Out Of Touch Bosses—How a 10-Cent Raise Exposed the Generational Divide at the Workplace

The saying goes that people don’t leave companies; they leave bosses—and recent viral TikToks have brought this sentiment to life in a very real way. Content creator Mary E. Frost recently sparked widespread discussion by posting a video criticizing Boomer managers for being disconnected from the current realities of the job market.

Her message resonated with many young workers who feel their employers are out of touch with their needs. Business and finance expert Chris Gerbig soon added to the conversation by stitching Frost’s video with his own experience working under a Boomer boss, shedding light on generational divides in the workplace that are still relevant today.

Gerbig, who now has a successful career in finance, shared a story from 14 years ago when he worked as a bank teller. Despite holding a finance degree, his starting salary was just $9 an hour, which translated to a meager $600 every two weeks after taxes and health insurance.

The financial strain of trying to make ends meet—while also covering rent, student loans, and a car payment—left him constantly stressed. But what really highlighted the disconnect between him and his Boomer boss was her suggestion that employees chip in $30 for a co-worker's wedding gift.

When Gerbig explained that he couldn't afford it, his boss was visibly shocked, unable to comprehend why a full-time employee couldn’t spare $30.

It was a moment that revealed just how out of touch some managers can be with the financial realities faced by their staff.

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A month later, the same boss came to Gerbig with what she thought was "great news"—a 10-cent raise.

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The bump in his hourly wage amounted to about $4 extra per week or $200 for the entire year. Rather than feeling appreciated, Gerbig was insulted.

The raise felt like a slap in the face, especially given the low salary he was already struggling with. His boss’s failure to recognize how small the increase was only further highlighted the generational gap in understanding.

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Understanding Generational Discontent

Dr. Michele Gelfand, a cultural psychologist, highlights how generational differences in the workplace can stem from varying expectations about work-life balance. Millennials and Gen Z prioritize flexibility and mental well-being in ways that Boomers may not fully grasp.

She explains that these younger generations often feel undervalued when confronted with minimal raises, such as 10 cents, considering their rising living costs. Gelfand emphasizes that businesses must understand and adapt to these cultural shifts to retain talent and foster loyalty.

The Importance of Emotional Intelligence

Simon Sinek, a well-known leadership expert, emphasizes that emotional intelligence is crucial for effective management. He points out that understanding the emotional landscape of employees—especially younger ones—can help bridge the generational divide.

By fostering open communication and demonstrating empathy, leaders can create a more engaged workforce. Sinek encourages organizations to invest in training that enhances managers' emotional intelligence, preparing them to navigate the complexities of a multi-generational workplace successfully. This approach could mitigate misunderstandings and build stronger team cohesion.

This story isn't unique to Gerbig.

Many Millennials and Gen Z employees share similar frustrations about being undervalued in the workplace. While fair compensation is important, younger workers are also seeking purpose, connection, and a more meaningful work environment.

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Leadership expert Rasmus Hougaard emphasizes that today’s workforce expects more than just a paycheck—they want leaders who understand their struggles and provide mentorship, growth opportunities, and a sense of fulfillment.

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A study conducted by Hougaard and fellow leadership expert Jacqueline Carter, which involved interviews with 250 executives from major companies like Microsoft, Google, and Lego, found that a staggering 88% of employees felt their bosses didn’t engage with them enough or take their needs seriously.

Meanwhile, 77% of leaders believed they were doing a good job.

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Financial expert Ramit Sethi suggests that employers need to create transparent compensation structures to foster trust and connection with younger employees. By openly discussing how raises are determined, companies can reduce feelings of disillusionment.

This approach not only encourages a culture of accountability but also aligns expectations between different generations. Sethi recommends that companies consider regular salary reviews based on market conditions and employee performance to ensure fair compensation practices.

This gap in perception illustrates a significant problem in today’s workplaces: many leaders are failing to meet the expectations of younger employees who prioritize empathy, work-life balance, and personal development.

The viral success of TikToks like Frost's and Gerbig's demonstrates a growing frustration within the workforce. Younger employees are tired of leadership that doesn't listen or adapt to modern realities.

In an evolving job market, fair pay, emotional intelligence, and a culture of growth are now critical for companies looking to retain top talent!

Clinical Perspective & Next Steps

The disconnect between generational expectations and management practices can be addressed by prioritizing transparency, emotional intelligence, and understanding cultural shifts in the workplace. As experts like Dr. Michele Gelfand and Simon Sinek suggest, fostering an environment that values open communication and adaptability is essential.

Employers should recognize that investing in training and developing compensation strategies aligned with current realities will not only improve retention but also enhance overall workplace morale. By embracing these changes, companies can create a more harmonious and productive work environment.