Wrong numbers

Introduction

Organisations in Europe are grappling with the consequences of a rapidly ageing workforce. Declining birth rates following the baby boomer generation (1946–64) means countries now face shrinking populations. This leaves organisations chasing a diminishing pool of younger talent. Meanwhile, improvements in health and mortality, as well as increases in the minimum age to access retirement benefits, in countries such as Germany, Italy, Ireland and the United Kingdom, means people are working longer.

These trends are dramatically altering the demographic profile of the workforce. For example, the number of workers in Europe age 50+ increased by 32 per cent from 2010–19, while those below age 35 declined slightly (-1%). Whereas the 27 countries in the European Union plus the United Kingdom had 58 million workers age 50+ in 2010, in fewer than ten years this number had risen to 77 million. At the same time, those below age 35 fell from 70 million to 69 million.¹

This pattern is also evident when specific changes are examined. The survey asked about nine specific workplace changes driven by COVID-19, including remote working for an extended period, shift in the skills needed, use of technology and requirement for a more flexible working schedule. The likelihood of having experienced a specific change to a moderate/large extent diminished with age – even when other factors that might explain the answers (such as country, family situation, industry or occupation) are accounted for.

For example, while 46 per cent of respondents below age 30 experienced a significant shift in work priorities, only 28 per cent age 60+ reported the same. Similarly, while 44 per cent below age 30 experienced a moderate/large shift in the type of tasks performed, only 26 per cent of those age 50+ had a similar experience.

Although the pandemic has affected employees in diverse ways, it is difficult to imagine that older employees have been spared the effects in such a systematic fashion. What accounts for the difference in responses between generations could be the perception of how far reaching the changes are by the various age groups.

Who has difficulty adapting?

It could be assumed that older employees, set in their ways and used to routines, would struggle to adapt to the rapid changes needed in response to COVID-19, as well as the unusually flexible and digital manner of working required. This assumption is wrong.

Half the respondents below age 30 experiencing at least one change reported they had difficulties adapting. This share drops constantly as age increases, to the point that only one in three respondents age 60+ who experienced changes to a moderate/large extent had at least some difficulties adapting (figure 2).

It seems older employees more easily adapted to the new working conditions. Does the experience of older employees mean that they have a different perception when it comes to structural change and crises? Or have they developed a more resilient capacity to adapt to changing circumstances?

Fear of the unknown

An examination of specific changes forced by COVID-19 shows differences between age groups disappear once factors such as the type of occupation or the size of the organisation are considered. For example, no significant differences emerge between employees of different ages in adapting to new and unfamiliar technology tools.

The share of people reporting at least some difficulties is constant across each age group – debunking a common notion that only ‘digital natives’ are tech-affine.

One significant area where older employees seem to have a harder time adapting is to a temporary loss of job or of being furloughed, particularly if their tenure at the current employer has been relatively short. This is possibly due to their fear of losing the job and the difficulties they expect to encounter with seeking another. This fear is not unfounded….³ But again, age differences disappear once other factors related to the organisation or the personal situation are considered.

The value of trust

What emerges from the survey is that a key element in the ability of employees to adapt may not be age, but rather trust and support. The first article in this series explains how trust from leaders and colleagues were among the top factors identified by employees as helping them deal with the changes COVID-19 has imposed.⁴ If employees feel a legitimacy in their role, have a sense of belonging to the organisation and feel involved, they show a capacity to manage the situation.

However, there are two areas where an age gradient emerges: an increase in autonomy and the assumption of more leadership responsibilities. In both cases, the likelihood of reporting difficulties declines as the age of the respondent increases. In particular, the increase in managerial responsibilities and autonomy placed upon young employees, often experienced for the first time and undertaken in this uncertain environment, means many have struggled to deal with the situation.

Notably, younger respondents in organisations where older employees dominate the hierarchy and issue orders are more likely to report difficulties adapting to having more autonomy and an increased leadership role (figure 3). Forty-three per cent below age 30 working in hierarchical organisations report such difficulties; only 27 per cent in the same age group working in organisations where ‘workers of all ages work together’ report difficulties.

Intriguingly, this could indicate that programmes targeted at generations may have a misleading effect. Such programmes, when anchored in an age approach, may not be preparing the workforce to adequately deal with the challenges of a changing work environment.

According to the 2020 Deloitte Global Human Capital Trends report, leadership development and learning are among the programmes most likely to be informed by age and generations criteria. Yet, according to the European Workforce Survey, employees of all ages identify the ‘capacity to adapt’ as the most important capability for them to thrive in the labour market post-COVID-19. When organisations use generations as a segmentation criterion, they could be preventing employees from acquiring these capabilities. They could also be preventing employees from fulfilling their expectations and needs.

Conclusion

Age and generation are the traditional lenses through which organisations view their workforce. The COVID-19 crisis shows there are indeed distinct generational differences in how employees perceive changes, but not necessarily in the way that could have been imagined. Older employees, for example, have more easily adapted to the new working conditions. But overall, the European Workforce Survey reveals no significant differences between employees of different generations in adapting to new and unfamiliar technology.

What emerges from the survey is that a key element in the ability of employees to adapt is not age, but rather trust and support. If employees feel a legitimacy in their role, have a sense of belonging to the organisation and feel involved, they show a capacity to manage the situation. Trust, help and time are invaluable to the ability to adapt to a changing work environment. Among all factors, it is the human that is overwhelmingly considered the most critical.

What does this mean? For a business to succeed, it not only has to be among the most technologically advanced, it also has to be among the ones that are the most human. Yes, there are differences between age groups, but people should not be prejudged – numbers can be wrong or lead to false assumptions. Instead, organisations should listen to and interact with their workforce to understand where differences in expectations might be. Understanding the human factor is probably the biggest challenge that organisations face today.

The global pandemic that hit in 2020 created chaos across the globe and is reordering professional lives every day. Employees have responded by being flexible and resilient to ensure organisations continue to function in these extraordinary times. Organisations need to support them by seizing the opportunity to help them thrive, in all their diversity.