A Gallup study estimated that millennial turnover due to lack of engagement costs the U.S. economy more than $30 billion each year. This trend is undoubtedly mirrored in every other Western economy in the world. What can companies do to improve their retention rates? What can be done to retain millennial talent and build a culture of engaged and motivated people? Let’s take a look at Deloitte and how they plan to retain millennial talent.
A new approach to retain millennial talent for a new generation
The Millennial generation, usually defined as those born between about 1980-2000, are surprising many employers. Even in these economically difficult times, many are demonstrating little loyalty to their employers, and they do not respond to the same incentives as previous generations. Employers are not sure how best to retain millennial talent.
What are Millennials looking for?
- More than 66% of Millennials intend to leave their current employer before 2020
- 25% plan to leave even earlier – over the next year
Employees are expensive to train, and even more expensive to replace. So, where and how can employers attract and keep the best Millennials?
Deloitte’s survey revealed that although pay and other financial benefits are important to Millennials, money is not the only concern. These other factors are what make them different as a group to older employees. Deloitte defines it as a purpose gap. Millennials see a gulf between what they expect from a business and what that business is offering.
More than 66% of Millennials intend to leave their current employer before 2020
Millennials: very demanding employees
Millennials have high expectations of their employers. Perhaps older generations expect less or have reached a stage in their life where they have compromised some of their values. Others may be fortunate enough to be settled with a compatible employer. Others have shifted their work life balance attitude and may find fulfilment outside of the work environment.
Perhaps older generations expect less or have reached a stage in their life where they have compromised
Millennials are still building their career and probably looking at future growth and advancement opportunities. In this digital age, with instant gratification, they have less patience for a vague promise of future responsibility. They are looking for concrete plans to help them advance quickly.
Millennials have high expectations of their employers
They are also looking for a better cultural fit than previous generations. They expect to work for organisations who take an interest and help employees with job satisfaction and make an improvement in their lives. This can mean lots of things to lots of different people.
Some Millennials are looking for employees to make positive contributions to wider society. Others may be looking for a more comfortable work environment that provides enough flexibility to facilitate an improved work-life balance.
They are also looking for a better cultural fit than previous generations
To retain talent that was born in the run-up to the new millennium, organisations need a 21st-century approach.
What do good employers need to consider?
1. Build a sense of purpose
First of all, employers also need to think about their sense of purpose. If it is not easily identified, Millennials may not even consider working for the organisation as it will have little to no appeal. Good potential employees don’t even give them further thought.
Organisations must have a clear sense of purpose. This should be understood by existing employees and obvious and accessible to prospective employees. Organisations who are aware of their social impact will gain not only a good reputation but will also attract the like-minded Millennials most likely to fit their corporate profile.
2. Promote improved work-life balance
Employers can also go a long way toward promoting an improved work-life balance by establishing and supporting flexible working policies. Research shows that these can improve productivity as well as job satisfaction:
- working from home
- robust use of appropriate technology
- open communications in general
3. Be involved in the community
Millennials generally respond positively to organisations that make a difference to the wider community. This can range from supporting charitable events and other worthy causes to partnering with schools and other institutions. Millennials want an opportunity to become a part of this philanthropy within their employment.
Millennials generally respond positively to organisations that make a difference to the wider community
Millennials, as Deloitte discovered, are not averse to corporate profitability. However, they are averse to short-term gains at the expense of the future. Efforts to give back to the community or to society must be sincere.
4. Be genuine
Millennials are also very good at differentiating between organisations that have a genuine interest in their purpose and those that are only making the right comments but are not following through. It will be a challenge to retain talent if an organisation’s words are not backed up by actions.
Millennials, as Deloitte discovered, are not averse to corporate profitability
Millennials, already the largest group of employees, are ready to give more than past generations of employees have ever done before. Your organisation will benefit if you give them the opportunities and sense of purpose they are looking for – win-win all round.