Beyond the Trophy: A Gen Z Perspective on R&R

Introduction

“Seated in the living room a few weeks ago, my parents and I were discussing how far they had come in their professional careers. The struggles, the challenges, the excitement, and the adrenaline of those late nights. My parents specifically emphasized the obvious “hard work goes a long way” mantra as they reminisced about how their own hard work had gotten them various accolades and rewards that are now seated on the living room mantle, along with mine of course!

However, as their nostalgia kicked in, it got me thinking about how much the preferences of the current generation differ regarding recognition. As I talk to my seniors and friends, I notice that they can go on and on about how their jobs feel monotonous and while the many cash bonuses or awards they receive are beneficial they still feel as though something is lacking. I wondered what this void they felt could be. Has recognition advanced just like technology or mental health, as the generations have progressed?”

Rewards and recognition (R&R) programs have become a vital aspect of attracting and retaining talent in the modern workplace. It is important to note Gen Z's perspective on R&R differs significantly from previous generations.

While traditional programs focused on bonuses, promotions, and public accolades, and while those remain valid methods of employee recognition, Gen Z increasingly values a more personalized and meaningful approach. Timely feedback, opportunities for growth, and recognition from respected colleagues hold significantly more value for them in comparison to generic praise or one-size-fits-all rewards.

Gen Z has unique habits and personality traits since they experience different social, economic, or historical circumstances depending on the time interval in which they were raised, and their perception of work and occupational habits are affected by those particular characteristics.

These have been extensively captured and articulated in academic research. Richardson (2017) indicates that young people of Generation Z prefer to work in an environment that provides flexibility, collaborative work, and personal autonomy.

In fact, the Institute for Emerging Issues (2012) refers to Gen Z as the most ethnically diverse and technologically sophisticated generation.

Additionally, they value ethical working conditions and expect regular monitoring and feedback from superiors. Gen Z value independence and self-expression, qualities that can thrive in today's economic landscape. Concepts that were once unknown or sidelined by previous generations have been emphasized on, and prioritized by Gen Z.

Let’s take an example;

Work-life balance is a concept that was hitherto considered a myth and busting that myth is where Gen Z came into the picture. By prioritizing factors of life beyond the workplace, Gen Z has reflected on the possibility of living life to the fullest and how this contributes greatly to productivity and efficiency levels in the professional environment.

The ability to compartmentalize is one of the great abilities of the new and future workers, those who are regulated by the maxim “work hard, play hard”. It is therefore crucial to understand the inner workings and preferences of this current generation to best adapt to and create efficiency within the workplace.

"I recently pulled an all-nighter to finish a critical project at the university. Exhausted but proud, I presented it to my team. While the project was a success, the teaching assistant's generic “good job” email left me feeling deflated. Specific recognition of the challenges I overcame and the skills I used would have meant so much. This lack of recognition, I realized, wasn't just a personal experience; it likely reflected a broader generational need."

This paper aims to delve deeper into understanding Gen Z's specific preferences for R&R in the workplace. It presents analysis and insights based on a survey of over 200 Gen Z-ers across India, Canada, and the US. The survey respondents were asked to respond to each question by ranking amongst 5 options from most important/preferred to least important/preferred. Each of the questions received an overall score out of 100, based on the ranking by respondents.

Let us now take a look at the most-asked 6 questions that probe into specific aspects of recognition for accomplishments at the workplace:

By exploring the unique needs and motivations of Gen Z-ers, we can create and improve programs that truly resonate with them. This, in turn, will foster a more engaged and productive work environment, allowing companies to adapt their work styles to align with Gen Z's preferences. Ultimately, this will lead to a more satisfied and content workforce, giving companies a competitive edge in attracting and retaining top talent.

Comprehensive Data Analysis and Actionable Insights

Understanding the motivators and preferences of Gen Z is crucial for creating an effective recognition program that resonates with this generation. By tapping into what truly drives them, organizations can foster a more engaged and productive workforce.

Gen Z craves autonomy and recognition that's both sincere as well as individualized.

QUESTION 1:

The opening question sheds light on the key aspects of how recognition drives Gen Z to work harder in the workplace. Both intrinsic and extrinsic motivators play a crucial role. While cash is a universally preferred choice, ranking the highest, other intrinsic motivators have also been strongly rated.

For instance, Gen Z also craves sincere recognition for their achievements through meaningful personalized recognition as well as public acknowledgment from their manager. This aligns with their desire for individualized feedback and appreciation for their efforts.

Additionally, while a significant number prioritize cash and monetary rewards (ranking it first), the lack of interest in gift cards reveals a preference for autonomy. They value the freedom to choose what to do with their bonus. Finally, the industry conference, although preferable to gift cards, is ranked fourth, suggesting that such events may not be as highly valued as one might expect.

Recognition for Gen Z matters, but they are willing to wait for the results.

While Gen Z appreciates frequent and prompt recognition for their efforts, the data suggests a strong focus on results as well. They seem willing to wait for acknowledgment until the impact of their work is fully realized. Notably, very few respondents dismissed the notion that recognition doesn't matter, altogether.

This implies that while immediacy might not be paramount, recognition itself holds significant value. Interestingly, a significant margin bypassed options like "during performance reviews" or "next regular meetings" in favor of "immediately after."

This could be interpreted as a preference for recognition that's tied directly to the specific action or achievement, rather than a specific time or setting.

Gen Z appreciates the recognition that celebrates both individual contributions and team achievements.

The results of the third question highlight Gen Z's preference for celebrating success in a way that balances community and personal recognition.

A casual after-work gathering tops the list, fostering connection and celebrating the team experience. While individual recognition for their contributions is important, formal awards seem less significant.

Overall, Gen Z prioritizes a more personal approach that acknowledges their unique value within the team, rather than impersonal acknowledgments like a company-wide email.

Effective recognition of Gen Z reinforces the value of collaboration and fosters a culture of appreciation within their team.

Gen Z prioritizes recognition that reflects their values of teamwork and appreciation. Sharing a testimonial with the team internally resonates most strongly with our sample group of Gen Z.

This fosters a sense of shared accomplishment and motivates others, aligning with Gen Z's emphasis on collaboration and peer recognition. Personalized tokens of appreciation are also well-received because they acknowledge individual contributions mentioned in the testimonial.

However, traditional methods hold less weight. A personal thank you note from the CEO, while a nice gesture, might be less impactful than recognition from colleagues closer to their work environment. Similarly, highlighting the testimonial on the company website or social media ranks low.

Gen Z tends to be more private and less interested in broad public recognition, potentially viewing it as inauthentic.

Gen Z values self-improvement and opportunities to help others succeed.

When it comes to recognition, Gen Z prioritizes opportunities for personal development and growth over traditional methods dictated by the organization. This aligns with their desire for continuous growth and a sense of control over their professional journey. The survey shows that mentoring others (ranked highest) and receiving additional resources (ranked second) are the most valued forms of recognition.

These options empower them to share knowledge altruistically while also gaining a sense of mastery and validation of their expertise. Interestingly, the survey highlights a shift away from traditional, top-down methods.

Public announcements (ranked lowest) and even a manager's message (ranked third) hold less weight with Gen Z. This might be because they value authenticity and purpose more than external accolades. Being helpful and using that to build confidence aren't mutually exclusive for Gen Z. They seek recognition that fosters growth and validates their skills through action, not just empty praise.

Intrinsic motivators and development opportunities are key drivers for Gen Z.

Ending with question 6 we grasp that Gen Z prioritizes factors that contribute to intrinsic value and development. Building a personal brand (ranked least important) seems less significant than internal factors, suggesting they're motivated by more than external validation. This also tells us that Gen Z values community and togetherness over individual gain. Intrinsic motivators and development opportunities are key drivers for Gen Z.

Individual recognition (ranked most important) fulfills their desire to be valued as individuals and have their contributions acknowledged. This shows they're appreciated for their unique skills and not simply a replaceable part. Recognition can also boost morale (ranked second), acting as positive reinforcement that motivates them to continue excelling.

Finally, acknowledgment (ranked third) can contribute to a sense of purpose, validating their efforts and connecting their work to a larger goal. This shows them that their contribution matters and makes a real difference.

Conclusion

The research reveals a clear shift from extrinsic motivators like public accolades to a stronger emphasis on intrinsic rewards. Gen Z prioritizes opportunities for growth and development, valuing recognition that empowers them to share knowledge and gain mastery over their skills. Traditional methods, often perceived as transactional and inauthentic, hold less weight. The desire for timely, specific recognition tied directly to achievements resonates strongly, showcasing their focus on results and the impact of their work.

Additionally, the data suggests that Gen Z isn't averse to traditional rewards like bonuses or promotions. However, their true satisfaction stems from recognition that validates their efforts and connects their work to a larger purpose. Personalized recognition, such as private meetings with sincere appreciation or mentorship opportunities, fosters a sense of value and motivates them to excel further.

Gen Z specifically values workplaces that give them a chance to express themselves authentically, collaborate with their teams in meaningful ways, and hence, also be recognized in a way that makes them feel heard and seen. By acknowledging the importance of community, growth opportunities, and authentic appreciation, companies can bridge the gap between traditional methods and Gen Z's evolving preferences.

Organizations can look at implementing R&R programs aligned with these preferences and this will in turn lead to higher employee engagement, loyalty, and productivity.

This shift in focus isn't just about acknowledging Gen Z's preferences; it's about creating a work environment that resonates with the values and aspirations of a generation poised to shape the future of work!

References:

• [1]Bulut, S., & Maraba, D. (2021). Generation Z and its perception of work through habits, motivations, expectations preferences, and work ethics. Psychology and Psychotherapy Research Study

• [2]Peres, P., & Mesquita, A. (2018, November). Characteristics and learning needs of Generation Z. In European Conference on e-Learning (pp. 464-473). Academic Conferences International Limited.

Ada Sethi, an International student at the University of British Columbia (UBC) in Canada, is passionate about reimagining workplace recognition for the next generation. During her Vantage Circle internship, she delved into research and crafted this insightful blog.