Navigating a multi-generational workforce: what employers should know

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Adapting to a workplace with four distinct generations requires understanding and meeting diverse needs, leveraging engagement tools like surveys, and creating a culture of trust and flexibility to enhance employee happiness and productivity

WITH DRAMATIC changes to the world of work, a thriving gig economy, and the extending departure of boomers, employers are facing a new frontier: for the first time, there are four (and will soon be five) generations in the workforce. “With workers’ expectations constantly changing, organizations need to figure out how to personalize employee experiences,” says Heather Haslam, vice president of marketing at ADP Canada. “Employers and workers who embrace communication and are transparent with their needs can help businesses evolve.”

ADP Canada designs better ways to work by providing cutting-edge products, premium services, and exceptional experiences that enable people to reach their full potential. The company offers HR, talent, time management, benefits, and payroll solutions informed by data and created for organizations of all types and sizes. ADP Canada has a strong history of developing products that simplify work and shape the changing workplace environment.

Compensation’s impact

57%

“We believe that the power of our team lies in the unique contributions of each team member. Individual uniqueness not only comes from generational nuances, but more importantly, it’s often a reflection of each person’s life stage and circumstance”

Jim Lord, ADP Canada

As the makeup of the workforce changes, employers should prioritize learning what employees value and how to meet their needs. Each generation is unique, and using tools to understand these nuances is critical. Surveys are an excellent way to stay in touch and capture employee sentiment while creating space to engage with a multi-generational workforce. “Regular surveys help employers understand their people’s drivers, enabling them to build and sustain an environment that’s as engaging as possible – and creating happy workers,” Haslam explains. Enhancing workplace happiness starts with collecting data, and analytical tools are critical in providing insight into necessary investment and strategy. For example, what benefits should be in place? How can you effectively deliver that message to your audience? Once you have the data, step two involves personalizing the experience for each employee. “Layering what you understand about each generation can give you the insight you need to create an environment where you’re boosting happiness,” Haslam says, adding that it’s not just about programs or technology – respect for differing needs is vital. Sometimes, those needs don’t necessarily reflect a person’s specific generation, which is step three: don’t make assumptions.

outside of the workplace, Haslam says, and, “Since happiness contributes to that, what can we tap into to support each other more effectively? That’s what we want to dig into.”

Each age cohort brings a unique perspective, and the index has examined generational inputs since its inception. Over time, some trends have stood out “loud and clear,” Haslam says. “There’s a seasonality to happiness. For example, we see plans for taking time off in the summer, including the anticipation of a break, which positively impacts happiness around this time.” Interestingly, younger cohorts are most likely to postpone summer vacation to later in the year, while the older groups are taking their time away, no matter what. Perhaps that difference connects to economics for Gen Z and millennials. In contrast, boomers may feel more financially secure and prioritize a break for their mental health, but employers won’t know for sure unless they take the time to ask. Another hot topic is work-life balance and flexibility. Overall, Gen X values this indicator most – “They want to work hard and play hard, and I can relate as an Xer myself,” Haslam says. “Boomers, on the other hand, love working remotely as they near retirement, yet understand the value of coming together physically. Regardless of age, if you ask eight people what flexibility means to them, you’ll get eight different answers.” What does it mean to your workforce in your day-to-day workplace? For Haslam, flexibility can mean taking the time mid-day to attend her son’s soccer game and catching up on email after dinner. It’s different for each worker, but expectation-setting and communication ensure meeting the needs of the employee and the employer.

“I feel best in an environment where my flexibility needs and wants are understood, respected, and encouraged – and where my employer knows they’ll evolve,” she explains. “What flexibility means to me today differs from what it meant 10 years ago.” Inflation and cost of living are also on employees’ minds and have impacted happiness levels negatively over the last year. Compensation is a top concern across generations – the recent index shows more than half of workers would be happier if they got a raise, and over one-third would be happier with a bonus. However, Haslam says, it’s not the only factor. Providing tools that support factors like pay transparency, clear expectations, and pay variables help employees navigate economic pressures. “There’s an old adage: what’s happening at home comes to work, and vice versa,” she says, adding it’s not enough to skim the data and register the trends: digging deeper to discern individual motivators and life circumstances is

Heather Haslam, ADP Canada

required to drive long-term human connection – all leading to happiness in the workplace. “We’re seeing that employee happiness at work is fluid and sensitive to external factors,” Haslam says. “The workplace is a living being.”

Haslam sums up. “It must be coupled with the information that helps you understand what each worker needs to be the most engaged – and therefore the happiest – possible.”

Navigating a multi-generational workforce

Building trust and collaboration

Published July 29, 2024

of workers surveyed say they would feel happier in the workplace if they got a raise

indicated a bonus would make them happier

35%

of Gen Z and millennials were more likely to say they would postpone their summer vacations until later this year

15%

Cost of living’s impact

of Gen X and 47% of boomers reported that the increased cost of living will not impact their plans this summer

41%

Finding the opportunity

Overall, creating a culture of trust and collaboration across all employee differences is key, and opportunities for cross-pollination via intergenerational mentorship programs, for example, are mutually beneficial to participants. Employers should also be aware that everyone communicates differently. While Gen Z wants everything via technology, short and fast, boomers might prefer traditional all-hands meetings, and millennials nurture a disdain for telephones. “One of my employees has a sticker on her water bottle that says, ‘phone calls scare me,’” Haslam laughs, adding that providing a variety of formats and channels ensures you’re meeting all members of your workforce where they prefer. That last point is critical at ADP, where Jim Lord, president of ADP Canada, says, “We believe that the power of our team lies in the unique contributions of each team member.

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“In this multi-generational workforce, you can’t assume people want or are motivated by the same thing. It helps to meet employees where they are in different phases of their personal and professional lives. Despite the fact there’s a connection between someone’s age and life stage, it’s not always the same across the board.” Building a culture that embraces the differences of each generation and promotes a sense of happiness isn’t easy, but it’s a worthy – and necessary – endeavour. Arming employers with timely information that allows them to position themselves as an employer of choice was the motivation behind ADP Canada’s Happiness@Work Index, a monthly pulse survey that measures four indicators of employee happiness across generations and regions: work-life balance and flexibility; compensation and benefits; recognition and support; and career development opportunities. There is tremendous data from multiple sources that show engaged employees are better for the bottom line and better

“That individual uniqueness not only comes from generational nuances but more importantly, it’s often a reflection of each person’s life stage and circumstance,” Lord adds. “We’re proud to say that our down-to-earth culture encourages agility, creativity, and collaboration, providing a workplace where all generations can thrive.” Ultimately, while investing in technology makes it easier to connect, nothing replaces real-life human connection, and this is an area where ADP practises what it preaches by understanding drivers across generations, which is a critical data point when boosting happiness in the workplace. Still, it can’t stand alone: investing in the right technology and taking the time to learn the needs and expectations of your people is significant. “Use generational input but not blindly and not in silo,”

Source: adp.ca

of workers surveyed reported that the rising cost of food and groceries heavily affected stress levels during work hours

68%

of workers indicated that planning for major expenses heavily affected stress at work

62%

Source: adp.ca

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