Employee Retention Amongst Generational Changes

By John Robertson, Vice President, Food & Beverage and Consumer Packaged Goods, Life Cycle Engineering

As the food and beverage industry evolves, business leaders continue to ask an essential question: how can we retain our employees? Changes in market trends, ebbs and flows in product demands, and technological advancements all contribute to retention rates and worker satisfaction. All of this is especially evident when we examine generational shifts.

So, how can business leaders develop strategies that appeal to today’s diverse workforce? The key is to invest in a workforce development strategy that considers the current state of labor in the food and beverage sector, addresses the impact of generational differences on employee retention, and defines a clear plan to foster a multi-generational workforce.

Current challenges in the food and beverage industry

The food and beverage industry faces a unique set of labor challenges, including alarmingly high turnover rates. High turnover disrupts team dynamics, hinders productivity, and places a heavy burden on recruitment and training budgets. With these rising labor costs, companies should be increasingly focused on improving employee retention.

Adding to these challenges is the aging workforce: nearly 25% of manufacturing workers are 55 or older. Valuable legacy knowledge is at risk of being lost as the “Baby Boomer” generation retires. In addition to the widening knowledge gap, the industry requires tight deadlines, the use of advanced technology, and physically demanding and long work hours — challenges that require both older and younger generations to continuously adapt. However, employers can only address the issue effectively if they thoroughly understand their workforce dynamics.

Understanding generational shifts: a double-edged sword

One of the most noticeable generational differences lies in employee experience and expectations within their roles. Millennials and Gen Z workers often value flexibility, ongoing innovation, and a sense of purpose with their jobs, while older generations value structure, stability, and established processes. As younger employees enter the food and beverage industry, employers have an opportunity to engage them through professional development initiatives and ongoing certifications. Investing in their growth not only enhances skill sets but also strengthens retention and loyalty.

Another clear gap between generations lies in technological literacy. Technology is rapidly reshaping the food and beverage sectors, and its impact on employee retention cannot be understated. While older generations tend to turn away from these advancements, feeling disconnected or overwhelmed by a struggle to adapt, younger workers readily and enthusiastically embrace technology as a means for efficiency and opportunity. 

These differences can create tension and misunderstanding in the workplace, impacting team cohesion. To bridge these gaps, employers can implement a set of best practices to facilitate knowledge transfer and foster collaboration across generations. Engaging employees, no matter their tenure in the development of these best practices is a critical success factor that greatly increases their application of  the best practices. By involving them, they are more motivated to adopt a culture of structure, discipline, and accountability as they have a sense of ownership that includes having their “thumb print” on the process.

Best practices for building a multi-generational workforce

Here are a few best practices to help industry leaders build a thriving multi-generational workforce:

1. 1. Foster open communication: Create a culture where employees feel comfortable voicing their ideas or concerns on existing or new processes. Regular feedback sessions and cross-generational mentorship programs help bridge generational gaps and enhance understanding.
   2. Invest in continuous learning: Offer training and development opportunities that cater to different learning styles. This ensures that all employees can acclimate to new tools or technology regardless of age.
   3. Promote work-life balance: Understand that different generations have varying expectations regarding work-life balance. Implement flexible work arrangements when possible and days dedicated to professional development. 
   4. Create a resource bank: To prevent legacy knowledge loss, create a knowledge management resources (KMR) bank to document standard operating procedures and best practices accessible to all workers to reference. 

The importance of employee retention

Gaining a deeper understanding of generational differences in the food and beverage industry is essential for retaining talent. A strategic approach that resonates across age groups can help build a workforce that not only thrives but also propels organizational success. With high turnover rates disrupting team cohesion, reducing productivity, and inflating hiring costs, it’s clear that industry leaders must prioritize employee engagement in order to increase retention for all generations. By doing so, they can foster a more resilient and dynamic workforce, better equipped to meet the industry’s evolving demands.

John Robertson serves as Vice President of Life Cycle Engineering’s Reliability Consulting Group, primarily responsible for predictable and sustainable business growth. His career encompasses over 35 years of manufacturing, consulting, and business leadership.