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1、GENERATIONS:Unlocking the Productivity Potential of a Multigenerational WorkforceDr.Daniel Jolles and Dr.Grace Lordan The Inclusion Initiative,London School of EconomicsBACKGROUNDLarge firms now regularly have five generations working together.Although generational diversity has the potential to del

2、iver significant productivity gains,it has received relatively little strategic attention to date.Such strategic attention is warranted,given that many firms are experiencing frictions that prevent maximum productivity owed to a lack of collaboration between employees of different generations.To ena

3、ble firms to maximize the productivity gains of multigenerational teams,The Inclusion Initiative at the London School of Economics is proud to launch GENERATIONS,thanks to a generous philanthropic gift from Protiviti.DEI agendas routinely neglect generational inclusion.However,the evidence suggests

4、that there are gains to be had in terms of productivity and well-being from getting the generations working better together.We will create research that demonstrates why frictions between generations are happening,and also detail actions that can be taken so that firms can realize greater productivi

5、ty.The Inclusion Initiative could not find a better partner for this work than Protiviti.Over the past 12 years,Protiviti has conducted a global survey of C-level executives and directors to understand their perspectives on top risks facing their business.Together we recognize the risk of failing to

6、 get employees across generations working better together.Together we will address this issue.Our partnership,GENERATIONS,will help leaders adapt and respond to this top challenge.Dr.Grace Lordan,Founding Director of The Inclusion Initiative GENERATIONS:Unlocking the Productivity Potential of a Mult

7、igenerational Workforce This report,GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce,marks the first of a multi-year research partnership between The Inclusion Initiative and Protiviti to help leaders invest in the employee experience of multigenerational teams to ra

8、ise productivity.This first report highlights the importance of harnessing the productivity potential of generations in the workplace for the future of work.In particular,we demonstrate that workers themselves believe that productivity is being lost because they are not working effectively together.

9、25%of employees self-report low levels of productivity.Productivity is even lower for employees with larger age gaps with their managers.For example,employees with managers more than 12 years their senior are nearly 1.5 times as likely to report low productivity compared to other employees.1An aging

10、 global population means continually aging workforces,with lower levels of younger talent in the pipeline in addition to increased generational diversity in the firm.There are large productivity and retention gains to be had from credible,empirically-sound evidence about what each of the generations

11、 wants from their workplace and intergenerationally inclusive working practices that respond to these needs.GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce brings to the fore evidence that firms can do more to harness the benefits of multigenerational teams by lever

12、aging intergenerationally inclusive work practices.Our work over the next three years will go further,pinpointing the tensions between multigenerational teams.In addition,we will pinpoint interventions that may work to alleviate these tensions.We strategically use the word may as we recognize that c

13、ontext matters and we want firms to evaluate the interventions we propose.To facilitate this,we also plan to provide concrete guidance on how firms can make this evaluation.Overall,age and generational diversity affect the experience of every single employee at each moment and stage of their careers

14、.For Protiviti,this partnership with The Inclusion Initiative is strongly aligned with a commitment to create productive workplaces which are generationally inclusive.For The Inclusion Initiative at LSE,GENERATIONS builds on a commitment to bringing together teaching,research and practice to build m

15、ore inclusive work environments.Protiviti is delighted to collaborate with The Inclusion Initiative in becoming the inaugural founder of the GENERATIONS HUB.GENERATIONS is an important study focusing on an under-researched area of diversity in the workplace.Through this research,we hope to support o

16、ur clients in creating productive and successful teams,taking proactive steps to improve organizational effectiveness and drive long-term success across the organizationMatt Duncan Managing Director,ProtivitiAll readers of this report are invited to get involved with future GENERATIONS research.Find

17、 details on how to take part in our Global Annual Survey here and at the end of the report.1 Employees were asked,How do you feel your performance is viewed by your supervisor?Details of the analysis of self-reported productivity of workers based on the age difference between them and their direct m

18、anagers can be found in Appendix C.GENERATIONS is a new research hub at The Inclusion Initiative at the London School of Economics.It launches with generous funding provided by Protiviti as its inaugural GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 3EXECUTIVE SUM

19、MARYAn aging population implies that the age gap between leaders and their teams now spans multiple generations.In the US,one third of the workforce is aged over 50,and the average age gap between employees and their managers is around 12 years.Harnessing the knowledge,skills and connections each ge

20、neration brings to the firm can deliver productivity gains and a competitive edge.Generationally diverse teams have the potential to increase the knowledge and networks used to solve problems and grow the business.GENERATIONS aims to help firms unlock this potential.Drawing on data from more than 1,

21、450 employees in Finance,Technology and Professional Services Industries in the United States and United Kingdom,this report underscores a call to action for leaders to prioritise intergenerational inclusion by making it central to DEI and talent strategies.Despite the clear potential for productivi

22、ty gains through intergenerationally inclusive work practices,firms continue to miss out due to frictions between employees of different generations negatively impacting productivity.Productivity PotentialIn this report,we asked employees how their manager viewed their productivity at work,including

23、 their overall performance,as well as their contributions specific to teamwork,work quality,and their ability to deliver work on time.2 2 Productivity is based on employee responses to five questions.Employees were asked,How do you feel your performance is viewed by your supervisor?What does your su

24、pervisor(i.e.,not you)think of the following aspects of your performance?to the following five areas:Your overall work performance,Your effectiveness as a team member,Your relationships with co-workers,The quality of your work,Your ability to complete work on time/meet deadlines.Specific details of

25、this measure can be found in Appendix B.GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 4 We found considerable potential to increase productivity across the generations.Specifically:25%of employees surveyed self-reported low productivity.Across generations,low leve

26、ls of productivity are reported by 37%of Gen Z,30%of Millennials,22%of Gen X,and 14%of Baby Boomers.Employees with larger age gaps with their managers report lower productivity.Those with managers more than 12 years their senior are nearly 1.5 times as likely to report low productivity.Generations a

27、gree on the skills that are most important to productivity and career advancement,the top three skills being active listening,time-management,and judgment and decision making.Intergenerationally inclusive work practices Our data also suggests that low productivity,especially among younger generation

28、s,is due to firms failing to deliver intergenerationally inclusive work practices.These practices involve making it easy for people from different generations to fit in,developing and advancing employees regardless of age,demonstrating commitment to hiring and retaining a generationally-diverse work

29、force,and effectively managing people from diverse generational backgrounds.3 40%of employees report that their firm is failing to deliver these practices,leaving the productivity potential of intergenerationally inclusive work practices unrealized:Although 25%of employees self-report low productivi

30、ty overall,this drops to just 13%of employees in firms with intergenerationally inclusive work practices.Across generations,intergenerationally inclusive work practices reduce employee self-reports of low productivity,especially for younger workers;from 37%down to 18%for Gen Z,30%down to 13%for Mill

31、ennials,22%down to 13%for Gen X,and 14%down to 7%for Baby Boomers.Intergenerationally inclusive work practices close the productivity gap for employees with older managers,raising their self-reported productivity to the same level as other employees.Employees at firms with intergenerationally inclus

32、ive work practices are twice as likely to be satisfied with their job and are 1.5 times less likely to look for a new role outside the firm.Overall,this work demonstrates that frictions between generations within firms are negatively impacting productivity.However,it also demonstrates that intergene

33、rationally inclusive work practices such as making it easier for each generation to fit in,developing and advancing people based on merit rather than age,and committing to a generationally-diverse workforce enable the productive benefits of five generations in the workforce.Notably,direct managers s

34、till have the greatest influence over an employees experience,so it makes sense that the most important aspect of intergenerational inclusion seems to be having a manager who is skilled at leading people from different generations.3 Intergenerational Inclusion is based on employee responses to four

35、questions on age-inclusive work practices.Specifically,that the firm makes it easy for people from diverse age groups to fit in and be accepted,that employees are developed and advanced without regard to the age of the individual,that managers demonstrate through their actions that they want to hire

36、 and retain an age-diverse workforce,and that their immediate manager/supervisor does a good job of managing people with diverse backgrounds(in terms of age.Specific details of this measure can be found in Appendix B.Despite the clear potential for productivity gains,firms continue to miss out due t

37、o frictions between employees of different generations negatively impacting GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 5GENERATIONS BACKGROUNDGENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce Populations around the world are livi

38、ng longer and having fewer children.Currently there are five generations working together in the workplace.4 With more age groups being represented in the workplace,leaders must tap into the diverse strengths of their intergenerational teams.This involves adopting intergenerationally inclusive work

39、practices and adjusting work structures to meet the demands of employees across generations.The global slowdown in productivity accompanying this trend suggests a failure to capitalize on the potential benefits of generational diversity.Firms who successfully deliver intergenerationally inclusive wo

40、rk practices to their teams will find themselves at an increasing advantage in driving productivity and attracting and retaining key talent.Harnessing the knowledge,skills and connections each generation brings can deliver firms productivity gains and a competitive edge.Generationally diverse teams

41、have the potential to increase the knowledge and networks used to solve problems and grow the business.We aim to help firms unlock this potential.4 OECD(2023),Labor Market Statistics:Labor force statistics by sex and age(Edition 2022),OECD Employment and Labor Market Statistics(database),https:/doi.

42、org/10.1787/43f81975-GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 6Understanding what is important to each of the generations can help leaders enable multigenerational teams to work better together.ApproachTo understand better the lost productivity potential acco

43、rding to the generations themselves,The Inclusion Initiative at the London School of Economics gathered data from more than 1,450 employees in the United Kingdom and United States across Finance,Technology and Professional Services Industries.7,8 The primary goal was to understand employee experienc

44、es and feelings of their own productivity and inclusion,in addition to identifying patterns between and within generations.5 There is no official taxonomy of generation start and end dates,however these dates have shaped popular understanding and come from the Pew Research Center,a US Think Tank.See

45、 more at www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/.6 Data was collected in 2023.At the time of collection Generation Z was aged 26 or under,Millennials aged 27 to 42,Generation X aged 43 to 58,Baby Boomers aged 59 to 77,and the Silent Generation aged 7

46、8+.7 Demographic attributes of participating employees can be found in Appendix A.8 A total of 5 employees born prior to 1946(Silent Generation)provided research responses.Given the small number of responses from this generation,we have not included the Silent Generation in data presented between ge

47、nerations.Firms who successfully deliver intergenerationally inclusive work practices to their teams will find themselves at an increasing advantage in driving productivity and attracting and retaining key talent.Generation Z1997-2004Age-27 and youngerGeneration X1965-1980Age-44-59Millennials1981-19

48、96Age-28-43 Baby Boomers1946-1964Age-60-78 Silent Generation 5-6Before 1946Age-79+Generations DefinedGENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 7LEADING GENERATIONS TOWARDS PRODUCTIVITY25%of employees self-report low productivity.This is especially the case for

49、 younger generations,with 37%of Gen Z and 30%of Millennial employees self-reporting low productivity in their role compared to 22%of Gen X and 14%of Baby Boomers.Yet in firms with intergenerationally inclusive work practices,the proportion of employees who self-report low productivity drops from 25%

50、to 13%.While all employees appear to benefit from intergenerationally inclusive work practices,this is especially the case for younger generations.These practices reduce the percentage of employees self-reporting low productivity from 37%to 18%for Gen Z and 30%to 13%for Millennials,compared to 22%to

51、 13%for Gen X and 14%to 7%for Baby Boomers.Generational tensions between employees and leadership are still widespread,and many firms are failing to realise the productivity benefits of intergenerationally inclusive work GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workfor

52、ce 840%of employees do not view their firm as having intergenerationally inclusive work practices in place.Although intergenerationally inclusive work practices appear key to unlocking greater productivity,our data suggests that these practices are not being widely mobilised.Greater age gaps,greater

53、 tensionsAccording to our data,intergenerational barriers are particularly strong between younger employees and older leaders.61%of employees reported having an older manager,with an average age gap of 12 years.The greater the age gap between an employee and their older manager,the lower their job p

54、roductivity and job satisfaction.9 Employees with managers more than 12 years their senior are nearly 1.5 times as likely to report low productivity,and nearly 3 times as likely to report being extremely dissatisfied with their job.The solution to this tension?Intergenerational inclusion!Our data al

55、so suggests that when employees view their leaders as fair and committed to Intergenerationally inclusive work practices are comprised of four key components;1.The firm makes it easy for people from different age groups to fit in and be accepted2.Employees are developed and advanced regardless of ag

56、e3.Leaders demonstrate commitment to hiring and retaining a generationally-diverse workforce4.Leaders effectively manage people from diverse generational backgrounds in their teamsProductivity for individual employees refers to their performance contribution to team and firm outputs.As this varies b

57、y job role,firm and context,we asked employees how their direct manager viewed their overall performance,as well as their contributions specific to teamwork,work quality,and their ability to deliver work on time.10When employees view their leaders as fair and committed to intergenerationally inclusi

58、ve work practices,they overcome age barriers and enjoy greater productivity and job satisfaction.inclusive work practices,regardless of age or generation,they overcome age barriers and enjoy greater productivity(Figure 1A)and job satisfaction(Figure 1B).That means that in firms where intergeneration

59、ally inclusive work practices are established,employees with older managers report similar levels of productivity and job satisfaction as other employees.9 Details of the analysis of self-reported productivity of workers based on the age difference between them and their direct managers in firms wit

60、h/without inclusive work practices can be found in Appendix C.10 See Footnote Figure 1A:Association between self-reported employee-manager age gaps and productivity 15 years age gap1-15 years age gap1-15 years age gap 15 years age gapFirms without intergenerationally inclusive work practicesFirms wi

61、th intergenerationally inclusive work practicesEmployees younger than managersEmployees older than managersHigher 15 years age gap1-15 years age gap1-15 years age gap 15 years age gapFirms without intergenerationally inclusive work practicesFirms with intergenerationally inclusive work practicesEmpl

62、oyees younger than managersEmployees older than managersHigher LowerProductivityGENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 11Intergenerational inclusion starts with direct managers We examined which of the four intergenerationally inclusive work practices matte

63、r most to employees self-reported productivity(Figure 4A)and job satisfaction(Figure 4B).For employees,the most important work practice for both productivity and job satisfaction is having a direct manager who does a good job of leading people from different generations.Developing employees without

64、regard to age/generation and having a workplace culture that makes it easy for people from different generations to fit in was important to productivity.Hiring and retaining employees,as well as developing employees,without regard to age/generation was also important to self-reported job satisfactio

65、n.1414 Details of the analysis of the four intergenerationally inclusive work practices and their relationship with self-reported productivity and job satisfaction can be found in Appendix CFigure 4A:Top 3 intergenerationally inclusive work practices associated with self-reported productivityEffecti

66、vely lead employees of diverse ages/generationsDevelop employees without regard to age/generationMake it easy for people of different generations to fit inProductivityNote:In Figure 4A,the Top 3 intergenerationally inclusive work practices associated with self-reported productivity are depicted base

67、d on strength of association(see Appendix C).010203Effectively lead employees of diverse ages/generationsHire and retain employees without regard to age/generationDevelop employees without regard to age/generationFigure 4B:Top 3 intergenerationally inclusive work practices associated with self-repor

68、ted job satisfactionNote:In Figure 4B,the Top 3 intergenerationally inclusive work practices associated with self-reported job satisfaction are depicted based on strength of association(see Appendix C).Job Satisfaction010203GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Work

69、force 12The skills for successful productivity across generationsIt is clear that intergenerationally inclusive work practices are associated with better self-reported employee productivity.One pertinent question,given we rely on self-reported data,is whether the generations define productivity diff

70、erently.To probe this,we can consider whether there is a consistent definition across the generations regarding the skills that determine productivity.Alongside effort,skills are the main input that determine productivity.Having a consistent definition of the most important skills across generations

71、 suggests employees are on the same page when they self-report their productivity.Overall,there is broad consensus on the skills reported across generations that are important to productivity and career advancement.The top skills for all generations are active listening,time management,and judgment

72、and decision making(Table 1).While good judgment has long been seen as a core quality for leadership,the emphasis on active listening and time management might speak to trends towards greater employee empowerment and the increasing challenges of balancing work performance while achieving work-life b

73、alance.15-18Gen ZMillennialsGen XBaby BoomersOverall1Active ListeningTime ManagementTime ManagementJudgment and Decision MakingActive Listening2Active LearningActive ListeningJudgment and Decision MakingTime ManagementTime Management3CoordinationJudgment and Decision MakingActive ListeningActive Lis

74、teningJudgment and Decision MakingTable 1:Top 3 skills employees view as important to productivity and career advancementNote:In Table 1,the top skills for employees of each generation are shown based on the mean ratings given by employees for each skill.15 Kluger,A.N.,&Itzchakov,G.(2022).The power

75、of listening at work.Annual Review of Organizational Psychology and Organizational Behavior,9,121-146.16 Aeon,B.,Faber,A.,&Panaccio,A.(2021).Does time management work?A meta-analysis.PloS one,16(1),e0245066.17 Active listening was defined as Giving full attention to what other people are saying,taki

76、ng time to understand the points being made,asking questions as appropriate,and not interrupting at inappropriate times.Time Management was defined as Managing ones own time and the time of others.Judgment and decision making was defined as Considering the relative costs and benefits of potential ac

77、tions to choose the most appropriate one.Active learning was defined as Understanding the implications of new information for both current and future problem-solving and decision-making.Coordination was defined as Adjusting actions in relation to others actions.A complete list of skills,methodology

78、and analysis can be found in Appendix C.18 Compared to older generations,Gen Z views active learning and coordination as having greater priority.While these skills are also highly valued by other generations,the emphasis from Gen Z may simply reflect early career demands of learning a role and adjus

79、ting to the GENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 13CONCLUSIONS This report shows that despite the potential for productivity gains through intergenerational collaboration,many firms are missing out due to frictions between employees of different generatio

80、ns negatively impacting productivity.25%of employees self-report low productivity.This is higher for younger generations,with low productivity reported by 37%of Gen Z and 30%of Millennial employees.Greater age gaps between employees and their older managers are associated with lower productivity and

81、 job satisfaction.Employees with managers more than 12 years their senior are nearly 1.5 times as likely to report low productivity.The good news is that intergenerationally inclusive work practices can effectively bridge gaps between younger employees and older managers and raise productivity acros

82、s all generations.The percentage of employees that self-report low productivity drops from 25%to just 13%in firms with intergenerationally inclusive work practices.These practices involve making it easy for each generation to fit in,developing and advancing people based on merit rather than age,comm

83、itting to a generationally-diverse workforce,and,most importantly,having managers who are skilled at leading people from different generations.At firms with intergenerationally inclusive practices,employees self-report higher productivity,higher job satisfaction and stronger intention to stay with t

84、he firm.Specifically,87%of employees in firms with intergenerationally inclusive practices self-report high productivity,compared to just 58%in firms without these practices.We find that younger employees in particular benefit from intergenerationally inclusive work practices,with the percentage of

85、Gen Z and Millennial employees self-reporting low productivity dropping from 37%to 18%and 30%to 13%respectively.Yet many firms appear to be missing out on these productivity benefits,with 40%of employees reporting that their firms do not have intergenerationally inclusive practices in place.Overall,

86、it would seem that intergenerationally inclusive work practices are a key to unlocking greater productivity within firms.We look forward to discovering the particular details of these work practices to inform how they can be operationalized in a cost-effective way in our future GENERATIONS:Unlocking

87、 the Productivity Potential of a Multigenerational Workforce 14INTRODUCING GENERATIONS HUB AND GENERATIONS GLOBAL ANNUAL SURVEYThe ability to attract and retain top talent in a tightening market is a top risk leaders are facing over the next decade.19 This report highlights the productivity and rete

88、ntion potential from creating better inclusion across intergenerational teams.We have just begun to scratch the surface on these benefits.The next phase of GENERATIONS aims to understand the firm-wide practices that improve performance and employee experience across generations.GENERATIONS HUBProtiv

89、iti is proud to partner with The Inclusion Initiative at LSE on the launch of the GENERATIONS HUB.To help leaders navigate the multigenerational workplaces of the future,the GENERATIONS HUB will propose research-grounded inclusivity actions to get teams performing at their best while attracting,reta

90、ining and developing multigenerational talent.The GENERATIONS HUB will provide links to relevant publications,articles and events that cover the latest behavioral science findings on this topic.19 Protiviti and NC State Universitys ERM Initiative,Executive Perspectives on Top Risks for 2024 and a De

91、cade Later, the Productivity Potential of a Multigenerational Workforce 15The benefits outlined in this report highlight the need for deeper,ongoing understanding of the experiences of workers across the generations.Participate in our GENERATIONS Global Annual Survey The GENERATIONS Global Annual Su

92、rvey will draw on the experiences of workers,managers,directors and C-suite executives to understand what matters in driving productivity and talent retention across generations.The benefits outlined in this report highlight the need for deeper,ongoing understanding of the experiences of workers acr

93、oss the generations,with a clear path towards work practices that drive the performance of increasingly intergenerational teams.This annual survey aims for a more ambitious understanding of generations specifically,we seek to understand how leaders are responding to global talent challenges and shap

94、ing their employee experience to overcome key productivity blockers to unlock the potential of a multigenerational workforce.For leaders committed to building an employee experience that maximizes intergenerational inclusion and productivity,backed by the latest insights,we invite you to participate

95、 by following us at GENERATIONS HUB and participating in the GENERATIONS Global Annual Survey.LSE ContactsDr.Grace Lordan Director of The Inclusion Initiative Dr.Daniel Jolles Research Assistant in Behavioral ScienceProtiviti ContactsFran Maxwell Managing Director and Global Leader,People Advisory&O

96、rganizational ChangeMatt Duncan Managing Director,People Advisory&Organizational CGENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 16AUTHORS AND ACKNOWLEDGMENTSAuthorsDaniel Jolles:Dr.Daniel Jolles is a Research Assistant in Behavioral Science at The Inclusion Initia

97、tive at the London School of Economics and Political Science.Daniels research focuses on applying behavioral science to questions of an aging workforce and age diversity.This research is aimed at helping organizations create productive,multigenerational,and inclusive workforces.His research has been

98、 published in international scientific journals and business blogs including Fast Company,LSE Business Review and World Economic Forums Future of Work.Grace Lordan:Dr.Grace Lordan is the Founding Director of The Inclusion Initiative and an Associate Professor at the London School of Economics and Po

99、litical Science.Graces research focuses on inclusive leadership,womens progress in the workplace,the future of work,productivity through diversity and individual success.Her academic writings have been published in top international journals and she has written for the Financial Times,Fortune,MIT Sl

100、oan Management Review and Harvard Business Review.Grace is a regular speaker and advisor to blue chip finance and technology firms.Think Big,Take Small Steps and Build the Future You Want,is her first book.The Inclusion Initiative:The Inclusion Initiative(TII)leverages behavioral science insights to

101、 advance the understanding of the factors that enhance inclusion in financial and professional services firms.Located within the London School of Economics and Political Science,TII produces rigorous research and measures to help firms understand barriers to inclusion,quantify the benefits of inclus

102、ion and achieve better inclusion outcomes.Email:TIIlse.ac.ukContributors/AcknowledgmentsLondon School of EconomicsSacha Ogosi,Public Affairs Manager for The Inclusion Initiative at LSETeresa Almeida,Research Officer in Behavioral Science for The Inclusion Initiative at LSE ProtivitiFintan Canavan,Di

103、rector,People Advisory&Organizational Change,ProtivitiShofna Uddin,Head of UK Marketing,ProtivitiLiz Signet,Product Marketing Manager,People Advisory&Organizational Change,PGENERATIONS:Unlocking the Productivity Potential of a Multigenerational Workforce 17www.lse.ac.uk/TII 2024 Protiviti Inc.An Equal Opportunity Employer M/F/Disability/Veterans.PRO-0124 Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.