The Multi-Generational Workforce: Why Benefits and Recognition Matter More Than Ever
How do you run a profitable business while simultaneously meeting the needs of multiple workforce generations?
At Howarths, this is one of the most exciting challenges we’re helping our clients solve. As our CFO, Charlotte Geesin, recently put it:“Gen Z are reshaping workplace culture by prioritising work-life balance — and for the first time, they’ve overtaken Baby Boomers in the workforce. At the same time, retirees are coming back in their thousands. Two opposite trends, one big question: how do we keep everyone engaged?”The answer, in short: rethink your benefits, recognition, and engagement strategy to work for everyone.
Why Engagement is at Risk
For the first time in history, five generations are working side by side and naturally, they all want slightly different things from their employer.
Younger generations typically prioritise career progression, development, and flexibility. Those later in their careers often focus on health and wellbeing support and financial planning tools.
The commonality? Flexibility, recognition, and alignment with personal values.
But a one-size-fits-all approach no longer works. Businesses need to offer choices based on the stages of life that their employees are in.
Benefits and Recognition, Why Do They Even Matter*
Today’s employees expect more from their employers, and benefits now sit at the heart of the employee value proposition. For many, they’re not just a “nice-to-have” anymore but a lifeline. In fact, more than half of employees say they rely on workplace benefits to purchase essential items outside of their salary, and just as many would consider switching jobs purely for better benefits.
Get your benefits right and you have a powerful tool to reduce turnover and boost productivity. Get them wrong or fail to communicate them effectively, and you risk losing your talent.
Recognition is another crucial, but often ignored, engagement tool. Only 38% of employees say their company even has a reward and recognition programme even though personalised recognition is proven to build engagementand motivation. It doesn’t need to be complicated or expensive. The key is to make it:
- Timely – recognise achievements soon after they happen.
- Personalised – make rewards meaningful to the individual.
- Frequent – don’t wait until the end of the year to say thank you.
Or, as Christopher Ronald put it, “Reward and thanks are not just for Christmas.”
Wellbeing: Stress levels are improving, but workload is still a challenge
There’s good news on stress: levels have dropped slightly compared to last year, and 24% of workers now say they feel they’re thriving. A 3% improvement. However, 57% of UK workers describe themselves as “rattled”, and one in five feel overloaded.
One important insight from the study is the link between workplace monitoring and stress. Employees who feel they are being monitored are three times more likely to report negative stress. Employers using monitoring tools need to be crystal clear about why and how they’re being used. Transparency and communication are key as they will build trust.
Barriers to progression and discrimination
Around 15% of UK workers report experiencing discrimination, slightly lower than the global average of 19%. But the impact is significant: nearly a quarter of those affected say it lowers their productivity, and 65% are actively looking to leave.
Creating a genuinely inclusive culture isn’t just good ethics, it’s a retention strategy. Leaders should focus on:
- Proactively tackling discrimination
- Making career pathways visible
- Sharing internal promotion successes to reinforce the message that growth is possible
When employees see a future for themselves within your business, they’re more likely to stay and contribute at a higher level.
Fair pay and the fundementals behind it.
It won’t surprise you that remains the number one factor in job satisfaction. One in four UK workers still feel they aren’t paid fairly, and over 50% say they’ve been paid incorrectly at least once. Payroll errors might seem like a minor inconvenience that can be rectified, but it can quickly destabilise trust and make people look elsewhere.
Before employers can expect engagement initiatives to make a real impact, the basics have to be set in stone with accurate and timely pay.
Technology and AI
Technology is transforming the workplace, but depending on how it’s handled, it could either engage or alienate someone. ADP’s research shows that clarity is the differentiator: when employees understand what’s expected of them, they’re four times more likely to be productive.
On AI, the mood is optimistic but cautiously. 14% of UK workers believe AI will have a positive impact on their job which is higher than the European average. Younger and knowledge workers are the most enthusiastic about it. Leaders have an opportunity to position AI as a tool for empowerment, showing employees how it can remove admin tasks and free their time and effort to focus on more meaningful work.
The glue that holds it all together? Communication and leadership.
Annabelle Jones emphasised two consistent enablers across all findings: leadership and communication. Even the best policies or benefits won’t work if employees don’t know about them or if leaders aren’t trained to connect with their teams effectively.
Regular check-ins, open conversations about career goals, and visible recognition of success all help create a culture where employees feel heard and valued.
Not sure on where to start?
Okay, we know it sounds like a lot of components to keep up with the ever shifting workplace in 2025 and beyond.
The HR Experts at Howarths can help you build a thriving culture of workers that are engaged, focused and ready go the extra mile for your business.
We’re ready to do the heavy lifting so you can enjoy the fruits of high engagement and ultimately high profitability.
