Generational differences

Nowadays, it is not uncommon to see four, and soon up to five generations working together in the workplace. So there is a growing need to focus on cooperation between workers who enter the labour market from very different backgrounds or who have been in the workplace for decades. This issue has become one of the hottest HR topics in recent years, especially with the arrival of Generation Z.

A world that is changing very rapidly, mainly due to technological advances, has, among many other factors, had a significant impact on the socialisation of different generations. So has the way they approach work, the world of work, management, job changes and work-life balance.

Generational differences in the workplace

Younger generations are often said to not to see work as life, and it may not even be a major determinant of their identity, but as part of life. For the most part, it is important for them to do meaningful, valuable work, to identify with the company's goals and mission, but they do not align their lives with work, and their personal lives are just as important to them, so that they can spend time on them. They have a different attitude to hierarchy than previous generations, their prestige is not conferred by their position, but they also need the support of experienced mentors and colleagues from whom they can learn and who can help them develop. Just as they can help the older generations to develop their digital skills as digital natives. An often mentioned characteristic is that they seek immediate, and even more so constant feedback, because it is what they are used to, what they have grown into. The most important factors for them include being treated fairly and they also look for community in the workplace.

However, their changing needs and the way workplaces adapt to them are not only affecting their lives in the workplace, but also those of other generations who are also more daring to express their need for resilience, whether it's where they work or when they work, they also demand work-life balance or at least harmony, and recognition and appreciation of their work. Every generation has strengths and weaknesses when it comes to work.

In addition to the generational differences mentioned above, the issue of intergenerational cooperation has become a central issue because in ageing societies the labour market is also ageing, and for demographic reasons there is a lack of necessary replacement, so it is increasingly a question of how long older generations can be kept in the world of work, or even lured back once they have retired, or other reserves mobilised. Meanwhile, ageism, i.e. ageism and discrimination based on age, has yet to be overcome.

Tackling generational differences

A research published in spring found that 77% of companies in Hungary still have no strategy to manage generational differences, improve collaboration and change generations, and only half of companies are addressing organisational ageing. Most conflicts are between the Z-baby boomer and Z-X generations. 60 percent of firms report that communication differences are a source of conflict. Only 36% of companies think that intergenerational cooperation is necessary for long-term sustainability. However, there are a number of good practices and programmes already being implemented by some companies.

If only because where multiple generations are working on a project, innovation was 40% stronger, according to the survey. The company that adapts the fastest to the needs of different generations will have a competitive advantage. The above data also shows that one of the most important things is to improve communication between generations, find common channels and sensitise them to accept and understand each other. Indeed, better understanding improves the quality of workplace relationships, thus improving the employee experience and reducing turnover.

For the baby boomer generation, it is important to provide the opportunity to transfer the experience and knowledge gained over decades, to participate in the training of junior staff, even in mentoring relationships with younger colleagues. This is also an important factor for the employer, as the information about the company is not lost. And the reverse mentoring tool helps young people to help older people, for example to develop their digital skills. One important employer benefit for older people can be to help them prepare for retirement, whether mentally or financially.

Stability is important for them, together with flexible, part-time employmentthat can take into account their physical condition and other commitments, for example in relation to grandchildren. For this generation, personal conversation and contact is important and therefore personal recognition is also important.

The X is the age group with a quiet but influential presence in the labour market. Often in senior positions. They also value resilience, the possibility of hybrid working, self-awareness and well-being programmes.

For some Y career development is important, so leadership development, coaching and mentoring programmes, development opportunities and, for example, a visible career path within the company to help them plan where to go from where, and what tools to use to get there, may be a priority. A conscious design of this can be a good tool for companies to retain Y employees. In addition, as they are usually around to start a family or already have one, family-friendly measures can also increase their loyalty.

The main motivations of Z have been discussed earlier. For example, in terms of HR tools, it is important for them to be able to communicate briefly, in writing, have dedicated spaces where they can give and receive feedback, and even build communities at work. Like the Y, opportunity for development is key, so mentoring programmes and learning platforms can be a practical training tool for them. Sustainability and environmental awareness are important for many young people, so it may be worth involving them in ESG programmes, for example.

Generational differences - table

As we previously wrote a detailed profile of each generation in the workplace, here is a brief summary, in table form.

According to recent research by Ipsos in 32 countries, generational generalisations should not be over-generalised, and in fact a more contemporary approach is most needed, a more general identification of needs and values that can be used to reach across generational categories. Because individuals belonging to the same generation differ greatly, they are very mixed groups that cannot be treated as homogeneous masses, monoliths.

It is important to bear in mind that many misconceptions about generations are the result of confusing life-cycle or period effects with the more elusive cohort effect. Not all change is generational.

Differences between generations may indicate broader changes in societal views, or they may result from different positions in the life cycle. True generational change (cohort effects) is when attitudes and behaviours remain different over time.

Place and time of birth matter. Local events can shape attitudes and behaviour in ways that are more relevant to understanding people than using global labels.