Human Research Mangement Methods
4 Compensation & Benefits • May 2009 www.theHRSpecialist.com
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Most organizations choose employeerewards based on budgets, tradition and management choices. Or they may use surveys that solicit preferences but don’t analyze the results according to generational differences.
That’s a mistake more organiza- tions are trying to rectify. Nearly a third (32%) of HR professionals plan to alter their total rewards programs with generational preferences in mind, according to the new Top Five Total Rewards Priorities survey by Deloitte LLP and the International Society of Certified Employee Benefit Specialists.
That percentage is likely to increase significantly in the future because the workforce is becoming more multigen- erational—especially as older workers remain longer to rebuild their nest eggs.
More organizations are customizing rewards programs to accommodate the values, lifestyles, work habits and in- terests of different generations. Even low-budget programs can offer rewards that appeal to different generations.
Give the people what they want Here are the different rewards that con- sultants say best motivate the four gen- erations:
Millennials were born between 1981 and 1999. They are computer- literate, easily bored and require fre- quent challenges. They need work/life balance and value education.
Millennials value extra break time,
recognition from clients and contribut- ing to pet causes. This generation also values gift certificates to music and video outlets; tickets to concerts and sporting events; transportation subsi- dies/reimbursement; iPods and PCs.
Gen X’ers were born between 1965 and 1980. For them, productivity means working smarter, not longer and harder. They balance work and personal life and are self-possessed, versatile em- ployees. Gen X’ers value flextime, telework, leading a project team and recognition from clients. They also value bonuses based on performance, weekend trips, tuition reimbursement and annual salary increases.
Baby boomers were born between 1946 and 1964. Their careers tend to focus on one organization or industry. Boomers value recognition such as employee of the month awards, oral acknowledgment from clients, parking passes and promotions.
Boomers also value cash rewards, bonuses, free day care for a specified period, training seminars, membership in a club or organization and dining with the boss.
Matures were born before 1946. They are self-starters who have often sacrificed family time for work and tend to be loyal employees. They want re- spect for their experience and sacrifices.
Matures value oral recognition from bosses and clients, award certificates,
extra time off and serving as mentors to age-group peers and new employees. Matures also value salary increases, 401(k) matches, bonuses, profit sharing and cash rewards for suggestions that lead to workplace improvement.
Advice: These are generalizations, so survey your staff to determine what types of rewards and recognition each age group values most.
Customize benefits to suit needs of different generationsTotal rewards
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Case studies: 2 companies that do it right
Prudential benefits support adult caregivers. After 38% of Prudential Fi- nancial’s employees identified them- selves as adult caregivers in a 2004 company survey, the firm ramped up its elder care benefits. Examples: It subsi- dizes access to a geriatric care special- ist, financial advisors, and elder-law specialists who help workers deal with aging parents’ issues.
Eli Lilly pays child care costs for business travelers. Or, if the employee prefers, the child can go on the trip —on the company’s dime. The same goes if an employee has to work un- scheduled hours. The 10-year-old ben- efit puts parents and nonparents “on equal footing in terms of opportunities” for jobs that require travel, says Carlos Campoy, director of global workforce diversity.