Generations Report – Making the most of the advantages of age diversity in corporations

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• Almost a fifth (19%) of Generation Z (those born between 1997 and 2012) are dissatisfied with working with members of older generations in their own company. By contrast, around three-quarters (76%) of baby boomers (those born between 1946 and 1964) have a very positive view of working together.
• A sandwich effect mid-career: Generation X and millennials combined (those born between 1965 and 1996) make up 70% of the Swiss workforce, but they are neglected when planning careers.
• Solutions in the report include putting together project teams in a way that utilizes the strengths of each generation and setting up an integrative management framework.

Zurich, 9 December 2024 – A shortage of skilled workers and an aging workforce are major challenges of our time. But in an increasingly employee-oriented market, new opportunities are opening up for Swiss companies, among them making targeted use of the strengths of a cross-generational workforce. Auditing and consulting firm EY, in collaboration with EDGE, a Swiss gender equality certification firm, and the Ringier initiative EqualVoice,have published a report on the issue: “Harnessing Age Diversity for Workplace Excellence in Switzerland and Beyond”. Isabelle Staiger, one of the authors and a partner at EY Switzerland, says: “A cross-generational workforce makes use of the unique strengths of each generation and creates a dynamic and innovative environment. But companies need to learn how to use these diverse talents strategically if they are to really optimize business performance.”

Age diversity and collaboration are key, but don’t always work

The report shows Swiss workers recognize the value of having teams with a range of ages. A substantial majority of managers surveyed (65%) emphasize how important age diversity is for innovation and competitiveness. But the results also indicate that many companies find it hard to make the best use of the strengths of each generation. A significant gap in perception is apparent, too: almost a fifth (19%) of Generation Z (those born between 1997 and 2012) are dissatisfied with working with members of older generations in their own company and across all generations. By contrast, around three-quarters (76%) of baby boomers (those born between 1946 and 1964) have a very positive view of working together.

The report highlights this discrepancy as a strategic challenge that has to be tackled at all levels of management. To close this gap, forward-looking companies are increasingly taking strategic, cross-generational actions that go beyond traditional mentoring programs. The authors point to examples such as deliberately putting together project teams in a way that utilizes the strengths of each generation and setting up an integrative management framework that recognizes and enhances what each different generation has to offer. It is important to set out the strengths of the different generations for every department and team. For example, younger, digital-savvy employees can combine their knowledge with the many years their colleagues have under their beltsto come up with a future-proof result based on the full range of experience within the company. Aniela Unguresan, founder and chair of EDGE, says: “The results indicate the potential is huge, but only the baby boomers are fully convinced their companies systematically promote the individual qualities of each different generation.”

Knowledge built up over decades is in danger of being lost

The ability to integrate cross-generational outlooks has a direct impact on companies’ innovative strength. Without this integration, there is a risk of innovation bottlenecks and stagnation. Especially in view of the upcoming retirement of the baby boomer generation (those born between 1946 and 1964), it is crucial that companies do not lose decades of experience and knowledge. Strategic personnel planning that consciously uses age diversity can be a decisive advantage for companies looking to remain competitive in an increasingly dynamic environment.

Major leadership potential is being overlooked

Another critical issue the report raises is the danger that specialist employees in the middle part of their careers, who effectively make up the backbone of the Swiss economy, are being overlooked. According to the Federal Statistical Office, Generation X and millennials combined (those born between 1965 and 1996) make up over 70% of the Swiss workforce. These are the generations that most frequently stated in the survey they were not getting the right further training. More than a quarter of these generations (25-28%) are dissatisfied with the development training provided. This neglect could result in a shortage of managers when experienced senior leaders move into retirement. The challenge for companies is to come up with succession planning and development strategies for this demographic group.

Conclusions and call to action

The report “Harnessing Age Diversity for Workplace Excellence in Switzerland and Beyond” makes it clear that Swiss companies need to make active and strategic use of their age diversity to stay competitive. There are two particularly obvious areas for action: closing the generation dissatisfaction gap for working together, and improving the development of specialist employees in the middle stage of their careers.

Companies that successfully rise to these challenges form more effective teams and become “learning” organizations. Combining institutional knowledge with fresh perspectives results in a steady stream of innovation. This transformation represents best practice and deserves the attention of the entire management.

“Age diversity not only enriches collaboration, it also helps morale overall. Companies that deliberately back cross-generational teams are promoting openness and encouraging innovation in daily working life,” confirms Dr. Annabella Bassler, CEO of Ringier AG and founder of EqualVoice.

About the report:

The report “Harnessing Age Diversity for Workplace Excellence in Switzerland and Beyond” is the result of a collaboration between auditing and consulting firm EY, in cooperation with EDGE, a Swiss gender equality certification firm, and the Ringier initiative EqualVoice

The survey for the report was carried out in the first quarter of 2024 and analyzed the opinions of more than 400 specialist employees in different industries and at different levels of seniority in companies in Switzerland. The report gives a deep insight into the opportunities and challenges associated with the multi-generational workforce in Swiss companies.

About the global EY organization

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EY’s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with 10 offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, “EY” and “we” refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.

About EDGE Empower and EDGE Certified Foundation

EDGE Certification® is the global standard for workplace Diversity, Equity and Inclusion, focusing on gender and intersectional equity. Based on measurable, externally audited criteria, it evaluates organisations in four areas: representation across career levels, pay equity, effectiveness of policies and cultural integration. Organisations can achieve three certification levels (Assess, Move, Lead), with EDGEplus as an add-on measuring the intersection of gender with other aspects of diversity, such as non-binary gender identity and LGBTQ+, ethnicity, nationality, age and working with a disability. The certification is valid for two years.

About EqualVoice

The initiative was launched in November 2019 by CFO Annabella Bassler, and is chaired by publisher Michael Ringier and CEO Marc Walder. The aim of the initiative is to promote gender equality and to increase the visibility of women in the media. At its core is the EqualVoice factor, which measures the presence of women and men in the media. Today, it is used by 32 media brands in seven countries, reaching 50 million users. Other projects of the Ringier initiative comprise the EqualVoice United network with diversity partner EDGE and Swiss companies, the list of female experts as an internal Ringier research tool, the photo challenge EqualPYXX for more diverse images, and the expert workshop “Fit4Media” to promote female expertise.