Generation Y: Incentive and Reward Schemes
Due to the constant changes in workforce and generational composition, employee retention and recruitment has been a major problem. Currently there are three generations working side by side in the workforce namely; the Baby Boomer Generation, Generation X and Generation Y. This research has focused on the most effective ways in which to motivate, attract and retain employees, in particular Generation Y employees. This is important as an employee’s motivation and performance has an impact on the company’s success. Different generational members have different generational characteristics as well as individual differences and failure by mangers to understand the generational and individual differences can result in misunderstandings, miscommunication, conflict and performance issues. By providing managers with the necessary knowledge to understand employees, effective incentive and reward schemes can be designed and implemented. Using Vroom’s Expectancy Theory framework, this study examines Generation Y and X employees in New Zealand accounting and commerce industries in order to understand their preferences, feelings and opinions on the matter of motivation, employee retention and attraction, as well as their perceived generational characteristics. A focus group method was used in order to gather the necessary data. The results illustrate that the characteristics of Generation Y participants did not agree with most of the existing literature on what types of incentive schemes are most effective for these employees, while also pointing out that these employees are also driven by cultural and individual differences. As this study was industry and generational specific, it allowed the gathering of in-depth information, opinions and feelings that contributes to existing literature as well as being the first of its kind due to being executed in New Zealand.