There are currently four generations in the labour market: Baby Boomers (1946–1964), Generation X (1965–1980), Generation Y (Millennials, 1981–1996), Generation Z (born after 1997). This is a consequence of demographic trends.

The needs, values and priorities of each generation differ. For Baby Boomers, job stability is crucial and they tend to be committed and loyal to theiremployer. Generation  X  also   values   stability,  but  not  above   all  else.  Pay,  atmosphere, development and flexibility are important. For Generation Y, the most important aspects are pay, flexible working hours, non-financial benefits (e.g. private medical care) and work-life balance. Job stability is a less significant factor. Generation Z values a positive atmosphere, flexibility, a sense of purpose, ethical and social values as well as pay (which need not come from a single source). They are open to new experiences, value non-financial benefits and place job stability at the bottom of their priorities.

This description is, of course, a simplification and none of these groups are homogenous. Care must be taken to avoid harmful stereotypes and prejudices, especially against Generation Z. Nevertheless, understanding the characteristics of each generation is essential. Their traits influence engagement, motivation and career decisions. For example, a representative of Generation Z will not apply to a company known for neglecting the workplace atmosphere or for superficial values, even if pay and benefits are attractive.

A company should recognise, respect and understand these differences, tailor communication and support an inclusive workplace environment. Each generation has a great deal to offer: Generation Z is technologically skilled and innovation-oriented, while older generations bring experience, stability and a sense of security. Managing a multigenerational team is a challenge, but with the right approach, generational diversity delivers significant benefits.

What actions can be taken?

• Assess attitudes
• Check whether there are biases or stereotypes within the team
• Plan workshops and webinars for managers
• Adapt communication
• Support grassroots initiatives (e.g. employee networks)
• Consider initiatives such as mentoring, workshops, sessions with trainers

Find more articles in PRO HR September 2025.