The multigenerational workplace: a golden opportunity?

Based on the information we collected between 2008 and 2015 from over 2,500 Belgian SMEs, we found that organizations with a wide variety of ages are up to 6% more productive than the average organization. The reason is clear: in an organization with a wide variety of ages, there is a smooth exchange of knowledge and experience. The organization can thus make optimal use of the knowledge and experience of both young and old. This knowledge synergy enhances creativity, decision making and efficiency on the work floor, driving better business outcomes.

So the idea that older employees contribute less than young employees doesn’t hold up. When they get the opportunity to use their knowledge and experience and combine it with the innovative knowledge of young people, it actually leads to higher productivity.

But age differences can also be too big: the very same research shows that organizations with large, defined age groups (polarization) are up to 8% less productive than the average organization.

In polarized organizations, differences in values, opinions and habits tend to become highly visible. Coworkers of a different age are seen as outsiders. This encourages an "us" vs. "them" mentality and gets in the way of communication, harmony and collaboration, which is counterproductive for knowledge transfer. The risk is particularly high when employees don't see each other often and thus don't have the chance to really get to know each other. This is not insignificant in view of post-corona times, when working from home and hybrid working will become more important.

Older people in particular suffer from too big an age difference. They feel less engaged and more easily discriminated against. This encourages them to leave the organization, even though they know opportunities will be scarce elsewhere. Organizations should avoid the departure of older employees at all costs because this means losing a wealth of knowledge and experience. But how can you avoid older employees leaving?

You need sufficient differences to make age diversity 'pay off', but you can't do this without inclusion. This is confirmed by a 2018 study in collaboration with SD Worx and NV Belgium among 5,000 Belgian employees: employees who feel there is an age-inclusive culture are less inclined to leave (especially older employees), they share more knowledge with coworkers of a different age, and they feel unique and engaged. Without inclusion, a mix of young and old does not generate added value, on the contrary. Therefore, the HR toolbox cannot do without (age-)inclusive HR practices, leadership and an inclusive organizational culture.

Are Belgian organizations inclusive enough? More and more employers are committed to inclusion, as is demonstrated by the increasing number of employers that sign a diversity charter. Effective actions, though, are still too often lacking, even though small efforts such as the wording of job ads or integrating the appreciation of input from all ages into the mission statement can already make a huge difference.

Older employees are invaluable. The knowledge and experience they can share with younger employees are unique. Our 2020 Future of Work survey found that older employees and senior employees feel that they are more at risk of becoming obsolete and are less employable. In addition, older employees say they are less self-directed and feel less supported in their career development. We need to increase the employability of this group of employees to enable sustainable careers and knowledge sharing.

This is not only the case for older employees. Research from 2012 already showed that only one third of employees think they have the necessary competencies to advance to new positions or roles. And 12% indicated that they don’t have the competencies that are of strategic importance to the organization or that make them more broadly employable.

With an aging population, increasing age diversity within organizations is inevitable. If we want to make full use of the knowledge benefits of this diversity, we need to invest in inclusion and employability.