Millennials are like mobile devices: theyâ€™re everywhere. You canâ€™t visit a coffee shop without encountering both in large numbers. But after all, who doesnâ€™t like a little caffeine with their connectivity? The point is that you should be paying attention to millennials now more than ever because they have surpassed Boomers and Gen-Xers as the largest generation.
Unfortunately for the workforce, theyâ€™re also the generation most likely to quit. Letâ€™s examine a new report that sheds some light on exactly why that isâ€”and what you can do to keep millennial employees working for you longer.
New workforce, new values
Deloitte found that two out of three millennials are expected to leave their current jobs by 2020. The survey also found that a staggering one in four would probably move on in the next year alone.
If youâ€™re a business owner, consider putting four of your millennial employees in a room. Take a look aroundâ€”one of them will be gone next year. Besides their skills and contributions, youâ€™ve also lost time and resources spent by onboarding and training those employeesâ€”a very costly process. According to a new report from XYZ University, turnover costs U.S. companies a whopping $30.5 billion annually.
Letâ€™s take a step back and look at this new workforce with new priorities and values.
Everything about millennials is different, from how to market to them as consumers to how you treat them as employees. The catalyst for this shift is the difference in what they value most. Millennials grew up with technology at their fingertips and are the most highly educated generation to date. Many have delayed marriage and/or parenthood in favor of pursuing their careers, which arenâ€™t always about having a great paycheck (although that helps). Instead, it may be more that the core values of your business (like sustainability, for example) or its mission are the reasons that millennials stick around at the same job or look for opportunities elsewhere. Consider this: How invested are they in their work? Are they bored? What does their work/life balance look like? Do they have advancement opportunities?
Ping-pong tables and bringing your dog to work might be trendy, but they arenâ€™t the solution to retaining a millennial workforce. So why exactly are they quitting? Letâ€™s take a look at the data.
Millennialsâ€™ common reasons for quitting
In order to gain more insight into the problem of millennial turnover, XYZ University surveyed more than 500 respondents between the ages of 21 and 34 years old. There was a good mix of men and women, college grads versus high school grads, and entry-level employees versus managers. Weâ€™re all dying to know: Why did they quit? Here are the most popular reasons, some in their own words:
- Millennials are risk-takers. XYZ University attributes this affection for risk taking with the fact that millennials essentially came of age during the recession. Surveyed millennials reported this experience made them wary of spending decades working at one company only to be potentially laid off.
- They are focused on education. More than one-third of millennials hold college degrees. Those seeking advanced degrees can find themselves struggling to finish school while holding down a job, necessitating odd hours or more than one part-time gig. As a whole, this generation is entering the job market later, with higher degrees and higher debt.
- They donâ€™t want just any jobâ€”they want one that fits. In an age where both startups and seasoned companies are enjoying success, there is no shortage of job opportunities. As such, theyâ€™re often looking for one that suits their identity and their goals, not just the one that comes up first in an online search. Interestingly, job fit is often prioritized over job pay for millennials. Donâ€™t forget, if they have to start their own company, they willâ€”the average age for millennial entrepreneurs is 27.
- They want skills that make them competitive. Many millennials enjoy the challenge that accompanies competition, so wearing many hats at a position is actually a good thing. One millennial journalist who used to work at Forbes reported that millennials want to learn by â€śbeing in the trenches, and doing it alongside the people who do it best.â€ť
- They want to do something that matters. Millennials have grown up with change, both good and bad, so theyâ€™re unafraid of making changes in their own lives to pursue careers that align with their desire to make a difference.
- They prefer flexibility. Technology today means itâ€™s possible to work from essentially anywhere that has an Internet connection, so many millennials expect at least some level of flexibility when it comes to their employer. Working remotely all of the time isnâ€™t feasible for every situation, of course, but millennials expect companies to be flexible enough to allow them to occasionally dictate their own schedules. If they have no say in their workday, thatâ€™s a red flag.
- Theyâ€™ve got skillsâ€”and they want to use them. In the words of a 24-year-old designer, millennials â€śdonâ€™t need to print copies all day.â€ť Many have paid (or are in the midst of paying) for their own education, and theyâ€™re ready and willing to put it to work. Most would prefer you leave the smaller tasks to the interns.
- They got a better offer. Thirty-five percent of respondents to XYZâ€™s survey said they quit a previous job because they received a better opportunity. That makes sense, especially as recruiting is made simpler by technology. (Hello, LinkedIn.)
- They seek mentors. Millennials are used to being supervised, as many were raised by what have been dubbed as â€śhelicopter parents.â€ť Receiving support from those in charge is the norm, not the anomaly, for this generation, and they expect that in the workplace, too.
Note that itâ€™s not just XYZ University making this final point about the importance of mentoring. Consider Figures 1 and 2 from Deloitte, proving that millennials with worthwhile mentors report high satisfaction rates in other areas, such as personal development. As you can see, this can trickle down into employee satisfaction and ultimately result in higher retention numbers.
Figure 1. Source: Deloitte
Figure 2. Source: Deloitte
Failure to . . .
No, not communicateâ€”I would say â€śengage.â€ť On second thought, communication plays a role in that, too. (Who would have thought â€śCool Hand Lukeâ€ť would be applicable to this conversation?)
Data from a recent Gallup poll reiterates that millennials are â€śjob-hoppers,â€ť also pointing out that most of themâ€”71 percent, to be exactâ€”are either not engaged in or are actively disengaged from the workplace. Thatâ€™s a striking number, but businesses arenâ€™t without hope. That same Gallup poll found that millennials who reported they are engaged at work were 26 percent less likely than their disengaged counterparts to consider switching jobs, even with a raise of up to 20 percent. Thatâ€™s huge. Furthermore, if the market improves in the next year, those engaged millennial employees are 64 percent less likely to job-hop than those who report feeling actively disengaged.
Iâ€™ve covered a lot in this discussion, but hereâ€™s what I hope you will take away: Millennials comprise a majority of the workforce, but theyâ€™re changing how you should look at hiring, recruiting, and retention as a whole. What matters to millennials matters to your other generations of employees, too. Mentoring, compensation, flexibility, and engagement have always been important, but thanks to the vocal millennial generation, weâ€™re just now learning exactly how much.
What has been your experience with millennials and turnover? Are you a millennial who has recently left a job or are currently looking for a new position? If so, what are you missing from your current employer, and what are you looking for in a prospective one? Alternatively, if youâ€™re reading this from a company perspective, how do you think your organization stacks up in the hearts and minds of your millennial employees? Do you have plans to do anything differently? Iâ€™d love to hear your thoughts.
For more insight on millennials and the workforce, see Multigenerational Workforce? Collaboration Tech Is The Key To Success.