Survey Uncovers Job Rewards Ranked #1 Engagement Driver
Ceridian’s Pulse of Talent Reveals Employers Risk Costly Disengagement And High Turnover If Job Rewards Are Not Addressed
Minneapolis, MN, September 25, 2013 – Ceridian’s Pulse of Talent Survey, conducted by Harris/Decima, reveals that American companies should address generational preferences in regards to job rewards, performance feedback, and job motivation to fully engage and retain their top talent. In August 2013 over 1000 employed Americans ranging from Boomers, Generation X and Generation Y, were surveyed on their perceptions of job rewards and recognition, performance reviews, and career satisfaction. Key findings show that generational differences must be accommodated to ensure optimal employee engagement, productivity, retention and overall organizational success. Here are some of the highlights:
Job Rewards - receiving monetary or non-monetary compensation for a job well done - is the most important engagement driver for U.S. employees as a whole. In fact, one in two (47%) of respondents rank job rewards first, above job recognition (42%) and job motivation (11%).
“A robust rewards program is an important engagement tool for employers,” says Dave MacKay, president of Ceridian HCM “If employees feel that their pay is fair, then additional rewards such as time off in lieu, providing state-of-the art technology or free meals can help solidify an organization’s reputation as a great place to work. If an employer wants to deliver the type of rewards that their employees will value, they must tailor reward and recognition programs to account for generational differences, individual preferences and technological innovation.”
Today’s workforce demographic accounts for the preference for non-monetary rewards, and employers are starting to take notice. According to The Pulse of Talent:
- Sixty per cent of companies are currently offering non-monetary rewards to their employees
- Sixty-four per cent of respondents would like to see their company offer non-monetary rewards, especially Generation Y (70%)
- Free personal days off, free food/meals and event tickets (shows, sporting events, concerts etc.) are the most popular non-monetary rewards
Communication and Expectations
Communication between employer and employee, especially in regards to performance feedback is critical to ensuring job satisfaction and employee retention. Formal performance reviews, held once a year, are no longer the go-to best practice. The focus should be on regular performance feedback. During these exchanges, the style of communications should take into account workforce diversity considerations in order to effectively manage career expectations and aspirations for a given individual. The consequences of not doing so puts employers at risk of losing potential top talent. According to The Pulse of Talent:
- Only 59% of the respondents had a formal meeting with their boss in 2012, in order to discuss their job performance
- Gen Y respondents prefer to have performance meetings more often throughout the year, as well as those who are at their current position for less than 5 years
- Face-to-face meetings are the preferred way to get feedback on the performance review (88%)
- Of those who expect to receive either a salary increase, a promotion or a bonus in the next year, 31% said that they will start looking for a new job if they don’t receive one. This rate is much higher for the Gen Y respondents (48%), indicating that clearer communication regarding job expectations is needed.
In relation to performance reviews and communication, study findings show that employers are communicating career path options, but only 25% of respondents said that a career plan is implemented in their company.
“Implementing a successful program requires a clear understanding of the inner workings of a company and what’s available to employees,” adds Mr. MacKay. “For maximum impact, leaders need to have good communication skills, but also a high level of emotional intelligence to understand organizational culture and politics.”
Motivation and Job Satisfaction
Employers need to understand what makes a job worthwhile in order to ensure that their employees remain committed to their job and their overall career. According to The Pulse of Talent:
- Generally, main drivers of job motivation are interesting work (39%), followed by autonomy (32%), and a good salary (31%)
- For Gen Y and Boomer respondents, the interesting work comes first. For Gen X, making a good pay/good salary comes first. Gen X is also significantly more likely to be motivated by good job benefits.
- Overall, the most popular factors for making the job more rewarding are the options to work flexible hours, to get more training options and opportunities, the option to work at home, and having opportunities to take on additional responsibilities – larger tasks.
- Gen Y is more likely to want the opportunity to take on more responsibility at work; Gen X would find flexible hours more rewarding; Boomers find training opportunities and flexible hours more rewarding.
“Individual preferences and value differences have always been part of workforce culture,” says Sara Hill, chief human resources officer, Ceridian HCM. “Rapid technological changes, coupled with a workforce that spans four generations means that rewarding, communicating with and motivating employees is more complicated than ever before. Rather than risk losing a good employee and potential future leader, employers need to remain flexible and evolve their best practices in these areas in order to meet the current needs and desires of their most valuable asset – their employees.”