Sources estimate that Millennials will comprise 50 percent of the workforce by 2020. As with previous generations, companies should take Millennial preferences into account when developing aspects of their human capital management strategies, such as recruiting and compensation strategy. To help you with the process, here are some conclusions from the latest research about why Millennials switch jobs and what companies can do to retain their best young talent.
The Need for a Clear Growth Path
According to the Society for Human Resource Management (SHRM), a recent study revealed that many Millennials leave jobs due to a lack of career advancement opportunities. Within the context of career development, Millennials still have decades left to work. So, the moves they're able to make during this stage of their career often influence their long-term trajectory. A clear path can mean many different things, from providing a formal progression and mentorship, to training opportunities. It may help to evaluate your career progression opportunities and find better approaches to help your employees develop skills, earn promotions, and generally grow their careers.
Family Friendly Policies
Millennials are known for wanting flexible work environments, with benefits such as telecommuting or remote work opportunities. Increasingly, Millennials are focused on these and other factors that make it easier to balance work/life issues and family commitments. According to a recent study, 62 percent of Millennials would leave their current jobs for a company with more family friendly policies and 48 percent reported that their work performance had been negatively affected by a lack of family-friendly support. A flexible work schedule and child care support were also cited as benefits that would encourage Millennials to make a career shift. So, to recruit and retain Millennial employees, businesses may want to evaluate how those employees approach their work/life issues and what changes could be made to make their working environment more family friendly.
Money can be another important factor in why Millennials shift careers. According to the Society for Human Resource Management (SHRM), 49 percent of Millennials would leave their current position for more money. However, it's helpful to look at compensation within the broader context of the full employment environment. Is your total compensation (salary + benefits) competitive for your industry? Correcting any imbalance in these areas may help with attracting and earning the loyalty of workers from all age groups.
Millennials may leave jobs for a wide range of reasons, from compensation, to growth, and quality of life. Based on this recent research, businesses that wish to accommodate them should consider implementing flexible working arrangements, addressing compensation gaps, and creating policies that are family friendly and promote a better work-life balance.