Reward preferences to attract and retain Generation Z

Calvin Mabaso

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Generational Differences and Trends Employee Performance and Management Human Resource and Talent Management

Abstract

Orientation: Generation Z (Gen Z), born between the mid-1990s and early 2000s, has become an essential part of the workforce. However, attracting and retaining this generation is challenging because of their distinct work expectations. To remain competitive, organisations must understand Gen Z’s reward preferences. Research purpose: This study aims to explore the total reward preferences of Gen Z, identifying the factors that most effectively attract and retain this generation in the workplace. Motivation for the study: As Gen Z enters the workforce, their unique expectations for extrinsic and intrinsic rewards present new challenges and opportunities for employers. Understanding these preferences is crucial for developing reward systems that attract and retain talent, ensuring long-term organisational success. Research design, approach and method: A qualitative, interpretivist approach using phenomenological methodology was adopted. Semi-structured interviews provided insights into reward preferences and retention factors, with data analysed inductively to identify themes. Main findings: The study found that Gen Z values extrinsic rewards such as compensation, benefits and recognition. However, intrinsic motivators such as personal growth, a sense of purpose and the desire to impact also significantly influence their job satisfaction and organisational commitment. Practical/managerial implications: Organisations aiming to attract and retain Gen Z employees should implement reward strategies that balance extrinsic and intrinsic motivators, aligning with their values to enhance engagement, satisfaction and retention. Contribution/value-add: This research offers key insights into Gen Z’s reward preferences and provides practical guidance for tailoring reward systems to meet their expectations, promoting a more engaged and productive workforce.

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2005How Many Interviews Are Enough?2020One size fits all? What counts as quality practice in (reflexive) thematic analysis?2017Social Exchange Theory: A Critical Review with Theoretical Remedies 1964Justice in Social Exchange 2008Generational differences in personality and motivation 2021Here comes Generation Z: Millennials as managers 2023Willingness to pay more for green products: A critical challenge for Gen Z 2015The Changing Face of the Employees – Generation Z and Their Perceptions of Work (A Study Applied to University Students)

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