What should companies do?
Companies, as ever, are under huge cost pressures and employee packages are a significant part of this. Business leaders are under pressure to balance motivating their workforce through rewarding them well, whilst remaining competitive and turning a profit. Get this wrong and the business will fail, it’s that simple.
Ultimately, employers need to harness internal management information – market and anecdotal data – to accurately find that common ground in base pay that bonds “the deal” between employee and employer fairly. This is the foundation and companies can then layer the benefits and variable offering to help meet the differing demands of the various generations.
Generation Y may care less about pensions and more about aspects geared about the here and now, such as short term recognition or spot bonuses towards a housing deposit. Baby boomers are more overtly planning for retirement and generation X more demanding of agile working to fit around hectic family life.
All too often, money is presumed to be the answer to motivate and retain employees, but generally speaking, it isn’t. Companies need to look at embracing agile workforces, improved recognition strategies, promoting remote working, quality of working environment.
The power of trusting your workforce to manage working lives with their home lives in a more integrated and agile fashion is a hugely motivating factor both today and also essential to embed culturally in preparation for generation Z.
If corporates can manage this motivational mix effectively, then employee push for higher salaries will decrease, costs will be saved through higher engagement and business performance will improve.
One final thought, which underpins all of the generations, inspirational leadership is the biggest intangible motivator. Combine this with a generationally aware reward strategy, and it presents a truly compelling combination.