Are you ready to rethink your incentive, recognition, and rewards programs?

A generational shift is slowly reshaping the workplace. According to the US Bureau of Labor Statistics¹, Gen Z is expected to make up nearly one-third of the U.S. workforce by 2030, and they’re already bringing new energy, values, and expectations to the table.

Unlike Baby Boomers or Gen X, this generation isn’t as motivated by traditional incentive or recognition programs. They’re digital natives who crave purpose and personalized experiences over one size fits all rewards and recognition.

For employers, this presents both a challenge and an opportunity. How do you engage a workforce that craves personalization and values impact over hierarchy? The answer lies in rethinking the current rewards and recognition program structures. Instead of trying to win over Gen Z by handing out bigger bonuses or over the top awards ceremonies, building more personalized programs that resonate with what matters most to them is more effective and impactful.

Let’s break it down.

📱 What’s Different About Gen Z?

Being the first generation to grow up with the internet, Gen Z’s values are shaped by exposure to more information and ideas than any other generation from a very young age. Gen Z is highly purpose driven, with the desire to make meaningful contributions and leave a positive impact. They value diversity and authenticity and are less impressed by traditional recognition structures. They expect timely, personal feedback, and big showy ceremonies aren’t typically their style.

According to the Incentive Research Foundation (IRF)², many early career professionals (aged 18 to 30) report feeling disengaged at work, and 74% of managers say Gen Z is more difficult to work with than prior generations. That perception stems from a mismatch between traditional workplace rewards and recognition structures and Gen Z’s values, as they’re trying to adapt to an environment that was never designed with them in mind.

Naturally, employers’ biggest question is how to reward and motivate Gen Z effectively with these key differences.

💭 What Works for Gen Z

Data from the IRF shows that early-career professionals, especially Gen Z, value experiences, merchandise, learning opportunities, and flexibility more than cash rewards³. Travel, curated events, and paid time off often rank higher for them than for mid- or late-career employees.

To engage this group, offer personalized rewards that align with individual interests—such as event tickets, eGift cards, or career development opportunities—and ensure recognition is equally tailored.

Using rewards and recognition platforms can help track preferences and redemption history, enabling data-driven, meaningful choices for each employee.

💡 Rethinking Recognition

Data from IRF researchers Allan Schweyer, Adam Presslee, and Yashar Atefi, reinforces that many of Gen Z feel that recognition feels infrequent and transactional.

Only 28% of employees report receiving recognition weekly or more frequently, and nearly 40% rarely receive any.² Gen Z wants recognition to be timely, frequent, and sincere, with feedback tailored to their specific role on a weekly or even daily basis.

🚀 Why these Innovations Matter for Everyone

As Gen Z becomes a larger demographic in the workforce, employers have a chance to evolve rewards recognition programs into something more personal, impactful and inclusive to create a stronger, more motivated workforce for everyone.

Across all generations, there is a growing desire for individual recognition and connection. Recognition programs give you the opportunity to better understand your employees as individuals.

Gen Z is pushing these programs in a more personal direction, one which has the potential to benefit everyone. Offering more personalized rewards and recognition with an emphasis on individual impact and meaningfulness will create a more engaging, inclusive workplace for all.