Update Your Retention Strategy for Retaining Millennials in the Workplace
Working with millennials is significantly different than working with their older colleagues. Millennial values are often in sharp contrast to Baby Boomers and Gen-Xers. Without the promise of pensions or hefty retirement options, millennials are more prone to job hop until they find an employer that can meet their checklist of desires. In the past year, 21% percent of millennials switched jobs, while the turnover rate for the general population was 19.3%.
The U.S. economy spends about $30.5 billion a year on millennial turnover. These high costs should motivate more companies to focus on retaining this age bracket of their employees.
Retaining millennials in the workplace starts with attracting quality talent and giving them what they want. These 10 tips below can help you learn about the millennial values that affect their wants and needs and boost millennial retention at your company.
1. Offer Flexible Work Policies
Retaining millennials in the workplace starts with giving them flexibility with their schedules, where they do their job (at home, at a coffee shop, or in an office), and the hours required. People perform better in different environments, and your millennial employees may get more work done outside of the office than in a traditional workspace. By focusing more on the work they can complete rather than the amount of time that they spend each day, you may be surprised by the uptick in productivity.
2. Opt for Performance-Based Compensation
Compensating your employees based on performance and not tenure also supports retaining millennials in the workplace. Everyone has access to salary information on the Internet, and millennials especially expect to be fairly compensated. If you offer more responsibilities, make sure you pair it with additional pay. Depending on your industry, you may want to introduce a performance-based pay scale that motivates your employees to accomplish their goals.
3. Increase Employee Engagement
Less than 30% of millennials are engaged at work so it’s imperative to continuously challenge them. Companies can provide experiences that get them more involved like bringing teams together for new projects. In turn, everyone will start to feel more connected within the company, and engaged workers will bet able to get more done.
4. Regularly Share Feedback
Millennials want to know how they’re doing and where they can improve, but only a third of millennials have this understanding. Provide regular feedback about their work and find ways to display the organization’s appreciation for their work. Everyone likes to know that their efforts aren’t going unnoticed.
5. Provide Ongoing Training
Offer training and development opportunities to help your millennial employees grow within their positions and as professionals. You can provide a full picture of how the many parts of the business work together as a whole by cross-training employees in different areas outside of their specific role. When departments understand each other’s goals and responsibilities, it helps improve overall collaboration and productivity. It also sets the organization up for success in the event you need a task handled outside of an employee’s usual wheelhouse.
6. Embrace Technology in Your Business Strategy
Innovate your business and embrace technology. Millennials grew up with computers and other devices at their fingertips, so they like the ability to use technology in their job. Review your IT policy to create a more tech-friendly workplace. You’ll likely find new ways to streamline your business, and in effect grow the company’s bottom line too.
7. Bridge Multi-Generational Gaps
Bridge gaps between millennials and older employees by creating partnerships or mentorships so that two employees from different age groups can learn from one another. Millennials have insights about technology and ways to streamline tasks, while senior employees can share knowledge typically only gained through experience. A mentor relationship will benefit both parties and help to cultivate trust and respect among employees.
8. Treat All Workers Fairly
This should go without saying but treat all employees the same. Millennials are more likely to leave a job after observing poor employer practices, so be careful not to favor one employee over another. Disciplinary actions and bonuses must be distributed based on consistent rules and guidelines that apply to everyone.
9. Get Involved in the Community
Sponsor community initiatives and encourage volunteering among employees. Millennials are interested in a company’s mission and values, so make it known how your company gives back. 78% in a survey from American Express said they want to work for an employer with values that match their own. Embed your mission into the company culture to help millennial employees feel good about their work and know that their efforts are having an impact.
10. Offer Health and Wellness Benefits
After family, millennials rank health and wellness second on a list of what they value most. Incentivize employee wellness or offer wellness programs, and you’ll be well on your way to giving your millennial employees what they desire. A few ideas are to provide a weekly yoga class, create a meditation room out of an unused storage area or office space, stock free healthy snacks in the breakroom, or offer walking or standing desks. Bonus points if you can incorporate technology into your health and wellness benefits.
Creating a positive work-life balance for your employees is essential to their well-being and retaining millennials in the workplace. By delighting millennial employees with the things that make them happy, you can increase overall productivity. And happy people are about 12% more productive.
Establish your employer brand and make it known outside of the company to attract new top quality talent. Future employees will research your brand online, so making your employees happy now can help in the long run.
According to a CareerArc survey of over 1,100 professionals, millennials are two and a half times more likely to share negative reviews about previous employers on social media than Gen-Xers. Retaining millennials in the workplace is also important to your employer branding strategy. If happy employees are sharing their favorable experiences with an employer online, they can aid in leveling out any poor reviews from dissatisfied employees.
Learn more about our solutions and how we can help your organization boost retention by scheduling a demo now.