By Mohamed Basma, General Manager, Small Business Services, ADP Canada
This October, Small Business Month arrives at a pivotal moment: Canada’s workforce is shifting fast. Small businesses face a generational crossroad.
Five generations are working together at once, each bringing their own unique generational perspectives and beyond that, each bringing their own hyper-unique experiences that boil down to the individual.
For small business owners, managing the multi-generational workforce to ensure their teams remain engaged, productive, and retained is essential for long-term success.
The urgency is real. According to a recent Happiness at Work survey, workplace happiness varies by generation, underscoring the need to develop a talent strategy that works for every generation. For example, Baby Boomers recorded a Work Happiness Score of 7.3 out of 10 compared to 6.7 out of 10 for Generation Z.
With this in mind, what are five moves Canadian small business owners can consider to optimize for the multi-generational workforce?
Build an omni-channel communication strategy
Communication preferences vary widely across generations. Boomers might prefer face-to-face conversations, while Gen Z leans into digital-first tools. A one-size-fits-all approach won’t cut it. Adopting a multi-channel communication strategy – combining in-person meetings, messaging platforms, collaborative tools, and workforce management technology – can help bridge these gaps.
When the whole small business team is in lockstep through transparent and accessible communication, chemistry builds and magic happens. Conversely, when communication silos exist and workers feel out of the loop, disengagement often follows.
Reciprocal mentorship
Traditionally, business mentorship opportunities are looked at as a one-way street. That is, older workers passing on their institutional knowledge to younger workers.
However, the multi-generational workforce provides small businesses with the opportunity to make this a reciprocal talent strategy, creating an avenue for valuable workplace information and expertise to flow both ways.
Reciprocal mentoring can help facilitate team engagement and cohesion, while boosting productivity as team members develop new skills and lean on each for targeted expertise.
Additionally, it helps ensure valuable institutional knowledge is passed down to younger workers to ensure business continuity.
Personalize the employee’s experience
Looking beyond each generation’s uniqueness, each individual employee is shaped by their own life stage and experiences.
As a small business, customizing the employee experience down to the individual is crucial to help drive engagement, loyalty and culture. For example, an older employee might prioritize added flexibility to help care for their family, while a younger worker might be looking for financial wellness support as they look to save towards goals like buying a home.
One area where personalization can be amplified is through benefits. Opting for a more modular benefits program rather than one-size-fits-all can help workers choose the benefits they need most according to their life stage; while also better ensuring you’re not offering benefits that are going to go unused by your employees because they don’t need them.
Leverage generational teams for innovation
Boomers offer depth of experience; Gen Z brings digital fluency and fresh thinking. Together, they form a powerful engine for innovation. Cross-generational teams can unlock new ideas, improve problem-solving, and build resilience.
Leaders should feel empowered to build diverse teams and celebrate different perspectives. This approach not only drives creativity but also strengthens team cohesion and adaptability—critical traits in today’s fast-changing business landscape.
Powerful, multi-generational teams are essential for a productive small business. According to a study from ADP Research, 55% of workers who feel they are on the best team report full engagement compared to 10% who feel they are not on the best team.
Prioritize skills development and continuous learning
Every worker wants to continue learning, regardless of generation. According to the same research from ADP Research cited above, when workers strongly agree their company is investing in their skills development, they are nearly six times more likely than others to recommend their company as a great place to work and 3.3 times more likely to describe themselves as highly productive.
Moreover, when workers who are confident in their skills feel their employer is investing in their skills development, they’re twice as likely to say they have no intention of leaving their organization compared to workers who are confident in their skills but lack on-the-job training opportunities.
Regarding skills development, there’s a big opportunity in Canada. ADP Research found 17% of Canadian workers strongly agree their employer is investing in the skills they need to advance their career in the future.
A small business that prioritizes skills development and continuous learning across multiple generations is a small business that is more likely to keep their diverse workers together, productive, and happy.
According to ADP Canada’s Small Business Owner’s Toolkit, tools like digital learning platforms or learning management systems (LMS), make training more accessible, flexible and personalized, allowing employees to learn at their own pace, from any device. Moreover, employees can work with their employers to identify development areas that align with their roles and career goals.
The bottom line
Small businesses are Canada’s economic lifeblood, but their future depends on how well they navigate generational change. The data is clear: workplace happiness, engagement, and retention are deeply tied to how employees feel seen, supported, and empowered – regardless of age.
October’s Small Business Month is more than a celebration. It’s a call to action. By embracing generational diversity and adopting inclusive, people-first practices, small business owners can build stronger teams, reduce turnover, and create workplaces where every generation thrives.
The shift is already underway. The question is…will your business be ready?
