Last year, Agilus introduced the UnSalary Guide to help employers navigate a new era shaped by pay transparency and instant access to salary data across platforms. With legislation like British Columbia’s pay transparency mandates now in effect, the once-secret salary has become less central to attracting talent. Our 2024 UnSalary Guide explored how factors like fit, culture, values, mobility, and professional development have emerged as key drivers for job seekers.
This year, the focus shifts to another crucial factor: generational synergy. For the first time, five generations coexist in the workplace. While this diversity fuels innovation and creativity, it also brings challenges in communication and collaboration. Forward-thinking businesses recognize the need to understand what motivates each generation to improve not only retention but the overall work experience. To discover more about the impact of different generations on Canadian workforce, read our blog series “Creating Generational Synergies Series”.
At Agilus, we’ve developed resources to help employers harness this synergy and create the workplaces where everybody thrives. Dive into our latest insights on Millennials and their vital role in today’s workplace.
Generation Y (Born 1981-1996) in Canadian workplaces:
Generation Y, commonly known as Millennials, currently dominates the mid-level workplace in the Canadian job market. They bridge the gap between younger Gen Z colleagues, older Generation X and Baby Boomers. Born between 1981 and 1996, Millennials grew up amidst rapid technological evolution, globalization and shifting cultural landscapes.
Their formative years were shaped by the rise of the internet, iconic TV shows like Friends, The Fresh Prince of Bel-Air, and Gilmore Girls and the pop culture explosion of boy bands like NSYNC and other artists like Britney Spears and Destiny’s Child. Many Millennials vividly remember the Y2K frenzy, the launch of the first iPhone, and the formative impact of social media platforms like MySpace.
Millennials brought skinny jeans, avocado toast, and memes into the mainstream, redefining lifestyle trends with their focus on experiences, environmental awareness, and digital innovation. Their blend of tech-savviness, entrepreneurial spirit, and desire for purpose continue to shape workplaces, markets, and culture in profound ways.
Some key characteristics of Generation Y (Millennials):
Having grown up alongside rapid technological advancements, Millennials, or Generation Y are highly digital savvy. They excel at adopting new tools and platforms, driving digital transformation and innovation. Their ability to embrace emerging technologies makes them valuable assets in today’s tech-driven work environments, improving efficiency and streamlining operations.
Another defining characteristic is their strong emphasis on work-life balance. Millennials prioritize flexibility in their roles, seeking positions that allow them to balance their professional responsibilities with personal commitments. Whether through remote work options or flexible hours, they value jobs that provide the freedom to grow both personally and professionally, which in turns boosts job satisfaction and productivity.
Millennials are also deeply motivated by purpose-driven work. They seek careers that align with their values, often choosing roles in organizations that emphasize social responsibility, sustainability, and making positive impact. This commitment to meaningful work drives greater engagement and long-term loyalty to employers who share similar values and contribute to causes Millennials care about. Understanding these motivations can help employers harness the full potential of Millennials working in their team, fostering a dynamic and innovative team environment.
Challenges faced by Millennials (Generation Y) in workforce:
According to the 2021 Canadian Census, Millennials accounted for approximately 33.2% of the Canadian workforce and a recent study by Statistics Canada suggests that they have grown by 12.2% from 2021 to 2024, with an increase of over 1.1. million. Despite being the largest cohort of working population in 2024 and known for their adaptability and tech-savviness, Millennials face their share of work-related challenges:
Economic Instability and Rising Costs: Millennials entered the workforce during or after significant economic disruptions such as the 2008 financial crisis, and continue to navigate challenges like stagnant wages, rising house costs, and inflation. Millennials are probably the first generation to experience absolute income mobility. However, they still face unique financial challenges when it comes to building wealth, compared to the previous generations. In 2016, Millennials aged 25 to 36 had an adjusted household annual income of $44,100, surpassing the $33,000 that Generation X earned at the same age in 1999. However, the cost of living has escalated substantially. Research shows that as of 2025, the average monthly expenses for a family of four in Canada ranges between $6,500 and $7,500, depending on the province, while the average household income in Canada in 2024 was $5,607. The disparity between income and living costs underscores the economic instability and rising expenses that Millennials must navigate. These coupled with challenges like stagnant wages, soaring housing prices, and inflation bring significant challenges to this generation.
Stereotyping and Misunderstanding: It may be surprising, but Millennials too face stereotypes in the workplace. They are often labelled as entitled, overly reliant on technology, likely to set too many boundaries or are overly idealistic. When business leaders, especially from previous generations uphold these biases, it can often lead to discrimination, assumptions and misunderstandings within teams. Similarly, if they are perceived as overly idealistic or having too many boundaries, younger generations may feel apprehensive pursing “out of the box ideas” with their leaders.
Mental Health and Well-being: Research has indicated that the mental wellbeing of people born in the 1990s is generally poorer than that of previous generations at the same age. 44% of millennials report feeling anxious or stressed most or all of the time, with a higher proportion among women and young parents. This poor well-being is attributed to several factors such as economic and social changes, fast-paced technology and major life disruptions due to occurrences such as the Covid 19 pandemic. Millennials are experiencing mental health challenges at a much higher rate, directly impacting their workplace experiences and expectations. These challenges influence how Millennials engage with work, drive a demand for better mental health benefits and seek flexible work arrangements, and supportive workplace cultures.
Job Security and Career Progression: Career progression is top priority for 91% Millennials according to research. Yet only 46% Millennials are content with their jobs. Millennials often face precarious work conditions, including an increase in gig-based employment. According to a 2021 Statistics Canada report, nearly 30% of Millennials were employed in non-permanent roles, limiting their access to benefits, career stability, and long-term growth opportunities. This has created challenges for career progression, as many Millennials report feeling stuck in roles without clear advancement paths. Another major event that impacted several millennial’s career journeys was losing their jobs or running out of contract business opportunities due to the Covid-19 pandemic closures.
Opportunities for Employers:
Understanding the unique challenges and the impact of life events that they faced in their peak career (2008 crash, Covid-19 pandemic) can help employers to understand millennial employees better. Providing clear career pathways, mental health resources, competitive compensation, and opportunities for continuous learning will enable Millennials to thrive and bring their full potential to the Canadian workforce:
Mentorship and Reverse Mentoring: Millennials thrive in collaborative environments where knowledge-sharing is encouraged. A Deloitte research indicates that 68% of Millennials are twice likely to stay with their organization for more than five years if they have a mentor, compared to 32% without a mentor. A survey by Huffpost showed that 79% of Millennials see mentoring as crucial to their career success, making it a mutually beneficial opportunity. Employees who lay emphasis on providing mentorship sources to their millennial employees can experience better loyalty, retention and commitment from them. In fact, several millennial employees are also keen to elevate their skills and may be interested in reverse mentoring programs, where younger employee mentor senior team members on technology or emerging trends. Employers can create a dynamic flow of knowledge across generations by encouraging mentorship initiatives across their organizations.
Promoting Mental Health and Wellness: Millennials have championed the importance of mental health and well-being in the workplace. Research shows that nearly half of Millennials ranked their mental health as their first or second priority in life, with only physical health ranking higher on the list of priorities. Employers who prioritize mental well-being in workplaces by offering resources like wellness programs, and mental health days, as well as access to therapy, are more likely to attract Millennial talent while fostering a healthier and more productive workforce.
Continuous Learning and Career Growth: Millennials value opportunities for skill development and career advancement. According to a 2023 Gallup survey, 70% of Millennials would leave their job if they lacked clear paths for growth. Millennials are likely to prefer employers who champion robust learning and development programs. Fostering skill-building, offering options such as online courses, certifications, and leadership training can not only help to retain millennial talent but can also attract them to your company. Organizations who empower Millennials to remain competitive and engage in their roles by supporting upskilling are often preferred employers for this cohort.
Conclusion
Millennials, as the largest generation in today’s workforce, play a pivotal role in bridging generational gasps. Their digital fluency, adaptability, and strong sense of purpose bring invaluable contributions to modern workplaces. To fully engage and support millennials, employers must address their challenges including economic instability, job security concerns, and the expectation of work-life balance. Providing mentorship opportunities, flexible work arrangements, continuous learning and inclusive workplace practices will not only enhance employee satisfaction but also unlock Millennials’ full potential.
Leading a multigenerational team requires cultivating an inclusive environment where everyone feels valued, respected, and empowered to bring their unique strengths. Successful businesses in Canada recognize the value of seeing beyond stereotypes and look for opportunities. They recognize that while generational traits may stem from shared timelines and experiences, they don’t define individuals. Prioritizing clear communication, encouraging mutual respect, and tailoring approaches to meet individual motivations and needs can help leverage the diverse strengths of multigenerational teams and instill a feeling of value and belonging.
Building common ground is a shared responsibility. By understanding what drives each generation, we can close gaps, foster collaboration, and unlock full potential of a diverse team.
At Agilus, our experience of working with multi generational and diverse candidates, enables us to understand the nuances of recruiting talent from different generations. If you are looking for more resources on how to drive success from a multi-generational workforce, watch our recorded webinar and download our free workbook today.
