Generational differences affecting productivity.

A new survey from the London School of Economics and global consulting firm Protiviti has found that friction between different generations is driving down productivity. The survey, of 1,450 employees in the finance, technology and professional services industries in the UK and USA, found that 25% of the employees surveyed self-reported low productivity, with 37% of Gen Z, 30% of Millennials, 22% of Gen X, and 14% of Baby Boomers reporting low productivity levels. Employees with managers more than twelve years their senior were nearly 1.5 times as likely to report low productivity.

Generational differences towards productivity can be seen in a variety of ways with differing attitudes towards work-life balance, career advancement and technological competence influencing individual productivity levels. Another issue that was flagged up by the survey is that there is a lack of collaboration between employees of different generations and, with some workplaces now having five different generations working together, the expectations and perspectives of each generation can make it difficult to build collaboration.

With differing work styles, strengths, and concerns, it is easy for misunderstandings, tensions, and conflict to appear. A management strategy that harnesses the distinctive skill set of each generation is therefore needed if the best results are to be achieved. This should include a commitment to a generationally diverse workforce which enables employees of every generation to have their opinions heard, advancement on merit rather than age and inclusive work practices that makes it easier for each generation to fit in.

By being aware of each employee’s framework of experience and their point of reference as well as generational work habits it’s possible to introduce management policies that foster an environment that generates business advantage. The LSE survey shows 87% of those surveyed reported higher productivity in organisations using multi-generationally inclusive work practices with Gen Z employees reporting low productivity dropping to 18% from 37% and from 30% to 13% for Millennials. And, in a tight recruitment market, there is the added benefit that employees working in multi-generationally inclusive workplaces are twice as likely to be satisfied with their jobs and are less likely to look for a new role.

With an ageing population and less young talent available to recruit it will become increasingly important for leaders to effectively manage multigenerational teams. This is particularly important with the OECD predicting that the UK, US, and the broader global economy will see a growth slowdown in 2024, putting pressure on organisations to increase productivity.

If managed correctly a multi-generational team will combine past learning with new perspectives, not only bringing greater efficiency and productivity but also the benefits that the insights and initiatives different age groups bring.