For more than 15 years, HR Coach Australasia has been assessing and reporting on the changing expectations of the different generations in the workplace. It always seemed logical that different generations would have different needs, and that leaders who understood them could manage each group differently to get better results.
Then came three years of upheaval: a pandemic, a war in Europe, broken supply chains, record-low unemployment, an ageing workforce, a housing crisis, hybrid work becoming the norm, 30-year-high inflation and the rapid growth of AI. Uncertain and changing times are here to stay.
Businesses don't make decisions; people do. So the key to building resilience is unlocking the people capability within the business, so better decisions are made and better outcomes achieved. That starts with knowing what your people actually expect.
The generational study drew on STAR Workplace results over 36 months, from 2019 to 2022. For this research the generations are defined as Generation Alpha (born 2007–2020), Generation Z (1989–2006), Generation Y (1978–1988), Generation X (1965–1977) and Baby Boomers (1946–1964). Veterans were excluded because their sample size was statistically too small.
Trend 1: every generation wants the same things
The top three satisfiers and dissatisfiers for each generation, 2019–2022. The three expectations shared across the workforce are highlighted.
Gen Zborn 1989–2006
Top satisfiers
- I am trusted
- Flexibility in work arrangements
- I know what I am accountable for
Top dissatisfiers
- Remuneration, pay and bonuses
- Opportunities for advancement
- Efficient planning and decision making
Gen Yborn 1978–1988
Top satisfiers
- Flexibility in work arrangements
- I am trusted
- Interesting work / I know what I am accountable for
Top dissatisfiers
- Remuneration, pay and bonuses
- Efficient planning and decision making
- Opportunities for advancement
Gen Xborn 1965–1977
Top satisfiers
- I am trusted
- Flexibility in work arrangements
- Interesting and challenging work
Top dissatisfiers
- Remuneration, pay and bonuses
- Opportunities for advancement
- Efficient workplace
Baby Boomersborn 1946–1964
Top satisfiers
- I am trusted
- Flexibility in work arrangements
- I know what I am accountable for
Top dissatisfiers
- Remuneration, pay and bonuses
- Opportunities for advancement
- Efficient planning and decision making
Gen Alphaborn 2007–2020
Top satisfiers
- I know what I am accountable for
- Comfortable, safe, clean work environment
- I am trusted
Top dissatisfiers
- Remuneration, pay and bonuses
- Good quality communicators
- Recognition of my contribution
There is a high level of consistency in expectations across every generation in the workforce (except Alpha, who are just starting out). Trust, flexibility in work arrangements and knowing what you're accountable for are expected by all respondents. If you're not scoring well on these core satisfiers, expect high turnover as employees go looking for them elsewhere.
Even if you deliver on the top satisfiers, failing on the major dissatisfiers will still send employees and managers looking for a better deal. The results are overwhelmingly clear: make sure pay and bonuses reflect market rates, provide internal opportunities for advancement, and demonstrate efficient planning and decision making.
Trend 2: employers are benefiting, but recruitment is harder
Change in employer survey results over 2019–2022, compared with the previous 12 years.
Improved
- Individual accountability+19%
- Employees volunteering ideas for improvement+13%
- Efficient management of information+10%
- Ability to assess applicants+10%
- Customer service+8%
Reduced
- Employee pay rates and remuneration−15%
- Obtaining responses to vacancies−14%
- Finding quality applicants−9%
- Converting applicants to employees−5%
- Promoting the business during the recruitment stage−4%
Three recent years of employer survey data (compared with the previous 12 years) show some unexpected positives. Several of the areas that improved directly reflect what every generation says is core to their satisfaction.
The areas that fell reflect an extremely tight labour market and pressure from every generation on pay. Owners know they need to resolve pay expectations but are struggling to, all while finding it harder to recruit quality applicants.
When you do find a good candidate, they often want more than their potential peers already earn. That leaves you lifting existing pay or accepting you may lose more people chasing market rates. The proactive approach is to move existing employees to market-competitive pay before they show their dissatisfaction by resigning.
Trend 3: the anchor points holding employers back
The lowest-scoring employer survey items across 15 years of STAR data.
- Workplace efficiency52%
- Following up to ensure tasks are completed52%
- Consistency in procedures and policies56%
- Effectiveness of communication channels57%
- Having the right people to make strategy happen58%
Fifteen years of survey data keep identifying the same low points for employers. They drain the spare capacity owners and leaders need to make the most of challenging times, and improving them in your own business could bring great returns.
Inconsistent procedures and policies hurt workplace efficiency, which puts more pressure on owners and leaders to follow up that tasks are done. That affects business performance, the owner's energy and strategic focus, and employees frustrated by the inefficiency.
Communication channels between employers, managers and employees also need work, if only so people know what they're accountable for and have the skills and interest for the job.