Australian workplaces are becoming increasingly diverse in age and experience as younger generations enter the workforce earlier and baby boomers are retiring later. This shift is calling for new ways for businesses to collaborate, communicate and grow. The Australian Public Service Commission (APSC) estimates that by 2060, nearly one in four Australians will be over the age of 65, meaning managing multigenerational workforces effectively will continue to be a competitive edge for organisations of all sizes. In this article, we will dive into what defines a multigenerational workforce in Australia and highlight the key challenges, opportunities and benefits they bring.
For trusted advice in navigating multigenerational workforces, our team of HR alignment experts are here to guide you in building an inclusive, high-performing team from all ages and backgrounds.
What a Multigenerational Workforce Looks Like in Australia
Defining the Generations
Australia’s multigenerational workforce has distinct experiences and expectations around salary, work life balance and work ethic. As there are now five distinct generations in the Australian workforce, it is important to understand how they differ.
Age and Employment in Australia — Key Data
DEWR and Griffith University’s Multi-generational workplace research report found that the distribution of Australia’s workforce is. At this time, it is quite balanced:
Demographic Trends & Workforce Longevity
Another trend we are seeing is that Australians are working well past their sixties and retiring later. The APSC has noted that by 2060, there will be 8.9 million Australians in the workforce over the age of 65. This is due to longer life spans, flexible work models and financial burdens all pushing retirement back. This is paired with younger generations entering the workforce earlier, which has led to a wide range of generations and perspectives within the same workforce.
Why Generational Diversity Matters
Benefits of a Generationally Diverse Team
Having a multigenerational workforce is an advantage as it sets organisations up for succession success and has a number of clear advantages.
For example:
- Innovation: Bringing younger generations to collaborate with older staff brings together fresh perspectives with a deep understanding of traditional workings. This fuels creative problem-solving and pushes organisations forward.
- Knowledge Transfer: There is no better way to mentor across generations than by directly passing on knowledge. This preserves institutional knowledge.
- Resilience: Combining fresh perspectives with experience helps strengthen decision-making and adaptability. This improves an organisation’s resilience to change.
Retention, Engagement & Risk Mitigation
The AHRI / Australian Human Rights Commission (AHRC) report Older and Younger Workers: What Do Employers Think? found that HR professionals are increasingly classifying workers aged 51-55 as “older”. This rising perception increases the risk of bias in hiring and promotion decisions. On the flip side, AIHW reported that roughly 27% of Australians over 50 have also reported age discrimination at work. This indicates that there is an increasing need for organisations to implement inclusive policies to reduce turnover and maintain engagement of older generations.
Key Challenges in Managing a Multigenerational Workforce
Communication Gaps & Preferences
Organisations may run into issues with communication gaps between generations, as generations differ in communication preferences. This is due to digital fluency versus traditional forms of communication. For example, older employees may prefer face-to-face communication, whereas the younger workforce may respond better to rapid, informal digital updates.
Divergent Motivations & Values
The generational gap is also affected by different drivers of motivation and values. Baby boomers tend to value job security, loyalty and a longstanding legacy, whereas the younger generation places greater weight on purpose, growth and flexibility. Ensuring an organisation offers both security and growth is key to managing a multigenerational workforce.
Age Bias, Stereotypes & Inclusion Barriers
Age bias, stereotypes, and inclusivity across generations can arise as a result of generational stereotypes. For example, stereotypes such as “older workers don’t know how to use technology” or “younger generations lack work ethic” can harm team collaboration.
Retention, Knowledge Loss & Succession
As older generations retire, institutional knowledge may be lost if not properly recorded or handed down. Younger generations are also more likely to change jobs more often, which can affect continuity gaps. Succession planning and mentoring programs can help support this, as they help businesses prepare for workforce changes.
Turning Challenges into Opportunities
Although there are challenges with a multi-generational workforce, there are equally a lot of opportunities. Turning generational diversity into an opportunity for growth requires intentional steps and thought-out frameworks. Here are some steps organisations can take to boost morale, productivity and team collaboration:
- Awareness and empathy: Hosting workshops and team-building exercises can boost awareness and empathy across multigenerational teams.
- Cross-generational mentoring: Pair up younger staff entering the workforce with older, established employees for two-way learning.
- Flexible work options: To support work-life balance and preferences across generations, offer flexible work options such as hybrid models, phased retirement or compressed workweeks.
- Inclusive leadership: Training managers on how to communicate with different generations improves employee morale and supports employee engagement.
Step-by-Step Strategies for Managing a Multigenerational Workforce
How you manage multigenerational workforces is all about effective frameworks and planning. Here are our practical 7-step frameworks Australian businesses can use to effectively manage cross-generational teams:
1. Assess Workforce Demographics: Know what your generational mix and projected mix are before you get started
2. Run Engagement Surveys: Getting feedback directly from your team is a great way to identify communication and culture gaps.
3. Provide Inclusion and Bias Training: This is important for both older and younger generations to ensure biases aren’t causing team friction.
4. Create Mentorship Programs: This pairs those entering the workforce with knowledgeable, more established staff to learn from each other.
5. Review HR Policies: HR policies should be updated frequently to ensure HR compliance and relevancy.
6. Encourage Shared Projects: Teaming younger generations with established staff helps blend experience and innovation.
7. Track Progress: Using metrics like engagement, retention, productivity and internal feedback to track progress.
By combining this 7-step framework, Australian businesses can effectively manage the generational gap between their employees and foster an inclusive culture. For support on managing a multigenerational workforce, reach out to E.L Blue for outsourced HR services to implement these frameworks.
Quick Wins for Small and Medium-Sized Businesses
For small businesses without an established HR department or frameworks in place, there are still several steps organisations can take.
For example:
- Review job descriptions and switch the language from “young professional” to “motivated professional” to remove age-coded language.
- Start knowledge-sharing programs or mentoring to boost team collaboration.
- Use a mix of digital and in-person communication channels to appeal to all generations.
Legal and Compliance Considerations in Australia
In Australia, organisations must abide by the Age Discrimination Act 2004 and the Fair Work Act 2009 when hiring, promoting or terminating a contract. Some common mistakes organisations make include biased job ads, excluding older workers from training sessions and promotion criteria around tenure contracts. To ensure compliance, organisations should consider partnering with HR compliance experts such as E.L Blue to review their frameworks.
When to Partner with an HR Expert Like E.L Blue
Successfully managing generations takes time, adaptability and strategic frameworks. For many organisations, this may not be possible due to resources. That is where expert support comes in. E.L Blue acts as an extension of organisations as an embedded HR partner, helping businesses to design inclusive policies, workforce leadership and training programs to ensure a supported and future-ready team.
Future Trends and What’s Next
Australian businesses will continue to see a wide mix of generations working together. It is important that organisations embrace the change and continue to use this to their advantage. Implementing hybrid work models, digital tools, and team-building exercises will support multigenerational workforce development. Australian organisations that embrace changes and implement lifelong learning will stay ahead in performance and sustain an age-inclusive work culture.
Key Takeaways
1. Australia’s workforce is the most diverse it has ever been.
2. When well managed, generational diversity builds innovation, retention and engagement.
3. Inclusive leadership and tailored policies are essential for building long-term success.
4.Partnering with outsource HR experts such as E.L Blue helps bring frameworks to life.
Are you after creating a multigenerational culture that thrives? Get in touch with our team today to learn more about our workforce planning services.