Making Incentives Relevant to Gen X and Gen Y
By Richard Blabolil
Be fluid. Be frequent. Be relevant. If you allow these words to guide your next Gen X/Gen Y employee merchandise incentive program, you'll likely be successful.
Generations X and Y are comprised of workers between 18 and 40 years old. With 60 million Gen Yers in and entering the workforce and 18 million Gen Xers already in it, every manager should understand what makes them tick and communicate to them effectively. The looming labor shortage combined with a shortage of Gen Xers to fill jobs means managers will have to be particularly savvy at attracting and retaining Gen Y employees.
Yet Baby Boomers are often at a loss to understand either of these younger groups. Consider two huge cultural differences between Boomers and Gen X and Yers.
Gen XYers are far more individually independent and psycho-graphically diverse as a group. Incentive program administrators need to be sensitive to these differences and respond accordingly both in communication delivery and in their choice of merchandise offerings.
Fluidity
Today, fluidity is key when motivating younger workers. The business landscape changes constantly. Program administrators need to be able to turn on a dime and adjust programs along the way to keep them fresh and to keep enthusiasm high. It's not simply about longevity or contrived milestones any more, because employees shift jobs and careers far more frequently than their parents and grandparents ever did. It's all about merit and accomplishment at any point in one's career. This means you may need to reward at unexpected junctures.
Furthermore, younger employees crave interaction; they'd rather “do” than observe, so the communication format is critical. Tied into this is their desire for frequent feedback. They don't want to wait six months or a year for a job review to hear how they're doing. And because they don't just communicate with words and numbers, the more visual and dynamic the communication, the more effective it will be. Web-based programs are ideal for this demographic group because they empower administrators to customize incentive initiatives for individuals as well as groups of workers and invite feedback from participants.
Frequency
It's a myth that younger workers have shorter attention spans than their more seasoned brethren. It's just that they're able to process information faster and from multiple sources simultaneously. They're “on alert” all the time. Boomers may view the constant bombardment of information as distracting noise, but GenXYers are accustomed to it and seek it out. With hand-held devices, GPS systems, MP3 players and cell phones, the only time many of them are not plugged in is when they're asleep.
Frequency and integration are the keys to communicating successfully with younger workers. That means the message is delivered often, via different vehicles, such as email, intranet, online newsletters, voice mail, in person, etc.
Relevancy
In the past, incentive programs were standard and fairly constant within companies and across industries. You reached a stated goal, such as a work anniversary or sales percentage, and were rewarded with a management-determined gift. We've found that it's best to reward younger employees with their own buying behavior. What does this mean? In days gone by, workers were delighted to receive luxury-item merchandise incentives (remember the ubiquitous gold watch?). Today's younger workers are interested in lifestyle-enhancing rewards. But because of diversity among GenXYers, it's more than a little challenging to pinpoint precisely what any given employee's lifestyle is! Perhaps this is why we've seen such an explosion in the gift card category.
Mangers who try to understand what makes the younger generations tick will be more successful at attracting, retaining and motivating them.
Richard Blabolil is president of Marketing Innovators, Rosemont, Ill., www.marketinginnovators.com.