Millennials in the Workplace: Why and How Your Company Needs to Pivot

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Millennials have arrived and are changing the workplace forever.  They have different desires and expectations than past generations and therefore companies must pivot, shifting from maintaining methods that worked for baby boomers to those that resonate with millennials. With 35% of the labor force now being made up of millennials, this is a pressing issue for businesses as baby-boomers retire.

Why Your Company Needs to Pivot to Millennials Working Habits

Millennials are Hard to Recruit and Retain

Millennial turnover already costs the US economy $30.5 billion annually. They are the most educated generation in history and expected to form 75% of the workforce by 2030. The impact of high employee turnover is significant for all companies because it not only results in higher recruiting costs, but also a decline in productivity, overall revenue, employee morale, and cohesive company culture. Millennials have a reputation for job-hopping as they become bored or see new opportunities. This high turnover ratio can have a huge impact on a company's bottom line so the need to retain and enable millennials to thrive is critical.

Let’s look deeper at reasons why millennials are so detached from organizations.

• It Takes Longer for Millennials to Choose a Career

The director of the lab on aging at Harvard Medical School says the first person to live until 150 has already been born.  This means that it will simply take millennials longer to find what they want to do for 100 years of their working lives.  They are having a hard time finding jobs that they feel passionate about as they explore various roles and try different career paths and will only settle short-term for a career if it puts food on their table.  They want more, both in terms of pay and meaning. If they come across a better opportunity, they are quick to transition. This long-term view of life and bias for “purpose” means that they are taking longer to find a career they want.

• Millennials have Less Real-Work Experience

Millennials have also spent a lot of time building their academic records. They were told that a good academic record equated career opportunities.  Moreover, they enjoyed college life, leaving them less inclined to move quickly into the workforce. While education can be good, millennials often lack a helpful work history and when they graduate, it becomes hard for them to land a job due to this lack of experience. Millennials grew up with so many choices presented to them that many lack the ability to create opportunities when none are apparent.  Therefore, many still search for their passion and interests and this has resulted in dissatisfaction at the workplace and hence, higher attrition.

I’ve said before that experiential learning prepares students for the real world. Exposure to real-life work experience sharpens students’ competencies, helps them change their mind-set about the job market, and gives them qualified time to identify their passions. Lack of experiential learning denies students the time to adapt to the real world, taking longer for them to choose their career paths after graduating

• They are the Most Entrepreneurial and Least Loyal to Organizations

The millennial generation is the most entrepreneurial generation we have ever seen. They are showing themselves to be the most purpose-driven and as such, the most detached from major institutions such as politics, religion, and marriage. Their commitment and loyalty to organizations is equally minimal. The reason behind their entrepreneurial mind-set is that they have lost faith in employment as well as that desire for flexibility. The unemployment rate for millennials stands above the overall rate at 12.8%. Unemployment and uncertainty in the job market have motivated them to start their own projects and chart their own career paths. The broken promises in employment like getting promotions after investing in higher education make them less committed to employers.

• Millennials Value Integration Versus Work-Life Balance

The traditional work-life balance environment designed by baby boomers will not suit millennial lifestyle and goals. They want work-life integration.  The ability to do important work while in flip flops and checking social media! Millennials will be attracted to your organization if allowed to work when their productivity peaks. They value autonomy and options and look for flexible work hours as well as the ability to work remotely.

How Your Company Must Pivot to Consider Millennials

As illustrated, millennials have different career expectations. To successfully recruit and retain millennials in your organization, here are key considerations and recommendations.

• Take a Work-Life Integration Approach

Work-life integration beyond just creating a balance is critical to millennials. Integrate technology to make it easy for them to work remotely. As working hours become extended, you need to provide flexible schedules which allow millennials to work at their rhythm.  Offering substantial paid time off and support for family events such as births and childcare is also greatly valued.

• Provide Regular Feedback and Encouragement

Millennials are motivated by making a difference and innovation. To motivate millennial employees, provide regular feedback and encouragement. They need to feel connected to their team and the fellow workers. Millennial workers are more content where their efforts are recognized--this generation grew up receiving trophies for 5th place! They are more concerned about making a difference than making a profit, so how can your company showcase your social values? 

• Create Pathways for Millennials to Move within the Organization

As noted, it takes millennials some significant time before they settle for a career.  They want to accumulate experiences and refrain from settling down. Millennials prefer to stay in companies where there is progressive growth, so how can your company allow pathways for millennials to try different roles and move internally within the organization rather than leaving the organization?

• Allow Millennials to Be Innovative

Another key for companies today is to include millennials early on in the transformation of systems, processes, and activities. To attract them, encourage internal innovation to allow them to work and think differently. Millennials prefer flexibility to specific schedules, the opportunity to innovate and have progressive growth, and having a sense of ownership of the results. 

By taking the above into consideration and shifting your HR process and company culture, your company can become an attractive place that will recruit,  motivate, and retain millennial employees.

We have had four amazing interactions since the last newsletter, making this the busiest month ever for Ravi Unites Schools.  At the end of August I hosted one live from Chile where students of the MacKay School in Vina Del Mar interacted with peers in Santa Ana California USA.  Then later that week, I hosted virtually (still from Chile) and interaction between Tamil Nadu India and Aurora Ohio USA. Then I went to India and alongside student in Tamil Nadu, I hosted an interaction with their peers from Stevens Point Wisconsin USA.  Finally, alongside students in Mumbai, I hosted an interaction with their peers in Hilton Head South Carolina USA. These were all amazing and you can see some of the latest videos at RaviUnites.com/schools.