Inter-generational collaboration linked to stronger organisational performance, report claims

Organisations that encourage stronger inter-generational collaboration between different groups of employees are more likely to see improvements in innovation, trust and business performance, according to new research from employee recognition firm O.C. Tanner. The company’s first State of Generations at Work Report, based on responses from more than 5,700 employees across 17 countries, argues that employers should move beyond generational stereotypes and instead focus on creating what it describes as “generational synergy” across their workforces.

The report introduces the concept of “generational contracts”, suggesting that each generation has developed different expectations of work based on the economic, social and workplace conditions they experienced as they entered employment. According to the research, these differing expectations continue to influence communication, collaboration, wellbeing, recognition and attitudes towards technologies such as artificial intelligence.

Among the report’s European findings, employees who experienced strong generational synergy were eight times more likely to say their organisation produced great work, five times more likely to recommend it as a good place to work and five times more likely to report feeling included.

The research also suggests that each generation brings different priorities to the workplace. Baby Boomers are said to value security and stability, Generation X prioritises autonomy and flexibility, Millennials seek purpose and alignment, while Generation Z places greater emphasis on community and opportunities for growth. According to the report, organisations that support the wellbeing priorities of employees across all generations are 11 times more likely to achieve high levels of generational synergy.

The study also examines the impact of AI on workplace relationships. It found that 37 percent of respondents said increased organisational encouragement to use AI had reduced how often they sought advice from human subject matter experts. However, employees working in organisations with stronger generational collaboration were four times more likely to seek expertise from colleagues in other generations.

According to the report, organisations with high levels of generational synergy were also eight times more likely to report innovation, 10 times more likely to report higher customer satisfaction and organisational growth, 11 times more likely to adapt successfully to change and 12 times more likely to report high levels of trust.

Mindi Cox, chief people and marketing officer at O.C. Tanner, said organisations should see generational differences as an opportunity rather than a challenge. “When leaders understand more about the experiences and expectations that shape their employees’ perceptions and attitudes, they can create greater alignment for their people and encourage more meaningful collaboration,” she said.

Dr Alexander Lovell, vice president of the O.C. Tanner Institute, said only 22 percent of employees currently experience what the report defines as genuine generational synergy. “It means almost three out of four employees work somewhere that hasn’t figured out how generations learn from one another,” he said. “Organisations have spent years managing generational differences. The future favours those who build with it.”