Adam’s old employer provided catered lunch for everyone, everyday. The office basement housed a brand-new gym facility with free fitness classes. The company offered fun offsite team-building activities every month, and even gave employees the choice between a traditional or stand-up desk, and a cubicle or open workspace. In short, the company was saturated with workplace perks.
But Adam, a Millennial employee, stayed for just over a year—and then left. Sound familiar? Over 1/3 of Millennials self-report that they change jobs every 1-3 years, while most companies say that the cost of replacing each Millennial who leaves is $15,000-$25,000. These numbers combined point to a looming retention crisis. And while workplace perks are a hot trend, touted to attract Millennials, many companies have found that perks alone won’t retain this generation. No, they’re not leaving because they think they’ll find better perks somewhere else. They’re leaving for other reasons—namely, things you or your organization need to stop doing.
Here are the top five ways you might be driving Millennials away:
1. Communicate Poorly.
Millennials prioritize timely, constructive communication with their managers and teammates alike. They crave feedback on how they’re doing, what to improve, and ways to grow all the time. Research shows that they require much more frequent feedback than the built-in yearly performance review. Be open to communicating with your Millennial team members, and be clear and concise in your feedback. If you can’t get on the same page with them and communicate directives, expect them to leave in search of a manager who can communicate in the way they prefer.
2. Just Check the Recognition Box.
Research shows that recognition really matters for Millennials. Getting feedback that they’ve done great work that’s uniquely valued increases their drive and determination, and improves their connection to the company. But just checking the recognition box by dropping off a gift card in an envelope will not cut it. Global research from the O.C. Tanner Institute shows that recognition must be personal and sincere to resonate with Millennials. Create a meaningful recognition experience to show your Millennials how much you value them, and tap into their #1 motivator to produce great work: feeling appreciated for their contributions.
Employers need workers. Young people need jobs. So why aren’t they getting hired?
3. Lack Vision and Execution.
Millennials are really inspired by incredible leaders. They purchase brands they believe in and volunteer time and money towards causes that speak to them. So it should come as no surprise that they expect their careers, too, to be driven by a powerful mission that is communicated and executed throughout the organization. Take time to explain the company’s mission and the employee’s individual contributions towards achieving it, and live your values. Global research from Towers Watson and the O.C. Tanner Institute shows that employees aged 25-34 cite inspiration as the second biggest catalyst of their great work. Focus on delivering your message and enacting it throughout your company. Otherwise, you’ll lose valuable talent as Millennials head elsewhere for inspiration.
4. Embrace Archaic Policies and Procedures.
Millennials are fine with following rules, when the rules make sense and have a purpose. But if your company still upholds policies left over from days of old—think: no social media at work, ever, or yearly performance reviews instead of frequent check ins—Millennials head for the door. This generation is used to understanding the how and why of rules they follow. Make sure your company policies serve a clearly communicated contemporary purpose. Otherwise, Millennials will see right through your expired practices, and head to a modern workplace whose policies feel relevant and well thought-out.
5. Be Stagnant.
In two senses of the word: employees’ own lack of excitement about the day-to-day work, and lack of employee development opportunities. Millennials change jobs more often than other generations when they fail to find purpose and diversity in their daily work. So make sure they know how their jobs fit into the bigger picture, and encourage them to weigh in on important business decisions to highlight the value of their role. Provide development opportunities, too, because 75% of Millennials who leave their jobs do so because they don’t feel like their current position allows for advancement. Offer and encourage employee development opportunities, from online modules to a spot at speaking events or industry conferences, and match each employee up with a mentor who can help them achieve personal and professional growth.
Don’t let your company be guilty of these behaviors and lose out on Millennial talent. This year, Millennials became the biggest generation in the workforce. In order to retain and engage them to produce great work, start here. Then, ask for their feedback on your management and policies. It’s well documented that another thing Millennials love is to have their voices heard. Listen to the real reasons they want to leave. You’ll know when you’ve addressed their real concerns. Performance will rise. Turnover will fall. And, you’ll then probably start to hear some debate over the battles we’d all love to have as our biggest issue: the perks.
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