‘Why can’t my company find millennials to succeed in their jobs?’ is a common question asked by executives.
‘Why can’t I find a company that allows me to be creative and successful?’ is a common question asked by millennials.
Houston, we have a disconnect!
What can be done to change this?
The U.S. workforce will consist of nearly 50% millennials by 2020 and millennials are currently the largest generation in today’s workforce.
To attract and retain this young talent, rethinking your perspective of hiring and training employees needs to dramatically change. A revolving door of young talent is costly and disrupts your business and devolves customer satisfaction. According to a Gallup poll, millennial turnover costs the U.S. economy over $30.5 billion annually. Don’t address this issue by trying to design more interesting jobs. Millennials don’t want jobs in the traditional sense. They want to be creative and to make an impact.
Millennials prefer to create their own work environment which is not competitive in nature with 88% of millennials preferring a collaborative culture. Millennials also want to live a life that matters by making an impact beyond work. The question arises: ‘How does this affect my employee needs?’ The answer is ‘More than we want to admit’.
72% of millennials want to be their own boss. Yet, the number of companies less than a year old have declined as a share of all businesses by nearly 44 percent in the past 3 decades. Reasons such as student debt, increased government regulations and lack of access to capital have been sited for this decline. These millennials are opting for more traditional employment but with firms that encourage and foster their entrepreneurial desires.
Studies have shown as many as 65% of Fortune 500 companies state a desire for their employees to be entrepreneurial. This would appear to be an alignment of the ’employment stars’. But why are the rates of millennial employees turnover at an all time high?
Millennials’ loyalty to their current employers is low as many are planning their exits. 25% of millennials will leave their current employer to join a new organization or to do something different within one calendar year. Looking at a 2 year timeline, the number moves to 44% changing positions. By the end of 2020, 67% desire to have moved on, while only 16% of millennials envision staying with their current employers a decade from now.
Employee recruiting is an expensive proposition requiring staff time and money. While costs vary from industry to industry, studies estimate that the cost of replacing a salaried employee averages 6 to 9 months salary.
Regardless of how you slice it, retaining talent is the optimal outcome for your company.
The good news is that we have the solution!
A common misconception is that entrepreneurship is the sole domain of startup ventures. This is far from accurate. Entrepreneurship is more of a thought process that can be applied to multiple areas such as corporations, SME’s, government, nonprofits, NGO’s and more.
The entrepreneurial thought process revolves around four pillars as follows:
- Opportunity Recognition
- Identify and Gather Necessary Resources
- Creativity in Planning
- Execution For Success
Along with this thought process, entrepreneurship orientation and training also involves the concept of ‘adding value’. Think about your company for a moment. If your company is not adding value to your customers, be prepared for your sales to dip in the very near future. Along this line of thinking: “is it therefore acceptable for your employees not to add value to your company”? If you answer ‘yes’, your company is on a path to stagnation or decline.
Research has shown and much has been written about asserting that employees are the most valuable asset of a business. Assuming the validity of this thought, it makes sense to maximize the value of this important asset. Envision your sales force, management team, front line employees, etc. recognizing opportunities, identifying and gathering necessary resources, being creative in planning and executing successfully. Further picture the image of combining this activity with a goal of the employees adding value to your enterprise.
This is a powerful, yet simple to introduce, concept that can have substantial impact on achieving goals, improving cash flow and profitability, along with positively improving employee morale.