A new study by the London School of Economics and Political Science (LSE), in collaboration with global consulting firm Protiviti, reveals that younger employees experience lower productivity when managed by much older supervisors. This research, which surveyed 1,450 workers in finance, technology, and professional services across the UK and USA, highlights the impact of generational friction on workplace performance and suggests a need for more inclusive work practices.
Key findings from the survey show that 25% of employees reported low productivity. The figures vary across generations, with 37% of Generation Z, 30% of Millennials, 22% of Generation X, and 14% of Baby Boomers indicating reduced productivity. Employees who work under managers more than 12 years their senior are nearly 1.5 times more likely to report low productivity compared to those with managers closer in age.
The research identifies key skills critical for productivity and career advancement, which include active listening, time management, and decision-making. It also points out that the ageing global population and increasing generational diversity in the workforce—often comprising up to five generations—pose challenges for traditional management practices.
The study highlights that organisations implementing intergenerationally inclusive practices see notable improvements in productivity. For instance, the proportion of Gen Z employees reporting low productivity drops from 37% to 18%, and Millennials’ low productivity rates fall from 30% to 13% in such environments. Additionally, 87% of employees in inclusive workplaces report high productivity, compared to 58% in firms without these practices. Employees in intergenerationally inclusive settings also express higher job satisfaction and are less likely to seek new roles.
These insights are timely, given the OECD’s forecast of slow economic growth in 2024, which underscores the need for companies to enhance productivity. Dr Grace Lordan, co-author of the research and Founder of The Inclusion Initiative at LSE, commented, “The discovery of a ‘productivity manager age gap’ highlights the differing preferences and tastes across generations. As we now have five generations working together, the skills needed to manage these dynamics are often lacking. Investing in these skills and fostering inclusive workplaces can lead to significant productivity gains.”
The report, titled GENERATIONS: Unlocking the Productivity Potential of a Multigenerational Workforce, marks the beginning of a multi-year research collaboration between The Inclusion Initiative at LSE and Protiviti. Matt Duncan, Managing Director at Protiviti, expressed enthusiasm for the project, stating, “GENERATIONS addresses a crucial yet under-explored area of workplace diversity. We aim to support clients in developing effective teams and enhancing organisational success through this research.”