A multi-generational workforce is more engaged and ready to work cohesively | Sanjay Satapathy | CHRO | Indian Metals & Ferro Alloys Ltd

Over the past few years, a new wave of employees, popularly referred to as Gen-Z, has been steadily entering the workforce. Born into a world shaped by technology and social media, these digital natives bring, not just fresh spirit but also a markedly different worldview.

The idea of a multi-generational workforce is, of course, not new, and nor is the existence of generational differences. Organizations that have been around for decades, particularly in industries like manufacturing where legacy knowledge and long tenures are common, have long employed diverse age groups, from Baby Boomers and Gen X to Millennials. What has changed today is the visibility of their differences. GenZ’s openness, comfort with technology, and willingness to voice expectations stand in sharp contrast to their predecessors, who often preferred a more understated and adaptive approach.

In India, Gen Z already comprises 25% of the workforce, a figure projected to grow to 47% by 2035. This demographic shift is especially significant for manufacturing companies that are transitioning into the future with Industry 4.0. This has put a much-needed spotlight on generational dynamics, prompting HR leaders to sit up and take notice.

It’s my firm belief that a truly multigenerational workforce, when thoughtfully supported, can be a source of resilience, creativity, and long-term strength for organizations. At the same time, HR leaders face the complex task of balancing their diverse needs, while staying aligned with the company’s values.

From my experience leading multiple HR teams, I see several recurring challenges that come with managing a multigenerational workforce.

1. The Tech Divide

Younger employees often adopt new technologies quickly, while more experienced employees may require more time and structured guidance to upskill. This gap is becoming increasingly significant as manufacturing undergoes a shift toward Industry 4.0 and production floors become more advanced with automation and IoT-enabled machinery. Studies project that two-thirds of Indian manufacturers will have adopted Industry 4.0 practices, underscoring the scale and speed of this transformation.

Younger workers, who are more digitally fluent, tend to adapt faster to these new tools and processes, while older employees may be more cautious or require focused support to make the switch.

For HR, the challenge is to bridge this divide without alienating either group. Inclusive training programs that combine structured instruction with opportunities for hands-on exploration can help ensure that all employees feel confident and capable in navigating the new environment. The aim is to help everyone feel confident using new systems.

2. Great Expectations

Every generation brings distinct career expectations: Baby Boomers may prioritize stability and recognition for experience, Gen X often value autonomy, Millennials seek growth and learning, while Gen Z emphasize purpose and flexibility. Work-life balance is also increasingly shaping career decisions: a 2024 survey found that 26% of Gen Z professionals consider work-life balance one of the top factors when choosing a job, alongside salary and growth opportunities.

HR can support these varied expectations by offering tailored career development opportunities, flexible work arrangements where feasible, and mentoring programs that allow knowledge and values to flow across generations. The goal is to help employees align their personal goals with the organization’s mission.

3. Divergent Workplaces

Workplace culture and employee expectations often differ significantly in multi-site organizations like ours that comprise manufacturing plants and corporate or administrative offices. For instance, employees in a manufacturing plant may value predictability and structured routines, while teams in a corporate office may lean toward flexibility, digital adoption, and innovation-driven environments. Generational differences can amplify these contrasts and create friction when striving for unified standards.

HR can help bridge the gap by tailoring engagement strategies for local contexts while keeping overall policies aligned. Cross-site learning opportunities, combined with a clear sense of shared purpose, can help harmonize practices without stifling local culture.

4. The Retention Riddle

Generational differences also influence how employees view career paths and organizational loyalty. Gen Z and Millennials are more likely to seek roles aligned with their values and compensation, while older employees may prioritize long-term security and organizational legacy. These contrasting expectations are visible even in manufacturing, a sector traditionally known for its stability. In India’s manufacturing sector, for example, voluntary attrition rose from 9.9% in 2023 to 11.9% in 2024, showing that even in traditionally more stable roles, workers are willing to move if expectations aren’t met.

Retention strategies need to be thoughtful and flexible. This could mean setting up clear development paths, giving regular feedback, and recognizing contributions in ways that matter to each generation.

5. The Communication Conundrum

Generational differences in communication styles are among the most visible challenges in a multi-generational workforce. Where younger employees may prefer instant messaging and a more relaxed style, older generations often favor formal channels like email or in-person interactions. This gap is significant – a 2024 study found that nearly 69% of Gen Z employees prefer instant messaging over email for workplace communication. This can lead to misunderstandings and potential friction.

HR can help by encouraging flexible communication channels and guiding everyone to appreciate different styles. It’s less about enforcing rules and more about creating an environment where all voices can be heard comfortably.

6. The Leadership Gap

Leadership expectations and management styles can vary widely across generations. Younger employees often value empathetic, transparent, and collaborative leadership, while older generations may be accustomed to more directive and hierarchical approaches. This can lead to mismatched expectations, reduced engagement, or miscommunication.

HR can equip leaders to be adaptable and inclusive, promoting cross-generational mentoring and creating feedback loops that help leaders understand what different employees need. The goal is to bridge gaps so experience complements fresh ideas and leadership feels approachable to all generations.

For many of these challenges, the answers are often not straightforward. But by simply acknowledging these and recognizing the need to go beyond a one-size-fits-all approach, human resources can pave the way for an inclusive, multi-generational workforce that is more engaged and ready to work cohesively.

In my experience, the organizations that succeed are those that view generational diversity not as a hurdle, but as a source of strength. The role of HR is to translate these differences into a shared advantage where experience complements new ideas, and tradition coexists with innovation. As the workforce continues to evolve, this ability to adapt with empathy and foresight will remain one of the defining responsibilities of modern HR leadership.