The workforce is currently made up of five generations of workers and this has been linked to a career gridlock for younger workers trying to establish themselves in the workforce. Despite the fascinating situation of a truly diverse, multigenerational workforce, there are unprecedented issues that have risen, including the occupations of top positions by the oldest generation of workers who would have traditionally retired in the past.
While there are very real and unavoidable reasons why individuals are avoiding retirement, there are concerns surrounding the possibility that older workers are blocking promotions for younger workers, even if the obstruction is not intentional.
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Younger Workers Are Concerned about Career Gridlocks
According to Purdue Global, for the first time in history, there are five generations of workers actively present in the workforce. This includes Traditionalists (1925-1945), Baby Boomers (1946-1964), Generation X (1965-1980), Millennials (1981-2000), and Generation Z (2001 to 2020). These birth years for determining the generation may not be the exact metrics followed everywhere, but they give us an approximate sense of the age group of the different sections of workers who make up the workforce.
While 65 is traditionally the age of retirement, 60 marks a point where many begin to make the switch towards early retirement plans. With each passing year, the transition is becoming more infrequent, with workers choosing to stay on in the workforce beyond 65 years. This is not unusual—top decision-making positions have been frequently held by older workers—however, the scale at which this is occurring is much more extensive than ever before.
Behold the Retirement Savings Crisis
Generation X is now approaching retirement age, but a large number of them feel unprepared for the transition. According to a study by Natixis Investment Managers, 48% of Gen X workers feel they will not have the funds to retire securely and 60% of them are worried about having to work much longer. The problems of inflation, market crashes, global pandemics, issues with limited social security funds, changes in monetary savings structures, etc. have all built up considerably and many have spent their lives going from paycheck to paycheck, unable to save for retirement.
The retirement savings crisis is one of the biggest challenges faced by the generation considering the state of the market. The unfortunate problem is that the issue could extend to Millennials as well, many of whom have had to work multiple part-time jobs and temporary gigs to make ends meet, seeing little opportunity to save for the long term.
Financial struggles aside, many workers are still healthy enough to put in a few more years of work before resigning themselves to their “golden years,” which is another reason why the older generations have chosen to delay retirement.
Multi-Generational Workforce Issues Rack Up
The complex nature of the workforce has led to inter-generational tensions that are no small matter. With differing perspectives on work-life balance, hustle culture, DEI issues, work strategies, etc. many generations have a vastly different understanding of “work.” While older generations view the younger to be too soft and lazy to truly make an impact at work, the younger generations hold their own reservations about the aging workforce and their grasp on technology and other work concepts.
Bridging this gap and ensuring no single group is ostracized has been a big part of HR’s responsibility over the last few years. The multi-generational workforce has also created issues of limited opportunity.
According to Axios, intentionally or not, older workers holding on to their positions means that multiple senior positions in organizations remain occupied, preventing new talent from advancing in their careers. More and more organizations are looking at cutting down their workforce rather than expanding on it, which means fewer employment opportunities for everyone. The opportunities that are available offer little room for upward mobility considering those positions are already occupied.
Such a career ladder gridlock has forced many to turn towards job hopping in search of better opportunities. Not only is this time-consuming and a drain on both the individual and organization’s resources, but it also pushes the idea that younger workers are unwilling to stay in one job and thus are too unreliable to be promoted to higher positions.
The career gridlock is certainly problematic, increasing the difficulty in ascending in one’s career. It also means that workers are limited in their ability to earn better wages without any promotions. The lack of change to earnings limits the younger generations from saving as well, which guarantees that the retirement savings crisis will extend to future generations over time.
Systematic changes are necessary to improve harmony within the multi-generational workforce and more permanent solutions are needed to help the global population save and retire at a more sustainable pace.