It's human nature to expect more for less, but an undeserved culture of entitlement in the workplace can become a toxic drain on productivity. The issue is beginning to rear its head as Generation X and Y seek to take advantage of skills shortages in the labour market. Jazreel Low, CEO of Asmara Spas, says younger staff need to hold back their claims on instant rewards. "It may be the case that some members of the current generation view themselves as better educated or more dynamic than previous generations," she said. "However, my generation and my parent's generation had to work hard and prove ourselves before we were rewarded in our careers."
Current members of the younger workforce are indeed more mobile. They offer less loyalty to their employers and demand different forms of motivation. It's something HR professionals are already taking into account. "We are all aware that Generations X and Y are not afraid to stand up for what they want," says Kwong Hui-Hen, Head of Strategic Benefits at Watson Wyatt. He says younger staff are more engaged with career development and opportunities than their parents would have been. They are more prepared to leverage their skill sets and experience to position themselves for the next opportunity. "In the process, such employees will bargain for better rewards, especially in times of a tight economy," he said. "This is, of course, far short of feelings of 'entitlement', however."
Ask not what your company owes you...
"The first signs of an emerging 'culture of entitlement' are manifested by a collective 'you owe me' attitude among staff," says Amy Leung, MD of Human Resources for FedEx Express, South Pacific. "It is a growing focus on what employees are owed by the company they work for, rather than a focus on what they can contribute to the company." Leung adds that this entitlement mentality often develops from glitches in organisational culture. "One commonly quoted reason for the emergence of a 'culture of entitlement' is a tendency, by management, to give timeline-based salary increases and promotions, rather than performance-based incentives. Furthermore, another well-documented reason is that employee expectations were not well-managed, leaving employees to set their own, unrealistic, expectations," she says.
But Kwong states that in our current competitive environment, organisations have learnt past lessons. The companies that once offered the world just to get a new recruit in the door are now playing a much more cautious strategy and actively avoiding any encouragement of employee demands.
"I disagree that excessive focus on attracting and retaining employees will create a culture of employee entitlement," he said. "When the economy is robust and labour supply is tight, what it would create is employee bargaining power. This is a different thing to entitlement." He says 'entitlements' are benefits or salary increases that employees receive unconditionally. "In the current workforce environment, I believe employers are careful about committing to what might be viewed by an employee as an 'entitlement'."
The 'right' carrots
According to FedEx's Leung, among the reasons that the organisation has high staff retention rates (more than 90 percent of FedEx's managers started with the company in non-management positions) is that there is no limit to career progression. "One way to motivate the 'entitlement generation' is to develop and clearly communicate long-term career plans, remove all ambiguity and let them know what they can get, how to get there and what it will get them."
Low agrees that there is danger in any ambiguity. She says unclear policies can allow employees to start their own ransom negotiations with their managers. "I have no problem in recognising talents and rewarding hard work but we will not be held hostage," she said. "Rewards should be given based on effort and contribution - never taken for granted or abused."
Finding the right carrots without creating a culture of entitlement is therefore the new challenge for HR professionals. Companies have to take a long-term strategic view in their staff planning, rather than hiring at all costs to launch a certain initiative. "Any company should be prepared to step down from a bidding war when it is no longer cost-compelling to pursue that person," Kwong says. "It is a difficult decision to make, especially when business competition is fierce. However, the company will avoid eventually suffering the consequences of that war if it is unable to justify the high costs." The concept of pay for performance is also crucial, he adds. As far as the company is concerned, it has to ensure that the employees are paid fairly. When the company performs well, it should be prepared to reward employees well for their effort. This way, employees will see that their remuneration is connected to how they perform. Their future bargaining is then more likely to take the health of the company and current economic conditions into account.
Keeping staff motivated
Avoiding discouragement of employees while also controlling feelings of entitlement can be difficult. Kwong says the keys are unequivocal policies and a fair remuneration framework. Organisations need to adequately communicate their compensation and benefits programs upfront through employee handbooks, orientation, and performance reviews, he advises, "Simply put, employers need to re-orientate (the staff culture) from what employees are 'paid' to what they can 'earn'," he said.
Low says proper procedures and clear targets need to be reinforce what employees are genuinely entitled to. "Staff that ask for too much are not worth keeping as such employees spread their discontent to the rest of the staff."
While it is normal to have some frustration in the workplace, it is important to stay in touch with employee sentiments so that they do not escalate and become unmanageable. Leung warns that this can lead to rampant discontent across the whole business. "We involve our employees in the day-to-day operations of our business as well as the broader business management and planning, which is key to developing a highly engaged and motivated workforce. We also actively seek feedback from our people, ensuring that communications are open and transparent. This not only allows managers to focus, it allows employees to recognise their role in creating a happy working environment."