Millennial job turnover costs employers between $15,000 and $25,000 per Gen Y employee. As millennials currently make up the largest portion of the workforce, understanding what they are looking for in a job is vital to retaining them and the financial investment they represent. Surprisingly, the key to keeping millennials isn’t a higher salary or a larger bonus, it’s these 5 benefits:
Feedback and Training
Millennials’ top priority in a company is the opportunity to learn and grow in their position, according to a study by Gallup which surveyed 1,700 U.S. workers.
“You want to keep millennials? Don’t allow them to get bored,” Dov Baron, founder of Full Monty Leadership says in an interview with Forbes. “Millennials love to learn.” In fact, research finds that 58% of the millennial workforce expects employers to provide training and learning opportunities relative to their job position.
If you’re hoping to keep millennials longer than the average 1.2-2 year stint, continuing their learning through feedback, training opportunities and new job responsibilities is your best bet.
Ability to Work Remotely
According to Payscale.com, 35 percent of millennials say they would be willing to take a 10-20 percent pay cut in exchange for flexible hours. In addition, 43 percent of them say they would consider changing jobs for more flexible hours and the ability to work remotely.
What does this mean for your organization? Offering flex and remote work hours means increased satisfaction for millennial employees as well as added benefits for employers. Simon Slade, CEO and co-founder of Affilorama says, “By allowing employees to work remotely, you can hire the best of the best while not limiting yourself by geographical restrictions…My remote employees’ production rate is higher because they are better equipped to avoid distractions.”
Flexible hours and location are some of the top priorities for millennials, but very low cost for employers, making it a fairly easy benefit to implement.
Choice in Employee Benefits
58 percent of millennials value a benefits plan they can customize to fit their lifestyle. A millennial-proof approach would be to offer a wide selection of benefits, and allow employees to choose which benefits they want with a certain allowance from the company.
According to BenefitsPRO, providing benefit plans that can be personalized is a trend to watch for in 2017, with increasingly more companies focusing on mass personalization over one-size-fits-all benefit plans.
Time To Do Volunteer Work
Paid time to volunteer is a surprisingly high priority on the list of desired millennial benefits. 84 percent of millennials surveyed said making a positive difference in the world was more important than professional recognition.
Salesforce gives employees 6 days a year to volunteer, and if employees use all 6, they are given $1,000 to give to their choice of charity. Salesforce says that this time off is the way its employees maintain their level of success: “The only way to maintain that exceptional performance level is to occasionally take breaks from work.”
Allowing millennial employees time to volunteer is a double benefit; employees feel their needs are being addressed while positively impacting your company’s reputation.
Planning for retirement is an important benefit for millennials, with over 50 percent of employee millennials wanting a retirement savings that is matched by their employer. Millennials are especially financially stressed compared to other generations, making retirement planning even more important to their retention.
“It is important for employers to show that they care about employee financial well-being as this will likely impact retention, recruitment and productivity, particularly for millennials,” Kent E Allison, Partner and National Practice Leader for PWC says. “With retirement savings worryingly low, now is the time for employers to put effective financial wellness programs into place that focus holistically on the financial well-being of employees and drive behavioral change.”
If you are looking for ways to attract and retain your millennial workforce, think about improving your retirement planning.
As the values and expectations of the workforce change, the way benefits are offered will change as well. What benefits is your organization offering your millennial employees? We’d love to hear what innovative things you are doing to retain the future of your workforce. Share your ideas with us, and we’ll include them in our post.