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What’s age got to do with it? A leader’s guide to the changing workforce

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

As the world’s population ages and many people work past retirement age, more young people are entering the working world. The age group known as Gen Z (born 1996 to 2012) may account for a quarter of the global workforce by 2025. For probably the first time in modern history, employers may now have as many as five generations in the workplace simultaneously—making for a management challenge that few leaders are likely to have encountered in the past. Age-related stereotypes, prejudices, and misunderstandings can easily derail a multigenerational workforce. Here’s how to reduce the chances of that happening in your organization.

AN IDEA

An image linking to the web page “Gen what? Debunking age-based myths about worker preferences” on McKinsey.com.

Consider what everyone has in common

It may seem daunting to try to meet the needs of so many different age cohorts in the workplace. But work preferences across generations aren’t as varied as you might think. Our latest research on talent trends shows that “employees of all ages are looking for many of the same things at work and largely quit their jobs or start somewhere new for similar reasons,” note McKinsey researchers; for example, one reason most employees leave their jobs is inadequate pay. Where differences appear among age groups is when they stay in a job. Gen Zers are least likely to value money as a reason for staying; older employees value meaningful work slightly more than their younger counterparts; and everyone values flexibility, but for different reasons. Leaders need to consider a nuanced approach that treats their “current and prospective employees as unique human beings, rather than as members of a demographic segment,” suggest the McKinsey experts.

A BIG NUMBER

That’s the percentage of Gen Z respondents to a McKinsey American Opportunity Survey who report having received a diagnosis or treatment for mental illness—in contrast to just 31 percent of survey participants aged 55 to 64 who responded similarly. Gen Z respondents are also three times more likely to contemplate suicide than other generations. “While Gen Z is not the only generation facing mental-health challenges, their rates of distress may give employers, educators, and public-health leaders pause,” observe McKinsey senior partners André Dua and Kweilin Ellingrud and colleagues. “These stakeholders may want to consider the sentiment of this emerging generation as they plan for the future.”

A QUOTE

“Invite them to your house. I’ve never seen that go wrong.”

That’s McKinsey partner Bryan Hancock on why personalized rituals or events are important to connect people of different generations. “We have gotten more diverse generation by generation,” says Hancock. “We really have to think about how to make more diverse groups of employees feel included.” For leaders, that may mean anchoring career-related conversations not on the constraints that different age groups might have but rather on broad concerns. For example, consider “helping folks think beyond the next six months, longer term,” suggests Hancock. “This works just as well with somebody who’s a boomer as with Gen X.”

A SPOTLIGHT INTERVIEW

An image linking to the web page “‘Older workers are good for business’: AARP CEO Jo Ann Jenkins” on McKinsey.com.

“With talent being so competitive in the US and globally, employers like us are constantly looking to recruit and retain talent,” says Jo Ann Jenkins, CEO of AARP, a nonprofit organization that advocates for older adults. “What an ideal opportunity for older, experienced workers to help fill that talent gap.” In a discussion with McKinsey partner Ellen Feehan, Jenkins highlights the role of employers in supporting an age-diverse workforce. “It’s important to include staff and employees in the design of career opportunities and note the kind of flexibilities they want to see in the workplace,” she says. Jenkins supports the inclusion of age—among other aspects of diversity—in designing a “road map for creating not only a business case for healthy longevity but also a return on investments for companies.”

NOT MY TYPE

An image linking to the web page “Author Talks: How to remove unconscious bias from the workplace” on McKinsey.com.

Workplace stereotypes can be highly detrimental to collaboration and productivity. Preconceived notions—for example, believing that older adults are afraid of technology or that younger people are lazy—can seriously harm employees’ motivation and job performance: in one experiment, older people received inferior training because of the trainer’s bias. Younger workers may be labeled as entitled or disrespectful. A useful objective for leaders may be to nurture a culture of harmony to which people of all ages and backgrounds can contribute. “To tackle the enormous global problems that we’re facing, we need everyone to participate,” says science journalist Jessica Nordell in a discussion with McKinsey. “We need all of the perspectives we can bring in.”

Lead across generations.

— Edited by Rama Ramaswami, senior editor, New York

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 02:12 - 31 Jul 2023

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What’s age got to do with it? A leader’s guide to the changing workforce

Consider what everyone has in common

“Invite them to your house. I’ve never seen that go wrong.”

Out now: New issue of McKinsey Quarterly