Tailoring reward offerings to align with preferences of the younger members of the workforce can boost engagement and retention.
By Maggie Mancini
Gen Z’s presence in the workplace is growing fast, poised to make up 30% of the workforce by 2030 as baby boomers enter retirement in droves. In the wake of these changes, HR leaders are tasked with figuring out how to attract, retain, and engage the youngest members of the workforce, many of whom have faced a plethora of obstacles and global challenges since beginning their careers. To engage Gen Z successfully in the workplace, improve retention, and keep them happy, it’s critical to offer recognition and appreciation for their work contributions, says Kate Devlin, director of human resources at Rymax.
She explains that there are plenty of strategies HR leaders can leverage to provide targeted recognition to Gen Z employees.
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Go digital with recognition. Mobile recognition apps enable employees to give and receive recognition on-the-go.
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Ensure timeliness. Employers can provide instant recognition through spot awards and digital “thank you” cards.
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Add a personal touch. HR leaders should include extensive choice in their rewards offerings, providing ways for employees to receive rewards aligned with their preferences.
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Support social recognition. Employees value their peer-to-peer acknowledgement and programs should allow them to provide feedback and share appreciation.
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Gamify the recognition experience. By leveraging Gen Z’s love for interactive and competitive experiences, HR leaders can boost engagement and participation in their company’s recognition program.
75% of young millennial and Gen Z workers say they want recognition at least a few times per month from their manager or supervisor.
Workhuman’s research with Gallup finds that younger employees are significantly more likely to say they want more frequent recognition. Of the younger millennial and Gen Z cohort of workers, 78% say they want recognition at least a few times per month from their manager or supervisor. Additionally, 74% say they want the same frequency of recognition as their peers.
Given that many Gen Z employees are early-career professionals, recognition can help reinforce what behaviors are important to business success and bolster engagement at a time when it’s particularly important, says Sarah Hamilton, vice president of human experience at Workhuman. She adds that “it’s best practice to ensure that recognition is both frequent and flexible.”
For a recognition program to be truly impactful with Gen Z, Hamilton says that there needs to be an element of choice, as the days when a company-branded mug counted as a reward are long gone.
“Employees need to be able to apply points earned through the recognition program as they see fit, whether they want a new kitchen appliance, a gift card to their favorite clothing store, or a Christmas gift for their parents,” Hamilton says. “Incorporating experiences as a reward option is a great way to engage the younger generation, as millennial and Gen Z workers both value experiences over physical possessions.”
To encourage participation in an organization’s recognition program, it’s important to choose rewards and incentives that appeal to the diverse, unique preferences of employees at different stages of life, Devlin says. She suggests recognizing Gen Z employees in the workplace through several intentional practices:
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a hybrid work schedule to support Gen Z’s desire for work-life balance;
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personalized recognition through a merchandise platform to empower employees through social recognition and performance incentives;
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continuous learning and development that encourages staff to attend formal training and team-led education; and
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fostering a purpose-driven environment to entrust employees with work that plays to their strengths to help improve motivation and enhance engagement through ownership.
“Gen Z is coming into the workforce, yes, but they’re also bringing with them a new culture, and we’ve seen a seismic shift in how people look at work since Gen Z joined in,” Hamilton says. “Their priorities have helped shape the post-pandemic period and may continue to do so as the workforce develops.”
In addition to promoting ownership of work contributions, implementing flexible work environments, and providing personalized performance incentives, HR leaders should work to diversify their reward offerings to encourage participation and keep the organization’s recognition program aligned with employee preferences. For example, providing merchandise directly through an e-commerce platform or allowing employees to redeem their recognition points for gift cards can gamify the experience and help leaders get the most out of their investment.
When it comes to Gen Z in particular, incorporating experiences rather than just physical items can help employees connect the dots from their moment of recognition to their travel or vacation experience, Hamilton says, by providing opportunities for employees to book hotels or rental cars using recognition points.
“Our newest generation of workers brought with them a new set of values that has impacted how we think about work, and the future of work,” Hamilton says. “Rewards and recognition are an essential part of that future.”
