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Just 31% of women believe workplace rewards are distributed fairly compared to 39% of men
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23% of employees believe rewards are driven by favouritism
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Older workers value trust almost as much as financial reward, compared to 59% of younger employees who value financial rewards above all else
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Widespread confusion around how reward decisions are made
Organisations are still relying on reward strategies that fail to reflect what different employees actually value, according to research from Perkbox. The study surveyed 4,000 UK employees and 1,000 UK employers and found that women are significantly less likely than men to believe workplace rewards are distributed fairly, with just 31% of women confirming so compared with 39% of men.
Gender isn’t the only divide. The Science of Reward at Work research highlights that employees’ priorities also change throughout their careers. While financial reward remains the biggest motivator overall, older employees place increasing importance on being trusted. Among employees aged 55 to 64, 43% say being trusted is one of their biggest workplace motivators, compared with just 26% of employees aged 18 to 24.
The gap between trust and money narrows considerably later in people’s careers. Younger employees are far more financially motivated. Nearly six in ten (59%) employees aged 18 to 24 say financial reward is one of their biggest motivators at work. This compares with 47% of those aged 55 to 64.
Tracey Paxton, one of the UK’s leading applied psychotherapists and Clinical Director at Perkbox, said:
“It’s the same reward system, but the emotional outcomes are different depending on where you are in your career.
“For those employees aged 55 and over, financial rewards are a less critical factor. Reward appears to be less about novelty, more about feeling valued and respected for the expertise they bring. Therefore, a one-size-fits-all approach to reward and recognition is increasingly out of step with today’s workforce. The Research suggests many organisations risk overlooking experienced employees whose priorities have evolved beyond purely financial reward.
“‘Forgotten loyalists’ may have worked with an organisation for many years and are seen as dependable, experienced and self-sufficient. The unintended consequence, however, is that they can be overlooked for recognition, development opportunities and conversations about their future, while attention is focused on attracting and retaining newer talent.
“This matters. Employees who feel taken for granted can become disengaged. They may continue to perform, but they are less likely to feel connected to the organisation or motivated to go the extra mile.”
The research findings also reveal widespread confusion around how reward decisions are made. Just 39% of employees understand how reward decisions are reached, while almost a quarter (23%) believe rewards are based on personal relationships rather than contribution.
Despite this, employers appear considerably more confident in their processes. Nearly two-thirds (64%) believe employees understand how reward decisions are made.
Paxton added:
“Different demographics want and need different things. If employees don’t understand how decisions are made, they will feel that the process is inconsistent. Once doubt creeps in, it’s hard to rebuild trust. Organisations need to build greater flexibility into reward and recognition programmes, ensuring they reflect the different motivations, career stages and experiences across today’s multigenerational workforce, while improving transparency around how decisions are made”.
About Perkbox
Perkbox helps companies strengthen their cultures by bringing together employee wellbeing, benefits and engagement in a single app that employees enjoy using.
It makes it simple for organisations with diverse and dispersed workforces to care for, connect with and celebrate their people. At the heart of Perkbox is a clear mission: every employee should feel valued. From everyday grocery savings to recognition and mental health support, Perkbox provides something relevant for everyone, every day.
Today, more than 7,500 organisations and nearly 4 million employees worldwide trust Perkbox as their partner in employee experience, including over 80 percent of the NHS. With two decades of experience, Perkbox continues to innovate so people teams can support thriving workplace cultures with ease.
