White paper: Compensation Planning for Millennials
This Aon paper explores the three key work expectations of millennials – fulfilment, flexibility and fun – it also considers what organisations can do to ensure their rewards programmes align to these expectations.
- Unconventional progression paths suit millennials if it helps them get what they want out of work – employers should consider a flatter hierarchy to better enable unconventional movement.
- Base salary provides a foundation to access opportunity and variable pay provides a way to recognise those who make the most of the opportunity – directing rewards toward the top performers has been shown to be effective with millennials.
- For millennials, education and training must be clearly linked to opportunities in the organisation. Transparency and honesty is also highly valued by this cohort.
- Millennials like to feel that their work is making a difference. Employers should be aware of employee performance on a daily basis, so that they can give feedback at the right time and the right place.