Exploration of the reward preferences of generational groups in a fast-moving consumer goods organisation

Abstract

Orientation: The generational diversity of employees evident in today’s workforce and the important role of reward in meeting a wide variety of needs to attract, motivate and retain employees for the organisation are a key strategic contribution. Research purpose: The purpose of this study was to explore how, whether and to what degree employees from different generational groups differ about preferences on total reward components in the fast-moving consumer goods industry, for purposes of attraction, retention and motivation. Motivation for the study: The rationale for this study was to explore and improve the understanding of reward preferences of different generation groups. Research design and method: The research was a quantitative, empirical and descriptive study of reward preferences in an industry-specific context. A self-administered survey instrument was used and analysed using tests for internal consistency and scale reliability, various measures for factor analysis and a general linear model, involving a multivariate analysis of variance (MANOVA), to test for significant differences between independent and dependent variables. Main findings: Baby Boomers, Xers and Millennials did not differ significantly about preferences regarding financial and non-financial rewards. Millennials do not prefer non-financial rewards to financial rewards. The variance, however, was not large. Practical or managerial implications: The research results provide management with informed knowledge of the types of rewards that can be administered to employees of different generational groups to attract, retain and motivate them. Contribution and value add: The research has added insight into the reward preferences of generational groups and made recommendations for improving reward strategy for the attraction, retention and motivation of employees in the fast-moving consumer goods industry.

Keywords

• generational theory
• generational differences
• total rewards
• total reward strategy
• compensation