A new study by the Center for American Progress (CAP) found that financial hardship is causing millennials to look for new work. The results might be surprising considering that millennials are the best-educated generation entering the workforce at a time of increased productivity.
But this generation is having to fight against past losses — many have exorbitant student loan payments and suffered during the slow recovery from the 2008 economic collapse. Millennials are likely to job hop to make up for that financial shortfall. In fact, their average tenure at a job is only two years, a Deloitte study reported. And according to our Employee Engagement Report, a quarter of all employees would leave their jobs for a 10% raise. So how do you keep millennials on board?
1. Pay them better
Millennials have real financial concerns that they need to address. Employers need to work with them to ensure their needs are being met. Also, they tend to be more highly educated, and they'd like to be compensated for it. However, they're interested in more than just a paycheck.
2. Let them know their jobs are secure
According to a poll by Pew Research Center, millennials value job security even more than boomers, with 40% saying that a secure job is “extremely important” to them. This generation has seen round after round of layoffs — and this experience has made them skeptical of getting too comfortable in one place.
Make sure that your most talented employees know that they have long-term prospects at your company by investing in their future, such as good benefits and professional development.
3. Offer flexible, generous leave policies
The CAP report shows that stronger paid-leave policy legislation would help millennial women bridge the gender gap. Many folks in this generation are starting families, and if businesses want to remain competitive, they need to give new families a helping hand. With child-care costs rising, budget-sensitive millennials will be exploring their options.
4. Provide professional growth opportunities
Millennials consistently report that they want more chances to grow. They’ve seen how quickly the economic climate can change, and they want to be prepared. With a mere 25% of employees reporting that they have sufficient professional development, this is an area employers could use to improve retention.
But you don’t need to wait — 79% of millennials said that they want their boss to serve as a mentor, according to a report from IBM. They also want an ethical and fair boss who regularly and openly communicates with them.
5. Emphasize workplace culture
More so than previous generations, millennials are weary of work leading to excessive stress. They saw their boomer parents scrambling up the corporate ladder and don’t want to repeat that. To keep millennials on your team, make a conscious effort to recognize their hard work, allow frequent breaks for fun diversions or rejuvenation, and ensure that your team’s interpersonal relationships are strong.
The financial pressure on millennials might be greater than on previous generations. But you can still find ways to entice them to stay at your company in the long term.