The Multigenerational Workplace: How Millennials and Gen Z Are Shifting Office Culture

With multiple generations now working side by side — including Baby Boomers, Generation X, Millennials and Generation Z — companies are being forced to rethink traditional workplace norms. Millennials and Gen Z workers now make up the majority of the labor force, which means workplace culture is evolving rapidly.

“Those two generations are really changing conversations around leadership, culture and benefits,” said Michele Farrell, chief revenue officer for Connectify HR. The Des Moines-based professional employer organization works with small- to mid-sized companies to manage payroll, taxes, employee benefits, HR technology, compliance and risk management. “It’s not work-life balance they’re looking for. It’s work-life integration.”

According to U.S. Department of Labor statistics, Millennials and Gen X continue to make up the largest portion of the workforce, comprising 36% and 31%, respectively. This has remained consistent over the past several years. However, fewer and fewer Baby Boomers are remaining in the workforce while the portion of Gen Z workers continues to grow.

Baby Boomers, which made up 25% of the workforce in 2018, only accounted for 15% in 2024. Gen Z, meanwhile, surpassed Baby Boomers for the first time, making up 18% or almost one-fifth of the total workforce that year.

Millennials and Gen Z entered the workforce during extreme digital expansion, globalization, and social change. This has resulted in younger generations prioritizing flexibility, meaningful work, mental health and opportunities for personal growth, said Melissa Ness, CEO and president of Connectify HR.

“Employers need to meet employees where they’re at,” Ms. Ness said. “Leaders of our organizations are responsible for that. It’s as simple as talking to employees and asking what’s important to them.”

Something as simple as asking employees during one-on-one conversations and conducting a survey can go a long way, she added.

“At our company, people feel seen and loved if there’s a lot of cold Diet Coke in the fridge,” she said. “They also want to work at home more than the office. If outcomes are met and clients are happy, we’re OK with that. You can find the most simple and easy things.”

The COVID-19 pandemic also brought about dramatic changes in workers’ attitudes toward remote work. Professional, scientific, and technical services, information, finance and insurance, and management of companies and enterprises had more than 39% of their workforce working remotely in 2021 compared with less than 17% in 2019, according to U.S. Bureau of Labor Statistics. Younger workers now expect employers to provide flexible schedules, remote work opportunities and better integration
between professional and personal life.

“Some organizations will say ‘We can’t do that’ (remote work),” Ms. Ness said. “I think it's more about focusing on what you can do – could it be starting at a different time, ending at a different time, flexing more for kids appointments and activities or caring for aging parents? It doesn’t have to be the same for every organization.”

Younger generations are also more interested in emotional well-being, experts said — things like mental health benefits, wellness programs, flexible time off and supportive management practices are becoming more and more important.

Employee Assistance Programs (EAP) have also become a huge selling point, Ms. Farrell said. EAPs can provide employees help around work-related stress, mental well-being and even financial stress, she explained. What’s more, employers can see if EAPs are being used but not who is using them – so it’s important that employees are educated on how the benefit works.

Other fringe benefits like no-meeting Fridays or four-day work weeks during the summer can also be hugely successful. It’s all about being creative, Ms. Ness said.

“Even as I’ve been interviewing people for sales roles at Connectify, some of these ‘perks’ have become almost as important as compensation,” Ms. Farrell said. “Culture and flexibility — people will take a little less pay if they can get that.” ABI