Emerging Workforce Culture Wants to "Get a Life"

By Joel Myers

Never before have employers faced a more demanding workforce. This year’s crop of college graduates will join a job market that wants more from their employers than a competitive paycheck. They want a life. The requisite gold watch awarded for thirty years of service is folklore to this new breed. I read an article the other day that said the average worker in America today will have six to seven employers by retirement age (versus two employers twenty years ago). We’ve all lamented the decline of "employee loyalty". Get used to it. Fact is, the young people entering the workforce today want more from life and more from their employers than past generations dared to dream. Ten years ago, the concept of "Casual Day" was greeted by groans in the boardroom. Not anymore. Employers are getting increasingly savvy in how they respond to a restless workforce that isn’t willing to settle for the status quo.

My Office is my…Palace

The recent emergence of the super-accessorized corporate headquarters ("campus") is a prime example of how corporate America is trying to keep pace. Twenty years ago, if a company had an exercise facility or a credit union in-house, they were cutting edge. Not anymore. Many of today’s "campuses" boast those amenities and much more: childcare facilities, dry cleaners, shoe repair, take-out food, gift shop, etc. Some of our smaller client companies that don’t have these convenience services on-site, are making them available a la carte. While this can be a heady expense for a company to carry, it is becoming the cost to compete today. These amenity-minded corporate headquarters can be huge lures to recruits and make it a little less painful for a manager to put in an extra ten hours a week to get the job done.

Home is Where the Heart Is

The emergence of the home office is well documented. Employers are getting on board with the concept like never before. Technology is playing a key role; the decreasing cost of computer equipment and teleconferencing technology is making working from home more affordable. A desire for greater quality of life is driving young professional families out of the suburbs and, literally, into the hills. The shrinking labor market is beginning to convince employers that meeting these new lifestyle priorities is in their best interest.

Professional & Personal Development Incentives

The education and development perks, historically the purview of Fortune 500 employees, has worked its way down the food chain. Now it is not uncommon for smaller, private companies to fund tuition reimbursement, technical training and professional development such as business writing classes and even personal disciplines like "Managing Your Finances" into their compensation and benefits packages. In this job-hopping environment, a company would be well advised to use retention agreements as a condition for financing secondary degrees and/or other costly personal development programs.

When the Going Gets Tough, the Tough Get Creative

The New York Times recently reported that a Wayne, Pennsylvania-based temporary employment service for lawyers arranges lawn care for employees for bringing in a large account. And a computer consulting company in Columbus, Ohio rewards employees on their third anniversary with house cleaning services once a month. A hundred dollars a month to cover house cleaning or lawn care can score big points – perhaps more than it would in a paycheck. This same company has implemented a $1,200 vacation allowance for employees that meet performance goals. Clever, yes. The key to making creative rewards systems work for both employers and employees lies in making sure they reward behavior that meets the company’s strategic goals while also endeavoring to satisfy employee priorities. This rising tide of middle management and recent college graduates is presenting business owners with new challenges – and new opportunities.

The Bottom Line

We will continue to see variable compensation take more of center stage in how companies recruit, motivate and retain their most valuable employees. Deferred Retention and Performance Bonuses, Team-Based Pay and Gain Sharing are among some of the compensation strategies employers should consider as they face a shrinking – and increasingly demanding – labor force. Granted, it feels like the rules are changing but it is possible for both the employer and the employee to win. It requires loosening the "old guard" and turning an eye toward the future. How you incent your people will affect how long you keep them and how well they help you meet your goals. It may be wise to revisit exactly how your salespeople are compensated, or how your best production managers are rewarded. Are their rewards linked to the company’s goals? If your compensation structure (variable or otherwise) doesn’t take the needs of your people and your business’s long term strategy into account, you’re due for a makeover. It’s a new day. Treat it like one.

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