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If you work in the business world, you’ve heard the debate. The confusion and questions that surround the new crop of employees fresh out of college and filtering into the workplace: the millennials. While everyone has their own opinion on this phenomenon, the only thing that is certain is that it doesn’t matter; the millennials are coming and they will, one day, take the reins and run the show.
This new breed of professional business person brings with them a new way to do business as well. Here we take a look at a few of the key ways they will influence the workforce as we continue to hire on more and more in the years to come.
We’ll cover a few concrete steps a business can take to make sure they are able to hang onto the best in this new talent pool while still accommodating their more traditional workforce.
Millennials Are Now The Largest Group In The Workforce
Each year, more and more millennials are added to businesses all over the world. In fact, according to Pew Research, as of 2015 more than one-in-three American workers were millennials; in current times it’s much higher.
Here is a graph that shows the Millennial explosion over the last 20 years.
This trend has implications on how employers are going to have to manage their workforce going forward. In particular, there are three specific areas about which I would like to talk to you today.
Career Aspirations vs Employee Expectations
While their aspirations may be similar with respect to climbing the ladder, making more money, taking on more responsibility and creating sustained change in an organization, their methods and plan to get there is slightly different.
Most millennials today want a very comfortable work-life balance. Long hours and high stress isn’t in the cards for them. They want the titles and compensation but not necessarily the bad parts of the lifestyle.
So what are companies doing?
Employers are trying to respond in kind. Here is a quote from Forbes.com on this very issue talking about a report that was done by the large consulting firm Deloitte.
“When it comes to future career opportunities, Millennials attach the most importance to a good work/life balance. Companies that offer their employees opportunities to progress and a degree of flexibility (such as remote working possibilities) are also attractive to younger workers. “
Forget The 9-5, Office Hours Will Not Exist
Millennials view work the same as they do going to the bank or renting a movie, it’s something they should be able to do on a phone or laptop. Why should it be any different?
Being tied to a desk and a schedule just isn’t something most millennials are signing up for. Technology is certainly changing the way we do business, however the rate of change is being increased by millennials prioritizing flexible working locations and hours over the status quo.
In fact, according to a report put out by pwc.com, 43% of millennials prefer emailing or interacting digitally to face-to-face communication and 75% say they are
Another interesting note that helps millennials achieve this flexibility is that there seems to be less of a desire for millennials to live the so-called American Dream. They don’t fantasize about getting married, having 2.5 kids and settling down purchasing a house on a nice cul-de-sac. This new generation rejects societal and parental pressures more so than previous generations, leaving their options more open.
Employee Retention Will Become Much More Difficult
As companies move towards the future, the next generation of leaders is paramount. During the leveling sessions of the top 100 companies, one thing keeps coming up: How do we know who will be here tomorrow? According to the Burea of Labor Statistics, ‘Young adults born in the early 1980s held an average of 7.2 jobs from age 18 through age 28.” That statistic has a price tag; the cost of replacing an employee can be as high as 50%-60% of that employees annual salary. There is a strong financial incentive for employers to keep people around.
Millennials are looking for opportunity and flexibility.
If employers are serious about keeping the younger generation happy, they need to speak to them more in their own language. Here are a few ideas to help retain young talent:
Give them the flexibility they desire Allow telecommuting where possible and ditch the time clock. In today’s world, we’re all working 24 hours per day anyway.
Promote internal opportunities Large organizations have a lot of different departments and options available, they should use them to create additional opportunities for their best employees. This allows their workforce to be “mobile” without leaving the company. Companies are fighting for facetime with recent college grads, especially those at the top, and tomorrows workforce also has a ton of options outside of large corporations that didn’t exist 10 or 15 years ago. People like the owners of the sites TropicalMBA and WFHHQA are smart, capable millennials who have taken a different path and make their living online.
As we move forward, business leaders must recognize these trends and the associated changes that are coming. Instead of fighting them, it’s important to recognize the driving factors behind them. Businesses always have to keep an eye on their competitors, changes in their market, trends with their products, and now, more than ever, changes in the way their employees interact with each other, the corporation, and the world.
About the Author: Jeffrey Nelson works for a Fortune 100 company in management and currently employees several millennials. Being a millennial himself, Jeffrey loves to keep his options open. He writes about business, technology, and other trends he finds interesting. He also runs a technology-focused website on Biometrics.
