Generational Differences in Recognition and Rewards

According to a global survey of 4000 employees in 14 countries conducted by Lumesse ofLondon, there is quite a gap between Gen Y and the Baby Boomer generations when it comes to how they review their work and extra responsibility.  It states…

“New research finds that Gen Y workers are much less likely than Baby Boomers to believe that working harder and taking more responsibility will get recognized and rewarded by the organization.”

38% of the older workers (between 56 and 60) felt that they would always be recognized for working harder and taking on more responsibility.  Conversely, only half of the Gen Y workers (18 to 25) felt the same way. Some experts are shocked that the numbers for Gen Y are that high.  They have seen that Gen Y typically feel they will be reward for results rather than just time spent on the job, or extra responsibilities. 

My, how things have changed!  The older workforce grew up believing in loyalty to a company.  They thought that if they worked extra hard they would be rewarded with keeping their job and not being laid off.  They experienced recognition as just rewards for their tenure.  They still believe in the years of service award programs that reward longevity rather that rewarding performance.  As they grew in the company, rewards and recognition were a given, a part of the natural process of working, they didn’t focus on the results.

With the maddening downturn in the economy and organizations constantly looking at the bottom line with seemingly little concern for the employee, an evolution to performance based rewards is just natural.  The younger workforce expects immediate rewards and will seek other employment when they aren’t satisfied.  With them there is little or no loyalty to the organization.  Who can really blame them when they’ve seen their parents, relatives or friends laid off at the whim of the company they were so loyal to?

In our opinion HR should be responsible for implementing the right kind of reward and recognition efforts that address individual needs.  Unfortunately, many of them continue to run programs as they have been run since the dawn of time...employee of the month, years of service efforts, ad nausea!   These types of programs won’t cut it with today’s workforce.  They need programs that produce results and have the kind of training, communications, feedback, measurement and modernaward vehicles that appeal to all age groups.   Sorry, but the crystal bowl or clock for managing to stay employed for ten years just won’t cut it anymore.