Manager's Tools: Newsletter

New data shows us how to reward younger and older workers

November, 2009

At the Thanksgiving table Uncle Eddie dives into the mashed potatoes, Cousin Nikki the rolls and salad, Aunt Ruth would drink gravy if she could, and little Tyler saves room for pumpkin pie.

All of us are driven by a desire to dig in, but each of us chooses to receive it in different ways. New research shows the same is true with recognition. While sincere appreciation drives performance in everyone, there are some differences in the way younger and older employees want to receive it.

The findings below are unpublished data from a global study conducted for us by Towers Perrin* for the second edition of The Carrot Principle.

We found people 25 and under (younger employees) are motivated by working with a successful organization and doing exciting, challenging work. Want to keep them happy and engaged? Then give them regular promotions and formal recognition for their work efforts. The data shows their engagement increases as they feel that their work is noticed, has an impact on the company and their own careers, and that the organization cares about them.

We also found that you, as a manager, are the most significant factor in these younger employees’ attitudes towards their organizations. A positive impression of their manager leads to positive impressions of their company, and vice versa.

Of course, we don’t stay young forever (sadly).

As employees develop in their careers, their shifting desires turn from seeking to be noticed to needing to be empowered. Employees age 25 and up (older employees) are primarily driven by a need to feel their company and manager trusts them to perform. These workers are also motivated by doing exciting and challenging work, but thrive on duties with variety. Like younger employees, they want to work with a successful organization with a strong future, but they value more autonomy. While they need recognition to be engaged, they do not need it as frequently as younger workers.

So, can everyone get what they want?

As a manager, it’s your job to help drive engagement at all levels of an employee’s career. We know, it’s a hard job—but that’s why you get the corner office and comfy leather chair.

Here’s one thing to think about as you look to engaging your people. In our research in The Carrot Principle we uncovered the number one driver of engagement for employees universally is Opportunity and Well-being. Employees must feel that they have the necessary opportunity to develop, advance their careers, and enhance their skills. They also need to feel their manager and company care about them as individuals.

“Opportunity and Well-being” is the Thanksgiving meal itself—something everyone wants. From there, however, we see an interesting preference emerge in the number two driver of engagement. Younger employees feel engaged when they are given clear goals and feel “accountability” for the results. Accountability is still important to older workers, but not as important as “trust.” As we age we want to feel that management has faith in our abilities, and we want to feel our leadership has integrity.

So, in short, everyone wants to grow and develop; everyone wants to know their boss cares about them. Younger workers thrive on deadlines and clear responsibility; as we get older we are driven by a need to work in a trust-filled environment.

And we all want recognition. But as we age, we get less and less.

Here’s some more meat from the survey. While 44 percent of those surveyed below the age of 25 say they “frequently receive recognition” at work, by the time someone reaches age 35 that number drops to 30 percent. Again, 44 percent of those under age 25 said recognition was “excellent” in their organization, while only 25 percent of those over age 35 agreed.

So what creates great recognition? In one word: alignment. When appreciation is aligned with values and goals that matter, it is more motivating for younger and older workers alike. For instance, if we say our company is all about customer service, but the majority of our recognition praises operating improvements or teamwork or innovation, we are probably misaligned. It’s an important finding that teaches us to be specific in focusing appreciation on great work that drives our company forward.

But once again we see an interesting split on the second driver of recognition based on age. Appreciation needs to be “meaningful” for the young. In other words, recognition is most effective when the gratitude itself is an important event in the person’s life, evoking positive feelings. The appreciation event should also show that the company cares about them as an individual. For older workers, however, emotion is not as important as is specific acknowledgement of their above-and-beyond “performance.” As we mature, we want to know that our individual or team performance is valued.

Bottom line: Everyone on your team is ready and willing to dig in. While each member will be motivated in slightly unique ways, the good news is that everyone at the table loves Carrots.

*2008 Global Recognition Study commissioned by O.C. Tanner and conducted by Towers Perrin.