Generational divide hurts workplace productivity, LSE study finds
LONDON, UNITED KINGDOM — A study conducted by the London School of Economics and consultancy Protiviti revealed a growing productivity gap in workplaces, particularly affecting Gen Z and millennial employees.
The study, which surveyed nearly 1,500 U.K. and U.S. office workers, highlights the urgent need for workplace reform.
Age gap impact
More than a third of Gen Z respondents and 30% of millennials reported feeling unproductive at work. Notably, employees whose bosses were more than 12 years older than them were 1.5 times more likely to experience low productivity and nearly three times as likely to express job dissatisfaction.
“There is good evidence that across generations, individuals have different tastes and preferences. So why do we expect them to work easily together?” said Grace Lordan, founder and director of the Inclusion Initiative at LSE.
“We now have five generations working together in the workplace, and the skills that are required to manage these dynamics are not usually being taught by firms.”
Solutions through inclusive management
The research demonstrates that implementing “intergenerationally inclusive” practices can improve productivity.
Companies that focused on merit-based advancement and developed managers skilled in working with different generations saw dramatic improvements. Under these policies, low productivity among Gen Z workers dropped from 37% to 18%, while millennial numbers improved from 30% to 13%.
While younger workers acknowledged their need to improve skills like active listening and decision-making, they often faced challenges communicating this with older managers. The generational divide, compounded by differences in workplace values, continues to create tension.
“Our research shows that if we invest in giving these skills to managers and creating intergenerationally inclusive workplaces, there are significant productivity gains to be had,” concludes Lordan, pointing to a clear path forward for organizations seeking to bridge the generational divide.
Younger workers face unique challenges
The study’s findings come at a time when many employers are expressing frustrations. A Harris Poll survey found that four out of five bosses believe Gen Z workers lack soft skills. Meanwhile, a ResumeTemplates study revealed that Gen Z service issues cost companies 25% of customers. Gen Z workers, who are the toughest to manage, also lead workplace disengagement crisis.
However, younger workers argue that such criticism overlooks fundamental economic challenges they face, including housing affordability, wage stagnation despite higher education levels, and mental health challenges. According to health insurer Vitality, employees under 30 are losing 60 productive days annually due to mental health struggles.
