Millennials, both as consumers and as workers, are transforming America. Numbering in excess of 75 million, and all of working age between 22 and 38, Millennials are the largest generation in US history. They are also the dominant employee segment, accounting for 50% of the U.S. workforce by 2020 and 75% by 2030. The growing challenge for employers, however, is that Millennials tend to resign frequently.
A Silicon Valley company, Retainable.ai‘s Millennials Retention Study shows that 62% of working Millennials are constantly open to new job opportunities. More importantly, the study also indicates that only 25% of Millennials are emotionally and behaviorally connected to their job and company. Further, 18% of Millennials are actively disengaged, meaning they are more or less out to do damage to their company. The study, analyzing 30 different data points, reveals that organizations must view Millennials as a high potential flight risk and take specific action to curb their exit. If left unchecked, the projected cost of Millennial turnover to the American economy could exceed $40 billion annually. The following chart illustrates the range of Millennial retention tenure achieved by some of America’s leading businesses. Millennial retention success clearly varies with regard to corporate culture, industry segment and age of the organization.
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Millennials actually take a deep interest in their work, actively look and strive for opportunities to advance, welcome mentoring and respond well when a manager helps develop them. They are also extremely interconnected, immersed in an almost nonstop exchange of digital information as they explore all the operating facets of their current employer or hunt down a new entity that offers the workplace experience they’re seeking. Yes, Millennials appreciate a light-hearted workplace and nice perks, but they value more the fact that their time and effort will have meaning, result in a real impact in the marketplace and end with an upward mobility and reward path for themselves.
“Millennials are more inclined to stay put when their employer builds a high-trust environment with clear career advancement paths, competitive fair pay, strong work-life balance, and a positive corporate ethics culture,” states Muttalip Olgun, CEO of Retainable. “In particular, our study of several years of employee retention data has led us to understand that Millennials want productive conversations and deeper connections with managers as it relates to their work and how it contributes to the ultimate goals and success of the organization. Having been raised in a face-paced, tech-driven world Millennials are quick learning masters oriented to push limits to achieve more. An employer with different career paths within the organization is an important expectation for Millennials.”
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Millennials want to be engaged and are passionate about their work – and they want these traits to be recognized and rewarded. Managers, therefore, have to set aside outdated concepts of seniority as an absolute and embrace a new definition of the good employee. Once that philosophy is in place then the Millennial perspective and approach to loyalty through development, recognition, and trust – which can add genuine shareholder value, profit, productivity, and welfare – be fully capitalized.
Retainable helps organizations understand how to evaluate and retain their employees on an individual basis in real time. The service calculates employee flight risk and provides recommended actions designed to minimize turnover.
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