SHRM USA
PrintE-mail
   
Home › Generation Differences Still Challenge Rewards Programs ›
hr-disciplines section

Generation Differences Still Challenge Rewards Programs

Generational differences in the workforce are not being addressed by compensation and benefits managers, a new WorldatWork survey indicates. Only 12 percent of respondents say this is a significant issue right now, though a majority believe it will warrant more attention over the next five years.

The survey shows that 56 percent of organizations do not consider generational differences when designing total rewards programs (compensation and benefits), implying that they may not feel a pressing need to address each generation uniquely—or perhaps don’t have the tools to automate and manage the process.

The survey finds that 80 percent do not have an organization-wide strategy that calls for consideration of a multigenerational workforce when designing, administering or communicating total rewards programs.

The survey report, Rewarding a Multigenerational Workforce, suggests that there is, at best, an awareness of differing generational needs by total rewards professionals. There does not appear, however, to be a concerted effort to go beyond this recognition proactively.

“The lack of attention to generational differences could thwart efforts to attract, motivate and retain top talent,” says Lenny Sanicola, benefits practice leader for WorldatWork. “Companies will soon have to confront the need for a rewards strategy to meet the diverse needs of a multigenerational workforce."

             

Program Use, by Generation
Which generation uses this program the most at this time? (Respondents were able to choose more than one generation.)
 

Percent of companies that offer this program

Use by Gen Y (born 1978-1995)

Use by Gen X (born 1965-1977)

Use by Baby Boomers (born 1946-1964)

Use by Silent Generation (born 1924-1945)

Phased retirement

21%

3%

4%

70%

59%

Paid time off

80%

71%

80%

72%

34%

Flexible work arrangements

76%

56%

81%

47%

12%

Community volunteer programs

55%

58%

81%

73%

28%

Wellness initiatives

79%

52%

76%

78%

26%

On/off ramps through career lifecycle

6%

50%

75%

69%

13%

College/scholarship information

45%

62%

62%

48%

11%

Financial planning services and education

55%

31%

52%

88%

31%

Work redesign

16%

50%

66%

59%

34%

Diversity/inclusion initiatives

52%

67%

81%

64%

33%

Recognition programs

85%

64%

78%

78%

35%

Access to information networks

48%

76%

83%

65%

25%

Mentoring programs

41%

75%

72%

35%

13%

Career ladders and pathways

58%

73%

86%

45%

14%

Source: WorldatWork

Among other key survey findings:

  • A majority (64 percent) of companies have four generations working side by side, but only 3 percent are planning and executing employee rewards strategies actively for multiple generations.
  • Of the programs included in the survey, organizations report that recognition programs (85 percent), paid time off (80 percent) and wellness initiatives (79 percent) are the most prevalent, likely because they are programs that meet cross-generational needs.
  • When asked which generation they currently spend the most effort and resources to attract and recruit, over half (52 percent) stated they attract and recruit equally across all generations, 24 percent said they focus mainly on Gen Y and 20 percent said Gen X.

Stephen Miller is an online editor/manager for SHRM.