The support reward elements in the work environment is a term used to explain total rewards (Stanz, Bussin, & Smit, 2015). A total rewards strategy is important to employers because it can improve human resources results. A total reward benefit program can retain and maintain employees at a company. These rewards can help an employee stay motivated with organizations objectives regarded. On the other hand, employees are more liable to stay at a company that is an asset to this generation. The lack of rewards will create an unpleasant environment, thus diminishing employees’ work efforts and may cause them to withdraw from their jobs (Bustamama, Tenga, & Abdullah, 2014). A total rewards benefit program strategically address employer issues regarding compensation philosophies and compensation responsibilities.
Traditionalists (Silent Generation)
Traditionalists who are in the workforce are employed temporary or part-time. Most of them are busy with part-time or temporary work in order for them to keep busy after retirement. Traditionalist have different work ethics and principles from other generations. They believe that organizational objectives and goals are priority and that training should contribute to those them. This generation characteristics includes being conservative, hardworking, work-related rules, and order. Therefore, they look for different workplace benefits and total rewards packages. They supports benefits such as security, safety, and dependability in their work lives. Traditionalists are motivated on accomplishing workplace tasks derived from intangible and intrinsic factors.
Traditionalist values nonmonetary benefits versus monetary benefits. Therefore, an employer can offer a traditionalist an intrinsic rewards program. Dependability and loyalty is a characteristic that a traditionalists displays with an organization or company. An intrinsic rewards program would be compatible with this generations needs in the workforce. Traditionalist appreciates meaningful work and see himself or herself as an asset to the organization. Outgrowth of achievement, verbal recognition, challenging work, and advancement of non-financial incentives can lead to job satisfaction (French & Emerson, 2015). Recognizing an employee verbally can offer intrinsic motivation of being valued in an organization. A total rewards program can be implemented by organizations to include awards, plaques, and prizes both monetary and nonmonetary. This generation also likes feedback on work performance and improvements.
Baby Boomers
Baby Boomers put their careers first. This generation values job training as a reward in an organization. They believe that the path to promotion and compensation contributes to the training and other rewards. In addition, seniority in a company allows Baby Boomers to advance rather than solely relying on skill or expertise. They are loyal and committed to organizational goals. The characteristics that describes Baby Boomers are hardworking individuals that believe sacrifice is the price to pay for success (Gursoy, Chi, & Karadag, 2013). Baby Boomers have the tendency to work long hours that includes the weekends. This generation have the drive to work into or past retirement because of income and health benefits.
Baby Boomers would benefit more from extrinsic rewards that have monetary value. Human resource management can offer an effective retirement plan with a defined 401(k) or similar package. This generation is important because a key talent will be loss if an employer fail to retain these workers. According to SHRM, 4,143 full-time and part-time workers were surveyed in February and March 2014; show a total household retirement savings of $127,000 (estimated median, up from $75,000 in 2007 but not enough to meet retirement needs of Baby Boomers (Miller, 2014). An organization can implement thrift savings plans, IRAs, and tax deferred savings plans to retain the necessary talent they need from this generation. Observers often describe the loss of Boomers with terms such as “crisis,” “devastating,” “tsunami” and “approaching storm (Paullin, 2014).” This is because of the great work ethic that this generation has committed to organizations. It would be challenging to replace these workers when searching for talent. Human Resource management would have to be open-minded when to the Baby Boomers benefit needs in order to retain them.
Generation X
Generation X are known goal setters and are very productive in the workplace. Work and life balance is easy for them to conquer at the same time. They like flexible work hours and independence in the workplace. They developed behaviors (not values) of independence, resilience and adaptability more strongly than previous generations (Gursoy, Chi, & Karadag, 2013). They are driven to providing the company with work quality versus quantity. Generation X are more likely to make every effort to apply for a supervisory, managerial, or leadership positions in the workplace.
Generation X prefers benefits that hold value in terms of them continuing their flexible lifestyle. Work-life balance can help with personal growth and development that can provide individuals with time, energy, and the ability to accomplish work related tasks. In SHRM’s 2013 Workplace Forecast the largest percentage of HR executives (40 percent) cited flexible work arrangements as the most effective strategy for attracting and retaining talented workers of any age in the next 10 years (Paullin, 2014). The results of flexibility should lead to superior outcomes and be mutually beneficial to both the employer and employee. Organizations can offer two major types of flexibility in the workplace, which are telework and work in alternating work locations. Off-site locations can provide Generation X the ability to focus on job-related tasks in a quiet environment. Some examples of intrinsic benefits for flexibility includes part-time work and job sharing.
The second most often cited strategy (at 37 percent) was “maintaining a culture of trust, open communication, and fairness (Paullin, 2014). Employers will have to adjust their management style in order to retain Generation X. Human resource management can retain Generation X by offering career growth or advancement within the company. Fair organizational policies are particularly motivating to Generation X (Lub, Bal, Blomme, & Schalk, 2016). Human resource management and employers can offer Generation X the ability to mature in the company as a reward. This will aid in building their interest by updating and gaining new skills and knowledge through development on the job. Generation X have problem solving abilities that can lead to higher productivity. Generation X view themselves as being free agents with marketable services.
Generation Y (Millennials)
Millennials that enter into the workforce have more technical experiences than the previous generations. Some peer-reviewed literatures describe Millennials as having a different work ethic from older generations. Failure to address work values and motivations can result in lower job satisfaction and lower employee productivity (Ertas, 2015). This can cause an organization to have problems in retaining these undeveloped employees. Job satisfaction is very important in order to prevent retention and retain talent. Organizations should take in consideration that Millennials are social learners and like to work in teams. Organizations have the ability to offer different extrinsic rewards based on the characteristics of Millennials.
Millennials prefer extrinsic over in
trinsic rewards according to research that emphasized their preferences for unconfined careers and work-life balance (Ertas, 2015). Employers can offer Millennials a flexible schedule in a total rewards package that will allow them to work from anywhere. Smart phones, telecommuting, internet access, and video conferencing can allow flexibility within an organization. Millennials can provide organizations proficiency in electronic literacy and multitasking. In addition, employers have a hard time retaining Millennials because they get bored quickly. Employers can offer Millennials extrinsic rewards to motivate and retain them. These rewards includes cash bonuses, salary, and health benefits in a total rewards package. Not surprisingly, cash bonuses were listed as the most preferred incentive by three-out-of-four people (74%) surveyed (Edwin, Tirimba, & Ali, 2015).
Manage Total Rewards Packages Per Generation
Organizations can manage a complete total rewards package for all generations within the workplace. Employers can learn all they can about their employees. For current employees, HR can use a structured approach, asking about their plans for retirement and factors that will influence that decision (Paullin, 2014). The best way to accommodate for an employee is to communicate and get to know them. Organizations can meet their specific needs according to their work lifestyle, customs, and behaviors. Retaining or retraining mature workers may be more cost-effective for an organization than recruiting, hiring, onboarding, socializing and training new hires (Paullin, 2014). In addition, employers can accommodate personal scheduling needs, work and life balance concerns along with nontraditional lifestyles as a way to retain employees.
Conclusion
In conclusion, a total reward benefit program can effectively lead employees with positive employment results. It can develop interpersonal skills for the organization. Many organizations face difficulties in identifying the types of rewards that are more preferable and more appropriate in order to increase employees’ job satisfaction (Bustamama, Tenga, & Abdullah, 2014). Employers would be more successful in their organization with a total rewards program. A total rewards package benefit employers and employees in the workplace.