How to build a reward strategy that inspires every generation
From Gen Z new starters to Gen X leaders, today’s workforce spans a wide range of life stages and expectations. So age inclusivity is essential if you want your employee engagement efforts to land in every location, for every individual.
If employees feel truly included, they are 17 times more likely to say that working brings out our best ideas, 15 times more likely to find work inspiring, and 77% more likely to recommend their organisation to others.
That kind of impact is hard to ignore. And yet, many reward and recognition programmes still operate with a one-size-fits-all mentality.
Tailoring rewards across generations
Employee recognition isn’t new. In some cultures, such as in Germany or the US, long-service awards remain a core pillar of workplace culture. In Brazil, 100-year-old Walter Orthmann made headlines for achieving a world record by spending more than 84 years with the same company.
But the reality for most employers is a fast-moving, generationally diverse workforce. Younger employees may change roles more frequently, prioritise personal fulfilment, or value purpose over pay. For older employees, the markers of recognition might be very different, but equally important.
That’s why your reward strategy must be built on one fundamental principle: choice. The assumption that everyone wants the same thing - be it a gift card or a gadget - has long been proven flawed. A curated range that includes experiences, tangible gifts, and localised options gives your people the opportunity to feel seen as individuals, not just as part of a demographic group.
The power of non-cash recognition
It’s tempting to view cash as a flexible and universal reward. But behavioural research shows that non-cash rewards are more effective when it comes to driving long-term engagement.
Experiences, in particular, create lasting memories and stronger emotional associations with the workplace.
Behavioural economics suggests that 77% of human behaviour is driven by emotions and 23% by rational thoughts.
Though cash rewards might seem like a rational pick, non-monetary rewards strike an emotional connection. They’re more likely to be remembered, talked about, and associated with feeling genuinely valued. And unlike cash, they’re not absorbed into day-to-day spending. That’s important when you're recognising a milestone or exceptional contribution.
A global study by Wakefield Research for Expedia Group revealed that people would forgo everything from online shopping to their smartphones for a proper holiday. And that appetite for experience cuts across generations - it just presents differently.
Gen Z, for example, often values experiences and purpose-led gestures over possessions, like an adrenaline-filled weekend. Meanwhile, Gen X may prefer a luxury or relaxing getaway. The key is offering options that speak to different life stages and preferences. In short, a single reward approach can’t possibly land well with everyone.
Think global, act generationally and locally
Global consistency is also important. But so is local and generational relevance. A centralised reward strategy provides structure, fairness, and brand alignment, but unless it flexes to meet local expectations and generational preferences, it will miss the mark.
This is especially true when age is factored in. What inspires a 24-year-old employee in the UK isn’t likely to land with a 54-year-old in Japan. In some countries, younger generations are increasingly drawn to values-based recognition; sustainable rewards, ethical brands, and social experiences.
In others, recognition tied to career longevity, family life, or traditional achievements carries greater weight.
To build a reward strategy that performs globally, partner with providers who not only operate across markets, but truly understand them. That means local fulfilment, local insight, and local relevance - so that your strategy doesn’t just tick boxes, but delivers impact in every region and for every age group.
Gen Z and Millennials are choosing values over perks
For younger generations especially, sustainability now sits high on the agenda. According to Deloitte’s Gen Z and Millennial Survey, climate change is their second biggest concern, second only to the cost of living.
And that concern doesn’t clock off when the working day ends. It influences where they work, who they work for - and what rewards inspire and motivate them the most. Research shows 79% of Millennials stay loyal to employers that take social responsibility seriously.
So, offering sustainable rewards isn’t just about doing the right thing. It’s about meeting expectations - and building emotional loyalty that spans generations.
Employers who talk green but fail to act risk not only losing credibility, but talent, too. From ethical gift choices to low-impact experiences, weaving sustainability into your rewards strategy shows you’re both listening and acting.
Inclusion must mean age inclusion too
Assumptions around generational behaviour can be limiting. Not every Gen Z employee is digital-first, just as - equally - not every Boomer wants a gold watch. The risk in relying on generational stereotypes is that you end up excluding the very people you're trying to recognise.
True age inclusivity means understanding that different life stages come with different needs. A younger employee might be balancing university debt or saving for their first home.
Someone in mid-career may be focused on family life, while older employees might value rewards that celebrate loyalty or support wellbeing and transition into retirement.
The only way to reflect that spectrum is to give employees real choice, underpinned by meaningful insight. That means offering a breadth of rewards that reflect not just different generations, but different cultures, values, interests and priorities.
Supplied by REBA Associate Member, BI WORLDWIDE
BI WORLDWIDE is a global engagement agency delivering measurable results for clients through inspirational employee and channel reward and recognition solutions.
