Millennials and Turnover: Generational problem or outdated company practices?

HR departments have always measured turnover and the costs associated with it. It is a vital measurement used to identify concerns within the company structure. Now that millennials have become a large part of the workforce we are starting to see a steady increase in that turnover metric. Is this something your company should be alarmed about?

This can represent a significant cost to the employer in hiring and training. Turnover has traditionally represented a problem within the company that should be addressed. There are a lot of reasons companies experience turnover and they are usually negative; a high turnover rate indicates a serious problem within the company structure and could be the result of inadequate working conditions or even poor management. With the high cost of hiring and training, companies are working hard to reduce this, with employee retention strategies and incentives. So, will this generation, which is accustomed to instant gratification and information at their fingertips, affect your company’s turnover rates?

‘Millennials’, ‘Generation Y’ or the ‘Me Generation’… whatever you call them; they are and will continue to affect the calculation of turnover. Some of the more common traits that the experts can agree on for this generation, born 1980-2000, is that they are tech-savvy, open minded and self-expressive. I don’t know a millennial whose social media isn’t full of ‘selfies’. They live their lives in the public eye, from tweeting what they do at every moment of the day to sharing what their food looks like on Instagram. Millennials have a hunger for knowledge and with that comes the ability to be easily bored. They have grown up with technology and knowledge at their fingertips and can easily change their focus. This is true even with their employment and career paths. They come in, learn quick, become bored and are ready to move on to the next thing. For them this is what life is all about, it’s just how they grew up. The workplace is full of Babyboomers, Traditionalist and even Gen X’ers that are often offended by this; they see them as flighty and with a bad work ethic. Companies have had meetings after meetings on why employees have left and spent a lot of time evaluating and re-evaluating their incentives and employee retention programs. Ultimately, Gen Y continues to change jobs at a record pace to increase their own personal life experiences. It may not be reflective of the job, the company or even the incentives.

A few months ago I attended a workshop on retention and a Hiring Manager from a local company told a story of his recent experience trying to hire a new Marketing Manager with knowledge of social media, to help them take their company to the next level. This Hiring Manager promoted how great his company was to work for  to a prospective new hire, who happened to be a millennial right out of university, by sharing with her that they had very little turnover and once employees started there they stayed for very long periods of time because it was a great ‘family’ oriented place to work. When he made the offer to this prospective marketing manager, she turned the job down. The Hiring Manager was shocked. The applicant explained that, although she could do the job and would bring great energy to it, she wasn’t looking for a job for the next 20 years. She didn’t know where her life would take her yet and didn’t want to let him down in a few years when she left this role for her next one, which would probably take her to a big city. She honestly expected within a few years to be ready to move on to other opportunities and experiences. This was a fantastic example of how the millennial generation is approaching job opportunities and career paths – they love great life experiences but they need lots of these to fulfil their hunger.

With this new trend, it will be up to employers to look at ways to adapt to this generation. Millennials like instant gratification and recognition. They need to be given feedback frequently. They are innovative and tech savvy and they use these attributes to enhance your company and ensure competitiveness in the new world markets. The Hiring Manager in my story did in fact hire that prospective marketing manager by modifying his expectations and offering a 3 year project based contract to get a new division off the ground. She happily took the contract and when it ends she will be ready for her next experience.

Here are some suggested changes you could consider that might alleviate turnover in your company when it comes to Generation Y:

• Focus your company more on TASK completion and less on the punch clock
  • Millennials will get the job done – but do they have to do it between 9 & 5?
  • Hire for projects where possible, with the understanding of the completion date
  • Consider contract work where appropriate
• Create an environment of flexibility and learning
  • Mentor millennials into other roles and responsibilities – they are considered knowledge hungry, what else can you teach them?
  • Engage them with where the next step is and what the timeline is
  • Consider flex hours and working off site

HR departments need to spend less time looking at the fact that people left and more time creating flexibility in their workplace and tasks to help attract this emerging workforce. Having a contingent workforce that evolves often can support an environment of growth which ultimately can drive your company’s success. If you are able to implement some of these tactics, then this generation’s need to move on to their next experience will have less of a negative impact on your company’s measured turnover. Change will ensure that your valued turnover rate continues to be a credible metric for your company. Ultimately Gen Y’s effect on our business is just beginning; what effect will the next generation have on our ever changing workforce? Only time will tell.