered the workforce expecting to move up and view management opportunities as desired roles.

“Career development is their love language, so you have to have a plan for them,” says Espinoza. “Millennials want more feedback; more detail and more structure. Ambiguity is kryptonite to millennials. I think the educational system has created that expectation at work and that we’ve done a disservice to students in the sense that if they check the boxes, they can get an A.”

Gen Z

By next year, Gen Z (born 1995 – 2009) will make up a littlemore than a quarter of the workforce. This generation, also called Zoomers, is new enough to the workforce that Espinoza says it will take time to truly workplace preferences. However, one thing he’s noticed in an experiment in his classroom is that Gen Z chooses individual assignments over team projects when given the choice.

“They don’t want to be dependent upon somebody else and have heightened social awareness,” Espinoza says. “They’re not the trophy kids like Millennials were labeled, and they’re suspicious of getting awards they don’t feel they earned. They don’t place real value on awards. They’re pragmatic and realistic. In many ways, they believe the major challenges facing their generation were created by previous generations and therefore are suspicious of institutions.”

Workforce challenges CEOs face

Managing a multigenerational workforce presents challenges and opportunities for CEOs. Here are some of the challenges to consider.

1. Communication barriers between generations

Effective communication is key to managing a multigenerational workforce. A CEO who can adapt their communication style and create a management team that does the same can improve collaboration and decrease misunderstandings that lead to intergenerational conflict. It starts with learning communication preferences.

“For Millennials and Gen Z, emails are a place where you document important information,” Jeffrey says. “They are going to wait to respond until they have all the necessary information. Xers and Boomers need to know an email was received and is being worked on because until there is a response, they are expending energy on it and thinking the other person is not a team player or doesn’t care about the project being worked on.”

Espinoza suggests it is essential to identify an employee’s preferred mode of communication to achieve mutual understanding.

2. Differing work styles, expectations and priorities

Given that the five generations collectively span a collective eight decades, it’s only natural that a workforce will span a wide range of life stages. For some, it might be starting their first job out of university. For others, it’s raising kids or caring for ill parents or contemplating what retirement looks like. None should be prioritised over the other.

“One of the biggest issues I hear from Vistage groups is about work-life balance and productivity,” Espinoza says.

He explains that Baby Boomers equate productivity to seeing someone in the office and are resistant to remote working arrangements. Gen X sees the possibilities and figures out how to make it work. Millennials and Gen Z don’t care where a person works if they are productive.

“CEOs need to lead conversations about how the organisation measures productivity,” he adds. “It’s important to have open discussions with the generations and create an organisational definition for productivity. The discussion begins with suspending one’s own bias of experience.”

3. Resistance to change and technology adoption

Change can be difficult because what’s waiting on the other side is unknown at the outset. This is true whether an organisation is implementing new technology, reorganising or redefining long-held practices and procedures. Understanding how each generation feels about change is essential.

“Ultimately, it’s helping people understand why you’re integrating new technology or innovation is necessary and how it’s going to help with efficiency,” says the Black Mountain, North Carolina-based Jeffrey. “They need to feel safe and comfortable and that it’s not a threat to their job.

4. Conflict resolution and managing intergenerational tensions

There are misconceptions and stereotypes about every generation. Chances are you’ve heard Boomers are resistant to change, Xer’s are hard to work with, Millennials are narcissistic, and Gen Zer's don’t want to work.

“Companies can improve intergenerational relationships by fostering two-way communication and emphasising the importance of active listening,” Espinoza says.

6 tips for managing a multigenerational workforce

Balancing a multigenerational workforce’s diverse needs and expectations can significantly enhance team cohesion and productivity. Here are six tips that CEOs can use to manage a multigenerational workforce effectively.

1. Foster an inclusive culture

Promote open communication and active listening. Encourage collaboration and cross-generational mentorship.

“It’s really important to know your managers, their attitudes and values,” Jeffrey says. “Do they have a lot of bias against certain generations? Training people on emotional intelligence and teaching them to become more self-aware and more aware of those around them is critical.”

2. Be flexible in policies and practices

Read, research and understand generational differences, but don’t lose sight of the individual. Ask employees about policies and practices they would like to see changed or implemented.

It’s unrealistic to be all things to all people but committing to understanding what each generation values in a leader and striving to meet those expectations encourages employee engagement.

3. Offer training and upskilling opportunities tailored to different generations

Providing continuous learning and development opportunities is essential for keeping all generations engaged. Before rolling out a one-size-fits-all program, get to know what each generation wants out of training and development. Employee surveys can be an excellent way to gauge what would be most effective.

4. Embrace technology and innovation

Provide training and support for older employees to adapt to new technologies. Utilise technology for remote work and communication.

Implementing mentorship programs can also foster cross-functional teamwork. It can be beneficial to pair younger workers with older ones to learn how to use technology, communicate, use social media and network together.

Espinoza warns that many mentoring programs fail due to how generations define mentoring. “The traditional definition is when an older, more experienced person starts with their own experience and attempts to impart it to the mentee,” he says. “Young professionals view a mentor as someone to bounce their ideas off and get feedback on what is important to them.”

5. Recognise and celebrate diversity of perspective

Most importantly, avoid the stereotypes assigned to each generation and instead acknowledge the contributions of each generation. Everyone is an individual; just because most workers in their cohort prefer working and communicating in a specific way does not mean all do. Create a culture that embraces initiatives that promote intergenerational understanding and appreciation.

“We have to show that we’re curious and willing to be curious and learn from each other,” Jeffrey says. “From there, we can move past the tension and collaborate.”

6. Prioritise the transfer of knowledge

“Knowledge transfer is critical,” Espinoza says. “That would be one of the first things I’d look at, which is, ‘How am I going to get the knowledge out of this huge generation of Baby Boomers into the rest of the organisation?’ That knowledge is your competitive advantage and probably the biggest investment you’ve made as a CEO.”

Every CEO should prioritise creating a strategy for transferring knowledge from one generation to the next. One barrier to this that CEOs must acknowledge is the difference between where generations seek information. Espinoza explains that younger generations are less dependent on older generations. Their go-to is an internet search for information.

“An authority figure may be the last place they go with a question,” he says. “It’s not that they don’t want them; it’s that they haven’t developed the skill to build those relationships.”

Espinoza points out that few areas of society offer the opportunity to build cross-generational relationships outside of work. Schools are structured by age. Families are more transient, with fewer households living with or near older generations.

“Younger people are more comfortable with people their age,” he says. “They look to peers to crowdsource answers to work-related challenges. A new trend is Gen Z turning to AI for mentoring out of frustration with finding mentors.”

Managing a multigenerational workforce requires a thoughtful and strategic approach. CEOs can harness the strengths of a diverse workforce by understanding generational differences, fostering a culture of respect and inclusion, and implementing flexible policies.

This first appeared in theVistage Research Centre and Vistage Australia Insights.

Leading a diverse workforce requires a continuous commitment to personal and organisational growth. For CEOs looking to deepen their impact, our latest Vistage 7 Laws of Leadership Guide provides further insights on developing the skills and mindset necessary to navigate today’s complex business landscape. With insights from over 65 years of coaching business leaders, this guide will enhance your decision-making framework, helping you grow from a good decision-maker into a great one.