25 Interesting Facts About Millennials

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?

1abThere 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:

  1. 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.
  2. 82% of Millennials did not negotiate their salary, either because they were uncomfortable doing so or didn’t realize it was an option.
  3. 37% of Millennials left their first full-time job within two years.
  4. 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.
  5. 63% know someone who had to move back home because of the economy.
  6. Millennials list Google, Apple, Facebook, the US State Department and Disney as their top ideal employers.
  7. 94% enjoy doing work that benefits a cause.
  8. 63% want their employer to contribute to a social cause.
  9. 77% would prefer to do community work with other employees, rather than on their own.
  10. 57% want their organization to provide companywide service days.
  11. 47% had volunteered on their own in the past month.
  12. 75% see themselves as authentic and are not willing to compromise their family and personal values.
  13. $45,000 is the average amount of debt carried by Millennials.
  14. 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.
  15. 70% have “friended” their colleagues or supervisors on Facebook.
  16. $24,000 is the average cost of replacing a Millennial employee.
  17. 15% of Millennials are already managers.
  18. 56% wouldn’t work for an organization that blocks social media access.
  19. 69% believe it’s unnecessary to work from the office regularly.
  20. 41% have no landline phone access and rely solely on their mobile phone.
  21. 65% of Millennials say losing their phone or computer would have a greater negative impact on their daily routine than losing their car.
  22. 29% of Millennial workers think work meetings to decide on a course of action are very efficient. Compared to 45% of Boomers
  23. 54% want to start a business or already have done so.
  24. 35% have started a side business to augment their income.
  25. 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.

1a.jpgThere 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.

Sources:

  • Society for Human Resource Management, The Brookings Institution, Dan Schawbel

 

calebCaleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
Toll-Free: 866.695.5162 / Office: 205.970.9088 
1950 Stonegate Drive / Suite 275 / Birmingham, AL 35242
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Finding and being a mentor

mentorA mentor is kind of a weird thing for a leader to seek out, don’t you think? Most leaders are so focused on looking like they are in control that the thought of someone mentoring them is almost offensive. “I don’t need a mentor, I am the mentor”, “What would my team think about me if they thought I needed a mentor?” Both of these are common for leaders to say or think and both are not entirely bad thoughts, but I think they generally come with a negative mindset that should be reversed. I was told a long time ago that I should always have a mentor and I should always be a mentor, so to the comment “I am the mentor” you are right, as a leader you should most definitely be a mentor to your team, but that does not mean that you wouldn’t benefit from having someone to speak truth into your life. “What would my team think?” Hmmmm….maybe that you are human, you are always looking for ways to better yourself, that you are humble.   That wouldn’t be so bad would it?

The purpose of having a mentor is to help you grow and mentors come in all shapes and sizes. My father is a mentor, my bosses are mentors, my co-workers are mentors, and some of my friends and family are mentors. I am mostly likely the only one in those relationships that view it as formal but you better believe that I treat their advice and wisdom as gold. Imagine a mentor as someone who is watching a horror movie. From outside the situation, they may be able to see what’s happening in other rooms, piece things together that give clear pictures of what about to happen next, and they may be able to yell at you to not open that door because the killer is in that room. Ever the heard the expression, “I couldn’t see the forest, for the trees”?   Well, mentors are there to help you see the forest.   I take notes, I call with strategic questions, I seek objective, non-biased feedback on any situation that I think carries risk and above all, I LISTEN! In almost every situation mentees will have opinions formulated about the topic they need to discuss, and in doing that they are coming in loaded. Trying hardest to seek advice without projecting and desiring totally honest feedback, even if it is not what you want to hear, is the best way to approach your mentor.   It is the only way that really pays off.

WARNING: Not all people are good mentors! (There I said it.) The art of “projecting” goes both ways and you may run into “mentors” whose advice is coming solely from their opinion or personal experience and it may not be the right solutions for you. Do not confuse their passion for a certain situation for factual advice. You have to use your brain in this as well. Now if you have multiple people telling you the same things, you need to listen.

So what should you look for in a good mentor?

  1. Look for someone who has been where you want to go: Wisdom = Knowledge + Experience if you can find someone that has already achieved many of the goals that you have set for yourself and they are willing to share their experiences with you, you have a heavyweight contender for your mentor! Seriously think about it. My dad always taught me, “A smart man learns from his mistakes, but a wise man learns from the mistakes of others.” Can you imagine the wisdom you can gain from talking to someone that has driven the road necessary to reach your goals and they are willing to warn you where the pot holes are?
  2. Look for someone that will be honest: My mom and I joke about the TV Show, “The Goldbergs”. It’s about this family in the 80s and the mom is always accused of having “Mom Goggles” on. Basically it means that in this mom’s eyes, her kids can do no wrong. In one episode the son wants to be a singer and the mom is nothing but encouraging; but the truth was that he stunk at singing. My mom and I have this relationship, I could call home and say, “Mom I’m going to buy a Subway Franchise on the moon” and she would say, “Aw sweetie that is so great, I’m so proud of you!” Mom I love you! The point here is that kind of encouragement is not always helpful. IN that same lunar Subway situation, a good would mentor would say, “Interesting Caleb, can I ask a few questions about that, like how do your customers get to the moon?” Side note: My mother is brilliant and when her “mom goggles” are not on, she is a great mentor to me.   She is an amazing school teacher and guidance counselor and for 30+ years, she has change the lives of hundreds of people!
  3. Look for someone with your common core beliefs: I think this is very important, while I think you should always be humble enough to accept advice from anyone willing to give it; you should carefully consider their advice before you use it. The biggest consideration in my opinion is, “Does this person share my convictions and beliefs?” I had the opportunity to meet with a young man trying to make his way into the real estate world. He sought the advice of an older more experienced developer as a “mentor”. It was not long until he realized that their views on the appropriate way to do business were very different. The young man definitely wanted to make money but not at the expense of anyone else, and his so called mentor felt that each person was responsible for taking care of themselves and so if someone else let him take advantage of them then it was their own fault. Needless to say that relationship did not last long.

The mentor/mentee relationship can be a very powerful tool. Imagine if that is the way your department worked. Every new hire, every mid-level manager, every supervisor was being mentored and mentoring for someone else in the office. Zig Ziglar said it best, “The best way to get what you want is to help others get what they want.” To the wise, how can you help someone without as much wisdom? To the inexperienced, how can you humbly ask someone to share their wisdom? Answering those questions my change your life.

calebCaleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
Toll-Free: 866.695.5162 / Office: 205.970.9088 
1950 Stonegate Drive / Suite 275 / Birmingham, AL 35242
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Develop your company culture with PRIDE

cultureI have walked into many companies and after working with their current employees and found myself saying, “Man, I would love to work here.” I have also found myself on just as many occasions saying the opposite.  So I started to ask myself, “What makes these companies different? Why is one company able to attract someone that is not even in the same industry and the other totally repel me?” I think that is a question many employers have to start asking if they want to attract high quality people.

employeesWhat would it look like for you as an employer to have such a name in your community that you never had to look for good people?  How would your business be affected if you had people competing to get a spot at your company? What would it look like to have a business that people, even Millennials, were willing to relocate to be a part of?

Not only do I think this is possible, but I think for you have a legacy company that you intend to span the test of time, it will be a necessity to be that kind of company. Now you may be saying, “Caleb, that sounds lovely but it sounds like a lot of work.” Well, it is!   It is worth it though and according to Greg Smith of Chart Your Course International, it is as easy as having PRIDE. Yes pride. Let me explain. In a great article, that Smith wrote for Businessknowhow.com he explains his acronym P – R – I – D – E. His article is great so I won’t try to make it better but here is the gest.

Positive work environment

Recognizing and reinforcing right behavior

Involve and Engage

Develop Skills and Potential, and

Evaluate.

The article does a great job explaining and giving great statics around each of these points but it boils down to this. To attract good people, you need a company that has happy, respected, trained employees. It is worth the effort to create this. My best take-away from his article for you readers is this, create a culture and the protect it!

culture.jpgI believe that creating a culture that engages, cultivates and produces good relationships is easier than you think. Rewarding people does not have to be expensive as much as thoughtful. Smith writes about one company where the CEO lets the employee of the month borrow his car for a whole week! How awesome is that to be cruising through town in your boss’s car for a week. For the record, it was a nice car, I don’t think anyone is lining up to drive a Camry around for a week but the point is that while it might not cost a lot in dollars, it will take time and commitment from all the leaders in the company. Over 40% of people said in an exit interview that they were leaving their employer but they loved their job. The reason they were leaving?!?! Drum roll please… The people! In fact, most of those people said they were leaving due to their direct supervisor. Training for yourself and your managers on how to properly lead people and encourage them through their career is crucial to this culture creation.  Great salaries, unmatchable benefits, tuition reimbursement, gym memberships…none of that will keep your employees in place if the person they work for is a bad communicator and comes across like Hitler in high heeled shoes.

Once you have started creating this culture, you will have to protect it! Companies who are successful creating this atmosphere have to spend equal time keeping the “Debbie downers” from trying to ruin it. Dave Ramsey talks about this in his, EntreLeadership, series when he discusses their zero tolerance policy for gossip. To prevent division in his team, he says that if you gossip you are fired. No second chances, no warning, no nothing! I have heard of other companies that allow the entire team to have a crack in the interview process to make sure that everyone thinks they can work effectively with the candidate, and another firm I have read about offers referral rewards to its employees if they can recommend a good candidate that fits the company culture. Point being, “If you build it, they will come!” If you lose it, they will leave! (Guys I’ve been looking for a way to put that quote in writing for years now!! Sorry back to the point.) You have to be selective and protective but if you spend the time to create this culture you will have the luxury to be as picky as you want.

People, Process, and Product are noted and made famous by Marcus Lamodus, host of CNBC’s show The Profit. You know your product, hopefully you have a handle on your process, but if you don’t start getting the right people, you still won’t get to eat your pie. Be selective, have PRIDE, and start it from the top of the corporate latter all the way down. Soon you will have a thriving workforce of great people going great places!

calebCaleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
Toll-Free: 866.695.5162 / Office: 205.970.9088 
1950 Stonegate Drive / Suite 275 / Birmingham, AL 35242
Contact Caleb

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