Rewards, pay breakdown: What each generation wants

October 31, 2011 by Christian Schappel

Posted in: In this week's e-newsletter - benefits, Incentives, Latest News & Views, Money, Pay and benefits, Retention and turnover

In exchange for their loyalty, employees expect something in return. The problem: Baby Boomers, Gen Xers and Millennials all expect something different. Here’s a guide to meeting everyone’s expectations.

Generational differences are an issue we’ve tackled before, and it’s one that continues to bedevil employers. Hopefully this will help.

We recently stumbled upon some excellent graphics over at the CompensationCafe.com that show the core values of each generation of employee — as well as what each generation wants/expects when it comes to rewards and pay increases.

Each graphic was broken down into four generational categories:

Traditionalists (employees born from 1930-1945)
Boomers (1946-1964)
Gen X (1965-1978)
Millennials (1979-1990)

Here’s how they broke down the generational differences by category:

Core values

Traditional — Conformity, stability and security.
Boomers — Personal and social expression, idealism, and health and wellness.
Gen Xers — Free agency and independence, “street smarts,” and cynicism.
Millennials — Collaboration, social activism, and tolerance for diversity.

Rewards

Traditional — Satisfaction of a job well done.
Boomers — Money, title and recognition.
Gen Xers — Freedom.
Millennials — Meaningful work.

Pay increases

Traditional — Cost of living adjustments.
Boomers — Seniority and internal equity.
Gen Xers — Pay increases tied to performance.
Millennials — Likely to share pay increase information, and likely to leave if pay is perceived as unfair.

Note: All of this assumes that base salary is competitive within the market.

Info: “Do Generational Differences Matter For Total Rewards Strategies? Part 1,” by Stephanie R. Thomas, Compensation Cafe, 10/6/11.

Tags: baby boomers, core values, Gen Xers, generational differences, millennials, pay increases, rewards

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6 Responses to “Rewards, pay breakdown: What each generation wants”

Shannon Says:
November 2nd, 2011 at 3:06 pm
I have to disagree with the age classifications. There should be 5 categories. I’ve heard of those born between 1964 & 1973 referred to as “the Lost Generation.” The Gen Xers were born in 1974 until 1984. The Lost Generation are not motivated by the same things as Gen X. While money is nice, most of us want acknowledgement of our work and efforts.
Harley Says:
November 2nd, 2011 at 4:52 pm
As a Gen X’er… I wish the Baby Boomers didn’t mess up our world. They should be retired and out of our way so we can take the reins by now. Now in my 40′s, I’m tired of hearing, “you need more seasoning kid.” What am I, a steak?!?!
Shannon Says:
November 3rd, 2011 at 11:25 am
Harley,
I’m also in my forties, but not a Gen Xer!

I agree that the opportunities aren’t there for us because people in their 60s & 70s aren’t able to afford to retire. There are job openings that I don’t feel qualified for because I haven’t had the ability to hone those skills. And when those elders finally do decide to retire, how are we going to step up?
Judy Says:
November 14th, 2011 at 11:40 am
Harley,

I’m amazed that you have the nerve to write what you did about Baby Boomers messing up your world. No-one is messing up your world but you and with that attitude, I wouldn’t be suprised that you don’t have a very good world. Perhaps you do need more seasoning, or at least an attitude adjustment.

As far as getting out of your way… there are many many productive valuable baby boomers out there who continually contribute substantially to their position and often have great ideas on how to improve or implement something and probably could teach you a few things if you were smart enough to listen. Give them a break!
Harley Says:
November 15th, 2011 at 9:21 am
Judy,

Yep, I do have plenty of nerve. And I will agree that there are some “valuable baby boomers,” but not many. If I hear one more technically challenged boomer brag about how they are so smart that they don’t need to know how to use a computer (because they have underlings to do that kind of work), I’m going to puke! I really don’t want to work for one more old fart that that couldn’t be bothered to get an education (after I spent years earning my undergrad and graduate degrees). So, when you say, “give them a break,” I’m sorry, I’ve been giving them breaks for a couple decades now.

At one point, after I had updated the department’s intranet site (no one updated it in over a year, due to a lack of skills), I informed my pointy-haired baby boomer boss and he said, “great, can you print me out a copy of that?” Sheesh! What about giving me a break. After all this time, I have definitely lost my patience. However, between boomers retiring late and modern medicine, it appears I will have to continue to suffer these fools for many years to come. In the mean time, I share Shannon’s concern that the “elders” are not sharing what little knowledge they have, mostly because they are scared that if they give it up, they will lose their value to the organization. Well, they can’t live forever.
DL Says:
November 18th, 2011 at 10:39 am
@Harley…It’s great you know how to use a computer. Now try a calculator 2011-1964=????…some of those Boomers are in their 40′s also. Where is it you think they should go? Your attitude is holding you back, not someone else’s age.