Responding to Generational Differences in the Workplace

Millennials today comprise the largest generation in the labor force, and individuals from GenZ are close behind. This generational demographic has altered workplace stakeholder expectations, as Millennials and GenZ employees champion employee activism, strong programs on inclusion equity and belonging, and policies that support employee-centered workplaces, including mental health support, remote work and paid parental leave.

Employee Activism.  80% of companies predict a rise in workforce activism, as social media and online activist platforms expose organizational action and inaction.  In Leading in an Age of Employee Activism, MIT Sloan Review researchers Megan Reiz and John Higgens observe that employees today demand that managers engage on topics like climate change and racial equity and that leaders must be ready to respond to employee activism. Millennials believe that they can make a greater impact on the world than can their leaders, and employees are ready to change jobs when organizational stances do not reflect their values.  Recent corporate activism crises demonstrate that if leaders ignore social issues, or are performative, they will face reputational and workforce backlash; modern leaders are developing skills, including active listening, that will enable the effective response to issues outside the traditional business management frame.

Diversity and Inclusion Initiatives.  A September 2020 Glassdoor survey found that 76% of employees and job seekers prioritized a diverse workforce in evaluating employers and job offers.  See Washington Post writer Jennifer Miller’s research in For younger job seekers, diversity and inclusion in the workplace aren’t a preference.  They’re a requirement.  Miller that observed that 37% of employees and job seekers said they wouldn’t apply to a company that had negative satisfaction ratings among people of color, and that job seekers from Millennial and GenZ cohorts conduct their own interviews of potential employers, probing details about corporate DEI initiatives and employee engagement.  Modern job seekers scour Glassdoor reviews of former and current employees and they routinely research any websites that offer critiques of potential employers. Many younger prospective employees seek proof that that diversity, inclusion, equity and belonging are integral to an employer’s values and practice.

According to a November 30, 2021 article titled Millennials Turn 40 by Theresa Agovino appearing in the Winter 2021 SHRM HR Magazine, “Diversity has been a hot-button issue in the wake of last year’s protests against social injustice, but Millennials’ concerns go back further. A 2018 Deloitte Millennial Survey found that Millennials and members of Generation Z said diversity was key to workplace loyalty, with 69% agreeing that they would stay at an employer for five years or more if they perceived its workforce was diverse.  The 2018 Deloitte Millennial Survey also found that 56% of Millennials see systemic racism as very or fairly widespread in society, and more than half see older generations as standing in the way of progress.” Younger workers are looking to enter workspaces in which they feel comfortable and represented; companies that are unable to show that they champion both diversity and inclusion may be left behind.

Environmental Impact.  Younger employees not only want their employers to advocate and invest in a sustainable future, these employees also want the opportunity to participate in the employer-led initiatives.  According to the Deloitte Global 2022 Gen Z & Millennial Survey, only 18% of Generation Z and 16% of Millennials are confident that their organizations are strongly committed to doing their part to fight climate change.  Some ways in which employers are showing their commitment to the environment while also engaging employees is by prohibiting single-use plastics in the workplace and offering benefits that reduce the carbon-footprint, including electric car subsidies and public transportation incentives or subsidies.  Some employers also train employees on how they can make a positive impact on the environment through in everyday activities.   

Workplace Programs/Employee Benefits. According to the American Institute of Certified Public Accountants (AICPA), Millennial workers and their younger colleagues are more likely to select employers that provide them with financial security. Whereas older generations may have relied on retirement savings programs as essential workplace benefits, younger generations are increasingly concerned about student debt. According to the Education Data Initiative, almost 43 million Americans have federal student loan debt. Employers are responding, with student loan assistance programs, health insurance and paid time off, for new parents and other eligible reasons.

Generation Z and Millennials have also championed the need for mental health support in the workplace. According to the Deloitte Global 2022 Gen Z & Millennial Survey, burnout is a significant retention issue for employers: 46% of Generation Z and 45% of Millennials feel burned out due to the intensity/demands of their work environments.  And yet one in four Millennials and one in five Generation Zs “do not believe that their employer takes burnout seriously or is taking steps to address it, indicating that many employers have yet to fully understand – or address – the impact that burnout is having on their business.” Younger workers still perceive discomfort around speaking openly about mental health. Providing mental health resources with clear communication are critical first steps to addressing this issue. Further, leaders – from top down, in the workplace should make a consistent vocal commitment to and financial investment in stigma-free workplaces so that employees can feel comfortable and empowered caring for their “whole selves”.

Remote Work. According to a recent SHRM study, some Millennials struggle to work remotely, attributing difficulty in communicating with colleagues and receiving feedback setups.  A survey by the National Society of High School Scholars' found that 63% of Generation Z respondents stated that they favored in person training and onboarding. However, employers should not consider the generation of younger workers to be a monolith; according to the Deloitte Global 2022 Gen Z & Millennial Survey, employees also feel that remote work is beneficial because of the opportunity to save money and relocate to a community with a lower cost of living. The majority of Generation Z and Millennials surveyed prefer working patterns where they can split time between remote and onsite or can work entirely from home. Savvy employers are considering the needs of Generation Z and Millennials to have flexibility in their work—by having conversations with employees about their needs, and ensuring that they are working in environments that optimize their productivity.

Belonging. All of the above workplace suggestions center around one key idea: belonging. . According to the Deloitte Global 2022 Gen Z & Millennial Survey, of the 52% of younger workers who feel empowered to drive change within their work environments, almost 90% say they feel a sense of belonging. Generation Z and Millennials want workplaces with less rigid environments in which they feel they can speak openly and shape their own workplace culture and success. By empowering employees to demand and lead change, employers create workplaces where individuals feel like they contribute, they matter, and they belong. This sense of belonging is vital to ensuring employee connection, loyalty, engagement and retention.