Big pay packages are no longer the key to attracting the best employees and companies need to re-think how they reward their staff or risk losing the best talent, according to research by PwC.

PwC's NexGen study of over 44,000 workers was conducted in conjunction with the London Business School and the University of Southern California. It looked at the so-called 'millennial generation, born between 1980 and 1995, who will make up 50% of the workforce by 2020.

The research found that this cohort of workers was more likely to choose workplace flexibility, work/life balance and the opportunity for overseas assignments over financial rewards.

The survey shows that millennials are more likely to stay in a job if they feel supported and appreciated, are part of a cohesive team and have greater flexibility over where and how much they work. This contrasts with the non-millennial generation, who place greater importance on pay and development opportunities.

Flexibility is seen as a key priority for both generations of workers, with 21% of female and 15% of male respondents saying they would give up some of their pay and delay a promotion in exchange for more workplace flexibility.

Millennials are more enthusiastic about going on global assignments, with 37% saying they would welcome the opportunity compared to 28% of non-millennials, and almost twice as likely to discuss their pay with co-workers (43% of millennials would do so, compared with 24% of non-millennials).

However, unlike past generations who were willing to work beyond their contracted hours in the hope of rising to higher-paying positions later on, millennials are largely unwilling to give up a good work/life balance, the study found.

Gaenor Bagley, head of people at PwC, said: 'Millennials view work as a thing, rather than a place, so companies will need to free themselves from the traditional nine to five mentality if they want to attract and retain this generation of workers.'