Motivating Millennials: Pay, Say and Solid Management
Posted by Ed Frauenheim
on November 17 2014
Maybe Millennials are more grown up than people think.
That’s the takeaway from research we conducted earlier this year examining the way young employees assess their current companies.
Our study this past spring of about 150 companies found that three factors move the needle most for Millennials when it comes to a great workplace:
- Fair pay;
- A say in decisions; and,
- Competent management.
A focus on getting paid fairly
Those factors showed the most variation between the 10 companies that Millennials rated as the best workplaces in the study and the 10 companies with the lowest scores.
A lot has been written about how Millennials expect their voices to be heard, so their preference for workplaces with shared decision-making isn’t surprising. Less has been said about Millennials’ focus on the size of their paychecks, or about their attention to the effectiveness of leaders.
In wanting equitable pay and caring about competent managers, our research suggests this generation is more mature and grounded than some give them credit for. Consider this statement from a young employee at Quicken Loans, one of the 10 Great Workplaces for Millennials we identify in the research:
"I work to make money, and ultimately I don’t see other companies paying people fairly based on the work you do. I work very hard but get paid very well.”
A focus on getting paid fairly
The study of Millennials’ views on their workplaces is based on the average scores of employees younger than 35 years old on the Trust Index Employee Survey, the 58-statement survey measuring levels of trust, pride and camaraderie produced by Great Place to Work (Great Rated’s parent company).
Companies included in the research had to have surveyed at least 50 employees younger than age 35. The 10 Great Workplaces for Millennials had the top Trust Index scores from young people in Great Rated’s database of qualifying companies.
Levels of trust are significantly higher for young people at the 10 Great Workplaces for Millennials. As a group, the 10 Great Places for Millennials have an average Trust Index score among young people 24 percent higher than the 10 companies scoring lowest with this age group
Here are the Trust Index statements showing the greatest variation (the difference in percentage points) between the 10 companies that score highest and lowest with Millennials: Trust Index Statement:
- I feel I receive a fair share of the profits made by this organization — 37 points
- People here are paid fairly for the work they do – 33 points.
- Management involves people in decisions that affect their jobs or work environment – 28 points.
- Management does a good job of assigning and coordinating people — 26 points.
- Managers avoid playing favorites — 26 points.
- People look forward to coming to work here — 26 points.
- Everyone has an opportunity to get special recognition — 25 points.
- Management delivers on its promise – 25 points.
- Promotions go to those who best deserve them — 25 points.
- Management keeps me informed about important issues and changes – 24 points.
Similar, but different, generational concerns
Taken together, these key factors for Millennials show a generation with workplace concerns that are both similar to those of older generations as well as different, novel. Focusing on management’s ability to coordinate work well, on pay, on fairness and on leadership integrity may be familiar to Gen Y and to Baby Boomers. But democracy and a good time at work haven’t been priorities associated with previous generations.
To me, pushing companies to be more participatory and pleasant is a positive. And there’s another new contribution from Millennials: an expectation to be treated as an individual.
The statement, “Management shows a sincere interest in me as a person, not just an employee” also showed a significant difference between the 10 highest and lowest scoring workplaces. The 10 Great Workplaces for Millennials scored 21 percentage points higher on this question.
To illustrate this desire to be seen as more than a number or a cog in a machine, consider the words of the same Quicken Loans employee quoted above: “My team leader truly cares about my personal growth in life, not just work.”
Recognizing everyone as a whole person
Maybe Millennials are lifting the bar for all of us. Whereas being treated as a unique human being on the job was once a luxury, we’re moving to more humane workplaces where everyone is recognized as a whole person.
Maybe we’ll look back a few years hence and thank Gen Y for improving what all grown-ups can expect in a workplace.