Millennials—the generation born between 1981 and 1997—are currently the largest generation living and working in the United States. Expected to comprise 75 percent of the U.S. workforce by 2025, their formidable numbers require businesses to develop a new playbook in order to attract and build top talent from this generation. Understanding their work styles, preferences and employment trends will help in recruiting, hiring and retaining the employees critical to your organization’s success.
Millennials’ Motivations
Human resources professionals have been quick to point out that millennials possess different values, preferences and priorities than prior generations of workers. This may help explain why the average job tenure of a millennial is two years, and 21 percent of millennials have changed jobs within the past year, a rate three times higher than non-millennials. The characteristics of this group that impact their behavior include the following:
- More than 63 percent of millennial workers possess a bachelor’s degree, but nearly 50 percent are under-employed in jobs that don’t require a college degree.
- Millennials have the highest U.S. rates of unemployment and underemployment, and only 29 percent report feeling engaged at work.
- Fifty-five percent of millennials are somewhat indifferent about their jobs and simply show up to put in their hours.
- Many millennials still live at home and carry an average debt of $45,000, much of it in the form of student loans.
- Entrepreneurial-minded millennials are unafraid to strike out on their own, and 54 percent either want to start a business or have already done so, and more than one-third have created a side business to supplement their income.
In order to develop ways to engage millennials it’s important to consider what they say motivates them in the workplace. Research shows that a paycheck isn’t as important— although they do expect fair compensation—as finding work that has meaning and purpose. They want opportunities for career development and confirmation that the organization values their strengths and contributions.
- Millennials want to be challenged in their careers and look for work environments where they can play a significant role early in their careers. More than 15 percent of millennials are managers, with more moving into management positions as baby boomers retire.
- Most millennials are not willing to stay in a job if they do not feel they are deriving any personal benefit or growth. They want to be engaged in their work, both emotionally and functionally.
- Millennials seek flexibility in order to achieve a blending of work and life commitments. Unlike their parents, who sought work/life balance, most millennials believe there is no separate work time and personal time; it’s all just their life. They use technology to merge work schedules seamlessly with their personal commitments. To achieve better overall balance, many millennials are willing to sacrifice pay to work in a place that offers flexibility.
Checklist for Employing Millennials
To attract and retain millennial employees, companies are beginning to focus on several key areas that address millennials’ concerns, values and interests. According to a recent report from Fortune magazine and Great Place to Work Institute, this generation wants career opportunities in companies characterized by “open communication, risk-taking, collaboration, support among employees, and fewer internal politics.” The following list provides guidelines for developing a millennial-friendly culture:
- Coaches, not bosses – Millennials seek a relationship with their supervisor that focuses on developing their strengths and gives them early opportunities for personal and professional growth. If millennials feel their supervisors are invested in their growth, they are more likely to develop stronger, more loyal relationships with their employer and their colleagues.
- Ongoing feedback, not annual reviews – Feedback is important to millennials. Most want regular, specific feedback from their managers, and they see their supervisors as being instrumental in their development. Annual performance reviews don’t resonate with millennials as a sufficient way to obtain performance feedback.
- Flexibility with time management – Since they merge personal and work time, most millennials see no problem with sending personal emails and texts during work hours, as well as handling work projects during personal time. Millennials don’t want to be micromanaged, and want to decide when and how to complete their projects, believing they can best decide how to manage their time. The Pew Research Center found that 64 percent of millennials would like to occasionally work from home and 66 percent would like to shift their hours to better fit their work and personal lives.
- Work that has value – Many millennials believe it is important to give back to their communities, and they want their work to have meaning. It is important to them that their company has a good reputation for caring for its employees and community, and that it invests in social causes. Millennials are attracted to companies that provide volunteer and outreach opportunities that enable their employees to demonstrate their personal values in meaningful ways.
- Smart technology – Millennials are “digital natives,” the first generation to grow up with computers and the internet. They expect a company’s technology to be up-to-date and always accessible. They expect to use social media on the job, both for business and personal use, and they do not like restrictive social media policies. Millennials firmly believe technology should make life easier, and they don’t want to waste time on outdated systems or antiquated procedures.
With baby boomers retiring at the rate of 10,000 workers per day, businesses need to quickly replace and train the next generation of skilled labor. As they on-board millennial workers, companies have an opportunity to take a clear look at their culture, values and work environments. Organizations today can create a workplace that not only meets the ideals and values of millennials, but also benefits all employees and stakeholders.
