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Today’s labor force spans five unique generations, creating challenges for companies to address the varied needs of employees, from retirement benefits to cultural values. Where does our generation of college students fit into this landscape? What priorities guide us when job hunting? How do we choose between a large corporation and a small startup? This article explores the current workforce dynamics, with projections extending into 2030.
What does it mean to have five generations in the workforce?
According to the U.S. Department of Labor, Millennials (born between the 1980s and late 1990s) and Gen X (born between the mid-1960s and late 1970s) currently make up the majority of the workforce, while Gen Z (born between 1997 and 2012) is rapidly entering as Baby Boomers (born between 1946 and 1964) gradually exit into retirement. This generational mix brings a wide range of needs and priorities among employees, leading to a greater diversification of workplace expectations.
I attended an online seminar hosted by the HR Certification Institute (HRCI), which explained that Baby Boomers are prioritizing phased retirement, flexible work options, and wellness as they get older. Gen X, a smaller generation in number, is in a transitional phase, embracing new values, cultural identities, and seeking greater entrepreneurial opportunities, agency, and autonomy in their work. Gen X is also often the most overlooked generation in the workplace. 79% of Gen X report feeling neglected at work and overshadowed by older and younger workers. In recent years, as employers have paid more attention to nurturing millennial talent in recent years, Gen Xers are promoted at rates 20% to 30% slower than millennials despite being strong candidates for leadership roles.
Millennials prefer flatter hierarchies. Middle management roles, for example, are less attractive to Millennials compared to previous generations. The webinar pointed out that they adopt a more network- and competency-based approach to work, prompting companies to adapt to these needs. Mental wellness is also becoming a critical focus for this generation, especially post-pandemic.
Where does our generation fit?
Shared in the webinar, Generation Z has a greater interest in work-life balance, using technology and other means to achieve it. We hold a strong sense of social and environmental responsibility, and our values differ from previous generations. According to research by Deloitte, Gen Z workers highly value empathy, ranking it as the second most important trait they look for in a boss, while bosses rank it fifth, on average.
It is important to note that while these descriptions reflect general trends, they’re not intended to stereotype individual workers. Instead, the data underscores a transformation in the workplace driven by the diverse values and expectations of each generation.
How Are Companies Adapting to Diverse Interests?
More companies are committing to transitioning to flatter hierarchies, providing additional mental health resources, and taking on greater social and environmental responsibilities. Employers increasingly recognize employees’ need for work-life balance and are actively working to support it. For instance, in 2022, PwC launched a $2.4 billion program called “My+”, designed to enhance employee benefits and flexibility.
What does this mean for Vanderbilt Students?
The modern workforce’s focus on flatter hierarchies, work-life balance, mental health, ethics, and social and environmental responsibility is set to continue over the next five to ten years, with companies actively adapting to these shifts. This creates opportunities for college students to find workplaces that align with their personal and professional goals. Beyond salary or prestige, we can consider company culture and values when choosing where to build our careers. Today, more factors contribute to helping this generation of workers find fulfillment in their work.
When deciding between working at a small startup and a large corporation, it’s worth noting that while large corporations can more easily publicize their values, they may struggle to consistently uphold them. For example, mental health initiatives are common in large corporations, but medium-sized firms are more likely to embed these practices into formal policies, according to research by the Health Enhancement Research Organization. Based on the HRCI webinar, large corporations often come with bureaucracy and slower decision-making despite having substantial resources, which can make it harder for employees to feel aligned with the firm or to see their impact. In contrast, small firms offer more autonomy and flexibility but may lack some of the established resources and opportunities found at larger companies.
Conclusion
With today’s multigenerational workforce, our values are increasingly reflected via how companies adapt to their employees’ needs. The shift towards greater flexibility and emphasis on work-life balance and values like empathy gives college students more factors to consider when job hunting. While large corporations and small businesses each offer unique benefits and cultures, it’s essential for students to seek jobs that align with their values and needs.
