For the past three years, the prestigious Wharton School at the University of Pennsylvania has offered a "work-life" integration course on how to balance work and personal commitments without sacrificing career goals. When a high-powered MBA program like Wharton turns its attention to this issue, it's a sign that the business community is taking it seriously.

With studies showing that one of employees' highest priorities is achieving a healthy balance between their careers and their personal lives, this attention is well placed. This concern is especially prominent among younger employees, who seem less satisfied with working conditions than previous generations. According to a survey of 7,718 Americans aged 18 and over, conducted by Harris Interactive Inc. for Age Wave, an independent think tank, just 45% of employees are satisfied or extremely satisfied with their jobs. Younger workers are the most distressed, and they feel the least amount of loyalty to their employers, the study, released earlier this year, found.

Maybe it's not surprising that younger workers are more dissatisfied with their jobs and are less loyal to their employers. Consider what workers in their 20s and 30s have witnessed: frequent mergers and acquisitions leading to layoffs of their parents and themselves, workers displaced by outsourced jobs abroad, high-profile corporate financial scandals, and many manufacturing jobs lost to global competition. The result- younger workers have a different outlook on the workplace and on life in general. Studies show that many workers of all ages, but particularly those under 40, would gladly take a reduced salary in return for more time to spend with their families or for personal pursuits.

Perhaps after witnessing the erosion of job security, Generations X and Y's attitudes of less loyalty to employers and less emphasis on their careers for personal fulfillment are just more realistic. This isn't to suggest that younger workers don't have a strong commitment to their careers-they do. But they have different values and expectations, the foremost of which is that receiving the highest possible compensation isn't necessarily their top priority. The good news is that because of this, firms can offer innovative, relatively inexpensive benefits that will attract and retain these workers, and in time possibly make them more loyal.

More vacation time
Workers responding to the Age Wave survey overwhelming ranked more paid vacation time as their biggest desire. This response received more than twice as many votes as both a more flexible work
schedule and paid maternity leave. We find that in many cases recruits want to negotiate an additional week or two of vacation time more than almost any other perk when considering a job offer. People really do attach a great deal of value to time off from the daily grind.

Another way to address this issue is to offer comp time bonuses when individuals, groups, or the entire firm achieve certain goals. For example, when a challenging project is completed on time and on budget, particularly when people have been putting in many long hours, an extra day or two off so employees can enjoy a long weekend is an appreciated reward.

Flexible work hours
Another non-monetary perk that employees are coming to value more is flexible working hours. It can be difficult for some firms to allow employees to adjust their schedules when people working in teams need to be available for one another, and/or for some to be available for clients. But with e-mail, workgroup software, cell-phones, and Blackberry-type wireless devices commonplace today, these difficulties can be mitigated.

Flexible work hours appeal, of course, to parents who need to shuttle children to daycare, doctor's visits, and the like. Also, as the workforce ages, employers will likely need to spend more time with family members, many of whom are older and may be in need of special care. When making flextime available, the important thing is to have clear, firm-wide guidelines in place so that a perception of favoritism does not crop up when individuals take advantage of this benefit.

Training and opportunity to improve skills
The Age Wave survey found that one-third of workers believe they've reached a dead end in their jobs, with substantial numbers of employees seeking changes at work or new jobs altogether. Professional development was one of the most highly valued benefits. We have touted the benefits of employee training to the firm and the employee in other issues of this newsletter. To reiterate, employees want opportunities to acquire new skills and make themselves more marketable. Although providing those opportunities doesn't guarantee that they will remain with the firm for their entire career, it can increase the odds.

The bottom line
With employees, particularly younger ones, valuing time off, flexible schedules, training, and opportunity to grow more than increased compensation, small and mid-sized firms, and firms outside of the largest metro areas, can entice recruits with attractive benefits that can tip the scales in their favor, even if they can't offer top-dollar salaries and bonuses. Conversely, firms that rely on high compensation to attract talent may want to consider these other factors.

What do you think? Let us know.