12 min read

5 Extraordinary Benefits of Age Diversity in the Workplace

Why age diversity in the workplace should be a priority for recruiters and business leaders looking to increase retention and productivity.

Age diversity is an increasingly common discourse in modern organizations, yet age bias shows up more than recruiters realize. Employees tend to operate within groups, labeling younger hires as risky or inexperienced, while the older crowd is assumed to be inflexible. 

While these assumptions may be hidden, they still influence who gets hired, promoted, or sidelined, quietly limiting the range of skills and perspectives on a team. With different generations making up today’s workforce, age diversity is now a real operational challenge for recruiters and HR leaders. 

In this article, we’ll examine how age bias appears in hiring and workforce decisions. We’ll also outline the benefits of age diversity and practical ways teams can incorporate it to perform better over time.

What is age diversity in the workplace? 

Age diversity is simply the acceptance of employees of different ages in the workplace. It brings people at every life and career stage together, from early-career professionals to seasoned experts. More than just intermingling, age diversity encourages leveraging the distinct skills, experiences, perspectives, and work styles that each age group brings.

This creates an environment where every employee can contribute and thrive regardless of their age, a huge necessity given current age discrimination statistics. Despite efforts to make it illegal, such as the Age Discrimination in Employment Act (ADEA), these biases persist.

In fact, an SHRM survey showed that nearly a third of U.S. workers have felt unfairly treated due to their age at some point in their career. Adding to this, it went on to reveal that: 

  • 11% of HR professionals agree that older employees are not always treated as fairly as younger employees.
  • 26% of U.S. workers age 50 and older say they have been the target of age-related remarks in the workplace over the past six months.
  • Among U.S. workers age 50 and older, 1 in 10 say in the past six months they have often or always felt less valuable at work compared to younger workers. 
  • Nearly 1 in 5 HR professionals say they have received reports of perceived ageism in their workplace.

Without active measures to improve generational diversity, age discrimination keeps businesses from tapping into a valuable source of talent, limiting potential and results. 

What does age diversity look like in the workplace?

Older and younger employee discussing

Alt text: Older and younger employee discussing

Four main generations are currently active in today’s workforce: Boomers, Generation X, Millennials (Generation Y), and Generation Z. Recent demographic estimates from McCrindle show that Millennials make up about 34% of the global workforce, followed by Generation X and Z at 27%, and Boomers at 12%. 

Each of these generations has different strengths, preferences, and work styles that are determined by the world in which they grew up, their life stage, and their professional experiences. We’ll discuss them in detail below:

1. Baby Boomers 

Born between 1946 and 1964, Boomers are generally the most experienced age group in many organizations. While their numbers in the workforce are declining rapidly as more retire, those still working often occupy senior roles, offer in-depth job knowledge, and serve as mentors. 

For this generation of workers, career advancement and progression are a top priority. They also value in-person interaction and structure or hierarchy in the workplace. Their strengths include strategic judgment, reliability, and a long view of organizational history.

2. Generation X

Members of Generation X were born between 1965 and 1979. Employees within this age bracket are approaching the midpoint of their careers and combine experience with adaptability. 

Often balancing leadership responsibilities with ongoing upskilling, they tend to work independently, navigate change well, and bridge gaps between older and younger colleagues. Their career stage often aligns with middle and senior management.

3. Generation Y 

Also called Millennials, Generation Y are employees born between 1980 and 1994 and are currently the largest generation in the workforce. These employees are characterized as tech-savvy, collaborative, and focused on using their professional careers to better the world. 

Many prioritize meaningful work and learning opportunities, and they often shape organizational culture around flexibility, feedback, and development.

4. Generation Z

Generation Z, born between 1995 and 2009, is the youngest age group in the workforce. Having grown up with the internet, they’re true digital natives, comfortable with technology, and expect modern ways of working. 

Gen Z is known for their fresh perspectives on work, a strong desire for growth, and high expectations for inclusion and feedback. Their presence is growing quickly and reshaping talent strategies and modern recruitment methods.

By bringing members of all four generations together in your team, you improve productivity, boost leadership, and grow your business more profitably. 

The dangers of age discrimination in the workplace 

Alt text: Older businesswoman looking pensive

Age bias rarely appears as an explicit policy or decision. More often, it shows up subtly, through assumptions about capability, potential, or job fit. Below, we’ll discuss four dangers age discrimination can cause in the workplace if left unaddressed.

1. Talent loss and missed potential 

Age bias often influences hiring and promotion decisions, leading organizations to overlook qualified candidates and employees based on age rather than skill. Older workers may be screened out for being overqualified, while younger candidates are thought to be inexperienced.

This leaves recruiters with a much smaller talent pool, reducing the chances of finding the right candidate. As a result, organizations fail to match people’s skills and experience to the roles where they could add the most value, affecting the team’s overall results.

2. Weakened succession planning

In many organizations, older employees have a wealth of institutional and job knowledge. When such employees are pushed out, sidelined, or forced to retire, they also leave with this knowledge bank.

This discourages mentorship, cross-generational collaboration, and eventually creates gaps in leadership pipelines, leaving the younger employees ill-equipped to handle managerial positions. 

3. Reduced adaptability and innovation 

Teams with high levels of age bias lack the balance needed for innovative problem-solving. Every age group has a unique, relevant perspective, and streamlining focus on one bracket eliminates the views others bring to the team. 

For example, without Gen Z, a team may have difficulty being futuristic and thinking outside the box, while the absence of Gen X or Boomers could leave a team without experienced leadership. By combining experience with new ways of thinking, age-diverse teams are better equipped to navigate change and adapt.

4. Legal and reputational risk

Age discrimination remains a common source of employment claims, particularly in hiring, layoffs, and promotion decisions. Informal language, inconsistent criteria, or age-coded assumptions can expose organizations to legal risk and damage employer brand. 

In competitive talent markets, top candidates and employees seek employers with a positive company culture. When there’s discrimination, these candidates and employees are likely to disengage and either quit or reject the company’s offer, leading to talent drain.

5 benefits of age diversity in the workplace

age diversity showed with senior businessman and businesswoman

Like other forms of diversity, age diversity has a direct impact on the success of your organization, improving employee engagement, retention, and motivation. Here are some of the biggest advantages of age diversity in the workplace for businesses. 

1. Higher productivity 

Workplace diversity is proven to facilitate higher productivity, and age diversity follows suit, driving real business value. An OECD report backs this claim, stating that numerous older workers make younger workers more productive, as the younger workers benefit from the experience and knowledge of their older colleagues.

This increase in productivity leads to a range of secondary benefits, including improved profitability, competitiveness, and market value. Over time, these gains compound, strengthening an organization’s ability to grow, adapt, and remain relevant in changing markets.

2. Improved skill diversity 

Age diversity strengthens teams by expanding the range of skills, experiences, and viewpoints available. Employees at different career stages approach problems differently, which supports more creative thinking and decision-making. 

Usually, younger generations offer fluency with social media and emerging technologies, while more experienced employees contribute leadership, judgment, and deep industry knowledge. Age-based diversity policies allow businesses to harness these unique capabilities and build a team where employees complement one another. 

3. Inclusive company culture 

An inclusive business supports and embraces people of all backgrounds. In the modern workforce, an inclusive culture is no longer optional. Candidates and employees now expect an environment that welcomes and supports people regardless of their demographic identities. 

By emphasizing diversity in every aspect, including age, organizations encourage collaboration and integration, boosting morale and improving results. 

Inclusive companies are also better positioned to understand their customers, design relevant products and services that meet consumer needs, and communicate effectively across markets.

4. Increased mentorship opportunities

Age diversity creates opportunities for your team to upskill collaboratively. Inter-generational and reverse mentoring allow employees to learn from one another in practical, relevant ways, supporting both growth and retention. 

For instance, younger employees may share expertise in emerging technologies, digital tools, or new work methods. Similarly, employees from older generations could offer guidance, industry insight, and career perspective to mentees. 

These exchanges build relationships, strengthen company culture, and facilitate loyalty among employees. They can also reduce reliance on formal training programs by promoting a learning culture and embedding development into everyday work.

5. Improved employee retention

Creating an age-diverse workplace helps employees feel seen, supported, and included, key factors in retaining talent. A McKinsey survey supports this, stating that 51% of employees quit because they didn’t feel a sense of belonging at work.

Age-inclusive practices, like cross-generational collaboration and mentorship, foster connection and respect among employees of different career stages. When people feel accepted and valued for their contributions, they’re more likely to stay, increasing retention rates and team stability.

How to promote age diversity in the workplace

Alt text: Two businesspeople working together 

Advancing age diversity in the workplace requires a combination of inclusive hiring practices and a supportive employee experience. Here’s a step-by-step guide to promoting age diversity in your organization:

1. Create an age-inclusive hiring process

Whether your organization encourages age diversity or bias is defined long before candidates join the team. Subtle signals in your hiring methods and practices, from job ads to screening, can unintentionally discourage candidates at certain career stages. 

Addressing these signals early with techniques such as blind hiring and skills testing ensures hiring decisions are objective and based strictly on ability, rather than age. Use these tips to create an age-inclusive hiring process:

  • Remove age-coded language from job descriptions and job ads.
  • Focus on skills, outcomes, and role requirements rather than years of experience alone.
  • Use structured interviews and consistent evaluation criteria across candidates.
  • Screen candidates with bias-free, validated assessment platforms. 

2. Design roles and benefits that reflect different career stages

One-size-fits-all roles rarely attract or support an age-diverse workforce. Depending on their life stages, employees have different priorities, and roles that acknowledge those differences attract and retain talent across age groups.

On the other hand, sticking to traditional or early-career paths may exclude younger or more experienced talent, respectively. To attract age-diverse candidates, tailor the job and benefits to their specific lifestyle needs using these tips: 

  • Curate benefits to support varied needs, from student loan assistance to retirement planning.
  • Introduce phased retirement, return-to-work, or professional coaching programs.
  • Ensure healthcare, flexibility, and financial benefits evolve with your workforce demographics.
  • Ensure advancement and meaningful work are available at all career stages.

3. Provide thoughtful onboarding

Internships and apprenticeship programs are often only open to new graduates or those with a few years of experience. This is a misconception, as upskilling is necessary at every stage and potential exists across age groups. 

Additionally, hiring managers tend to assume everyone starts from the same baseline and structure these programs on this basis. In reality, though, employees enter roles with skill gaps for varying reasons, whether due to education pathways, time away from work, or changes in technology. 

Inclusive onboarding levels the playing field from day one and keeps every employee future-ready. Here’s how to build inclusive onboarding programs:

  • Open training and upskilling programs to all employees, regardless of career stage.
  • Avoid assumptions about what employees should know based on age or experience.
  • Tie learning opportunities to role requirements, not age or tenure.
  • Require all new employees to complete core onboarding, including tech, tools, and process training.

4. Build an inclusive work environment

Age inclusion is less about labels and more about understanding how people work at different stages of life. Instead of characterizing members of your team as old or young, think about what stage of life each person is in and how you can support them. 

Designing work around real needs, such as mobility, flexibility, or learning support, makes the organization more accessible and appealing to employees of all ages. Here’s how to create an inclusive workplace:

  • Offer flexible work arrangements that support caregiving, study, mobility, or health needs.
  • Design policies that allow employees to contribute effectively regardless of personal circumstances.
  • Focus on life stage and individual work preferences rather than biased labels.

5. Encourage cross-generational collaboration and accountability

Policies must be implemented, and employees held accountable for them to achieve results. Age diversity delivers the most value when employees learn from one another, and leaders actively support inclusion. 

By encouraging employees from different generations to mingle, interact, and collaborate, you make diversity an everyday routine within your organization. Here’s how to implement this practically:

  • Create mixed-age teams and encourage shared problem-solving.
  • Support mentorship and reverse-mentorship programs.
  • Train leaders to recognize age bias and incorporate age inclusion in performance discussions.
  • Set clear expectations and incentives for inclusive behavior across teams, not just in policy.
  • Track age-related trends in hiring, promotion, and retention to identify gaps early. 

Cross-generational teams start with Vervoe’s skills-based hiring 

Age diversity is critical for building strong, adaptable teams, but age bias remains a real risk when hiring based on assumptions. The fastest way to reduce bias and improve inclusion is to focus on skills and hire for demonstrated ability.

Vervoe, our top-rated skills assessment platform, helps organizations do exactly that. With over 300 role-specific, validated assessments tailored for a range of roles and industries, you focus only on who proves they can do the job.

Our skills-first algorithm is transparent and rigorously tested against bias. Combined with objective AI grading and ranking, Vervoe lets you identify the best candidates for your hiring criteria quickly and reliably.

Want to build truly age-inclusive teams? Schedule a demo with Vervoe and start hiring for skills today.

Picture of Raji Oluwaniyi

Raji Oluwaniyi

Raji Oluwaniyi is a seasoned Technical Content Writer at Vervoe with a rich background of over five years in the intersection of HR technology, consumer data protection, and SaaS. He has garnered significant recognition and has worked with industry stalwarts like TestGorilla, Brightlio, MakeUseOf, and Careerkarma. Oluwaniyi has a continuous drive to evolve and keep himself up to trend with the latest technology trends and best practices in writing. Beyond his professional pursuits, he is a genuine soccer fan and profoundly values his quality time with his close friends.

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