A couple of months ago, I was talking to an early 20something staffer about raises. While we had given him a raise a few months prior, he felt he deserved another one.  He felt he was doing a good job, which he was, and that his clients were very pleased with his work, which they were.

He also felt that he had a string of excellent client meetings that resulted in work being sold, which is true. As a result of this good work, he believed he deserved additional compensation.

I felt he was just doing his job. 

It’s easy to dismiss this kind of interaction as a conversation with an unrealistic employee who doesn’t understand the way the world of work operates. But the person I was talking to is smart, creative, capable, kind and thoughtful. This particular individual is already a star and will quickly become a superstar.

So this conversation couldn’t be dismissed as the ranting of an entitled staffer.  I think it’s something else; something much more interesting.

Annual performance reviews and raises have been an organizational tool since the boomer generation — and probably even before. Employees were reviewed every year. If they performed well and the company could afford to give them a raise, they got a salary hike. 

But I wonder if it’s time to rethink this approach. And all the other managerial principals we’ve used to manage our staff. Maybe we need to consider micro raises and daily feedback.

There have been lots of studies and reports on the differences (and similarities) between the generations. Millennials are different from Xers, who are different from boomers. The different generations are motivated by different goals and needs.

It’s not my job to judge the differences, but instead learn to manage the resources I’m given.

I’ve found that many Xers and boomers dismiss the millennials as entitled; they refers to them as the generation that refuse to pay their dues. That’s silly and way too easy. It’s ridiculous to apply an Xer filter to their reality. Instead, I’ve found it more effective to change my systems to meet their needs. 

While we can’t provide micro official feedback, this year we’re moving to official data-driven survey-based feedback four times/year. (Informal real-time feedback and course correction is part of our culture.) This feedback is directly tied to raises, and our maximum raise amount has been announced.

Everyone knows how much they can earn if they score well on the feedback.

We also explored a micro raise system, but our HR and accounting systems couldn’t handle that approach for a company our size. Those departments, while  evolved, are still using boomer-built infrastructure. And yes, we are exploring different flexible systems for 2017. 

So far, the staff has been responsive to these improvements. But they’ve just been implemented so we’ll see how the year progresses. Regardless, through this process of self-discovery, we’ve learned a few important lessons:

1. Transparency is paramount. People want to know where they stand, and they want to know how decisions are made. They want to believe in the company and its leadership, but they won’t give you their loyalty simply because you think you deserve it and have a big title. You have to earn it.

2. Frequent feedback is critical. But it’s not why you might think. This is a group that grew up in a beta world. They can course correct, but they need the data. Frequent feedback isn’t to feel good; it’s to do better. 

3. Generational differences exist. Learn to embrace these differences and be willing to rethink every approach and policy used to manage and motivate.