Staying Connected with Millennial Employees

A friend of mine has often used the term: "People Create All Value," to describe the value proposition employees bring to an organization. I love this motto! When management does not recognize the facts about today's generation of employees, their organizations eventually lose value.

Millennials have a reputation for job-hopping. Unattached to organizations and institutions, people from this generation -- born between 1980 and 1996 -- are said to move freely from company to company, more so than any other generation.

A few facts about millennials, according to the most recent 2016 Gallup Survey:

• Millennials are the most likely generation to switch jobs
• Six in 10 millennials are open to new job opportunities
• Millennials are the least engaged generation in the workplace

What is the human capital cost? Gallup estimates that millennial turnover costs the U.S. economy $30.5 billion annually. What does it cost your company?

Consider this equation:

• John starts a new job with a salary of $100,000. The company paid a recruiter 20% to bring John onboard and the previous employee's salary was $90,000. The role had been vacant 60 days. The cost? Hiring John held a $20K (fee), a $10K (incremental salary), and 60 days vacancy cost to lost production, or another $10K = $40K replacement cost.
• John joins the company with high hopes and expectations. The honeymoon period ends. After 6 months of suppressed baby boomer management and leadership, not allowing for innovation, flexibility, and agile behavior, John gives his notice for a more promising opportunity.
• The job is open for another 60 days. The company pays a recruiter 20% to hire Janice, a new rising millennial, at $110,000. The repeat cost? Hiring Janice yielded a $21K (fee), $10K (incremental salary), and 60 days vacancy cost to lost production ($10K) = $41K impact.
• The result? Within less than 12 months, the cost to the organization is over $80K.
• PS. And I have yet to add in the recruiting time, interviewing and selection time, onboarding and training costs... the result is more closely aligned to $100K

Not staying connected to millennial workers is a big miss for organizations. Gallup indicates that the millennial workforce is predominantly "checked out" -- not putting energy or passion into their jobs. I have observed 3 areas to stay connected with your millennials:

1. They appreciate attention, constantly.
2. They desire frequent feedback, constructively.
3. They seek empowerment and trust, consistently.

It's possible that many millennials actually don't want to switch jobs, but their companies aren't giving them compelling reasons to stay. When millennials see what appears to be a better opportunity, they have every incentive to take it. While millennials can come across as wanting more and more, the reality is that they just want a job that feels worthwhile -- and they will keep looking until they find it.

A plea to managers...remember people create all value... Collaborate with them on an engagement plan and empower them to put it into fruitful action.