Generational Alchemy

By Dr. Joe Coughlin, Founder and Director of the MIT AgeLab Investor Insight Future of Advice

Transforming multigenerational dynamics into workplace gold

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By working together, embracing generational diversity, and tweaking strategies to fit each age group, companies can tap into the magic of generational alchemy to build more innovative and productive teams.

—Dr. Joe Coughlin, MIT AgeLab

The popular misconception about generations is that they’re defined solely by age or birth year. While this isn’t entirely incorrect, this view overlooks a social reality: Generations are defined by shared experiences and collective memories in later adolescence and early adulthood. These formative events shape how people perceive the world, their attitudes, and, ultimately, their behaviors in society, the workplace, and the marketplace.

A century ago, sociologist Karl Mannheim described generations as a “sociological phenomenon,” emphasizing how socio-historical events influence generational identities. Today, the longevity economy amplifies this dynamic. Life expectancy continues to increase, and this isn’t just about adding years to life—it’s about adding more generations to society.

Unlike in the past when there was simply an older and a younger generation, we now live in a world in which four, five, or even six generations actively engage with each other across every level of business and society.

These generations aren’t just coexisting; they’re colliding, conflicting, and struggling to find societal consensus. Much like alchemy was a medieval approach to transform all kinds of base metals, such as lead into gold, there’s now a need for a sort of generational alchemy to transform the multigenerational dynamics of the longevity economy into a new energy to power the workplace and marketplace.

Generational Memories:
The Past Shapes Our View of the Future

December 7, 2024, marked Pearl Harbor Day. Perhaps I’m showing my age, but I was struck by how little media attention the day received compared to years gone by. Growing up, this day was a solemn occasion in my family. My mother, a member of the World War II generation and a genuine Rosie the Riveter, worked as a welder. She deeply honored the memory of those who died in Pearl Harbor and WWII. For her, December 7 wasn’t just a date on the calendar—it was a reminder of the importance of sacrifice, service, and national strength. The recovery and ultimate victory from that attack were defining moments that cemented her belief in the US as a global moral and military leader.

Her generation, shaped by the Great Depression and World War II, valued service and deeply trusted institutions. Winning the war demonstrated that even the greatest challenges can be collectively overcome. As that generation and the impact of their memories fade from public consciousness, younger generations’ memories formed by their own unique historical experiences reshape society.

Generational Alchemy:
Experiences Forging Generations

Many events and experiences can forge a generation. An endless list could be developed to characterize what might imprint a generation, from economic conditions to political events to popular media. The following highlights (spoiler alert: many significant events aren’t listed here) demonstrate how the longevity economy introduces a new multigenerational alchemy of experience that often results in conflicting attitudes and misunderstandings between the generations.

Baby Boomers (Born 1946–1964):
Two Generations in One

The baby-boomer generation is a case study of generational complexity. A generation of nearly 70 million people can’t be just one thing. Older boomers experienced pivotal moments such as the Civil Rights Movement, multiple assassinations, the Vietnam War, and Watergate, fostering a spirit of rebellion, skepticism, and diminished trust in public institutions. Famous for the phrase “Don’t trust anyone over 30,” this cohort challenged traditions and reshaped societal norms.

In contrast, younger boomers born between 1956 and 1964, often called Generation Jones, came of age during the economic turbulence of the 1970s and early 1980s. They experienced the oil embargo, high inflation, soaring interest rates, and the Iran Hostage Crisis, all while sharing with their parents and older siblings the Cold War’s persistent threat of nuclear war. These experiences fostered a pragmatic and competitive outlook, forcing them to adapt to a world in which unquestioned national strength and personal economic security weren’t guaranteed.

Gen X (Born 1965–1980):
Going It Alone

Sometimes referred to as “America’s neglected middle child,” Generation X grew up as “latchkey kids,” navigating dual-income households and daycare in an era in which nearly all institutions began to show cracks. For Gen X, Home Alone wasn’t just a movie but a reflection of their need to go it alone. Their formative years included the Challenger disaster, the fall of the Berlin Wall, highly publicized corporate scandals, and the bursting of the dot-com Bubble. Gen X became skeptical of institutions at best, and, in many cases, employers, government, and even faith-based institutions were seen as failing. This required individuals to look out for their own security and develop self-reliance.

Unlike previous generations, Gen X saw technology as a tool of personal power and independence. With Palm Pilots and Blackberries in hand, they embraced autonomy and became the first generation to leverage personal technology to navigate life and work on their own terms.

Millennials (Born 1981–1996):
Two Generations in One

Millennials are the largest generation in US history. Unfortunately, as with the boomers, many refer to this group as one generation. Consider this: Millennials in the US are about 72+ million people born across 15 years of rapidly unfolding events and developing technology. That’s more than the entire population of the UK. Few people would argue that everyone in the UK is the same. We should divide millennials into at least two cohorts. Both groups have lived to see events that further eroded public trust while experiencing rapid technological advances that offer incredible promise of what life could be tomorrow.

Older millennials came of age during the dawn of the near explosive expansion of the internet, 9/11, the Great Recession, Hurricane Katrina, and the Enron corporate scandal.

Younger millennials, on the other hand, grew up immersed in social media. Many entered adulthood amid rising student debt. Some of this cohort were likely looking for work or graduating college in the shadow of the Great Recession. A few years later, they would hear the Occupy Wall Street movement redefine society as an economic divide between the top 1% and everyone else.

Gen Z (Born 1997–2012):
Only Uncertainty Is Certain

While still a work in progress, Gen Z’s defining moment was the COVID-19 pandemic. The pandemic disrupted every aspect of life, from education to work to social traditions—everything was put on hold, put online, or just plain canceled. This experience, combined with growing global conflicts from Europe to the Middle East and growing awareness of environmental issues, has left them with a sense that little is certain but uncertainty itself.

Unlike previous generations, Gen Z was born into technology not as a developing novelty but as an assumed part of daily life, like breathing itself, enabling everything from researching what to buy to finding romance. For Gen Z, high-tech touch is the norm, while human touch is often the outlier.

The Strategic Opportunity in the Longevity Economy’s Generational Alchemy

The longevity economy has created a new generational alchemy—an interplay of diverse perspectives and experiences that are reshaping society and business. Living longer isn’t just about more years; it’s about more generations alive, actively engaging, and influencing each other.

This presents both challenges and opportunities for business and society. Success in the longevity economy requires understanding generational memories and values, and a willingness to adapt to the unique dynamics of a multigenerational workplace and marketplace.

This isn’t just nice to do; it’s good business. By fostering collaboration, embracing generational diversity, and tailoring strategies to meet the needs of each cohort or strategies that apply to all generations, companies can harness the power of generational alchemy in today’s longevity economy to:

Build more innovative and productive teams
Develop products and services that resonate across generations
Create inclusive workplace cultures that attract and retain top talent
Drive sustainable growth in an increasingly age-diverse market

Organizational Gold

Just as alchemists of old sought to transform base metals into gold, HR professionals today are tasked with uncovering and harnessing the hidden potential within a diverse, multigenerational workforce.

By skillfully blending the unique qualities and strengths of each generation, you can create a harmonious and highly productive work environment. This modern-day alchemy not only fosters innovation and collaboration but can also drive organizational success and growth.

About the Author:

Joseph F. Coughlin, PhD

Joseph F. Coughlin, Ph.D. is Director of the MIT AgeLab. His research examines how the disruptive demographics of an aging society, social trends, and technology will shape future innovations in business and government. Dr. Coughlin teaches in MIT’s Department of Urban Studies and Planning as well as Sloan School of Management Advanced Management Program. Dr. Coughlin advises a wide variety of global firms in financial services, healthcare, leisure and travel, luxury goods, real estate, retail, technology, and transportation. He’s also a Senior Contributor to Forbes and writes regularly for MarketWatch and the Wall Street Journal.

The MIT AgeLab is not an affiliate or subsidiary of Hartford Funds.

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