Revamp Your Current Millennial Retention Practices

The Millennial generation is making big waves in the business world. Already 77 million strong and accounting for 25 percent of the U.S. workforce, Millennials are redefining the workplace of the future. Unfortunately, Millennials also have a much higher introductory turnover rate than their predecessors. According to Forbes, 60 percent of Millennials are expected to leave their companies within the first three years, costing their employers an average of $20,000 each.

To better compete in today’s labor market, a number of organizations are turning toward tactical strategies including increased salaries, benefit updates and restructured compensation packages.

While these tactics have proven successful in attracting emerging professionals, organizations looking to retain Millennial talent must undertake a more strategic approach. So what can organizations do to keep tomorrow’s leaders engaged in today’s competitive labor market?

Recruit for the Right Organizational Fit

Glassdoor recently reported that company culture is the second-highest priority among job seekers after salary. As Millennials continue to place emphasis on culture fit as a job search criteria, ensuring that your new employees are a match with your company’s values is important in making a lasting hire.

Despite organizational knowledge of the importance of an employer-employee match, 89 percent of today’s hiring failures are the result of a poor culture fit. Much of this disconnect can be linked back to a missed opportunity during the hiring process. Organizations are often waiting too long to discover whether their candidate is truly a fit with the organization.

Aligning a candidate’s career aspirations with your organization’s ability to deliver can help alleviate some of these issues. Use the interview process to drill down and get a better understanding of what candidates really want when they mention more open-for-interpretation perks including technology and flexible scheduling.

For example, what does a candidate truly mean when they say they are looking for a company that offers good work/life balance? Are they seeking an opportunity with open start and end hours? Perhaps they desire a chance to telecommute on a regular basis. If the answers do not line up with something that your organization can offer, or would be willing to offer, then this is not the right candidate for that role.

Companies may also consider surveying their departing staff to determine what exactly is causing them to leave. Maybe they were looking for an organization that had less of a suit-and-tie atmosphere, or perhaps the prevalence of cubicle Nerf wars was not in line with their idea of a casual workplace. If you can pinpoint the exact causes behind employee turnover, your organization can tailor interview questions to determine during the initial candidate discussion process whether these scenarios are going to be a future issue.

Discuss and Define Expectations Up Front

Many of today’s Millennial professionals have, at one point, participated in an organized activity — such as a sport or club — where they were presented with a leader figure who immediately set the ground rules and expectations for their participation. They look for these types of individuals to provide them with insights on how things work and what is required of them within a particular role or organization. Unfortunately, that practice has not translated into the business world.

Coincidentally, a number of young employees come into the job on day one with expectations for their career that may not be realistic within their current environment. As a result, they become frustrated and disengaged with their jobs and eventually leave for “greener pastures.”

To combat this, organizations should set ground level expectations for new employees. For example, a recently hired customer service representative may be looking to take on a supervisory or management role within one year to keep pace with his or her peers. Your organization, on the other hand, requires the achievement of certain milestones or a set number of years of experience before granting an upward move.

This disconnect between the employer requirements and the employee’s job and career path expectations can often lead to frustration, disillusionment, and even a voluntary separation.

However, sharing these expectations and discussing processes with new hires can ensure they are aware of on-the-job requirements and are better able to manage their careers.

Develop a System of Reward and Recognition

Today’s Millennial professionals are looking for acknowledgment of their efforts and outcomes in the workplace. They want to know that their contributions are appreciated and their hard work is recognized.

Organizations should consider providing recognition, not only for business “successes,” but also for a job well done. Embrace a mindset of “everybody gets a trophy” where the trophy recognizes achievements at all levels, not just the standard “win.” While some may bemoan the notion of everyone receiving a “trophy” as an overindulgence, incorporating this practice can be advantageous. If employees go above and beyond to provide research on a project or step up to the plate to provide backup for coworkers who were on vacation, acknowledge them for their work.

Young professionals are also on the lookout for the ability to develop and expand their skills. Use their successes as a chance to provide advice and feedback. Often, this opportunity for learning is the perfect “trophy” for a job well done.

With the labor market becoming increasingly competitive, retaining the next generation of emerging talent is key to ensuring your organization’s success. The global workforce is on the cusp of a talent crisis, with more than 1 million professionals expected to retire in the next 10 years. The influx of Millennials into the workforce is the key solution to bridging this gap and ensuring organizational success. Reviewing your current engagement strategies and taking a more strategic approach to your retention practices may be the deciding factor when it comes to keeping your Millennial professionals for the long term.