9 Jan 2025
The workforce is undergoing a profound transformation. By 2025 and in the years following, the interplay of demographic shifts, longer life expectancy, and evolving societal norms will create a workplace where Gen Z, Millennials, Gen X, and Baby Boomers coexist. As these changes unfold, employers will need to be prepared to address and adapt to a workforce with a wider than ever range of ages.
From 2025 onwards, several trends will redefine the workforce's age composition:
Gen Z Dominance: Born between 1997 and 2012 Gen Z will make up the majority of early to mid career roles. These digital natives bring unique perspectives shaped by global connectivity, a demand for meaningful work, and a deep awareness of societal challenges like climate change and inequality.
Ageing Workforce: Longer lifespans and delayed retirements mean Baby Boomers and Gen X’ers will remain a significant part of the workforce. By 2030, nearly one in four workers in developed economies will be aged 55 or older. Many will work out of necessity, while others seek purpose, flexibility, or opportunities to mentor younger generations.
A Shrinking Middle: With Gen Z and Boomers forming two growing extremes of the workforce, Millennials and Gen X may occupy a shrinking "middle" age demographic, balancing leadership roles with the demands of family life and caregiving.
Gen Z’s Rising Needs in a Multigenerational Workforce
As Gen Z grows into the dominant workforce demographic, their priorities will reshape workplace norms. Employers would do well to understand and adapt to these needs:
Flexibility and Work Life Balance: Unlike previous generations, Gen Z prioritises wellbeing and seeks employers who support a hybrid work model, flexible schedules, and mental health initiatives. Companies offering rigid, outdated structures may struggle to attract and retain young talent.
Purpose Driven Work: Gen Z values mission driven organisations that align with their values, including sustainability, diversity, and social responsibility. They want to see that their work contributes to meaningful change.
Career Development Opportunities: With an appetite for growth, Gen Z expects access to continuous learning, mentorship, and clear career paths. Organisations should invest in upskilling programs and provide frequent feedback to meet these expectations.
Tech Integration: Being the first generation raised entirely in the digital age, Gen Z expects seamless integration of technology at work. They’ll push companies to adopt advanced tools, automation, and AI to streamline processes and foster collaboration.
Workforce Trends Beyond 2025
The composition and dynamics of the workforce will continue evolving in response to broader social and economic changes:
The Rise of Freelance and Gig Work: Gen Z is more likely than previous generations to pursue freelance or gig work. Organisations will need to navigate managing a blended workforce of full-time employees and contractors.
Reimagining Retirement: Traditional retirement models are fading. Companies may need to develop roles or schedules tailored to older employees who want to stay engaged but require flexibility.
Increased Focus on Diversity, Equity, and Inclusion (DEI): Gen Z’s expectation for equity and inclusion will push organisations to broaden DEI efforts, particularly for marginalised groups, including older employees and those re-entering the workforce after career breaks.
Automation and Upskilling: Advancements in AI and automation will impact all generations, requiring reskilling initiatives that cater to both digital savvy Gen Z and older employees adapting to new technology.
Adapting to the New Workforce Reality
To thrive in this evolving landscape, organisations must proactively address the challenges and opportunities of an increasingly age diverse workforce. Key strategies include:
Personalised Benefits: Offering customised benefits packages to meet the needs of different age groups, from childcare support to retirement planning.
Mentorship Programs: Facilitating reciprocal mentorship between younger and older employees.
Continuous Learning: Providing robust training programs to upskill employees at all career stages.
Technology Investment: Leveraging tools that support collaboration and inclusivity for a hybrid workforce.
The workforce of 2025 and beyond will be one where the youngest employees demand flexibility, purpose, and growth, while older employees bring resilience, experience, and wisdom. By embracing the shifting composition of the workforce, organisations can harness the strengths of every generation and build a workplace that thrives on diversity, innovation, and inclusion.
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