Thirsty for Praise MZ Generation, What Happens to Companies When They Satisfy Their Need for Recognition? [Jjinbit]

[Asia Economy Reporter Jeong Hyunjin] "Was that OK?"

Famous American broadcaster Oprah Winfrey spoke as the commencement speaker at the prestigious Harvard University in 2013, sharing her 25 years of interview experience. She revealed that countless people said the exact same thing to her after their interviews. From former U.S. President Barack Obama to famous singer Beyonc?, as well as perpetrators and victims of crimes, and housewives?regardless of status or position, everyone said the same words. The Harvard Business Review (HBR) analyzed this, stating that expressing empathy and recognition increases the likelihood of building trust and connection.

Oprah Winfrey delivering a speech at the 2013 Harvard University commencement ceremony (Photo by Harvard University YouTube capture)

The reason for bringing up Winfrey’s example from 10 years ago in this Jjinbit article is to examine the effects of 'recognition' in the workplace. Here, recognition includes not only giving positive feedback on results or achievements but also the company showing gratitude and trust to employees who put in effort. Recognition can take various forms, such as providing economic rewards for accomplishments, organizing events to celebrate employees’ contributions, teaching managers how to praise employees, or allocating budgets for recognition efforts.

◆ What Makes the MZ Generation Dance? 'Praise'?

“How to bridge the generational gap through recognition.” On the 29th of last month (local time), global public opinion research firm Gallup published an article with this title. Based on survey results, Gallup analyzed that the MZ generation tends to want more recognition compared to Generation X or Baby Boomers. The MZ generation feels a stronger sense of belonging and higher job satisfaction when they receive praise more frequently at work. When a company shows recognition, employees feel respected and believe their value is appreciated, which increases the likelihood of them being more active in their work.

Survey results from polling organization Gallup asking by generation whether they want to receive recognition at work several times a month (Graph source=Gallup)

The survey was conducted in February this year with 7,636 adults aged 18 or older living in 50 U.S. states, and 5,551 adults aged 18 or older living in the UK, France, Germany, the Netherlands, Ireland, and other countries. According to the results, when asked if they wanted to receive recognition from their boss at least a few times a month, 78% of some Millennials and Generation Z born after 1989 answered “yes,” while only 55% of Generation X (born 1965?1979) and 45% of Baby Boomers (born 1946?1964) gave the same answer. The rate of wanting recognition from colleagues showed a similar pattern.

Gallup explained, “There are many reasons, but Baby Boomer and Generation X workers may not truly want recognition or may find it difficult to admit that they want it. For older generations, recognition might have been considered a trivial desire rather than a necessary element in the workplace.” While all generations have a desire for praise and recognition, fewer admit to wanting it when asked. Gallup added that this should be viewed within various social and cultural contexts.

◆ “Creating a Culture of Recognition Saves Over 20 Billion KRW Annually”

In fact, emphasizing recognition or the “power of praise” in companies is not new. Do you remember Ken Blanchard’s million-seller book, “The One Minute Manager”, or more specifically, “The One Minute Manager Meets the Whale”? It illustrated how the positive attitude and praise from trainers helped a killer whale weighing over 3 tons perform impressive shows in front of audiences, and how this concept can be applied to companies. That phrase from 20 years ago seems to be gaining renewed attention among companies today.

Based on this survey, Gallup released a report in May titled “Improving the Work Environment Through Recognition.” According to the report, 81% of leaders running companies do not prioritize recognition as a strategic business priority. More than 7 out of 10 managers and senior executives said they do not provide training on how to properly recognize employees. Two out of three senior respondents said they do not allocate budgets for employee recognition. This suggests that companies are not putting much effort into praise or recognition.

The problem is that employees who feel recognized at work seem to experience significantly better psychological effects than those who do not. The survey showed that employees who feel they “always” receive recognition are 73% less likely to experience burnout and 56% less likely to look for another job compared to those who rarely receive praise. The rate of feeling a sense of belonging was four times higher, loyalty to the company was three times higher, and the rate of growth within the organization was five times higher.

Most importantly, creating a culture of recognition as part of corporate culture can also save costs. Increasing job satisfaction reduces the costs incurred when employees leave. Assuming the cost of replacing one employee is up to twice their monthly salary, a company with 10,000 employees could save up to $16.1 million (approximately 22.3 billion KRW) annually. Gallup analyzed that “such a culture of recognition connects employees and fosters a sense of belonging, protecting their positive experiences.”

◆ How Should Recognition Be Given? ... “Ask Directly”

Returning to the differences in views on recognition and praise among generations, recently, the “Quiet quitting” trend has been spreading among American MZ generation workers. This is a work attitude where employees do the minimum required, feel no sense of belonging to the company, keep distance, and focus on personal life. For those with lower belonging and stronger desire for recognition compared to other generations, recognition and praise can be a way to relieve burnout and increase satisfaction.

Gallup noted that the personal experiences, values, and beliefs of corporate leaders greatly influence key decisions in the company. Currently, Baby Boomers and Generation X mostly hold senior positions and have more authority over budgets and work environments compared to the MZ generation. Therefore, they play an important role in creating a culture of recognition. Gallup found in the survey that people who said they do not want recognition from bosses or colleagues tend to be less generous with praise and recognition themselves.

To establish a culture of recognition in companies, it seems essential for executives and managers to take active roles. Gallup suggested that companies should organize opportunities to recognize employees’ achievements and encourage managers to frequently express recognition. They also recommended training managers regularly on how to praise employees and provide positive feedback to boost morale and foster team unity. Furthermore, companies should center recognition as a core value and invest appropriately to implement it well.

Above all, the surest way is to ask employees directly how they prefer to be recognized. Gallup’s survey showed that only 1 in 10 employees had been asked this by their company. As times change and employee demands evolve rapidly, actively communicating in the workplace and creating a culture where praise and recognition are exchanged in mutually desired ways will likely be effective.

Editor's Note[Jjinbit] is short for ‘Jeong Hyunjin’s Business Trend’ and ‘Real Business Trend,’ a section that showcases trends in corporate management such as organizational culture and HR systems. We will deliver fresh and differentiated information and perspectives based on analyses from foreign media and major overseas institutions that have not received much attention until now.