Many companies find that employee retention of the millennial generation is a difficult task. In fact, according to LinkedIn, 1 in 3 millennials are open to a new job opportunity right now! With the cost of replacing a single employee amounting to anywhere from half to two times their annual salary, taking proactive steps to improve employee retention can save companies time and money down the line. Let's take a deeper look at how your company can improve its millennial retention strategies and reduce employee turnover.
Who are millennials and what sets them apart?
Millennials are often defined as the generation that was born between 1981 and 1996. This means they are now adults between 23 and 40, and according to recent studies, they make up the largest segment in the workplace.
What do millennials value the most?
Millennials grew up in a time of rapid technological advancement, which influenced their attitudes toward work and communication. Millennials value:
- work-life balance
- flexibility
- social responsibility
- meaningful work, and
- career development opportunities
They are less likely to stay in a job for the sake of loyalty and are more likely to leave if they do not feel fulfilled or if their values do not align with their employers.
Millennial employee retention strategies
Here are some best practices to consider when trying to retain millennial employees, while also improving their satisfaction and productivity. (It’s a win-win-win!)
1. Understand this generation: It’s particularly important to understand and address generational differences. Use metrics and benchmarking to segment your workforce in order to understand what millennials want and how these desires might be different from older workers.
2. Prioritize flexibility and work-life balance: Millennials want flexibility. Beyond offering flexibility around where and when employees work, you can also promote a healthier work-life balance through actions and policies like discouraging after-hours messages (including those from managers) and mandating a certain amount of time off each year.
3. Feedback, feedback and more feedback: Millennials want and value frequent feedback. Unlike the past where people received annual reviews, millennials want to know how they’re doing much more regularly. Give honest feedback in real time — and highlight positive contributions or improvements on key competencies.
4. Help millennials grow: Managers need to really understand the personal and professional goals of millennials. Consider ways to create internal mobility, such as special rotational assignments to give them a sense that they are moving toward something and gaining a variety of experiences.
5. Allow faster advancement: Historically, career advancement was built upon seniority and time of service. Millennials don’t think that way. They value results over tenure and want career advancement much quicker than older generations are accustomed to. A relatively simple solution, such as adding more levels or grades, could be enough to meet their expectations.
6. Encourage learning: Millennials want to experience as much training as possible. Build and measure the effectiveness of mentoring programs alongside other learning and education. Consider allocating projects to talented millennials which fall outside their day job. Let them connect, collaborate, build their networks – and most of all innovate.
We are here to help
Millennials will become the overwhelming majority of the workforce by 2025, so it’s important your company addresses any turnover struggles with them sooner rather than later. If your company is struggling, you’re definitely not alone. The good news is that you can turn this around, and we can help.
myHR Partner, a recipient of Inc. magazine’s prestigious Best Workplaces list for 2023, is a human resources outsourcing firm committed to making professional HR services and strategies accessible. We love to talk about HR, and would be happy to discuss whether we could be a good fit for helping your company by managing employee relations, providing management counsel, conducting your hiring services, or managing other aspects of HR. Let’s chat!
Topics discussed
Related Posts
