Total rewards strategy for a multi-generational workforce

Abstract

The presence of different generations in a workforce can cause several complications in terms of employee performance and rewarding a workforce effectively. The preferences that each generation has towards a certain reward differs and therefore nullify a homogeneous total reward strategy. The study is aimed at uncovering if there are any generational specific preferences for certain rewards; and if they exist, can a company use them to attract, motivate and engage their workforce better than with a standardised total reward package as currently exists in the work environment. A quantitative study using a questionnaire as the data collection method was performed on a company in the South African financial industry, to determine if there is any evidence of a disparity in the preferences the identified generations have to the same package of rewards. The sample size collected was 6 316 respondents and the analysis of their responses were statistically completed. It was found that the different generation cohorts have different preferences to components of the total reward package. As each of them value a reward diffently, a more strategic approach in using the total reward package should be considered by the employer.