The Power of One: The Rise of Personalized Employee Motivation

Andras Rusznyak

artificial intelligence expert

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Introduction

Today’s workforce is more diverse and dynamic than ever, spanning multiple generations with distinct experiences and values. Yet many companies still rely on standardized reward systems and general employee value propositions. The problem? Treating all employees the same overlooks the unique drivers that energize each person. Even individuals in identical roles can have very different motivators, if we imagine two aspiring team leads — one driven by success and financial rewards, the other by purpose and work-life balance. Both excel in their jobs, but could contribute even more if their organization tapped into their different motivations. This realization has fueled the rise of personalized employee motivation – an approach to understanding what makes the people in the organization tick — at an individual level. Instead of assuming a uniform set of incentives will inspire everyone, personalized motivation treats each employee as a workforce of one, tailoring experiences and rewards to what motivates that specific person.

IMPORTANT NOTE:

This article is intended to be an informative piece, based on various research papers and studies listed under the Sources section. These studies were conducted at different times and each had their own limitations. We did not carry out field research, surveys or interviews, nor did we validate the findings of the mentioned studies under current conditions.

Personalized motivation means designing HR practices (feedback, recognition, compensation, career paths, etc.) to align with each employee’s distinct drivers, rather than applying blanket policies. In essence, it is motivation hyper-customized to the individual worker as a unique human being. This concept builds on earlier ideas like mass customization in HR, but has gained new momentum due to shifting expectations and technological advances. As one HR leader put it, “We are consumers inside and outside of work, and we have come to expect a level of personalization and choice in the workplace that we are provided with outside our work life.” By catering to motivations at the individual level, organizations can harness the potential of each person to move business priorities forward.

Several factors converged to drive the emergence of personalized motivation. First, employees themselves are demanding it. According to Deloitte’s 2025 survey, 60% of workers expect their organization to increase their motivation to perform, yet only 33% strongly believe their managers understand what truly motivates them (1). In other words, there is a clear gap between the motivation employees crave and what management perceives. Second, leaders have recognized that traditional segmentation (by role, generation, etc.) is not enough. In Deloitte’s study, 67% of business leaders said customizing work experiences based on individual characteristics (skills, behavioral patterns, passions) is important, but many struggle to go beyond broad personas (1). Simply grouping people by generation or department can miss important motivational differences and even perpetuate stereotypes. The real last mile in unlocking performance is to reach each person individually.

Advances in HR technology and analytics have made this feasible. In the past, companies lacked the data or tools to personalize at scale. Today, widespread use of people analytics and AI enable employers to gather granular data on employee preferences, behavior, and performance. AI-driven tools can analyze large volumes of HR data, identify patterns, and generate actionable insights to tailor interventions. As one research paper argues, personalized HR management – facilitated by HR analytics and AI – “offers beneficial performance impacts on top of those from other” high-performance HR practices. In fact, personalized HRM powered by these technologies is viewed as “a unique and sustained competitive advantage” for organizations (2). Simply put, it can boost outcomes beyond what generic programs achieve. This potential is shifting personalized motivation from a niche idea to a mainstream strategic priority. Fifty-five percent of leaders in one survey said it’s “critically or very important” to use new technologies to hyper-personalize how they influence workers based on individual motivations (1).

Achieving motivation at the unit of one requires a supportive organizational infrastructure. Data is the foundation. Companies must collect and synthesize information on what each employee values, their strengths, goals, and even personality traits. Some are doing this through worker surveys, assessments, and profile tools. For example, Johnson & Johnson shifted to a “whole-person” talent model that considers each individual’s skills, experiences, and motivations. J&J invites employees to fill out profiles and psychometric tests, then encourages managers to use those insights in one-on-one check-ins and workforce planning to find roles and tasks that best fit each person. In this way, data on an employee’s drivers (maybe a desire to work with cutting-edge tech, or a passion for helping customers) directly informs decisions about their work, resulting in better alignment and engagement.

HR analytics and AI systems play a powerful role in turning such data into personalized action. Advanced analytics can segment employees by motivators or predict which incentives will improve a specific person’s performance. AI can enable scalable personalization—recommendation engines suggest learning opportunities tailored to an individual’s career goals, or algorithms flag who might need extra recognition versus who craves new challenges. According to researchers, organizations are using AI-driven tools for everything from personalized learning (recommending training based on one’s needs) to real-time feedback systems that adapt to an employee’s emotional state. By crunching HR data, AI can help managers identify what mix of rewards (pay, autonomy, purpose, etc.) will most inspire a given employee. Importantly, these technologies allow personalization at scale – something that would be impossible if every manager had to manually analyze each individual’s motivations. As the study notes, implementing personalized HRM does require investments in HRIS, analytics, and data integration, but the benefits can quickly outweigh the costs through gains in productivity and even reduced training waste (2).

However, technology alone is not enough. Manager enablement and a culture shift are critical. Front-line managers must be equipped to interpret personal motivation data and empowered to act on it. This might mean training managers to discuss motivators in coaching conversations or giving them leeway to offer tailored rewards. Not every organization has cutting-edge AI yet, but they can start with low-tech steps. Making motivation personal doesn’t always require big budgets or cutting edge technology. Companies can begin simply by asking managers to understand their team members’ unique motivations and adjust their feedback, development plans, and recognition accordingly. Even without fancy software, a manager who knows that Employee A is motivated by public recognition and Employee B by growth opportunities can respond in personalized ways. In practice, this might look like offering Employee A frequent praise in team meetings and visible awards, while providing Employee B with stretch assignments or training programs. The key is that leadership and HR give managers the insights (e.g. via a purpose built dashboard or report) and the flexibility to differentiate how they treat employees based on individual motivators. Policies may need to become more fluid — for instance, allowing customizable benefits or different career paths — so that employees can “opt in” to what motivates them most.

Finally, personalized motivation requires guardrails and integration with company goals. By its nature, tailoring experiences to each person raises questions of fairness and consistency. HR must ensure that personalization doesn’t devolve into favoritism or fragmentation. Balancing individual approaches with something that unites employees is necessary to keep the workforce together – organizational purpose, culture and values become even more vital. Data transparency and ethical use are also paramount; employees need to trust how their personal data will be used to motivate them. When done right, personalized motivation aligns what an individual wants with what the organization needs. It creates a win-win: the employee feels more seen, valued, and engaged, and the company benefits from a more energized, high-performing workforce.

Adopting personalized employee motivation can yield significant gains in engagement, productivity, and retention. When people feel personally understood and supported, they are more likely to go the extra mile. Instead of working just for a paycheck, they connect their own aspirations to their work. Personalized HRM “broadens the ways in which HRM creates a unique and sustained competitive advantage” and can take the ROI of talent programs to new heights (2). One concrete example comes from a financial firm that applied behavioral analytics to personalize how they motivated stock traders. By addressing unconscious drivers specific to each trader, the firm saw a 9% improvement in those employees’ well-being and an 18% increase in retention over the next year. Notably, the company also enjoyed an estimated 3% uptick in net profit as a result of managing individual motivations more effectively (1). This illustrates how tailoring motivation isn’t just a “feel-good” initiative – it directly impacts the bottom line through better performance and reduced turnover.

At a broader level, personalization can enhance overall employee experience and culture. Workers who might be disengaged under a generic management approach can thrive when their employer “gets” them. For instance, a creative, purpose-driven employee could become frustrated in a rigid environment, but if given meaningful projects and autonomy aligned with their passion, their engagement soars. A data-driven engineering type might light up when shown metrics of their progress or given technical learning opportunities. By personalizing, companies tap into these triggers for engagement that would otherwise be missed. According to McKinsey, studies have linked higher engagement to higher productivity and innovation, meaning personalized motivation can spark innovation by encouraging people to bring their best, most creative selves to work (3).

Moreover, personalized motivation contributes to greater employee satisfaction and loyalty. When individuals receive rewards or development that matter to them personally, they feel valued as more than just “cogs in a machine.” This can improve retention, especially among talent who might leave in search of environments that fit them better. Research on generational turnover shows that younger employees in particular are quicker to leave unsupportive companies – for example, one analysis found Generation Y’s resignation rate was significantly higher than Generation X’s (87% vs 11% in one firm) (7), highlighting a retention challenge. Personalizing the work experience can give these employees reasons to stay by meeting their distinct needs (be it mentorship, flexibility, or rapid advancement). While personalization does involve effort and some upfront investment, its ability to unlock discretionary effort and build commitment makes it a powerful lever for engagement. In short, employees work harder and smarter when their organization appeals to what personally drives them – whether that’s striving for a bonus, a promotion, peer appreciation, or a higher purpose.

Never have workplaces had such a mix of generations working side by side – from Baby Boomers in their 60s to fresh Gen Z graduates in their early 20s. Each generation came of age in different times and tends to bring different attitudes toward work. Baby Boomers often value job security, Gen X emphasizes work-life balance, Millennials and Gen Z seek meaning, growth, and a company ethos they believe in. These broad tendencies influence what each group finds motivating. For example, younger employees (Millennials, Gen Z) are far more likely to care about an employer’s ethics and diversity and expect flexibility in when/where they work (6). In contrast, many Gen Xers came to value independence and self-reliance in their careers, and Boomers may be motivated by loyalty and positional authority. Such differences pose a challenge: How can an organization keep all these cohorts engaged simultaneously?

This is where personalized motivation truly shows its strength. Rather than designing separate programs for Gen X versus Gen Z (which can backfire by stereotyping), personalization lets you motivate every individual in the way that works best for them – regardless of generation. It acknowledges generational trends but doesn’t assume every person conforms to them. Studies on workplace motivation across generations underscore that while there are group patterns, variation within a generation is huge. One global study found Generation Z employees derive more of their motivation from intrinsic sources than Gen X or Y (for instance, finding greater inherent enjoyment in work tasks) (4). The same study noted Gen Z is uniquely responsive to tangible rewards (extrinsic “material” motivators) whereas Gen X places relatively more importance on social recognition and praise. Meanwhile, Gen Y (Millennials) showed a distinct desire for personal growth and feedback (“introjected regulation”) as a motivator. On the other hand, a South African study found surprisingly few differences in intrinsic vs extrinsic motivation preferences between generations, except that Millennials reported a higher need for autonomy than Gen Xers (8). The authors concluded that it’s more crucial to focus on individual preferences within groups than on generational averages. These findings all point to the same conclusion: generational labels alone do not predict what motivates any given employee.

Personalized employee motivation is changing the game for HR and people management. By treating employees as one person workforces, organizations can move beyond generic engagement tactics and unlock each person’s full potential. This approach emerged from the recognition that workforce diversity – whether generational, cultural, or personal – calls for a more nuanced touch. Enabled by HR analytics and AI, and driven by a consumer-like expectation for choice, personalization tailors the work experience to fit individual drives. It requires new infrastructure: companies must gather data on what makes employees tick, invest in tools to glean insights, and empower managers to act on those insights. The payoff, however, is a workforce that is highly engaged, motivated, and high-performing. Employees respond with greater loyalty and effort when their organization invests in understanding their unique aspirations.

For experienced HR professionals, the rise of personalized motivation offers a practical path to tackle persistent challenges like disengagement and high turnover. It particularly shines in motivating a multigenerational workforce, turning what could be a source of tension into a strength. Instead of juggling conflicting generational programs, HR can implement a flexible framework that gives each employee—young or old—what they need to thrive. As research and real cases show, common themes like teamwork and growth cut across age groups, but the magic happens when you dial into the individual level. Personalization doesn’t mean chaos or catering to every whim; it means systematically aligning what the organization offers with what truly motivates each person, then watching both the business and its people flourish in tandem. In the emerging future of work, motivation may very well be the last mile of human performance, and getting it right at the individual level could be HR’s most powerful lever for success.

By personalizing motivation, companies can accommodate these multigenerational nuances without pigeonholing anyone. For instance, a Boomer nearing retirement might be invigorated by mentoring younger colleagues (tapping an intrinsic desire to leave a legacy), while a Gen Z newcomer may be motivated by frequent feedback and public recognition for achievements. A standardized program might offer neither of these: it could mistakenly assume everyone just wants a bonus or a promotion. Personalization ensures each person gets what motivates them – whether it’s more autonomy, team camaraderie, mission-driven work, or learning new skills – regardless of age cohort. It also helps avoid generational “reverse mismatches”, like managers thinking all young people only care about quick rewards when many actually seek purpose and growth. Instead of relying on clichés (e.g. “Millennials need constant praise” or “Gen X prefers to be left alone”), managers use real data and conversations with each employee. This leads to more effective motivation because you might find a Gen Z employee who does value job security highly, and a Gen X employee who craves creative freedom – breaking the mold.

Personalized motivation addresses the multigenerational challenge by creating a more inclusive environment. Each generation feels heard and valued on its own terms. Interestingly, some motivators cut across age groups: one study found working in a cohesive team was the single most desired motivator for employees of all three generations (5), even if the percentages differed. A tailored approach can leverage such common motivators as unifying factors (e.g. fostering teamwork) while still customizing other incentives. It also allows organizations to adjust as generational makeup shifts. With Gen Z expected to form 30% of the workforce by 2030 (6), personalization can ensure their expectations (like diversity, equity, and inclusion, or flexible work arrangements) are met alongside the needs of other groups. Essentially, personalization provides agility in people management – rather than redesigning programs whenever a new generation enters, you continuously adapt to each person. This helps prevent disengagement of any cohort. For example, if mid-career Gen Xers feel overlooked in favor of attention lavished on younger workers, personalization can correct that by addressing the Xers’ own motivators (perhaps leadership opportunities or work-life balance support) so they too remain engaged.

Finally, personalized motivation fosters intergenerational understanding. When managers treat employees as unique individuals, it reduces age-based assumptions and resentment. Younger and older team members see that everyone is being supported according to their needs, which can build mutual respect. Importantly, personalization does not mean isolation – it’s about fairness through flexibility. All generations share the desire to be motivated, just in different ways. By designing a system that can flex for anyone, organizations create a more equitable employee experience, where a 60-year-old and a 25-year-old each feel the company is invested in what drives them. This not only helps with motivation but also retention across the board – indeed, in one survey only the personalized approach left both Gen Z and Gen Y employees satisfied with their incentive systems, whereas Gen X employees were notably dissatisfied under traditional schemes (5). The takeaway is clear: a multigenerational workforce isn’t a problem to be solved by separate policies for each age group, but an opportunity to engage a rich variety of talent through individualized motivational strategies.

Figure 1: Generational differences in preferred motivators (non-financial). Survey data reveal that “working in a well-coordinated team” is the most valued motivator across all generations, but its importance declines from 79% of Gen X to 57% of Gen Z. Younger employees (Gen Z and Y) place relatively more emphasis on recognition from a superior and skill development opportunities, whereas older employees (Gen X) show more evenly distributed preferences (5).

What Is Personalized Motivation and How Did It Emerge?

How Personalized Motivation Works
(Infrastructure and Practices)

The Payoff: Engagement and Performance at New Highs

Motivating a Multigenerational Workforce through Personalization

Conclusion

Sources

1. Deloitte (2025). What moves your people? Tapping into motivation at the unit of one. Deloitte Global Human Capital Trends. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2025/employee-personalization.html

2. X. Huang, F. Yang, J. Zheng, et al. (2023). Personalized human resource management via HR analytics and artificial intelligence: Theory and implications. Asia Pacific Management Review.
   https://www.sciencedirect.com/science/article/pii/S1029313223000295

3. Asmus Komm, Fernanda Mayol, Neel Gandhi, and Sandra D (2025). A new operating model for people management: More personal, more tech, more human
   https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/a-new-operating-model-for-people-management-more-personal-more-tech-more-human

4. Mahmoud, A. B., et al. (2021). “We aren’t your reincarnation!” Workplace motivation across X, Y and Z generations. International Journal of Manpower, 42(1): 193-209. https://www.researchgate.net/publication/341655732_We_arent_your_reincarnation_workplace_motivation_across_X_Y_and_Z_generations

5. Bielińska-Dusza, E. (2022). The Motivation of Generations: What Drives Generation X, Y, Z? Journal of HR Management Research, 2022(637177).
   https://ibimapublishing.com/articles/JHRMR/2022/637177/

6. Johns Hopkins Imagine (2023). Gen Z in the Workplace: How Should Companies Adapt?
   https://imagine.jhu.edu/blog/2023/04/18/gen-z-in-the-workplace-how-should-companies-adapt/

7. Perera, S. et al. (2022). “Leave or remain”: intentions of Gen X and Y employees. IMS, PMC9244235.
   https://pmc.ncbi.nlm.nih.gov/articles/PMC9244235/

8. Heyns, M. M., & Kerr, M. D. (2018). Generational differences in workplace motivation. SA Journal of HR Management, 16(1).
   https://sajhrm.co.za/index.php/sajhrm/article/view/967/1557

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