Jamie Kertis – our advisor that oversees retirement plan design – wrote a great article last week about Millennials. Her blog has some fascinating content for human resource professionals, accountants, high-level executives and those who work on retirement plan committees in their company.
I would love to hear from you. How do you think these factors affect our workforce?
There were 53.5 million Millennials employed in the United States as of May 2015, and by 2025, this generation will comprise almost 75% of the US workforce. Think about that, in less than 10 years 3 out of 4 people who are working in America will be have born between 1980 and 2001. How much do you know about this upward rising generation other than their stereotype? Yes, they are adults who still like to play video games. Yes, they have no idea what a typewriter was used for. And, yes they are technology-dependent, eco-friendly, hipsters who like music that no other generation can possibly tolerate; but there’s more.
Here are 25 things to think about as you recruit, hire and retain Millennial employees:
- Pay ranks first among job factors that matter most to this cohort. Meaningful work is second, positive relationships with co-workers third and flexibility fourth.
- 82% of Millennials did not negotiate their salary, either because they were uncomfortable doing so or didn’t realize it was an option.
- 37% of Millennials left their first full-time job within two years.
- 26% said a better salary would have kept them around longer; 17% would have stayed with a clearer sense of how to advance in the organization.
- 63% know someone who had to move back home because of the economy.
- Millennials list Google, Apple, Facebook, the US State Department and Disney as their top ideal employers.
- 94% enjoy doing work that benefits a cause.
- 63% want their employer to contribute to a social cause.
- 77% would prefer to do community work with other employees, rather than on their own.
- 57% want their organization to provide companywide service days.
- 47% had volunteered on their own in the past month.
- 75% see themselves as authentic and are not willing to compromise their family and personal values.
- $45,000 is the average amount of debt carried by Millennials.
- More than 63% of Millennial workers have a bachelor’s degree, but 48% of employed college grads have jobs that don’t require a four-year degree.
- 70% have “friended” their colleagues or supervisors on Facebook.
- $24,000 is the average cost of replacing a Millennial employee.
- 15% of Millennials are already managers.
- 56% wouldn’t work for an organization that blocks social media access.
- 69% believe it’s unnecessary to work from the office regularly.
- 41% have no landline phone access and rely solely on their mobile phone.
- 65% of Millennials say losing their phone or computer would have a greater negative impact on their daily routine than losing their car.
- 29% of Millennial workers think work meetings to decide on a course of action are very efficient. Compared to 45% of Boomers
- 54% want to start a business or already have done so.
- 35% have started a side business to augment their income.
- 80% of Millennials said they prefer on-the-spot recognition over formal reviews, and feel that this is imperative for their growth and understanding of a job.
There is a lot of interesting facts here. I think we could use them in all sorts of contexts; think about it all specifically in terms of hiring employees and even more important for retaining them. Employee turnover costs skyrocketing. According to the Center for America Progress, the replacement cost of an employee who earns $30,000 to $50,000 a year is 20% of annual salary for those mid-range positions. So the cost to replace a $40k employee would be $8,000. For higher level employees, the replacement costs skyrockets to 150-200%. For a $100,000 employee, the cost just to replace him/her can be easily $150,000.
The influence of a strong company culture is a huge factor that results can equate to what Gen Xers and Baby Boomers look at as loyalty. Millennials can be long-term, engaged employees, but not at 1970, 1990 or even 2010 standards. It is time to make some changes. It will cost you too much not to.
- Society for Human Resource Management, The Brookings Institution, Dan Schawbel
Caleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
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