According to a Gallup data study, millennials are by far the biggest generation to job hop – costing the economy an estimated $30.5 billion annually. The same study cites that 60% of millennials say they are open to a new job opportunity. Which means chances are, your 20 or 30-something millennial worker will eventually move on. The best strategy to avoid short-term turnover is to craft your Ideal Employee Target (IET) and subsequently decide what their life cycle will look like prior to hiring.
Below are a few ways to maintain longer employee retention, improve your company’s reputation and ensure hiring costs don’t skyrocket.
Millennials crave a job with a purpose, not a paycheck
Empowering your employees with a purpose at work helps them envision a long-term future with your company. Social media has bred a culture of an endless search for happiness. If an organization is unable to map out a plan for employee advancement, or clearly highlight how they are a making positive change – younger workers will not see a clear reason to stay. Millennials need a strategic cocktail of altruism, direction, and meaning. Airbnb is a great example. The company’s rapid rise to fame was largely made possible by proliferating its brand purpose throughout all of its behavior. Which included embedding that mission into employee roles.
Strong motivation is the linchpin of engagement
Finding, hiring, and onboarding an employee’s replacement is time intensive and costly. To avoid this, plan well in advance for the person’s eventual exit by making sure you outline the employee’s life cycle, annual review and raise timeline early on. Millennials are motivated by consistently being recognized as valuable to their employer. Make sure their starting salary includes room for regular raises so they stay motivated. Similarly, budget your operations to invest in training, office perks and bonus incentives to maintain engagement.
The gig economy is alive and well – which means the competition to keep employees is higher than ever
Different from previous generations, millennials are largely attracted to positions that offer flexibility and don’t tie them down to one skillset. Part-time positions, side hustles, and temporary gigs provide that flexibility – which means achieving millennial job satisfaction is harder than ever before. According to a study done by Upwork listed in Forbes, it’s predicted that the majority of U.S. workers will be freelancing by 2027. A testament to the younger workforce opting for independence, wider choice, and an improved work/life balance. In order to stay relevant and retain top talent, embed the need for creativity within a role, foster flexible working hours and encourage the desire to build new skill sets.
It’s impossible to build a business without the right people working for you. To make sure you attract and retain the best talent – compensate correctly from the start, build a strong promotion and raise timeline and cultivate a challenging but supportive culture. Maintaining a successful talent management program is always a delicate balance but establishing a thoughtful strategy from day one will help you maximize each individual’s tenure with your company.