In the Industrial Economy, compensation was driven by individual rewards for individual performance. Salary, bonuses, stock options and pension plans were linked to individual output, and increased in value as employees progressed up the org chart.
In the Connected Economy, where group collaboration is more important than individual performance, compensation needs to reward desired behaviors as well as individual output. While fair pay and benefits remain the bedrock of compensation, today’s employees are attracted to work cultures that improve quality of life as well as the size of their bank balance.
Adapt Reward Systems to Millennial Values
While millennial workers are ambitious and strive for financial success, studies have shown that up to 88% prefer a collaborative work-culture to a competitive one. They care less about titles, status and salaries, and more about purpose-driven work projects with an opportunity for personal development while using their current skills as part of a team effort.
Build a Global Reward System to Match Local Values
In global organizations it’s essential to understand how preferences for different types of rewards and compensation can vary across geographies. A study by consulting group EY which looked at securing and retaining top talent in emerging markets found that non-cash benefits were being underutilized as a tool for recruiting and retaining talent across the BRIC (Brazil, Russia, India, and China) countries.
The EY study also found that secure and steady current income was more important in Russia, future earning potential was valued more in Brazil and India, while stock options and equity-based pay were more popular in China.
Use Training and Development as a Reward and Retention Tool
Millennials entering the workforce today are well aware that their education will need to continue long after their graduation ceremonies. They recognize that the demands of our rapidly evolving workplaces will require a commitment to continual learning. Progressive organizations understand that millennials see training and development opportunities as part of their rewards and compensation package. Millennials are often motivated more by a how a job can prepare them for the challenges of tomorrow, as they are to how well it rewards their performance today.
English proficiency is seen as a critical business skill among millennial graduates in emerging markets, and many leading organizations are now working with PEBS to integrate the offer of English learning into their reward and retention programs.
ONE is the digital platform that gives every employee the opportunity to participate in company-wide activities, while simultaneously improving their Business English skills.
High quality content from our partners at the Financial Times provides engaging materials to help employees develop a broad range of business skills, while online tools such as email templates and cultural briefings can immediately improve their own content development.
The Six Pillars of Talent Management
Learn more about the changing nature of global recruitment in our new White Paper – The New Language of Talent Management – which highlights the concerns of global CEOs, shares the success stories of industry disruptors, and outlines how the traditional approach to talent management needs to change in six core areas.