During a recent Studer Community Institute workshop on maximizing generational differences in the workplace, we shared tools and strategies to develop more collaborative work environments and cohesive teams.
Thomas Greek, vice president of Learning, Development & Communications at Navy Federal Credit Union highlighted the fact that, like it or not, millennials (adults aged 18-34 in 2015) are becoming the predominant generation in the workforce.
However, a key piece of research, shows that two-thirds of millennials plan to leave their current organization by 2020. The main reasons are lack of purpose beyond profit and lack of leadership development opportunities.
Talent Management and HR did some calculations considering the costs associated with employee turnover – including interviewing, hiring, training, reduced productivity, lost opportunity costs, etc. Here’s what it really costs an organization:
- — For entry-level employees, it costs between 30-50 percent of their annual salary to replace them.
- — For mid-level employees, it costs upwards of 150 percent of their annual salary to replace them.
- — For high-level or highly specialized employees, you’re looking at 400 percent of their annual salary.
So what can be done about it?
Dan Schwartz in his article, 3 Reasons We Leave Organizations – From the Mind of a Millennial, states: “Based on my research, here are three reasons Millennials leave organizations and what managers can do to boost retention rates.”
— Communicate your greater purpose as an organization and “paint the picture” on how the four Ps (profit, people, products, and purpose) work together to form a successful business model.
- — Start taking the time to develop Ground Floor Leaders and empower employees to lead one other in the workplace. Put programs in place that help employees develop themselves as leaders.
- — Take the time to intentionally discuss growth and development opportunities, especially the Millennials.
To learn more and read the full article, click here.
Image credit: TD.org