Labour markets across developed economies have changed substantially in recent decades. In particular, workforces have become significantly more diverse. There are now more women, people from ethnic minorities, and disabled people in work than ever before. New technologies and shifts in societal expectations have allowed more jobs to become flexible and adaptable to workers’ needs. Whilst structural inequalities in the labour market persist, demographic changes are shaping the range of people we work with.

As a result of these shifts, for the first time in history there are now four generations in the workplace, with workers born in the 1950s and 1960s now working alongside people born in the 2000s – and this provides new opportunities for employers and workers.

While other labour market changes have been studied in-depth, multigenerational workforces have received limited examination bar media coverage that has often focussed on the potential negatives.

Generational differences exist but these can be overstated and the benefits they bring can be overlooked

The results of this survey reveal that British business leaders recognise the workforce is becoming more diverse from an age perspective, with more than seven in ten (73%) reporting there are more generations in work today than in the past.

Furthermore, three in five (61%) agree that there are significant differences in work culture preferences among employees from different generations. Employers highlighted that the greatest difference between generations is their work-life balance expectations, with two in five senior business leaders (44%) sharing this opinion.

Seven in ten agreed that their organisation benefits from the diverse perspectives brought by a multigenerational workforce, but evidence suggests doing so requires employers to take proactive action.

There is a ‘say-do gap’ in how British employers create age-inclusive workplaces

Close to one third of business leaders (31%) agree an emphasis on inclusivity and diversity initiatives is important in creating a positive work culture for a multigenerational workforce, but only 18% report including age in their EDI policies, only 16% have a menopause support policy, and only 13% have age champion schemes.

Similarly, almost half (49%) agree flexibility in work hours and location is important in creating a positive work culture, but provision of this varies. Only 32% of those running SMEs offer training for remote and hybrid working (compared to 44% of large organisations).

When asked about policies around socialising at work, 34% of business leaders agree opportunities for socialising in person are important, but 81% do not have guidance on inclusive social events and just 21% have a workplace alcohol policy on responsible consumption in place.

The rise in multigenerational workplaces will inevitably place new demands on employers – particularly when it comes to proactively implementing policies to meet the needs of different generations throughout their working lives. Those employers who do so will be better placed to recruit and retain staff and develop more productive, happy and healthy workforces.

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