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Using the carrot and stick approach to optimise productivity

By: Xieli Lee, Singapore
Published: Aug 15, 2008

Singapore – Understanding the work styles or tendencies of generations X and Y will allow companies to motivate and reward these employees the best way, which in turn optimises work productivity.

With the lines of generations X and Y blurring and no longer definable by age, companies that are looking to better engage and retain this particular crop of talent require more tact and resolve. The key is to define this potential talent pool by their individual characteristics and not age, says Marion Neubronner, a trainer specialising in human development and mindsets of generations X and Y at Impress Training. “A generation X can be 50 years old and have a generation Y’s characteristics and mindset. It depends on what age you started with the company and the people you work with.”

Hence, it is time HR pay more attention to the generations X and Y’s needs and difficulties when planning talent development strategies, especially if they want bigger profit margins in the long run. Neubronner says, “They are the ones who make the bottomline happen so staff development is only effective if you understand your staff’s expectations and challenges.”

While listening to their needs and implementing job rotation is widely considered the ideal solution to keep generations X and Y engaged at work, there is a better concept. Neubronner suggests giving the right carrot and stick to match their individual characteristics instead. “A carrot is increasing the behaviour you desire [in your employees] by giving them the reinforcements they desire.”

However, the carrot has to be customised based on the individual employee’s mindset. Citing the appeal of a high salary package, Neubronner explains, “One might not be enticed by the higher pay as she has family commitments whereas the other candidate wants even more money before accepting the job.”

A stick on the other hand, says Neubronner, is knowing what possible methods there are to "punish" the staff so employers can reduce undesirable organisational behaviour. In short, identify their weaknesses or what would hurt them “to literally inflict pain” and make employees change for the better. “If you arrive late and I fire you or I deduct your salary, immediately there will be pain [and you will learn],” says Neubronner. “If off days are very important to the employee and you take that away from him, that’s painful.”

However, Neubronner warns these are examples of extremities and will not bode well on an employer's corporate culture if these suggestions are implemented.