Generation Y research for Personnel Today

A new Ipsos survey on behalf of Personnel Today, reveals what rewards Generation Y-ers really value from employers.

• The three most important160things an employer can offer to Generation Y are holiday entitlement (87% rate this as 'very important' or 'fairly important'), recognition for good work (86%)160and salary/bonus (85%). Learning and development is also rated highly by four in five Generation Y-ers160(80%), as is promotion prospects/career development opportunities (74%). Seven in ten160(69%) say that160an employer's reputation/name on the c.v. is important and a similar proportion look for flexible working opportunities (68%).
• The least important160benefits in an employer160for Generation Y are international travel (19%), gym membership (18%) and season ticket loan (11%).
• Looking to the future, the majority of Generation Y-ers believe that pay will by far be the most important160factor to them in 5-10 years time (68% chose this above other benefits,160learning and development and flexible working). Despite this, fewer (55%) agree that it is160important to save for their retirement.
• In terms of performance rewards, seven in ten Generation Y-ers (68%) agree they would rather be rewarded for their performance financially, than through opportunities160for personal development, training etc.160 Cash is the most preferred form of reward by 85% of Generation Y-ers, above team-based incentives, gift vouchers and160travel incentives.

Karen Wisdom, Research Director at Ipsos commented:160

"Although at face value it is rather disappointing to confirm that the needs of Generation Y are apparently dominated by 'hygiene' factors, this is not entirely surprising, particularly given their career stage and the level of student debt these days.160 In our work, we tend to find that a hierarchy of needs applies to younger people in job seeking/switching, and it is common to find that basic needs such as compensation and benefits are naturally prioritised over other factors. It is encouraging though to see that learning and development remain high on the list for Generation Y-ers. "Generation Y are relatively less focused on factors which they see as applying to them only in the future, for example, pensions and life assurance.160 Despite flexible working becoming the norm in many organisations these days, this appears to be a lifestage issue more relevant to Generation X than Generation Y.

The findings also demonstrate the importance of strong employer branding and a positive track record in corporate social responsibility, as160key points of differentiation beyond the 'hygiene' factors. It remains vital for employers to understand how well known they are among their target employee groups and how positively regarded they are on each of the factors that contribute to their overall employment proposition."

Read about the research in Personnel Today

Technical Note160

Ipsos interviewed 265 Generation Y British160adults, of which 180160were160in employment,160between 15-17 August 2008 using the Ipsos i-omnibus on-line panel. Generation Y are defined for the purposes of this study as age 28 years and under.