Introduction
Millennials—those born between 1980 and 2000—are projected to make up 50 percent of the workforce by 2020 and 75 percent by 2025. As more baby boomers retire, no longer are millennials the workers of the future; instead, they are the leaders of today. A lot has been said about millennials, but one thing that most studies can agree upon is that millennials are more likely to job hop than their older co-workers.
Turnover Costs
Turnover can be extremely expensive for employers when lost productivity and replacement costs are taken into account.
- For instance, on average, it costs six to nine months’ salary to replace a salaried employee.
- High turnover can also harm your company’s culture and cause remaining workers to become disengaged.
As more millennials enter the workforce, figuring out how to retain them will be essential. This toolkit provides insight into the typical characteristics of millennials and outlines how to hold onto millennial talent, so you can minimize turnover and boost your bottom line.
How to Retain Millennials
According to a study from Multiple Generations at Work, 91 percent of millennials will stay at a job for less than three years—a pace that equates to 15-20 jobs over the course of their careers. The average cost to recruit an entry-level employee ranges from $3,000-$6,000, and that doesn’t even factor in indirect replacement costs.
What do Millennials Value?
The following are some general characteristics of millennials:
- Millennials are highly educated, tech-savvy, hard-working and altruistic.
- Millennials grew up in the aftermath of the recession; as a result, many distrust corporate America.
- Millennials grew up witnessing the successes of tech startups like Facebook and Uber, and aspire to the innovative work cultures these companies embody.
What millennials value is really not that different than other generations, though, according to a study from Harvard Business Review. All employees (millennials included) want to feel respected, be paid well, have good benefits and feel a greater sense of purpose in their work.
So while it is important to be aware of the differences between generations, focusing too much on millennials can cause workplace division and resentment. Instead, employers should aim to find retention and engagement strategies that will benefit not only millennials, but all generations in the workplace.
How to Retain Millennials, or any Generation, in the Workplace and Reduce Turnover?
For more information about retention strategies, contact Howell Benefit Services today for an HR Toolkit entitled Recruiting and Retaining Millennials. Please email us at info@howellusa.com or call us at 888.831.9966.
This HR Toolkit is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2016 Zywave, Inc. All rights reserved.
