- Common denominators in total rewards packages. Today’s multigenerational workforce is unified in their desire for work-life balance and more flexibility.
- Packages depend on different life stages. Differences in professional goals across generations follow historical patterns that show employees value different rewards based on their stage in life.
- Rewards that attract and retain all generations. Create a menu of offerings that allows employees in different generations to customize their total rewards packages.
Baby Boomers, millennials and Gen Xers may think other generations don’t understand their unique workplace challenges, but according to a new report from FlexJobs, they do share some desires, such as work-life balance and more flexibility.
Based on responses from 2,000 professionals (including Boomers, millennials and Gen Xers), the report explored how the various generations work together, top workplace trends, and preferred work arrangements and communication methods.
The report also revealed each generation’s top professional goals, which include:
- Work-life balance: millennials (85%), Gen X (81%), Boomers (60%)
- As much flexibility as possible: millennials (78%), Gen X (73%), Boomers (63%)
- Making as much money as possible: millennials (59%), Gen X (55%), Boomers (38%)
- Having a job where they can travel: millennials (41%), Gen X (28%), Boomers (16%)
- Owning their own business: millennials (35%), Gen X (27%), Boomers (15%)
- Becoming a manager: millennials (13%), Gen X (9%), Boomers (5%)
This data reveals how goals shift over an employee’s career, said Julie Voges, HR consulting regional practice leader at OneDigital Southeast, and it calls on total rewards professionals to design flexible rewards programs to meet employees where they are across the different generations.
For example, Boomers favor the “lifer” and pension track, while millennials are looking for balance/flexibility, money and travel, Voges said.
“As Boomers phase out [from the workplace] over the next three to five years and millennials assume the largest chunk of the workforce, we will see a shift in how we personalize total rewards,” she said.
A Changing Work Environment
Additional data reveals evergreen truths relative to generational differences in professional development, said Tom McMullen, senior client partner at Korn Ferry.
“Newer entrants to the workforce need to develop their technical knowledge and skills, and they want to be part of something that is bigger than themselves,” he explained. “Mid-career folks need to be demonstrated and impactful experts or effective managers of people, processes or resources. Late-stage career employees focus on improving their leadership, mentoring and influencing skills.”
In addition, employee needs typically change based on where they are in their life journey, Voges said.
“Families in 2024 are looking for and concerned about the same issues that our grandparents were concerned about,” she said. “Health, success and financial security, for the most part, have remained somewhat steady over time.”
Other key events that shift are also happening later, Voges said, therefore transforming how employees value various rewards offerings.
“People are waiting longer to marry and start a family,” she said. “So, there has been a shift within the generational age group that impacts when people will align with a specific total reward offering.”
Customize Rewards Packages for All Generations
To provide rewards offerings that attract, retain and engage employees across all generations, employers should take a multifaceted approach, said Keith Spencer, a career expert at FlexJobs.
“Aim to provide a range of choice and flexibility with rewards programs because one-size-fits-all strategies rarely work with a multigenerational workforce,” Spencer said.
Leaders should also survey their people.
“Reward strategy is a contact sport. It needs active input from all key stakeholders,” McMullen said. “It’s very impactful when you can tell the organization that you used your own employee perspectives in determining your reward offerings.”
From there, take their responses and use them to create a menu of rewards that individual employees can choose from — beyond the standard salary, paid time off (PTO) and benefits that are offered, Spencer said.
The expanded menu can include things like:
- Financial benefits (retirement plans, additional life insurance, financial planning services, student loan repayment assistance)
- Health and wellness options (additional health insurance coverage, gym memberships, mental health support, wellness programs)
- Lifestyle benefits (caregiving subsidies, pet insurance, home office stipends)
- Professional development offerings (tuition reimbursement, conference fees, online courses, leadership development, mentorship)
- Additional PTO.
“Offering even some level of flexibility in your rewards offerings can help employees feel more valued and empowered, which can also help improve recruitment and retention efforts,” Spencer said.
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