Monetary incentives are not the main motivator for the current generations ( Gen Z)

Generation Z's financial income does not matter compared to the work environment

Nawar Nader Altashani

Generation Z, also known as Gen Z, focus on life experiences rather than physical products. Organizations are gradually aligning their operational systems and procedures to make the workplace more Millennial-friendly. For decades, conventional thinking maintained that money is the ultimate incentive/motivator or reward for employees, and that all that was required was to pay them more in order to increase engagement and productivity. However, the current studies reveal that monetary incentives alone may not significantly increase motivation, particularly in the long term. Especially  among younger generations such as Generation Z, who are just entering the workforce. While they still view money as a crucial physiological need however  they prioritise values such as purpose, well-being, flexibility, and   learning and talent development. 

Many experts believe that other non-financial elements contribute to work satisfaction more than pay. Feeling appreciated, having meaningful work, growth opportunities, an inspirational mission, a good business culture and a good work environment  are all important factors in driving high performance. When these fundamental drives are absent, more compensation frequently serves to mask underlying difficulties rather than providing actual motivation.

For Generation Z, flexibility, trust, and autonomy became even more crucial as the pandemic altered job expectations. They anticipate their employers to be supportive of their mental wellness and to permit them to balance job and personal responsibilities. Satisfying psychological demands for autonomy, competence, and relatedness through positive job experiences is something that money cannot buy. Well-being is enhanced by appreciation, development, trust, and companionship in a manner that additional money seldom does.

Companies that just prioritise monetary incentives run the risk of losing top Gen Z talent to rivals that support charitable causes or offer sufficient advantages for well-being, such as remote work, paid time off, or mental health coverage. Benefits should be in line with basic principles and improve the standard of living for the current generation.

Some business   started to recognise this and concentrated on creating the ideal pleasant environment  rather than merely compensatory plans. Through shared goal attainment, stakeholder connections, learning and talent development, empowerment, and recognition. Leading to reducing the turnover rate when workers feel valued and appreciated. 

Thus, fair compensation is still essential, a motivated workforce emerges when non-monetary demands are legitimately satisfied through an uplifting culture. Money cannot substitute intrinsic motivation, which is essential for long-term fulfilment.

Note: Generation Z were born between 1997-2012