This 'Cutting-Edge' Strategy Used By Meta and Google Is Helping Leaders Keep Young Employees Motivated Archer Chiang, founder and CEO of Giftpack, breaks down the method that can improve results and retention.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Only about a third of workers reported being engaged with their work last year — and engagement among Gen Zers and millennials is on the decline.
- A "structured program" embraced by global tech players like Meta, Google, Zappos and more is helping young employees stay on track.
As of 2023, only 33% of workers reported being engaged with their work. Gen Z and young millennial employees reported significant declines in engagement, according to a Gallup survey of roughly 67,000 people. "There's a growing disconnect between employee [and] employer. You could almost equate it to employees becoming a little bit more like gig workers," Jim Harter, chief workplace scientist at Gallup and author of the report, told NPR. Less loyalty means less motivation to excel on the job — and more turnover.
What's the solution? A "cutting-edge" employee recognition points system might be a good place to start, Archer Chiang, founder and CEO of Giftpack, the AI global gifting platform used by global tech giants including Meta, Google and Zappos, tells Entrepreneur.
Related: 10 Ways to Appeal to the Next Wave of Workers: Generation Z
The structured program, which typically involves a platform or software that allows managers and employees to track and manage their points, acknowledges and rewards employees for their hard work and achievements — perhaps meeting targets, being a team player or going above and beyond, Chiang says.
"Managers can assign points to employees, either based on their own observations or through nominations from peers," Chiang explains.
The Giftpack platform also allows for peer-to-peer gifting, giving colleagues an opportunity to recognize and celebrate each other's accomplishments. Potential reward offerings include gift cards, extra vacation days, merchandise or even experiences like spa treatments or tickets to events such as cooking classes or concerts.
Related: Lacking Motivation? Follow These Steps to Get Back on Track.
Potential benefits of this system are extensive, Chiang notes: increased motivation, enhanced morale, improved performance, higher retention and greater teamwork and collaboration. However, the program should be closely monitored for effectiveness and areas of improvement; surveying workers and tracking retention can help indicate if the system's working as it should — not contributing to an overly competitive work environment, he explains.
According to Chiang, while employees of any age can thrive within an employee recognition points system, younger generations stand to benefit the most.
"Gen Z and millennials grew up getting 'gold stars' for school assignments, and now points systems have become so commonplace amongst major brands including Sephora and Dunkin' Donuts," he says. "Appealing to their familiarity with points systems in other aspects of their lives and building that model into the workplace helps companies foster connections with Gen Z and millennial employees."
Related: Gen Z Employees: The 5 Attributes You Need to Know
Additionally, Chiang emphasizes that Gen Z and millennials "are very value-driven," so empowering them to celebrate their peers' achievements with point nominations or gift transfers "appeals to their desire to have a stake in how the company and inner teams are led — and what accomplishments are recognized."
