Millennials and the new culture of employee rewards

Wriiten by Katharine Boshkoff,  Guy Lubitsh and John Higgins.   Katharine Boshkoff is  Global Vice President of Career Development, Corporate Relations, and Alumni Relations at Hult International Business School. There is a classic attitude to employee talent, that concisely goes like this: it is scarce. Employers who cling to this attitude hold that they must fight for talent, when they can get their hands on it, and that it’s necessary to focus on the needs of the important few rather than those of the majority. From our perch, however, we can see that this attitude is beginning to go the way of the dinosaur; it is coming to an end. Why? This attitude was built on a series of assumptions that are increasingly invalid. Number one among them is that a business’s future needs could be identified, planned for, and engineered into being irrespective of other variables. At the same time, employees made lifetime commitments to their employers with careers that spanned 30 years (or more!) with the same company. In the past, performance could be tracked over time, usually at annual appraisal meetings, and evaluated against pre-known criteria. Employers viewed employee development as a process of instruction provided by the organisation, and in line with its long-term priorities. Rewards for employees were about delivering against these criteria. In the short- term, this could mean bonuses and various treats, while in the long- term the reward was promotion and the promise of hierarchical status and a portfolio of financial incentives. The idea of long- term employment existed because it was assumed that the business would continue in a recognisable form for a matter of years, if not decades. Business is different today. Product cycle times are measured in years, not decades.  Artificial Intelligence is only just beginning to transform the workplace and blur the boundaries between where an organisation begins and ends. The accelerating rate of digitisation is going to result in a period of creative destruction not seen since the last major global wars. At the same time, the context for globalisation will similarly go through a period of upheaval, as the Pax Americana and the influence of standard US business practice faces threats and opportunities presented by the rise of China. What it means to work, to have a career, and what is means to be world class are being redefined. Inevitably, what it means to be an employee and receive rewards will be thrown up into the air as well. Talent today is different. Millennials, who will make up 50% of the employment market by 2020, will stay with an employer for an average of 18-24 months. They demand transparency from management, continuous learning opportunities, and a relationship based employment agreement that includes a trusted relationship with their employer. They are plainly unwilling to invest years in a company or a role for an economic payback; they expect that their job and benefits deliver satisfaction and reward – now. That’s not all; they are looking for a balance between their personal and professional lives, which means they are seeking jobs that meet their lifestyle needs as well as their desire for learning advancement, increased responsibility, and economic return. And as a group they are diverse. Some value work life balance first, then learning, then economics, while others may assess priorities in reverse. For those with high demand skills, employment is a project. If the project becomes unrewarding, they will move on to another assignment (company). The new context for employee rewards What then can an organization offer in this day and age? First, it has to approach its engagement with current, future, and past employees as an exercise in community development. What does this mean exactly? An organization should look to sustain an extended ecosystem of multiple talents. It can do so by adopting an entrepreneurial mindset, fostering all sorts of talent while not knowing which ones will pay off.   An organization needs to be prepared to think of community benefits as a way of providing employees with a wide range of benefit/reward possibilities that respond to the evolving priorities of the individuals they employ. Organizations need to think about work the way Millennials do – as a continuous series of learning and discovery opportunities where talent is constantly challenged to exceed (and succeed). Learning and development are as much valued rewards as are the traditional perks of maternity leave and cold, hard cash. Much as David Eggers parodies the world of hi-tech talent in The Circle, he sketches out comprehensively the portfolio of total lifestyle support that this type of talent craves and expects. The organization â€Å"of today† has evolved into a community of mutual self-interest, where belonging is valued by both employer and potential (and actual) employee. The key values and rewards on both sides are employability and satisfaction – and what these company-hosted communities can offer is an environment where people are able to reinvent themselves and their skill sets. Subsequently, employee rewardsare community rewards, which are underpinned by continuous learning (providing a â€Å"learning hub†) and the recognition that employees are human beings who are driven just as much by interests outside of work as the drive to be successful professionally. How organizations can step out into the new world of employee rewards As we stated above, organizations need to start thinking about the world the wayMillennials do. Here’s where they can start: Embrace their need for transparency and trust. Today’s Millennial employees expect to be involved in decision-making because they’ve been brought up to expect it. Companieslike Bridgewater, the world’s largest hedge fund, have a culture of radical transparency – with all conversations recorded and streamed, so everything is out there and in the public domain. Accept and work with their deeply networked character and identity. They are used to being permanently publicly visible and on display, they expect to be bombarded with data about what’s available in the market for their skills and qualities. They are also used to belonging to tight professional networks that exist beyond the control of third parties. Their primary loyalty will be to this network. The reward package will need both to honour this networked identity – while seeking to add to it by acting as a useful connector to other valuable closed and open networks. Understand their need to be seen as individuals (not just employees) and customise what you offer to match their holistic needs. More than any other generation, Millennials have sought greater control over their lives – from the careers they choose, to ways in which they prioritize a work-life balance – because they wish   to establish meaningful lives in a way no other generation before has firmly fought to do. This is why they want to have a deep connection with their employers, and in return, they want their employers to make an effort to â€Å"get them† as people. We believe the goal of an employee reward strategy is to create a vibrant, self-directing learning community that will sustain a talent ecosystem – one that inspires a mutual loyalty in a much more meaningful way than companies of the past. Organizations that understand this and change their rewards portfolio to reflect the new reality will do well. Those that do not are likely to become anachronisms, sparking anecdotes of an ancient past. In the following weeks we’ll explore some of the ways we see people navigating their way into this new world of employee rewards. If you would like to find out more about our business programs,  download a brochure here. Grow your leadership capabilities with an MBA in international business at Hult. To learn more, take a look at our blog Why every leader needs a growth mindset, or give your career a boost with our Masters in International Business. Download a brochure or get in touch today to find out how Hult can help you to learn about the business world, the future, and yourself. Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .