9 Reasons Gen X Is Being Replaced at Work by Millennials and Gen Z

Gen X generally looks down on the two younger generations below them, like so many generations have done before them. Gen Xers find their slang insufferable, their fashion questionable, and often view them as frustrating coworkers.

However, it is undeniable that, regardless of their grievances, Millennials and Gen Z are quickly impacting the entire American job market, as employers are increasingly favoring them.

Older generations are still seeking to boost their bank accounts and maximize their retirement contributions, so the prospect of being replaced by younger workers is stressful.

There are many reasons for this shift in the workforce, and it's vital for older Gen Xers to understand why the younger cohorts are getting jobs while they are not. And more importantly, what they bring to the table that Gen Xers no longer are.

Here are nine reasons Millennials and Gen Z are replacing Gen X.

They're comfortable with remote roles

Since younger generations are more used to digital technology and doing work and school solely on a computer, they're more comfortable with remote jobs.

Gen X had plenty of human interaction in the office, but that work arrangement is quickly changing, and a lot of people from this generation are struggling with the "independence."

They're more cost-effective to hire

It's pretty simple business math that younger and newer employees will be cheaper and easier to train than older ones.

Millennials and Gen Z are more likely to be adaptable to on-the-job training. Plus, they have more working years ahead of them, so companies are more willing to invest in their long-term development.

They're more aligned with current workplace values

Millennials and Gen Z prioritize work-life balance, flexibility, and other modern values, more than Gen X. This aligns more closely with modern workplace values. Additionally, they expect employers to take action on social and environmental causes, making them more attractive to companies aiming to project socially responsible brands.

Having come of age in a different era, Gen Xers do not typically have the same value system and may clash with current corporate culture.

They're digital natives and tech-savvy

Both generations grew up with access to modern technology and learned most of their skills on a computer, through video tutorials or digital guides.

Since Gen Z and Millennials are digital natives, they're more adaptable to technological changes and possess a greater aptitude for the cutting edge. In a world increasingly digitized, they have a leg up on their older coworkers.

They communicate through modern channels

Instead of typing out formal email chains, the younger generations communicate through fast-paced instant messaging apps like Slack and Discord.

Since they're digital natives, they're accustomed to hyper-responsive texting and constant updates, rather than structured email.

They seek purpose-driven work

Younger generations view their professions as more than just jobs; they aspire to make a meaningful impact with their work.

This focus on having a purposeful role that makes a tangible difference differs from the traditional view of work that many Gen Xers hold.

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They value continuous feedback and development

Millennials and Gen Z value ongoing professional development, often referred to as a growth mindset. They're more open about receiving and asking for feedback on improving their work performance.

This makes them more likely to improve throughout their employment, which may not be the case with older generations, such as Gen X, who are not accustomed to quickly reacting to such feedback and professional development.

They use automation and AI to improve efficiency

Gen Z is far more likely than any other cohort to use artificial intelligence tools to improve their work productivity. Automating basic job tasks frees them up to focus on more high-level work, which has a greater impact on their companies.

This general shift towards using automation makes younger cohorts more productive than their older counterparts.

They prefer non-hierarchical work structures

Gen Z, in particular, is shifting away from traditional hierarchical workplace models, favoring autonomy and flexibility over conventional management roles.

This trend, known as "conscious unbossing," suggests a growing desire among workers to achieve a better work-life balance and enhance their mental well-being. This approach challenges established corporate norms often upheld by Gen X, causing friction.

The more collaborative approach of Gen Z and Millennials has led to increased productivity gains in the tech industry and driven significant improvements in that sector. Therefore, other industries are following suit, eliminating the traditional corporate hierarchy.

Bottom line

Millennials and Gen Z are rapidly increasing their presence in the American workforce. The former accounts for 36% of the U.S. labor force, while the latter accounts for 18%, collectively surpassing Gen X, which stands at 31%.

Still, the U.S. economy is adding jobs, with the latest job report indicating a resilient job market despite economic uncertainty. That's good news for Gen Xers looking to lower their financial stress, so long as they can remain adaptable to the changing job conditions and take some cues from their younger coworkers.