The Value of Multi-generational Teams and the Role of Older Workers: Evidence from an Online Experiment

• In Event: Equity and employment: hiring, retention, wages, and workplace conditions

Abstract

While stereotypes about declining productivity among older workers persist, much of the existing evidence is derived from studies conducted in independent work settings. However, recent literature highlights that aging is often accompanied by enhanced workplace wisdom, mentoring capacity, operational foresight, and other soft skills. These qualities suggest that older workers’ contributions may be more accurately assessed within team-based environments.

Conjecturing that older workers’ productivity may be better measured in team settings where they are able to exercise more of their soft skills, we examine the productivity of multigenerational versus unigenerational teams through a pre-registered online randomized controlled trial (RCT)—with a special focus on the role of older workers’ soft skills in the team performances.  We recruited 700 active labor market participants aged 18 to 85 via Prolific and randomly assigned them to multigenerational teams (consisting of older and younger workers) or to unigenerational teams (consisting only of younger workers, and separately only of older workers). Teams completed three simulated retail service tasks that reflect the operation of a large-format store (i.e., superstore): identifying inventory discrepancies, forecasting future sales, and developing an inventory restocking plan to maximize profit. Performance was evaluated using key performance indicators (KPIs) such as accuracy, decision quality, and cost efficiency. Beyond team-level outcomes, we investigate the specific contributions of older team members by examining a broad set of soft skills—including work experience, wisdom, conflict resolution, emotional perceptiveness, and team atmosphere maintenance.

Our pilot study reveals that, while multigenerational teams produce outcomes comparable to those of unigenerational teams, the multigenerational teams’ performance improves significantly when older team members take on substantive roles that draw on their soft skills (i.e., leadership, negotiation, and the sharing of experience and wisdom).

Our findings aim to shed light on the comparative advantages of older workers in collaborative, team-based settings. These results carry important implications for labor and organizational policy, encouraging employers and policymakers to rethink how older workers are utilized, supported, and evaluated in the workplace. Structuring jobs and teams to harness age-diverse skill sets could not only boost overall productivity but also extend the effective working lives of older adults. Such strategies may help mitigate fiscal pressures associated with population aging, facilitate intergenerational knowledge transfer, and foster more inclusive, adaptive, and resilient labor markets.

Author

• Zeewan Lee, National University of Singapore
  Presenting Author