Younger employees working under significantly older managers report lower productivity, highlighting a collaboration gap between different generations, according to recent research from the London School of Economics and Political Science (LSE) and global consulting firm Protiviti.
A comprehensive survey by LSE involving 1,450 employees across finance, technology, and professional services sectors in the UK and USA revealed that generational friction is contributing to reduced productivity. The study emphasizes the need for companies to adopt intergenerationally inclusive practices. Such practices include facilitating generational integration, promoting merit-based development, and committing to a diverse workforce spanning all age groups.
Key insights from the survey include:
- 25% of employees reported low productivity.
- Breakdown of low productivity by generation: 37% of Gen Z, 30% of Millennials, 22% of Gen X, and 14% of Baby Boomers.
- Employees with managers more than 12 years older report nearly 1.5 times higher likelihood of low productivity.
- Agreement across generations on the top skills for productivity and career advancement: active listening, time management, and judgment and decision making.
- An aging global population is leading to fewer young talents and increased generational diversity within large firms, often encompassing five generations in the workplace.
The research found that in companies implementing intergenerationally inclusive practices, younger generations exhibited higher productivity. These practices involve ensuring all generations have a similar level of voice in collaborations and advancing employees based on merit, not age. In such environments, low productivity among Gen Z drops from 37% to 18%, and among Millennials from 30% to 13%. Overall, 87% of employees in inclusive workplaces report high productivity, compared to 58% in non-inclusive firms. Additionally, these employees are twice as likely to be satisfied with their jobs and less likely to seek new positions.
These findings are crucial as the OECD projects slow economic growth for the UK, US, and globally in 2024, increasing the pressure on companies to enhance productivity.