One Size Rewards Do Not Fit All in a Multigenerational Workforce
October 17, 2008
By Alexandra Haake
A recent survey conducted by WorldatWork, the Washington D.C.-based total rewards association and non-profit organization, found that most employee rewards programs are designed with no regard to generational differences. Only one percent of survey respondents have an organizationwide strategy that specifically calls for the consideration of multiple generations when designing, administering and/or communicating total rewards programs.
"Some companies think that doing things differently provides a sense of inequity in the organization," says Lenny Sanicola, benefits practice leader for WorldatWork. "We are not talking about necessarily customizing individual packages for every employee that works for you. What we are saying is that taking into consideration that people have different preferences, needs, desires, values, and so when crafting your total rewards strategy allow some flexibility to deliver the same value but in different ways."
The strategies used by these companies are more reactionary, Sanicola says. "If they had a particular issue with a lot of their baby boomers exiting the workforce, then they might ask themselves 'is phased retirement appropriate? Or what do we need to do in order to keep those people?'" Sanicola says that companies struggle with this issue because it's another form of diversity and they often find it difficult to get their arms around it when they have four generations working side-by-side.
Sanicola says he would like to see companies take a more formal strategy at the very top of the organization by looking more closely at generational differences when designing their overall plan to attract and retain employees in order to get the ROI they want.
Despite the low numbers, some incentive planners, including Rob Schmitter, global rewards and recognition program leader of Toronto-based telecommunications company Nortel, have come on board. Schmitter says that their rewards partner, Globoforce has "provided us the choice that allows each of those generations to redeem their award for something that is meaningful and relevant to them. From our perspective it doesn't matter what the generation is, everyone enjoys a pat on the back for a job well done. Having options like travel, food and spas, electronics, and fashion, those speak to different generations and what they are looking for in rewards."
Schmitter says the traditional catalog approach, with its five or ten catalogued, company-logoed items is old and does not satisfy the desires of the multigenerational workforce.
"Especially in today's marketplace where the retention and attraction of talent is much more competitive," says Sanicola, "with more factors that are competing, as opposed to being reactive, if companies can build that generational diversity at the top discussion level and have that trickle down into crafting total rewards programs that meet the needs of everyone, that would be well served."
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