Companies must be sensitive to the fact that because of generational differences, job satisfaction, retention, and ultimately productivity may suffer. Understanding what makes each generation unique will help companies determine what methods they should use to motivate their workforce.

Traditionalists, born between 1930 and 1945, are reliable, value job titles, like to think they contributed toward the company's overall success and expect recognition for their loyalty. Baby Boomers, born between 1946 and 1964, value teamwork, prefer a structured work environment and expect others around them to put in the same long hours.

Generation X, born between 1965 and 1980, have been credited by some as bringing work-life balance to the workplace. They prefer to work independently with minimal supervision, focus quickly to get results and thrive on opportunities to grow. Generation Y, born between 1981 and 2000, are known to be technologically savvy and desire to be recognized for their performance as being a strong asset to the company. They are interested in change, prefer flexibility and thrive on having continuous short-term goals and deadlines. For some Gen Yers, the labor market is seen as a place to sell their skills to the highest bidder and don't mind moving from one company to another.

In the past, there was an unspoken employment agreement between workers and employers. In return for job security, employers were guaranteed employees' loyalty and commitment. In the new economy, this is a rare relationship to find. As employers announce layoffs, employees leave for better opportunities. Ironically, as companies are proclaiming people to be its most important asset, many times they treat them like they are disposable. Companies must focus on motivational practices that meet every employee's need, regardless of age, in order to effectively develop, sustain, and align the company toward its overall objective, profitability.

To ensure employees of every generation are effectively engaged and integrated into a corporate culture that will allow them the longevity to become an integral part of that corporation, employees need to feel they are welcome, wanted, and there for a reason. The following mechanisms are designed to achieve those goals.

Attract to retain. Get the right candidate in the right position. Look beyond the candidate's skill set to ensure that their work style and personality will fit in the corporate culture.

Provide meaning and purpose in work. Employees need to have a reason for their corporation's existence. Create a mission, or simply a vision, of the industry that employees find exciting and stimulating.

Provide work-life balance. Work with your employees to give them flexibility. Companies must recognize that employees have lives outside of the workplace. The smartest companies will allow employees to manage their lives outside of work and to balance their lives with their work.

Share the rewards. Traditionally, the employee was paid for hours worked and not for what they produced, created or serviced. Today, value lies in the employee's knowledge and skill set that is used to make a company's innovations essential in the market place. Develop a compensation system that rewards the employee for individual goals met as well as company goals. Annual and long-term incentives both play a vital role in attracting, retaining, and motivating employees of all generations. Employees want to be compensated for the value they deliver, not just the hours they invest.

Build relationships to last. The key to a successful work environment is trust and the confidence you have in your fellow employees. There is no better way to do this than to develop personal relationships with other team members. Employees need to feel valued and enjoy working with others around them. Without internal support and confidence throughout the corporation, employee morale, and ultimately corporate performance, will suffer.

There is certainly no correct formula for retaining employees. However, in an ever-changing corporate environment, it is more than just a matter of monetary motivation. Employees need to feel like they're part of an organization that challenges, stimulates, and values them. By taking steps to establish a successful relationship between employer and employee through proper motivation, employees will be happy and the company will prosper.

About Longnecker & Associates
Longnecker & Associates is a Houston-based consulting firm that specializes in corporate governance, executive compensation and Board of Director compensation. With more than 20 years of experience with the Big Four, as well as public and private companies, Longnecker & Associates consults on complex situations ranging from high-growth, bankruptcy, shareholder and employee litigation, IRS audits, spin-offs, mergers and acquisitions, and divestitures. Longnecker & Associates' consultants work with CEOs, boards of directors, investment bankers, attorneys and CPAs for all major industries. For more information, visit www.longnecker.com.