TR2050 Global Panel Discussions:
TR2050 have initiated a series of global panel discussions on the future of reward that have seen us in London, New York, Dubai, Stockholm and Boston. We were recently in Cambridge, Massachusetts, in the USA, at the headquarters of Moderna.
Our panel in Cambridge is: Asha Nataraja – head of total rewards at Shopify, Manjit Gill – senior vice president of global total rewards at Otis Worldwide, Billy Schultz – global vice president of total rewards at Mars, Stacey Rapacki – vice president and head of compensation at Northwell Health, and finally, Hem Patel – vice president of total rewards at Moderna. The panel is expertly moderated by Dr. Ben Shenoy, a visiting professor at the London School of Economics and a TR2050 academic in residence.
We are exploring:
- Skill-based pay and its implications
- Balancing technology and human interaction in rewards
- Generational differences and their impact on rewards
Generational Differences
TR2050 Let’s focus on the evolving workforce and the unique expectations that younger generations bring to the table. We often hear that Gen Z, Gen Alpha, and future generations have different attitudes and motivations compared to their older colleagues. As we look toward the future of rewards (TR2050), understanding what these upcoming generations seek from their employers is crucial.
While we’ll host discussions with students and recent graduates to hear their perspectives, today we turn to our experienced panel. What do these emerging generations really want from employers and their reward systems? Let’s explore the insights that can shape tomorrow’s workplace.
Generational narratives often grab headlines, but when we dig into the data, core values seem universal across ages: fair, competitive pay, opportunity, and working with great people. One trend that stands out, however, is that younger generations are increasingly drawn to companies with a clear purpose. Just as they choose brands based on values, they also select employers who demonstrate meaningful action beyond promises.
It’s not just about a well-crafted mission statement on a website – it’s about accountability and progress. Employers must show they’re meeting their goals, such as sustainability targets, and how they’re measuring success.
While generational labels might be useful for broad analysis, people don’t fit neatly into these categories. The real story is in the shared experiences and values that transcend age, and the evolving expectations around work arrangements and trust. Let’s focus on what unites us and drives meaningful change in the workplace.
TR2050 When it comes to academic data on what younger generations want from work, we’re working with limited, concrete evidence. Here are some observations:
First, we lack substantial, well-researched data specifically on the preferences of younger generations. Second, insights from social psychology show that behaviour is more influenced by context – such as organisational culture – than by generational age or individual personality.
This means that while generational differences make for interesting discussions, the real driver of behaviour and satisfaction is the culture and environment within an organisation. Let’s shift our focus to building cultures that engage and support employees of all ages.
I couldn’t agree more on the idea of moving beyond generational labels to understand what truly drives employees. One thing I’ve observed is the powerful connection many new hires have to our mission, which ties deeply to the communities we serve. During new hire orientations, we emphasise our organisational values and share stories about the work we do – not just for our team members but alongside the communities they support. This reinforces the idea that our team members wear multiple hats: they are employees, healthcare workers, community members, and even patients themselves.
Highlighting this commitment to community and mission resonates with employees and becomes a significant attractor. It demonstrates that our investment goes beyond financial rewards and sets us apart from competitors. Interestingly, this idea of interconnected social identities extends beyond age; for example, older generations may become more attentive to issues like climate change due to their children’s concerns, showing how context and relationships shape attitudes. This perspective moves us away from labels and toward a more holistic understanding of what matters most to our workforce.
It’s crucial to avoid overgeneralising generational preferences. While there are themes that might resonate more with certain age groups, no single approach fits everyone, and individuals’ needs evolve throughout their careers. For example, younger generations today may have an inherent expectation for flexibility and remote work as digital natives, having grown up with technology and a different work environment than previous generations. That said, common desires remain consistent across ages, such as job security, career development, and meaningful human connection. While mission-driven work appeals strongly to younger people, basic needs like fair and competitive pay are universal. People will seek mentorship and growth at different points in their career journeys, adapting their priorities over time. Ultimately, a one-size-fits-all approach won’t work – it’s about understanding these evolving needs and keeping an open mind.
It’s fascinating that while today’s rewards practitioners focus on personalisation and ROI, discussions often shift to broad generalisations about what an entire generation wants. This approach feels contradictory and misses the mark. Instead, we should align our thinking with what we truly value: tailored solutions and nuanced understanding.
I’ve long believed that life cycle stages, rather than age, are what really matter. People’s needs and priorities evolve over time, and that evolution should guide our strategies. Let’s move away from one-size-fits-all assumptions and toward more personalised approaches that reflect where individuals are in their unique career and life journeys.
TR2050 Your life cycle stage greatly influences your risk appetite. You might be caring for children, supporting ageing parents, or have no such responsibilities. This context is deeply individual, shaped by personal experiences and current circumstances, and it drives what you value and seek from work.
While there may be some similarities among peers, these align more closely with life stages than age alone. For example, younger individuals often have a higher risk appetite than those later in life. This has always been the case, underscoring that personalised approaches based on life cycle stages are far more insightful and effective than broad generalisations.
As someone who bridges the millennial and Gen X gap, with a Gen Z daughter and an Alpha son, I often reflect on generational perspectives both at home and in the workplace. One key insight, the future workforce will need to be met where they are. Today’s younger generations are growing up curious, opinionated, and adept at advocating for themselves. These traits won’t be left at the door when they enter the workforce – they’ll bring them along, expecting agency and choice.
Unlike past generations that viewed work simply as a pay check, this new generation sees work as a comprehensive package of pay, benefits, flexibility, and how they’re treated. They value adaptability and the ability to choose how and where they work. We’ve already witnessed this adaptability during the pandemic when many of us transitioned to remote work. The younger generation, even more so, will continue to show resilience in the face of change, whether technological or environmental.
Recognising the growing emphasis on individual identity and providing tailored total rewards will be essential. The definition of what employees take home from work has evolved significantly over the past 20 to 30 years, and it’s crucial to keep adapting to meet their expectations.
TR2050 The traditional mindset of ‘you go to work for a pay check’ implied a clear power dynamic between employer and employee. But with new generations entering the workforce, this power relationship is evolving. Employers now need to rethink their approach and meet these employees where they are. It’s essential not to place them into broad buckets but instead understand their unique perspectives and adapt to their expectations. This shift changes the balance of the conversation, emphasising collaboration, flexibility, and mutual respect. By doing so, we create an environment where both employer and employee thrive in a more balanced and engaging relationship.
There’s nothing wrong with the generation that viewed work purely as a pay check, just as there’s nothing wrong with today’s workforce wanting more. It’s all about balance and recognising where society and workplace culture are heading. Economic shifts and continuous change are shaping how future generations view work and rewards.
The concept of total rewards has evolved from simply depositing a pay check to offering a broader, more engaging experience. In the past, benefits were barely discussed, now they are a key part of the conversation. For example, being 100% remote can be a valuable benefit for some but not for others.
As we move forward, meeting people where they are and acknowledging their diverse preferences will be essential for creating meaningful and effective total rewards. Understanding and adapting to these expectations is how we will shape a workplace that aligns with the values and needs of the future workforce.
TR2050 Let’s expand on the conversation about workforce dynamics and move beyond generational discussions to the gig economy. The gig workforce offers clear benefits for employers: flexibility, cost savings, and access to diverse talent. However, it also comes with challenges, especially from the perspective of gig workers themselves. Key issues include job security, access to benefits, potential underemployment, and the risk of exploitation. Different types of gig workers have different experiences and expectations, which adds complexity to this dynamic. So, how can we balance the appeal of gig work for employers with the needs and rights of gig employees? How might this tension shape the future of work and total rewards? Let’s explore these questions.
The gig workforce is undoubtedly evolving, and while we don’t know exactly where it’s headed, the trends are clear – flexibility and autonomy are highly valued, especially among younger generations. However, there are challenges that need addressing for gig work to be sustainable and fulfilling.
Companies that thrive will be those that understand the unique needs and challenges of gig workers and find ways to bridge the gaps. For instance, isolation and a lack of connection are common concerns. Successful organisations will find ways to integrate gig workers by offering mentorship programs, skills development, and fostering a sense of belonging, even within a hybrid workforce.
The future isn’t about keeping core and gig workers separate – it’s about creating connections and building a cohesive culture that values all contributors. Addressing these needs will be key to attracting and retaining top talent in a competitive market.
I recently worked with the construction sector, where an emerging concept called the ‘hybrid enterprise’ is gaining traction. This involves an integrated supply chain where prime contractors, suppliers, and gig employees share a blurred sense of identity. Gig workers often join suppliers but spend their entire contract working for the prime contractor, which ties their professional identity more to the contractor than to their actual employer. This raises fascinating questions about connection and purpose within these ecosystems. What binds individuals to an enterprise that is, in reality, a collection of various organisations? It highlights the need to rethink how we build a sense of belonging and purpose across these interconnected networks, whether in construction, healthcare, or other industries. The traditional idea of an ‘enterprise’ is evolving into something more abstract and ecosystem-based.
As I listen to discussions about purpose and incentives, it’s clear these concepts need deeper exploration. Whether people are employees, gig workers, or contractors, the goal is to help them perform at their best. The common belief is that people excel when they feel connected, find purpose, and have the right incentives – but what does that truly look like for gig workers?
We need to unpack this understanding before designing programs tailored to them. After all, gig workers are people with the same need for purpose and impact. Total rewards have always aimed to enhance performance and engagement, providing an ROI for organisations. Before creating solutions, we need to return to first principles and ask: what motivates and supports gig workers? Only then can we design effective reward systems that resonate across diverse workforces.
How new is the concept of gig work, really? Many industries have long relied on flexible, seasonal workforces – think farmers, big box retailers, landscaping companies, and amusement parks. They’ve had core teams and scaled up or down as needed. In that sense, gig work isn’t entirely new.
The key questions are: What onboarding experiences do these companies provide? Should gig workers and contractors receive the same cultural integration as permanent employees? Do they even value that? This brings up the principle of mutuality – what are gig workers seeking, what is the company offering, and do those align? Transparency is also crucial – being clear about the temporary nature of the role and potential pathways to permanent opportunities, similar to temp-to-perm hiring models.
There’s already a wealth of data and experiences to draw from, including modern gig platforms like Uber and Lyft. While these models emerged quickly and operate successfully, understanding their underlying structures and lessons would be a good place to start.
In healthcare, we often rely on per diem workers as a supplemental extension of our full-time and part-time teams. At Northwell Health, we integrate these team members into our organisation by providing full cultural and operational orientation, viewing them as part of our workforce rather than just gig workers. Our goal is for them to feel connected and valued, with the hope that they may eventually convert to more permanent roles. While they may be fully employed elsewhere, their work with us represents an opportunity to build relationships and potentially bring them on board as long-term employees. This approach fosters continuity and strengthens our team over time.
At Northwell, we established our own internal agency, FlexStaff, in response to a long reliance on external contractors. While FlexStaff members are technically employed by the agency, we view them as Northwell employees in every meaningful sense. They may not participate in all of the traditional rewards programs, but their engagement with patients and collaboration with colleagues reflect the same commitment as our core team. By integrating FlexStaff members into our culture and operations, we’ve created a workforce that is both flexible and fully aligned with Northwell’s standards of excellence.
While we don’t currently have gig workers in our e-commerce business, a recent conversation during my flight sparked some thoughts. The person next to me works in Alaska for three months each summer, earning a substantial income flying clients for fishing trips – making upwards of $400,000 a year. It’s an unconventional ‘gig’, and benefits likely aren’t a priority for him given the high earnings. However, this example made me reflect on more typical gig work, often associated with lower pay. In the U.S., where healthcare costs are significant, benefits are critical. Employers should consider options that meet gig workers’ needs, such as allowing them to opt into benefits programs for a fee. Companies possess the buying and negotiating power to offer more affordable healthcare options, which could bridge the gap for gig workers who rely on hourly pay but still need essential coverage.
Reimagining total rewards for gig workers means looking beyond pay and considering comprehensive support that adapts to their circumstances. It’s an opportunity to rethink how we can meet people where they are and enhance the value we provide.
This experience shifted my perspective on gig workers and what really matters to them. During the pandemic, I started using services like Instacart and continue to do so out of convenience. Each time someone delivers my groceries or when I chat with an Uber driver, I wonder, how much do they earn? Do they have benefits? How do they manage their wellbeing while juggling multiple gigs?
For many gig workers, piecing together income from several sources might cover their living expenses, but healthcare and benefits can remain significant challenges – especially in countries like the U.S., where national healthcare isn’t guaranteed. In countries with universal healthcare, this might not be as pressing, but the issue of benefits varies greatly based on individual health and circumstances.
Companies should rethink how they engage with gig workers, particularly as gig work continues to grow across various industries. Meeting these workers where they are and considering options that address their specific needs, like flexible benefits programs, is essential for creating a sustainable and supportive gig workforce.
TR2050 Thank you all for an engaging and insightful discussion. Your perspectives have added so much value, and it’s been a pleasure to hear your thoughts. Hem, a special thank you for hosting and guiding us through this conversation. It’s been an absolute pleasure. Thank you all once again!