Did you know that there are currently five different generations in the workforce?
- Traditionalists — born 1925 to 1945
- Baby boomers — born 1946 to 1964
- Generation X — born 1965 to 1980
- Millennials — born 1981 to 2000
- Generation Z — born 2001 to 2020
This diversity brings opportunities for leaders who are savvy enough to leverage it. But it also comes with challenges. How can organizations create employee recognition programs that feel meaningful to team members across age groups?
According to Gallup, effective employee recognition is honest, authentic and individualized. With a multi-generational team comes the need to create multigenerational recognition strategies. Younger workers tend to thrive on frequent, real-time feedback, while older generations often prefer more traditional forms of appreciation – think employee awards.
Your employee recognition efforts need to be flexible enough to cater to a wide range of preferences, yet scalable enough to be implemented systematically. Technology can help you achieve both those targets and keep employees of all ages feeling valued (more on that later).
But the first step to successfully recognizing members of different generations at work is to understand them. Here’s everything you need to know to build a generationally inclusive employee recognition program.
Today's Multigenerational Workforce
Let’s dive into the tapestry of today’s multigenerational labor force. According to the U.S. Department of Labor, as of the second quarter of 2024, millennials made up the largest share of the workforce (36%). Gen X followed closely (31%), while Gen Z made up almost a fifth of the labor force (18%). As for older generations, baby boomers are still working quite a bit (they comprise 15% of the labor force), while traditionalists have almost all retired (1%).
Imagine leading a multigenerational team: Your Gen Z social media coordinator thrives on receiving quick shout-outs on your company’s recognition platform.
Your millennial content strategist is looking to get promoted – they value public recognition and professional development.
Meanwhile, your Gen X project manager wants to feel appreciated by being trusted with high-stakes projects.
As for your baby boomer account manager, she values tenure-based recognition and much prefers handwritten thank-you notes over digital forms of recognition.
As a manager, you can see how making sure that recognition resonates across age groups is challenging. A one-size-fits-all approach to recognition that caters to some demographics and leaves out others is a missed opportunity.
That’s because recognition has a direct impact on employee retention. According to Gallup, workers who are regularly acknowledged by their managers are five times more likely to stay with a company.
If your recognition strategy only targets one or two generations at the risk of alienating others, you risk losing talent. Plus, you could miss out on the benefits of having a diverse team. Josh Bershin data reveals that inclusive workplaces are 1.7 times more likely to be innovative and bring in 2.3 times more cash flow per employee.
Recognizing employees in ways that reflect generational preferences isn’t just about boosting morale — it’s a necessity for business outcomes. By developing recognition strategies that keep all team members engaged, you can bridge generational gaps and drive organizational success.
Now let’s take a look at what each generation values in terms of recognition at work.
Generation Z (1997-2012)
Characteristics and values
As the first fully digital-native generation, Gen Z is in a unique position at work. Gen Zers grew up with smartphones and social media. They are used to accessing information quickly. They’re all about tech.
From the Covid-19 pandemic to an uncertain economic climate, they came of age in a world filled with uncertainty. They care about social impact and treat diversity, equity, and inclusion (DEI) seriously.
How to Recognize Generation Z
To effectively recognize Gen Z team members, a digital-first approach is key – think peer-to-peer recognition programs, public shout-outs on employee communication channels and gamified recognition systems. Leveraging a tool like Applauz, which includes a company newsfeed, is a good idea.
Immediate feedback is also a must. Gen Zers would rather get quick, informal forms of appreciation than be praised in traditional performance reviews.
How to Reward Generation Z
Technology-driven rewards can help you effectively acknowledge Gen Z employees – hello, digital gift cards and subscription services like Spotify and Audible.
Also, since Gen Z workers are socially conscious, consider tying recognition to a meaningful cause like a charity donation in their name for maximum impact.
A Udemy survey revealed that 94% of Gen Zers dedicate at least an hour a week to learning. Their preferred learning method? Online courses (44%). Offering them the chance to upskill through e-learning is another great opportunity for effective recognition.
Millennials (1980-1996)
Characteristics and values
Millennials entered the workforce at the height of an economic recession and it shaped their outlook. They aren’t willing to sacrifice work-life balance for an employer that may just make them feel disposable anyway. They value flexibility and continuous growth opportunities over job security and long-term tenure.
They crave purpose and meaning – they’ve had to reinvent themselves a couple of times and question their relationship to work.
Deloitte data also revealed that they are 83% more likely to be actively engaged when working for inclusive companies. “Millennials view inclusion as having a culture of connectedness that facilitates teaming, collaboration, and professional growth,” according to Deloitte.
How to Recognize Millennials
Millennials respond best to experience-focused recognition that highlights their efforts in meaningful ways. When acknowledging millennials, aim to create special moments that they wlil remember forever, from a public post on a company platform to a dedicated team lunch.
Just like Gen Zers, millennials prefer regular feedback instead of waiting for a formal annual review. Since they value growth, let them know how to build on their strengths – not just what they did well in the past.
How to Reward Millennials
Millennials gravitate towards rewards that foster personal development and work-life balance. They will appreciate perks like access to a career coach or a gym membership. Flexible work arrangements also appeal to them.
They favor rewards centered around experiences over items, from concert tickets to travel vouchers. Applauz Perks can help you motivate them with personalized company incentives ranging from spa days to online training.
Generation X (1965-1979)
Characteristics and values
Gen X employees are independent, adaptable and hard-working. A lot of them are “intrapreneurs,” meaning they leverage entrepreneurial skills while working in an organization.
Think of them like the “middle children” of the workforce – their values and tendencies fall somewhere between the traditional preferences of baby boomers and the flexibility and adaptability of millennials. Career stability is important to them.
Unlike younger generations, they don’t need feedback as frequently but still appreciate getting recognized for their expertise and contributions.
How to Recognize Generation X
Gen X team members want to be praised for their skills, experience and problem-solving abilities, as they are proud of their work ethic.
They don’t necessarily care about public praise as much as their millennial and Gen Z counterparts. However, they are more likely to appreciate one-on-one recognition from senior leadership or enjoy being trusted with high-visibility projects that give them the chance to show off their expertise.
How to Reward Generation X
Gen Xers are highly motivated by financial stability and long-term career growth. They also care about work-life balance, since they juggle work with family demands ranging from child-rearing to caring for older parents.
Financial incentives such as stock options, performance bonuses or retirement contributions are particularly appealing to them.
Additional PTO and family benefits can also make them feel supported and help them thrive.
They may appreciate a rewards marketplace like Applauz Rewards, which gives employees the chance to choose from thousands of products from different brands – there are plenty of family-friendly items to choose from.
Baby Boomers (1946-1964)
Characteristics and values
Many boomers these days are choosing to delay retirement. They’re used to a certain standard of living and are more likely to hold senior positions. Long-term commitment to a single employer was the standard when they started their careers, after all.
They value stability, respect and formal recognition. Unlike younger workers, they are less interested in digital forms of recognition and much prefer face-to-face communication.
How to Recognize Baby Boomers
Recognizing baby boomers is all about structured, formal recognition and respect for their tenure. They are less likely to seek frequent feedback from their managers, but they feel valued when recognized publicly by senior leaders.
Acknowledge them in all-hands meetings or formal award ceremonies – and make a big deal out of celebrations like work anniversaries or retirements.
Showing appreciation through personal gestures like handwritten notes or in-person thank-yous from executives is also a great choice.
How to Reward Baby Boomers
Baby boomers will eventually retire. At this stage of their careers, they are planning their path to retirement. Consider offering them benefits that support retirement planning or flexible work options that allow them to keep working while slowing down.
They also appreciate monetary rewards, so performance bonuses, pension contributions or phased retirement programs such as consulting roles post-retirement are highly appealing to them.
Finally, boomers care about being recognized for their legacy and enjoy service awards. (P.S. you can easily manage and automate your employee service award program with Applauz!).
Creating an Inclusive Recognition Program
Now that you have a deeper understanding of the different generations that make up the workforce and the way they prefer to be recognized, it’s time to start building a culture of recognition that caters to all age groups.
This is a delicate balancing act, as you can’t make everyone perfectly happy at all times – but you should strive for an environment where all employees feel valued and engaged, regardless of age or career stage.
3 Steps to Effective Multigenerational Recognition
You’ll need to be flexible while maintaining a cohesive company culture. To successfully achieve this, cover the following bases:
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Blend formal and informal recognition
Don’t ditch structured awards and performance reviews. Baby boomers and Gen X value them. In parallel, build a culture where frequent, real-time feedback is the norm. Gen Z and millennial team members will thrive.
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Offer multiple channels for recognition
From public praise and private thank-yous to digital badges and company newsletter spotlights, use all the channels available to you to recognize employees. This will help meet different generational expectations.
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Tie recognition to company values and goals
Regardless of their age, employees want to know that their contributions matter and align with a bigger purpose. Always tie recognition to company values and goals for maximum impact (and for culture-building).
Thankfully, a fully customizable employee recognition platform like Applauz can make it easier to create a program that balances out all those priorities while keeping best practices in mind.
Best Practices for Recognizing Different Generations
To ensure your recognition program resonates, gather employee input to guide your efforts. Conduct surveys to understand what your team values the most.
Train managers and leaders on effective recognition, as they are the gatekeepers of a recognition-rich culture – and the way they show up will determine how successful your multigenerational recognition strategy ends up being. Encourage leaders to personalize recognition based on generational preferences.
Embed recognition into daily workflows and systems rather than treating it like a one-off HR initiative.
Once you deploy your recognition program, track its effectiveness so you can improve it over time. Use platform analytics to understand how much people are participating in recognition activities. Keep an eye on engagement metrics like employee retention rate, as those should start going up with an effective recognition program in place.
Finally, collect feedback through pulse surveys and employee engagement surveys to help refine your tactics based on employee sentiment.
It might take trial and error, but creating a multigenerational employee recognition program that helps employees of all ages feel appreciated is well worth the effort.
Want to see how Applauz can help you build a recognition program that works for all generations? Schedule a demo or consultation today!
