Retaining Top Millennial Talent to Drive Profitability
It is no secret that the younger generation in the workforce is more likely to leave a job if it is not in alignment with their expectations. According to a Deloitte survey, 43% of millennials envision leaving their jobs within 2 years. Another survey from BenchmarkPro sited that California businesses are averaging close to 17% in employee turnover. With unemployment at one of its lowest points, it is becoming increasingly difficult to fill open positions, so it makes it even more important to retain top talent from this younger generation.
Turnover can kill profitability and productivity. When millennials leave, the rest of the team is left with increased workloads and product/process knowledge loss. When you take into consideration lower productivity, training new people, as well as recruiting costs and the time it takes for interviewing, turnover is expensive. Some estimates put it at 150% of an employee’s annual salary. So, what can organizations do to increase profitability by retaining millennial talent?
Here are 5 steps to increase retention with the younger generations:
- Foster Transparent Communication – Transparency from the executive level down to the front lines is important. Keep employees informed about what’s going on in the company, department and team. Maintain a real “open door” policy that allows people to ask questions and express concerns about what is happening in the organization.
- Challenge & Develop People – Look at people’s personal work goals and give them projects and assignments that will stretch them to grow professionally. Make sure that you communicate the “Why” when giving them assignments so they understand how it will help to develop them.
- Nurture Collaboration – Encourage people to share ideas and be open to other people’s opinions. Allow people to work together on projects and goals. Nurture a flat project structure when possible to cultivate trust and cooperation.
- Encourage Creativity – Give people the leeway to use some creativity on projects and assignments. Unless it is for legal/safety reasons, you should not expect (or require) things to be done the exact same way every time. It may actually increase productivity.
- Celebrate Victories – When an individual or team accomplishes a goal or goes above and beyond their normal scope of work, take the time to recognize them. It takes very little effort and goes a long way if you communicate the value they have provided with their contributions.
Organizations that want to increase profitability and competitiveness in today’s global marketplace need to focus on retention of their top millennial talent. By doing so, you will not only build a more effective team but you will also create a more effective (productive) culture.