For the first time in history, five generations are working together, making multigenerational workplaces essential to the future of work.
Generation Z is playing a key role in innovation, and the success of tech-driven business transformation will depend heavily on this group. However, each generation has different experiences, and businesses that want to stay competitive must encourage collaboration, invest in upskilling, and focus on people-centered change.
The workplace is evolving rapidly due to technology and changing workforce expectations. On top of that, global events and economic challenges are adding to the uncertainty. We are now in a time of constant change, where the ability to adapt is more important than ever.
To lead a motivated, forward-thinking, and resilient workforce, business leaders need to understand their employees—their needs, how they work together, and how they are evolving. The future of business depends on understanding the people shaping it.
Understanding the Generational Shift
Workforces in developed countries are shrinking. In Europe, the workforce is expected to be 25% smaller in 20 years, and in the U.S., Generation Z has three million fewer people than Millennials. Generation Alpha, the next in line, is likely to be even smaller.
By 2034, Millennials, Gen Z, and the first adult members of Gen Alpha will make up 80% of the workforce in advanced economies. With a declining talent pool, multigenerational teams will be key to business success. While leaders have always had to balance bringing in new talent while supporting experienced professionals, today’s workforce is more diverse in age and background than ever before.
Five generations are working side by side, each shaped by different technological and social experiences. Consider employees who started working before 1990, in a time of paper records—this world is completely foreign to Gen Z, who have always had the internet at their fingertips. This diversity of experience presents a huge opportunity for innovation and growth.
The Impact of Gen Z on the Workplace
Every generation brings something new to the workplace, but none are having as much influence as Gen Z. They are reshaping workplace culture, and their impact is being felt across all generations. At EY, for example, nearly a third of employees—127,000 people—are from Gen Z. This number has tripled in just three years, and today, the median age of EY employees is 30.
Gen Z’s values—community, a global mindset, prioritizing access over ownership, side businesses, and authenticity—are changing how companies operate. They quickly learn new technology, process large amounts of information, and expect workplace tech to be as intuitive as social media.
However, they are also more likely to change jobs. In the 2024 EY Work Reimagined Survey, 38% of respondents said they were likely to quit in the next year—a 4% increase from the previous survey, with Gen Z leading this trend. Retaining Gen Z employees is crucial for innovation and helping businesses adapt to the future. Their influence will be a major factor in shaping business transformation.
How Leaders Can Prepare for the Future
Business leaders should focus on three key actions to meet the needs of a changing workforce and leverage the benefits of generational diversity:
1. Promote Collaboration Across Generations
While there is a strong focus on younger employees, every generation contributes valuable insights. With fewer workers available and people staying in the workforce longer, companies must encourage teamwork across age groups.
This means forming multigenerational teams, reducing hierarchical barriers, challenging stereotypes, and embracing new ways of thinking. Leaders should seek input from all age groups, such as creating advisory boards with younger employees to offer fresh perspectives on workplace engagement.
Generational differences can create divides, but leaders who help bridge these gaps will drive innovation and strengthen their organizations.
2. Invest in Effective Upskilling
The need for upskilling has never been greater as artificial intelligence (AI) and automation continue to change job roles.
Gen Z is optimistic about AI, but studies show they sometimes overestimate their skills. Meanwhile, Gen X and Millennials may have different views on AI and need tailored training based on their experiences with technology.
To close these gaps, companies must prioritize ongoing education with personalized training that aligns with how different generations learn best.
3. Keep People at the Center in a Tech-Driven World
Even in an era dominated by technology, human skills remain essential. As AI and automation become more integrated into work, qualities like empathy, ethics, and critical thinking will become even more important.
In a world of constant change, organizations that understand generational differences and foster real connections will set the standard for success. By embracing collaboration, continuous learning, and human-centered leadership, businesses can build the structures and strategies needed to thrive in the future.
