HAPPY MILLENNIALS An Employee Rewards & Recognition Study
TABLE OF CONTENTS METHODOLOGY 2 THE HAPPINESS RANKINGS
4
ARE EMPLOYEES ENGAGED?
5
THE RECOGNITION GAP
6
THE ELIGIBILITY GAP
7
RECOGNITION PREFERENCES
8
REWARD PREFERENCES
10
THE POWER OF REWARDS
12
INTRODUCTION
What Makes Millennials Happy? Affirmation Ask an older manager what makes Millennials happy, and you might hear “a smartphone for each hand.” It’s true that younger employees are always connected and expect instant answers. In this study of Millennial happiness with employee rewards and recognition, there were some expected results, but a few surprises, too. The most notable finding was that current employee rewards and recognition — a key component in growing employee happiness — are not aligned with what makes Millennial employees happy and more productive. All of the key employee expectations for happiness at work are being somewhat met, except one. Rewards and recognition lands at the bottom of their list. This is the second in a four-part series on employee happiness. Like the first, this one begins by identifying what makes Millennials happy in general. There were both similarities and differences between younger and older generations of workers. Millennials put a greater emphasis on things that make them happy that are more reflective of their age group. But both groups ranked “Job” in the bottom half; Millennials almost last. As work/life balance continues to exert its influence, Millennials are cheerfully content to rank Job behind Music, Food and Drink, and even Pets. Yet at the same time, 65% said Job is still important to their overall happiness. This suggests an unmet need. Work is still instrumental in the overall happiness balance, and making Millennials happier at work requires thoughtful, effective rewards. There are a number of interesting findings from our study. Once motivational mainstays, all-expensepaid trips and tickets to sporting events have little appeal for Millennials. Instead, they want more immediate and consistent recognition for their contributions. Accustomed to attention and praise from their earliest days, Millennials expect regular affirmation. Already prepared to switch jobs earlier and more frequently than previous generations, employers need to take particular pains to maintain Millennial engagement, and do it with a personal touch. If you’re an HR leader, we can create a custom report for you, using our nationally representative data for your specific industry and situation.
Please reach out and let us know your questions and thoughts. Stay happy, Rodney Mason GVP, Marketing Blackhawk Engagement Solutions Rodney.Mason@bhengagement.com
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METHODOLOGY
Blackhawk Engagement Solutions conducted this national study in the spring of 2015 to identify the key components of employee happiness, and the particular role of reward and recognition programs in that happiness. The results reflect the responses of 342 Millennial-age employees, representing the US workforce.
AGE
GENDER
JOB TITLE
18–22 14%
Female 55%
Owner 2%
23–29 85%
Male 45%
Chief officer
<1%
Director 1%
EDUCATION
ETHNICITY
Manager 6%
Less than high school
1%
American Indian or Alaskan Native
1%
Supervisor 5%
High school diploma
5%
Asian or Pacific Islander
6%
Foreman <1%
Black or African American
13%
Sales rep
2%
Hispanic or Latino
16%
Analyst 8%
College graduate
49%
White or Caucasian
57%
Technician 5%
Graduate school
16%
Prefer not to answer
7%
Operator 2%
Some college
25%
Vocational/Technical degree
General staff
COMPENSATION TYPE
INCOME
Salaried 45%
< $19,999
Hourly 55%
6%
14%
Coordinator/Specialist 10% Executive assistant
1%
$20–$49,999 39%
Administrative assistant
3%
Commission 5%
$50–$99,999 28%
Entry level
Tips/Gratuities 3%
$100–$199,999 8%
Consultant 2%
$200,000+ 4%
Other 22%
Numbers may not sum to 100 due to rounding.
21%
2
13%
METHODOLOGY
REGION Pacific 19% Mountain 8% West North Central
9%
West South Central
8%
East North Central
15%
East South Central
4%
South Atlantic
19%
Middle Atlantic
13%
New England
OWN VS. RENT Own 24% Rent 76%
RELATIONSHIP STATUS Married/Civil union
26%
Widowed/Divorced/Separated 3% Living with significant other
18%
Never married
53%
3
5%
THE HAPPINESS RANKINGS
Hobbies, Yes. Work, Not So Much. What makes Millennial employees happy? Family and friends; yes. Tickets to the game? No thanks. In the middle, single, young employees have more interest in Hobby, Food & Drink, Community and Music, and less in Home and Job.
When asked to rank these key factors by how much they contribute to happiness, Millennial employees placed work deep in the bottom half. 1
FAMILY
2
FRIENDS
3
HOBBY
4
HEALTH
5
FOOD & DRINK
6
COMMUNITY
7
MUSIC
8
PETS
9
HOME
10
JOB
11
VACATION
12
SPORTS TEAM
82%
ranked Family as one of their top 3 factors
Only 13% ranked Job as one of their top 3 factors
51%
ranked Friends as one of their top 3 factors
65%
say their jobs are important to their overall happiness
41%
ranked Hobby as one of their top 3 factors
Once mainstays of employee motivation, prime tickets to sporting events are at the bottom of the happiness ranking and do not serve as positive reinforcement for most Millennial employees.
4
53%
say their jobs make them feel happy compared to other important things in their lives
ARE EMPLOYEES ENGAGED?
Everything’s Great. Almost. You might expect Millennials to have a long list of what’s not measuring up in the workplace, yet the opposite is true. They’re happy and focused at work — with one exception: rewards and recognition.
91%
83%
82%
80%
have a clear understanding of what’s expected of them at work
had opportunities to learn and grow this past year
have materials, equipment and training they need to do their job
believe their boss seems to care about them
78%
77%
75%
73%
said their employer encourages their development
believe their colleagues are committed to quality work
get to do what they do best
have performance check-in every six months
73%
72%
69%
62%
believe their opinion counts at work
have a best friend at work
said the mission of their job makes them feel important
have received praise for their work in the last week
53%
Only 40% are happy with the rewards and recognition their company offers.
are happy in general with their job
Rewards and recognition are at the very bottom in terms of how Millennial employees perceive their employers’ efforts to make them happy. Older employees aren’t too happy in this category either, but Millennials have a particular sensitivity to recognition.
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THE RECOGNITION GAP
More Opportunities, Please Millennials like reward programs, and would like a lot more of them. Unfortunately, there are large gaps between whatâ&#x20AC;&#x2122;s offered and whatâ&#x20AC;&#x2122;s desired.
39%
Programs employers offer
52% 36%
50%
32%
of employees say their employer does not offer any rewards or recognition.
48%
Programs employees want
51% 36%
30% 15% 6%
Bonus program
Employee recognition
Wellness rewards
6
Spot rewards
Safety rewards
THE ELIGIBILITY GAP
Can I Join? Even when rewards and recognition are part of the company culture, sizeable portions of the Millennial workforce aren’t always eligible to receive all the various types.
If your employer offers a reward, how often are you eligible to participate in an employee program? Once per year
Once per quarter
Once per month
Ongoing
Not eligible
BONUS
34%
13%
7%
13%
33%
RECOGNITION
11%
14%
13%
20%
43%
WELLNESS
17%
10%
8%
18%
48%
SPOT
5%
7%
6%
16%
67%
SAFETY
5%
6%
5%
4%
82%
BONUSES
EMPLOYEE RECOGNITION REWARDS
are typically rewarded annually, but 33% of Millennials who receive some type of reward don’t receive a bonus.
are usually ongoing, but 43% of Millennials who receive some type of reward don’t receive recognition rewards.
WELLNESS REWARDS
SPOT REWARDS
SAFETY REWARDS
are generally offered once per year or ongoing, but 48% of Millennials who receive some type of reward aren’t eligible for wellness rewards.
are typically awarded on an ongoing basis, but 67% of Millennials who receive rewards can’t receive spot rewards.
are equally offered annually and ongoing, but 82% of Millennials who receive rewards are ineligible for safety rewards.
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RECOGNITION PREFERENCES
Getting Personal Itâ&#x20AC;&#x2122;s not an exaggeration to say that how employers give rewards is at least as important as the rewards themselves, and especially for Millennials. They expect and respond to personal attention.
Ranking of recognition methods that make employees happiest.
1
2
3
4
5
6
Personal email from manager
Personal email from company executive
Team email from manager or other company leader
Company-wide announcement on intranet
Announcement on companyâ&#x20AC;&#x2122;s social media
Personal email, intranet and social media post
If you were to receive special recognition, which type of accomplishment would you prefer to have recognized?
How does your employer formally announce employee recognition for outstanding achievements?
64%
42% Manager announces to individual
Personal
40% Company-wide announcement 29% Peer-to-peer announcement 27% None 6% Public announcement outside of company 8
36% Team
RECOGNITION PREFERENCES
You Like Me! At a stage of their careers where any notice by the C-suite is at a premium, Milllennials place a higher value on recognition by higher-ups than older workers.
Which type of recognition awareness makes you happiest?
66% Managers at company aware of my recognition 62% Executives at company aware of my recognition 44% Peers and teammates aware of my recognition 21% People outside of my company aware of my recognition
How happy would you feel for receiving rewards and recognition for these job activities?
84% Exceeding personal performance levels 80% Receiving a promotion 79% Exceeding team performance levels 71% Achieving milestone for years of service 60% Participating in community service 57% Achieving milestones in a company program 9
REWARD PREFERENCES
Right Here, Right Now Millennials take vast choice and instant gratification for granted, making reward selection very convenient for employers. Prepaid cards meet both needs, and are overwhelmingly preferred.
Youâ&#x20AC;&#x2122;ve earned an employee reward worth $25. Which type of reward would you prefer?
Youâ&#x20AC;&#x2122;ve earned an employee reward worth $100. Which type of reward would you prefer? Prepaid card
88%
Reward that can be redeemed online from select participants
10%
91% 8% 1%
2% Credit for catalog to choose your reward
65% are happier to receive a reward for doing a great job vs. giving one
Which type of peer-to-peer recognition do you think would make your coworker happiest?
30% Prepaid card 27% Personal email from you 15% Personal email from their manager 12% Gift card from a popular retailer 10% Announcement on company intranet or social media 6% Company-branded item 10
REWARD PREFERENCES
Instant (and Non-Instant) Gratification 60% of Millennials would use a large reward for practical, everyday things, just like their older counterparts.
What would you do with a substantial reward from your company?
Youâ&#x20AC;&#x2122;re being honored for many years of service on the job. Which form of recognition would make you happiest?
32% Spend it on regular household expenses
48% Four-day, all-inclusive vacation
28% Save it for a rainy day
38% $500 prepaid card
25% Unique experience (vacation, fancy meal, etc.)
7% $1,000 in merchandise credit for catalog
16% Splurge on gifts
4% Formal recognition among peers and company 3% $500 gift card for online gift In our overall study, older employees opt for the flexibility of a $500 prepaid card, while Millennials, still in the middle of creating life experiences, prefer a vacation.
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THE POWER OF REWARDS
Little Rewards, Large Results Incentives work; even little ones. Millennials respond to comparatively small rewards that can deliver disproportionately large results.
83% of employees would be happy to participate in quarterly safety awareness training with a $25 reward for completing each component 77% would be happy to complete after-hours training for a $25 reward 75% would be happy to adhere to all safety and accident prevention procedures for a year-end $100 reward 67% would be happy to participate in a wellness program for a $25 reward 62% would be happy enough to stay another year on the job for three $50 spot rewards 57% would be happy to use three or fewer sick days out of a possible six, for a $50 reward 44% would be happy to recruit a candidate for an open position with the company for a $100 reward
Percentage who would be happy to participate in a wellness program when: 80% Incentives and rewards are offered for achieving individual goals
60% Free onsite facilities and training staff are available 27% Participation is mandated
When participation in a wellness program is required, less than 3 of 10 employees are happy to join a program. When rewards are offered, the happiness quotient almost triples.
20% Thereâ&#x20AC;&#x2122;s broad participation and encouragement by peers 13% Thereâ&#x20AC;&#x2122;s company-wide recognition for achieving personal goals
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Blackhawk Engagement Solutions is a leading global provider of customized incentive and engagement solutions for consumer promotions, employee rewards and recognition, and indirect sales channel management programs. Blackhawk Engagement Solutions is a strategic partner with many of the worldâ&#x20AC;&#x2122;s leading brands and a thought leader that provides game-changing engagement solutions. Through innovative products, services and technology, Blackhawk Engagement Solutions inspires actions that impact results. Blackhawk Engagement Solutions, headquartered in Lewisville, Texas, is a division of Blackhawk Network. bhengagement.com Rodney Mason GVP, Marketing Rodney.Mason@bhengagement.com 972.538.7336 Š2015 Blackhawk Engagement Solutions, Inc. All rights reserved.