August 6, 2024
Employee Benefits
“To each, his own,” is a maxim that can be applied in any area and won’t stand out like a sore thumb. It applies to the reward preferences of employees from different generations and will fit perfectly. Today’s workforce is diverse and spans multiple generations. Each of them brings in an outlook and preferences that are varied and unique.
When you spend 90,000 hours at the workplace over your lifetime, getting rewarded and recognized for your efforts is a bare minimum expectation. In this article, we look at tailoring rewards for a diverse workforce and how different generations respond to them.
When employees from different generations work together, managing employee recognition can be a crucial concern for HR. According to the Global Culture Report 2022, employees are 18 times more likely to produce great work when they are recognized for their efforts.
Make sure that the benefits offered reinforce desired behaviors and outcomes. They should be able to cater to the different needs of each generation with varied options.
When you design your company’s rewards and recognition program, remember that each employee has certain expectations, requirements, tastes, and outlooks. While the “perfect” program is not possible, you can ensure to create one that makes your employees happy.
These are the distinct generations in today’s workspace:
Let’s look at each of these generations, understand their motivations, and the kind of rewards and recognitions that appeal to them.
Gen Z’s lives have been shaped by technology as they use and rely on it to go about their day. Their interaction with their friends and peers is via social media. This means that their expectation of recognition would be in a similar way. They don’t have the patience to go through a rigmarole of processes. It wouldn’t appeal to them if the reward isn’t “shareable.” This isn’t entitled behavior, it is what they have been used to.
To retain Gen Z employees, employers should build a strong digital ecosystem. Since they expect recognition to be streamlined and instantly accessible, using an employee engagement platform would be the easiest solution. Make sure the Gen Z employees receive continuous feedback. Another aspect of recognition that bodes well with Gen Z is creating rewards that have social causes attached to them.
The millennials, also called “Generation Y” or the “Net Generation,” grew up as recipients of recognition from everywhere. They also have the moniker, the “trophy generation,” for this reason. They assume they are in the right if proper and continuous feedback is not given, and this reflects how they want rewards and recognition. The Gen Ys don’t want recognition to come their way once a year, but a little more frequently. Employers who encourage work-life balance are preferred.
Millennials prefer experiential rewards, like tickets to a sports game or airline discounts for travel aficionados, which are plenty in this generation. Efforts to retain them must also include a structured skill-building program that helps them with transferable skills as they progress in their careers. Make sure these skills look good on the resume and are useful in their jobs too.
Also called the “baby bust generation” or the “MTV generation”, they are accustomed to a world where annual recognitions were the norm. Recognition for Gen X was usually given to those who were the best performers. Therefore, they don’t feel entitled to it. The employer should create an environment where recognition and rewards are comfortable to accept. Making it a part of the culture would be the first step.
Gen Xers are more comfortable with face-to-face interactions, although they can operate technology. They might not be great at working collaboratively with the millennials and Gen Z. But, they would be good at offering their inputs independently, so your recognition program must take all of this into account.
In the modern workforce, the baby boomers are considered sticklers for convention. Their preferences and working methodologies conflict with the generations before them. Baby boomers have been known to work at the same organization for several years and are known for their work ethic.
Since they are experts in their area, baby boomers want to be known for their skillset and the experience they bring to the table. They will appreciate the chance to teach what they know, to others in the organization. Since they aren’t job hoppers, providing them stability as an employee is a big plus.
Most of this generation is retired. You can attract them by offering attractive consulting rates. Another way would be to offer part-time opportunities that require only flexible hours. They prefer in-person discussions and might not be adequately versed in technology. They value being dependable and are loyal to their careers and beliefs.
They have a deep respect for authority and value honesty and trustworthiness. The silent generation employees are receptive to simple and straightforward benefits that make their lives easier.
Creating a rewards and recognition program requires a nuanced approach. Their distinct motivations and characteristics have to be taken into account to meet every generation’s expectations. Once created, you must continuously refine the program to see if it reinforces desired behaviors and outcomes. With workplaces changing rapidly, catering to different generations will become increasingly important.
If you have a diverse workforce and are on the lookout for a comprehensive rewards system for your employees, get in touch with us here.
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