Multi-Generational Workforce

Embrace The Multi-Generational Workforce

One of my most favourite subjects at the moment and so I will apologise in advance for what is going to be a very carried away, over-excited overview of the issue!!

Gen Z workers are paving the way for the next generation of workers by continuing to prioritise a healthy work-life balance. They were set to outnumber Baby Boomers in the workforce for the first time last year, shifting workplace dynamics and transforming the today’s workplace culture however, it has been estimated that at least 13% of retirees plan to re-enter the job market in 2025. As the movement—known as “The Great Retiree Return”— rises, more younger employees are entering into “micro-retirement.” But what do these age reversal trends mean? What is a “micro-retirement,” and what can employers do to accommodate to these opposing trends?

Micro-Retirement’ Trend Vs. Traditional Retirement

The younger generations have begun to normalize a heavier focus on well-being and a good work-life balance. And with that comes this new career trend. Instead therefore, of waiting until retirement to travel the world, Gen Z are taking time between jobs to have time out. Driven by Tik-Tok, the micro-retirement trend is the latest buzz in the world of work. Younger people prioritize mental health, personal fulfilment and meaningful experiences over a singular focus on career longevity and progression. It has been argued that because people are starting to acknowledge they may work well into their 70s, they are planning periodic rest rather than deferring all leisure to later years. Although it can be daunting to leave a career behind, the progression of technology in the past ten years means that searching for jobs is far more streamlined. This has reduced the fear of losing career momentum after a break and for those who want to travel while keeping their career, the rise in remote working since the pandemic means that individuals can still maintain part-time or project-based work if they so desire.”

The Great Retiree Return Vs. ‘Micro-Retirement’

While Gen Z are taking “micro-retirements,” Baby Boomers are leaving retirement and returning to the workforce. Why? Financial pressures like rising living costs are key drivers. Beyond financial stability, returning to work offers retirees social benefits, a renewed sense of purpose and opportunities to slow down without throwing in the towel. Retirees bring generational diversity to the workplace and this enhances collaboration and innovation within teams. Plus, younger employees gain access to the wisdom and experience of older colleagues helping to shrink knowledge gaps in the workforce.

By the same token, returning retirees can benefit employers. Retirees represent a seasoned talent pool, often requiring less onboarding and bringing skills that can fill critical gaps. For industries experiencing labour shortages this is incredibly advantageous. Returning retirees also bring incredible institutional knowledge, expertise and mentorship capabilities, which will help bridge skill gaps and contribute to leadership roles, training junior employees and consult on strategic projects.

As companies are forced to navigate these generational transitions, it is going to be crucial for employer to reshape traditional work practices and create environments where both Baby Boomers, Gen Z and those in between can thrive. To accommodate the unique needs of retirees, employers should consider offering flexible roles, such as part-time or project-based positions. Addressing barriers such as ageism, proper job training and technology upskilling for older workers not only fosters inclusivity but also enhances the effectiveness of retirees in their roles. Employers may also want to offer more tailored benefits, such as additional healthcare options or phased retirement plans to further entice or award the retirees. The same goes for the younger generations though and in order to thrive, grow and survive in 2025 and beyond companies must reshape old practices for the newly emerging workforces.

That said, a recent study did show that 45% of hiring managers label Gen Z as the worst to manage and as such some business leaders will inevitably believe that the younger employees need to conform to their standards instead of changing their practices to accommodate them. (Sorry Gen Z-ers! 😲)

Perhaps the ultimate solution (and the solution we should be focussed on for our clients) is for employers to focus on both ends of the age spectrum. This would require making sure all generations feel safe, respected and protected from ageism and discrimination. That way employees get to choose their career trajectory based on their current life experiences and values, which would honour those who want to return to the workforce and those who prefer to take early “micro-retirement.”