Top 10 Causes for High Millennial Employee Turnover in the Workplace
Predictions say Millennials are on their fourth job by the age of 311. This is crucial information for business owners, as Millennials will comprise nearly 75% of the workplace within seven years2. In past decades, people would switch jobs mainly because of company liquidations resulting in lay-offs. However, in today’s times, it seems changing career paths is a normal part of life. While the reasons for job-hopping aren’t always clear, there are some commonly accepted ideas as to why there’s such a high turnover of Millennial employees.
Millennials will comprise nearly 75% of the workplace within seven years.
Millennials will soon be the most educated working people in history. While some college graduates chose one major in the beginning and stuck with it, there were many who switched majors at least once and many more who completed more than one. Having this experience has led Millennials working the same job for an extended period of time to feel a sense of monotony and possibly boredom.
Job-hopping does have benefits, as it allows the person to diversify their work experience. Possessing a good deal of general knowledge is a great way to avoid career limitations or becoming stuck with one specialty. Indeed, Millennials cherish and even seek a wide exposition to diverse work experiences.
You’ve all heard it: “96% of businesses fail in ten years3”. Whether this is an accurate number or not, Millennials will not hesitate to switch jobs if they have any suspicion that the company is going down. Any trust issues with their current employer will lead Millenials to look elsewhwre. Many times the signs when a company is not performing well, are visible and when employees sense them it can lead to looking for new opportunities. Hence, adding to the high turnover of Millennial employees.
As with most other demographic groups, Millennials are always looking for opportunities to earn more money, but moreover, Millennials are sensitive to fair compensation. With the cost of living increasing, it’s important to have a job that pays well. In addition, Millennials value their own time and life-work balance and want to be fairly compensated for their contribution. And so, many will quit an existing job for better pay, that they may consider more fair.
It does depend on the personality type, but in general, most people are not satisfied with a job that offers no future growth. For Millennials, promotion opportunities are a must. If their current company has no growth opportunity to offer, they may choose to go work for a company that does.
96% of businesses fail in ten years.
Millennials tend to get bored easily, and this has lead to engagement levels that are at an all-time low. Gallup found that a mere 29% of millennials are engaged while working4. This means only three in ten are behaviourally and emotionally connected to their company and job.
Security & Loyalty
In past generations, many people achieved tenure, in fact, they aimed for it. However, the times have changed as the typical “tenure” for millennials is roughly 18 months. This trend has been attributed to a lack of security and loyalty in the workplace. Whatever the reasons, it highly affects turnover.
It is important to create a sustainable organizational culture, by that I mean diverse and inclusive. This culture must include all groups of people, and moreover, it must treat them all well, as to not make anyone feel excluded or discriminated against. Millennials are sensitive to a diverse and inclusive culture. Companies that do not promote a good culture will naturally have a higher turnover rate of Millennial employees.
Work Life Balance
Millennials want to have a career, but they also want to have a good quality of life. Thus, they are always looking for a career that offers the perfect balance. This may be why so many Millennials are looking to the “Gig Economy” to earn a living. Such jobs give them the freedom to create their own schedule, thus offering great flexibility to work as little or as much and when and where desired.
The last of the top reasons why there is such a high turnover of Millennial employees is that Millennials have shown they care as much about their career and the company they work for as they do about the city they live in. Millennials will not hesitate to move in search of a new adventure or a different experience, even if that means a different city, country, or continent.
Overall, Millennials are known for job-hopping. Soon they will comprise the majority of the workforce, so it’s imperative that organizations learn how to harness the education, experience, culture, and spirit brought on by Millennials to keep them happy and benefit from their strength for years to come. This may mean retaining them longer, or even embracing and capitalising on their job-hopping skills!
Millennials care about interaction and to increase interactions. If you are interseted in learning how to increase millennials interaction in your organisation take AKKA’s Workplace guide for Employee Engagement Quiz.