Various reports have concluded that for talent with a reasonable salary, non-financial incentives are more effective than financial rewards. In contrary, for so-called knowledge workers, money mainly causes short-term, less sustaining motivation, which can even have negative unintended consequences.
This is very illustratively shown by an animated talk of Dan Pink who shows the hidden truths behind what really motivates us at home and in the workplace:
In particular, for millennials money is not everything. Instead, young talent wants to be part of something bigger than itself. Interestingly, work doesn’t define millennials to the degree that it did for previous generations: The younger generation want to live a balanced life. They want to be happy at home and happy on the job – money is somewhat secondary. To be successful in attracting the right talent, offering the necessary flexibility and a sufficient work-life balance will be essential. In this context, Bill Gates highlights, “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.”
Non-financial incentives are more effective motivators:
Furthermore, millennials are significantly more receptive than other age groups to Corporate Social Responsibility (CSR) as employees but also as consumers. In a McKinsey survey, of those respondents who demand sustainable products and join companies with a CSR reputation, more than half were millennials. Furthermore, the UN’s MY World 2014 survey identified transparency and corruption as a top priority for people under the age of 34. This survey also suggests that millennials are most concerned about the impact corruption will have on growth and on the future, including voting and the public sector as a career choice.
