The power of recognition programs to build bonds
Gen Z is the newest generation to enter the workforce and they have unique perspectives, motivations and expectations.
In the final article of this series, we will link the career and learning paths with their associated curriculum and community-building capabilities to showcase the power of recognition. The series has had a major focus on new entrants to the insurance industry — specifically Generation Z (Gen Z). Born between the mid-1990s and the early 2010s, Gen Z represents the newest generation to enter the workforce, bringing with them unique perspectives, expectations and motivations.
To effectively engage and retain these young professionals, organizations must appreciate the importance of implementing recognition programs that cater to their needs and aspirations and celebrate successes. Think of recognition as the final feedback loop — acknowledging the efforts colleagues have experienced on the job, in training, supporting clients and in performance. Recognition programs should be transparent and standardized so they are publicly visible, understood and appreciated.
Building a shared identity is a critical component of attracting and retaining Gen Z employees. Research shows that this generation seeks purpose and meaning in their work and wants to align themselves with organizations that share their values and goals. Recognition programs can play a vital role in establishing a strong sense of shared identity within the workplace. By publicly acknowledging and celebrating the achievements of individuals and teams, organizations create a culture that fosters respect and a collective sense of purpose and pride. This recognition not only affirms Gen Z employees’ contributions but also demonstrates that their work is aligned with the organization’s mission and values.
Furthermore, recognition programs offer social rewards that resonate with Gen Z employees. This generation has grown up in the age of social media, where public validation and feedback have become integral parts of their lives. They welcome feedback and recognition, not only from their superiors but also from their peers and networks.
Recognition programs that incorporate social elements, such as peer-to-peer recognition platforms or public shoutouts, provide Gen Z employees with the social rewards they desire. Being recognized by their colleagues enhances their sense of belonging and strengthens their connections within the workplace and the organization’s values. An E&Y study found that almost two-thirds (63%) of Gen Z feel it is very or extremely important to work for an employer that shares their values. Social validation and support contribute to their overall satisfaction and engagement, ultimately increasing their bond with the organization.
To maximize the effectiveness of a recognition program, consider these factors.
- Programs should be flexible and tailored to the individual preferences and values of Gen Z. Generic, one-size-fits-all approaches may not resonate with this generation.
- Recognition should be timely and frequent. Gen Z thrives on instant feedback, so frequency is essential to foster engagement.
- Leverage technology and digital platforms to facilitate recognition. Make access omnipresent in systems, as Gen Z are digital natives. By implementing recognition programs on digital platforms, organizations can enhance engagement and accessibility for this tech-savvy generation.
Recognition programs have the power to attract, retain and develop colleagues in today’s evolving workforce. By building shared identity, providing social rewards and fostering a positive work environment, organizations can tap into the preferences and values of Gen Z. Through recognition programs, organizations can create a sense of belonging, enhance engagement and promote personal and professional growth. By understanding and leveraging the unique characteristics of Gen Z, organizations can stay ahead of the curve and cultivate a motivated and dedicated workforce for the future.
As discussed in the previous article on fostering community, the power of connectedness is a tangible asset in forming shared values and identity. Leveraging social tools to recognize shared values and contributions including volunteerism and accomplishments create both an individual’s and an organization’s cultural identity.
Positivity is another key element Gen Z seeks in their work environment. This generation has witnessed economic uncertainty, societal challenges and environmental issues throughout their formative years. As a result, they embrace programs fostering mental health and well-being. Research indicates that recognition programs can have a profound impact on mental health and overall job satisfaction.
When employees receive regular recognition for their efforts, it creates a positive and inclusive work environment. This positivity not only enhances morale and job satisfaction but also reduces stress and burnout, which are common concerns among Gen Z. By implementing recognition programs that foster positivity and well-being, organizations can create a supportive and appealing workplace environment.
A recent Bersin by Deloitte article found that organizations with recognition programs had 31% lower voluntary turnover than those without them. At Sedgwick, we have created a global rewards and recognition program, Props — developed from colleague feedback, it leverages the simple but effective concepts of bilateral recognition combined with rewards. A channel within this platform is dedicated to positive affirmations, where colleagues can share feedback and support for others — all linked back to our caring counts values. A recent post summed up the concept: “Imagine what would happen if you decided to believe that you could.”
To effectively leverage the power of recognition programs for Gen Z, organizations should consider several best practices.
- Programs should be aligned with the organization’s values and mission, creating a sense of shared identity.
- Incorporate social elements that allow for posting and sharing of peer recognition to foster a sense of community.
- Recognition programs should promote positivity and well-being by creating a supportive work environment.
- These programs should be integrated with opportunities for development and growth, catering to Gen Z’s desire for continuous learning.
Recognition programs play a crucial role in attracting, retaining and developing Gen Z employees. By building a shared identity, offering social rewards, promoting positivity and supporting growth, organizations can create a work environment that aligns with the aspirations of this generation. In a competitive job market where talent retention is essential, investing in recognition programs tailored to Gen Z’s needs will not only benefit individual employees but also contribute to the long-term success of the organization.
A ResumeBuilder.com survey reported 74% of managers and business leaders said Gen Z is the “most challenging generation” to work with. We can accept this as fact or leverage the insight to re-evaluate how we have structured career paths, learning, social sharing and recognition to prepare for the future.
This series of articles has focused on practical approaches to help employers prepare. Gen Z will comprise 30% of the workforce by 2025, and future talent programs will need to adapt or suffer the resulting challenges of employee acquisition, engagement and retention. By infusing existing talent development programs with transparency, community building, recognition and positivity, organizations can create an environment that fosters growth for the individual, their clients and the claims industry.
Douglas Dell is vice president and director of Vale National Training Center, Inc. Contact him at Douglas.Dell@sedgwick.com. Future articles in this series with include creating specialized programs to build community and defining a career trajectory to encourage retention. Opinions expressed are the author’s.
Related:
Fostering community and support for Gen Z
Equipping the next generation of insurance claims professionals
Creating Gen Z learning paths to build readiness and proficiency