It's no secret that more and more millennial employees are hopping from one career to another. In fact, 91% of Millennials expect to stay in a job less than 3 years (Forbes), the cost of replacing a Millennial employee ranges from $15,000 - $20,000. Needless to say, implementing effective employee retention strategies for younger workers has never been more crucial.
To complicate Millennial retention further, technology (including the newest HR systems) and the Internet have enabled new avenues for entrepreneurship. So not only do companies have to compete against other organizations wooing away their young talent, but they now have to also compete with Millennials’ passion and entrepreneurial aspirations. Fifty-four percent of Millennials either want to start a business or already have started one (Kauffman). And 72% of Generation Z (the post-Millennial generation) want to start their own business (Global Messaging)
Leveraging Millennials' entrepreneurship desires is one strategy to effectively retain them as employees. This, along with the five other strategies below, will help you hang onto your future leaders and improve your retention rates.
One in four Millennials is "asking for a chance" to show their leadership skills (Deloitte Millennial Survey)
Coca-Cola recently launched Coke Young Professionals or CYP (pronounced "sip," get it?). CYP offers professional development, networking, and social events geared towards young professionals. These groups provide fertile ground for new ideas and provide Millennials the chance to contribute and lead, ultimately improving job satisfaction.
Young professional groups are also great environments to practice "reverse mentoring" where rising Millennial leaders can share their perspectives, ideas, and knowledge, both in-person and through digital tools, with more seasoned employees. This approach can be an integral part of mentorship programs and leadership development initiatives.
78% of Millennials are strongly influenced by how innovative a company is when deciding if they want to work there (Deloitte Millennial Survey)
LinkedIn empowers employees each quarter to come up with a new idea, put a team together, and pitch their idea to the executive team. If the idea is approved, they are able to spend up to three months dedicated to turning the idea into something that benefits the company. Millennial employees want to create, contribute, and innovate within the organizational culture.
The idea of intrapreneurship, behaving like an entrepreneur while working within a large organization, resonates with Millennials and can significantly enhance employee loyalty. Additionally, incorporating corporate social responsibility initiatives and providing volunteer opportunities can further engage millennial employees and align with their values.
The #1 reason Millennials leave organizations is the lack of career development opportunities (Forbes).
Zappos, the Amazon-owned online shoe and clothing shop, provides all the training and mentorship necessary so that any employee has the opportunity to become a senior leader within 5-7 years. They also offer a "skill set" system that allows employees to get certified and receive a pay bump with each new skill set acquired. This approach to career pathing and learning and development is crucial for retention.
Millennials' big career expectations—I'm going to be the CEO in one year—are tied to unrealistic timelines because so many leaders and organizations lack the ability to communicate the steps involved to move Millennials from where they are to where they want to be. If you employ tools like performance review software or an employee rewards system, you might be on the right track to attract and retain this generation of employees while promoting career advancement and internal promotions.
Seventy-eight percent of Millennials would choose to spend money on a desirable experience or event over buying something desirable (Eventbrite)
Square, the mobile payment company, hosts an annual competition that runs concurrently across all of their offices worldwide called the Square Games. The games give teammates the opportunity to both physically and mentally challenge each other while building stronger relationships. The event includes a picnic and 15 different games, including an obstacle course, dodgeball, human foosball, a giant game of Scrabble, and Dance Dance Revolution. Millennials value play and fun—the wackier, more off-the-wall, and unique the better. These experiences contribute to a positive work environment and improved work-life balance.
Forty-five percent of Millennials will choose workplace flexibility over pay.
Rigor, an Atlanta-based start-up, won the 2014 Best Places to Work in Atlanta Award with its “work from anywhere, anytime” and "take a vacation whenever you want" policies. Rigor builds trust and solidifies Millennial loyalty with work flexibility. The 9 to 5 model is eroding thanks to the rise of technology and hyper-connectivity. Creative scheduling, such as compressed workweeks and flexible schedules, can unleash Millennial creativity and contribute to better work-life integration.
Companies can also support work-life balance by offering generous vacation time and paid time off policies. Additionally, providing mental health support and wellness programs can further enhance employee well-being and job satisfaction.
On average, Millennials use three channels to stay in touch with parents, including email, video calls, texting, and social networks (NYMag).
Throw work parties that include family or consider what both Google and LinkedIn do and host a "Take Your Parents To Work Day." Family is one of the greatest influences for Millennials. Millennial loyalty will reign if you win over mom and dad. This approach can also be extended to include childcare subsidies or parental leave policies, further supporting work-life balance.
Boomerang Millennials, those that leave a company and then come back, can become a company's strongest ambassador because they know how good they have it. Whenever possible, conduct an exit interview to pinpoint the exact reason for the Millennial's departure so you can adjust your retention efforts accordingly. Having a strong offboarding program in place can assure you learn from these types of employee departures and make the most of them. And be sure to leave on good terms to increase the likelihood of a boomerang Millennial.
It's my hope that organizations begin to focus on the potential of the Millennial generation versus the shortcomings and/or what they still have yet to learn. Make the investment today in order to develop the leaders and workplace that will thrive tomorrow. Your organization's future vitality will thank you.
By implementing these employee retention strategies, companies can create a work environment that not only attracts but also retains Millennial and Gen Z employees. These approaches, which include mentorship programs, wellness programs, and recognition programs, can significantly improve job satisfaction and employee loyalty. Moreover, by focusing on diversity and inclusion, providing continuous learning opportunities, and offering flexible work arrangements, organizations can build a strong, dynamic workplace culture that resonates with younger workers and ensures long-term success.
To further enhance retention efforts, companies should consider offering financial security measures such as competitive salaries, student loan assistance programs, and opportunities for multiple jobs within the organization. Additionally, implementing digital tools for on-demand pay or earned wage access can appeal to millennial employees who value financial flexibility. By addressing these various aspects of employee satisfaction and engagement, organizations can create a comprehensive retention strategy that meets the diverse needs of their millennial workforce.