Millennials and Generation Z employees make up more than one-third of today’s workforce in the US. They are projected to constitute the majority by 2025.
This trend in corporate demographics should interest every company. Organizational stability and business success in the future will depend on how well employers are able to recruit and retain millennial and Gen Z employees.
It’s important to understand and appreciate their attitude toward employers and colleagues, as well as their interaction with the workplace and technology.
These dynamics hold the key to attracting them in a company and harnessing their youthful energies and professional creativity. We’ll shed a little more light on how to do this in the following discussion.
Millennial and Gen Z Employees Want More
A recent survey reported that 69% of millennials consider career progression to be an important component of their workplace engagement. A further 54% expressed a desire to make a difference in their workplace.
The above means the bulk of the workforce is craving better terms and also want to positively influence their companies.
It behooves employers, then, to understand the priorities and habits of their younger employees and devise corresponding policies to manage them.
Young Talent and the Information Age
This age group is the true digital generation. It’s always connected and tech-savvy. Millennials cannot imagine their world without mobile devices and a host of instant connections like LinkedIn. Hence, seeking new opportunities or learning about them is far much easier than it was a while ago.
With all these at their disposal, they are constantly exposed to numerous alternatives. It’s not for nothing they have been described as ‘consumers’ in the marketplace, making decisions on the best offer available.
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Six Strategies to Retain Millennial and Gen Z Employees
In the following section, we briefly discuss six common tips to employee retention, especially focusing on millennials and Gen Z
1. Rethink Age-Old Secrecy About Pay
Recently, information about salaries and benefits was top secret for companies because it was easy to keep it secret. Today, compensation comparison sites abound which give salary information and benefits across the corporate landscape.
The millennial and Gen Z workforce is constantly making salary comparisons and judging their true worth.
Salary discussions are no longer as sacrosanct as before, especially among young employees. News and debates about pay and benefits are more widespread and the modern employee is in the know.
This means there is a need for greater transparency around salaries and general compensation, especially how pay levels and increments are determined.
Most employees resent a lack of clear and structured pay reviews, which are aligned with the corporate budget cycle in most companies.
Such management is hardly appealing for the digital age, and the competitive nature of the market makes it hard for such policies to survive much longer. Modern methods must be sought to compensate employees on the basis of their contribution, influence, and impact on the organization.
“Every employee should have a full understanding of all the benefits they receive from your organization.” — Robert Half
2. Enable Long-Term Growth in the Company
Let every company know this: Employee retention is directly proportional to the employees’ opportunities for growth and development.
Yes, good pay packages and transparency resonate well with millennials and Gen Z, but hardly enough to retain them. These are young talents bursting with energy and ambition, and companies should create clear mobility pathways and guide employees on how to grow within the organization.
3. Seek a Convergence of Employee and Company Goals
That only a tiny 7% of employees fully understand their company’s goals is a serious indictment of corporate leadership. When employees’ goals are out of sync with those of the organization, they feel voiceless and slightly irrelevant.
On the other hand, aligning employees’ performance and growth with the organization creates a sense of ownership. This promotes overall engagement and commitment to the company.
One easy approach is to break down organizational goals into small units of achievable targets by the employees. This makes it easier for them to understand and plan how to accomplish them, increasing the level of job satisfaction and employee retention.
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4. Internal Mobility Is a Deal for Real
Internal avenues of growth contribute significantly to employee retention through long-term engagement. That is, while the millennials are famed for job-hopping, they stick around for longer if there is a chance for internal mobility.
A survey has reported that 90% of surveyed millennials indicated they would remain on their jobs for another 10 years or so if they would get a salary raise and career ascent. Let companies overhaul their structures to support such mobility.
5. Work-Life Balance: Try Wellness Programs
As technology grows and overwhelms our daily lives, work and life are increasingly overlapping, especially for young people who are forever “connected”. When an employees’ life is swamped by work, it may gradually cause low performance from burnout. This is a perfect recipe for high employee turnover.
Companies ought to appreciate that their employees are at different stages of their lives and try to support them address life matters while at work. Companies should use tactics such as team-building retreats that let employees “exhale” and socialize, as well as gym memberships, perhaps at discounted rates, which can be mutually beneficial, as it improves employee health and enables them to focus more on their work.
6. Make it Personal; It’s Your Customer, Too
It’s easy to convince a company that retaining customers comes down to a personal touch and long-term relationship building.
However, few companies appreciate that the same is true for retaining employees. It also requires an intimate understanding of their needs and a commitment to their success.
Leaders in every company should carry out one-on-one discussions with their employees on careers and personal goals. It will make the employees feel valued and want to stay longer.
In other words, regard your employees as consumers and extend similar empathy as you would to your customers. This way you are likely to retain them much longer.
Rethinking Retention Strategies
Millennials and Gen Z employees are unlikely to accept old company doctrines. Nor will they helplessly look up to their companies for elusive promotions.
It’s a generation with a unique set of needs and expectations, which only the most creative and flexible organizations will fulfill.
Adapting to the future
By now, it’s hopefully obvious that modern thinking and employee engagement methods are needed to retain millennial and Gen Z employees.
It may interest you to learn that there is an LMS platform that supports you in employee engagement and training in your quest for better personnel administration.
The World Manager is the best LMS platform. Trusted by leading brands across the world to manage complex employee processes.
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