Does your company have a millennial retention strategy? The rapidly growing millennial workforce is changing ideas of loyalty and employee retention in the workforce. According to the The Deloitte Millennial Survey 2016, two-thirds of Millennials express a desire to leave their organizations by 2020. Businesses must adjust how they nurture loyalty among Millennials or risk losing a large percentage of their workforces. Since most young professionals choose organizations that share their personal values, it’s not too late for employers to overcome this “loyalty challenge”. Companies that approach employee retention in the same way that they did even five years ago may lose their most valuable young talent; as our Employee Education Specialist, Caleb Bagwell wrote about just last week, the cost of replacing employees is high.
Here are 4 job drivers to implement into your company’s culture to influence Millennials in the workplace and how you can translate those concepts into effective employee retention programs.
Recognizing Generational Differences
Generational differences in the workplace has become a HR hot topic and for good reason. More than one-in-three American workers today are Millennials (adults ages 18 to 34 in 2015), and this year they surpassed Generation X to become the largest share of the American workforce, according to 2015 Pew Research Center analysis of U.S. Census Bureau data. It is likely that experienced baby boomers approaching retirement may have different benefit and lifestyle priorities than your new millennial. While compensation and the quality of the work experience remain important across segments, failing to understand that different generations may have different expectations and preferences can lead to challenges at all levels of the organization. With the youngest baby boomer being age 52, doing the math lets you know that in 10 years, your company is going to look a lot different than it does today. Utilizing a workforce leadership and education consultant to bridge the communication gap is integral to growing a sustained, experienced new group of employees.
Benefits and Compensation
Millennials are bringing to the table a new set of benefit expectations for you to examine; therefore, it can be easy to lose sight of traditional compensation and benefits. However, these areas still give employers an edge in recruiting and retention. One study discussed by SHRM found that 62 percent of Millennials would leave their jobs for better family benefits. The same study found that 41 percent indicated that a lack of family-friendly support had negatively impacted their work experience. As a result, it’s useful for companies to evaluate what their competitors are offering their employees. Are compensation and benefits on par with industry best practices or averages? Millennials need to feel valued and do not need any extra incentive to look for a job with your competitor. It is a good business practice for all generations of your employees to make sure their compensation and benefits are in line with industry standards.
The continued rise of trends like telecommuting, flexible scheduling, freelancing, and job sharing has shaped Millennials’ expectations of the workplace. As they advance in their careers, they’re more likely to be concerned about work-life balance, whether it’s in response to family demands, health, or outside interests. Companies that provide some level of flexibility are often able to hire more millennial talent by taking steps such as experimenting with unlimited vacation time and implementing structured telecommuting policies. While there are a wide variety of benefits around the idea of work-life balance, it’s important to be realistic about what works for your company, workflows, and culture. However, in general, the more you’re able to provide your workers with flexible benefits, the easier it may be to retain millennial employees.
Collaboration and Learning
Collaboration and feedback are critical to keeping Millennials satisfied at work. Businesses are faced with how to make that crucial communication a reality. Finding ongoing ways to support learning and collaboration, from formal mentorship programs to investing in training programs, may also help increase retention. Today’s younger workers have a strong desire to contribute, but also want work-life balance, flexibility, and collaborative environments. By recognizing what energizes Millennials at work, it may be easier to create more effective employee retention programs.
Jamie Kertis, AIF®, QKA
Retirement Plan Specialist
Grinkmeyer Leonard Financial
1950 Stonegate Drive / Suite 275 /Birmingham, AL 35242
Office: 205.970.9088 / Toll-Free: 866.695.5162