Maximizing the Potential of a Multigenerational Workforce in a Small Business

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By Steve Saah, Executive Director of Finance and Accounting Permanent Placement, Robert Half

Small and midsize business leaders who view their multigenerational workforce as a source of competitive advantage have the right outlook. Sure, it can be challenging to create a cohesive and productive work environment when you have four or even five different generations working in your organization. But harnessing the strengths of each group, from the Silent Generation to Generation Z, can create significant upside for your business — and help position your firm for future success.

Improved retention of in-demand professionals is one positive outcome you can experience when you invest in and focus on nurturing your multigenerational workforce. Taking the time to understand what motivates all your employees to work for your firm and perform at their best is vital to holding on to top talent. When employees feel valued and understood, regardless of their age or level of professional experience, they are more likely to be engaged and loyal.

Other compelling benefits your company can realize when you have a multigenerational team include the following:

Access to diverse perspectives that help drive innovation

A workforce composed of multiple generations offers a rich diversity of thought ready to be tapped. Seasoned employees bring decades of experience and deep industry knowledge, while up-and-coming professionals can introduce fresh ideas and new approaches.

This blend of perspectives can lead to more creative problem-solving and innovation that leads to the development of new offerings and solutions that can differentiate your small or midsize business.

Greater ability to build well-rounded teams ready to tackle diverse challenges

Each generation of workers possesses distinct skill sets that can deepen your firm’s readiness to pursue new opportunities and adapt to change.

Baby boomers and Generation X employees, for example, often have strong leadership skills and a thorough understanding of business processes and best practices. And millennials and Generation Z tend to be particularly adept at using the latest technology and digital tools, which can help you modernize your company’s operations.

Mentorship and knowledge transfer — both structured and organic

The coexistence of multiple generations in the workplace provides a natural environment for mentorship. Experienced team members can share their wisdom and insights with colleagues just starting to forge their career path.

Less traditional arrangements, like reverse and peer-to-peer mentoring, can also help create a more inclusive learning environment for everyone who is keen to learn and grow professionally. Making the point to deploy generationally diverse teams on projects can help foster organic knowledge sharing, too.

Improved customer relations and satisfaction

If your workforce is diverse, then your company will be better positioned to attract and serve a diverse customer base. While this is not always the case, employees from different age groups do tend to relate to and connect more naturally with clients of their own generation.

The ability to understand and meet the needs of a wide range of customers can sharpen your competitive edge and help you grow your small or midsize business.

You can take several approaches to maximize the potential of your multigenerational workforce. Encouraging cross-generational collaboration through mentoring arrangements and the creation of diverse project teams was already mentioned. Here are three more strategies to consider.

Robert Half’s Demand for Skilled Talent report notes that a common cause of churn in today’s workforce is employees’ desire for flexible work options. Leading employers recognize that hybrid and remote work arrangements can help them attract skilled candidates while also keeping top performers from eyeing the exit door. In fact, our workplace research found that nearly half (46%) of employers are offering these options specifically to retain valued talent.

While you’ll be hard-pressed to find a professional who doesn’t appreciate the opportunity to set their own schedule or work off-site when needed, when it comes to how much work flexibility influences overall job satisfaction, there are generational differences.

For example, Robert Half’s research for Examining the Multigenerational Workforce found that work flexibility matters more to Generation Z professionals than it does to millennials, Gen Xers or baby boomers.

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Prioritize efforts to foster a corporate culture of continuous learning and create generationally inclusive programs that cater to employees’ diverse learning preferences. In addition to mentorship programs, you could offer access to learning options such as in-person workshops and online courses, including those that can help everyone ramp up with new technology like generative AI.

Be sure to regularly assess and adapt your learning programs to meet your employees’ evolving needs and career stages, leveraging feedback from staff members across all age groups. This can help promote employee engagement. And when you take the time to understand what your workers want, you can create meaningful career pathways for them and more confidently develop succession plans.

Each employee is unique, and acknowledging that can help you be more successful at managing a multigenerational workforce. It’s good practice to adapt your management style to suit the strengths, personality and aspirations of each individual employee. That said, you’ll still need to take generational preferences and expectations into consideration, especially when it comes to communication.

For instance, you may find that your employees in the Silent Generation or baby boomer set have no issue hopping on a video call when needed, but they might prefer to have face-to-face meetings or phone calls. Your Gen X employees, meanwhile, might favor email communication. And your team members from Generation Z might be avid users of instant messaging apps.

Your challenge as a small or midsize business leader is to be ready to communicate effectively through all channels your staff members use at work. As for your overall approach, strive to be clear, concise and adaptable in your messaging, encourage open dialogue, and actively solicit and listen to feedback from everyone on your team. Making this effort is crucial to helping employees from every generation in your workplace to feel heard and valued.

There is no one-size-fits-all approach to managing employees. Every person is unique, and their approach to work and what they want and need from an employer and will vary. Those things may not align neatly with the behaviors or preferences of other professionals in their demographic group, either.

But with thoughtful and inclusive policies, programs and talent management strategies, you can realize benefits from a generationally diverse workforce that far outweigh the complexities of managing such a team. You’ll likely find it’s easier to retain your best people, too — and differentiate your employer brand so you can attract top talent to help guide your business into the future.

Follow Steve Saah on LinkedIn.

The original version of this article appeared on the CPA Practice Advisor website.

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