Company culture, a once cliché term, is now at the forefront of every leader’s brain. Pair the up-and-coming millennial generation that continues to shift the nation’s workforce with the hundreds of thousands of employees who have become accustomed to working at home over the last year and a half, and there you have it... The Great Resignation.
According to the U.S. Department of Labor, during the months of April, May, and June 2021, a total of 11.5 million workers quit their jobs. This voluntary workforce mass exodus has left businesses of all sizes and industries wondering how, if at all, they could combat such an occurrence.
As a business owner, you’re likely already aware that a solid culture could be your best defense in the fight. But what you may not have realized is that culture isn’t the casual dress code Fridays and suction-cup basketball hoops on the wall that once deemed an organization as a good place to work. Now, culture is developed on the premise of a much different set of values, including work-life balance, inspiring leadership, and professional development – just to name a few. Millennials and Gen Z workers are looking for a workplace that truly values them, and workplace culture is a huge piece of that puzzle.
Every company will develop a certain type of culture over time, but it’s your job as the business owner to control the values, beliefs, and attitudes you create. Keeping an eye on this can help boost productivity and decrease turnover and negative behaviors. According to Balance Careers, your employees are more likely to enjoy their work and be more productive if you focus efforts on culture and making sure that your employees are happy while getting the job done. It’s not just about your current employees, though. If you’re looking to grow your business, consider how your culture may appear to candidates. 56% of workers ranked a strong workplace culture as being more important than salary, with more than three-in-four workers saying they’d consider a company’s culture before applying for a job there.
Why Younger Generations Are Seeking New Jobs
Some may call it “job-hopping,” but for these generations, they’re simply looking for a good fit. No one wants to feel like they’re stuck in a dead-end job. Millennials and Gen Z are generations who have seen unhealthy trends in the workplace with their parents and they’re not having it. Here are a few reasons why these generations are seeking new opportunities:
- Money: We’re all feeling the effects of inflation in 2022, but this generation is the most familiar with pay inequality. Even before prices skyrocketed, students were racking up thousands in student debt just to have a solid career. These jobs often have not changed their pay structure, leaving people out of college struggling to pay their loans and make ends meet. The math is simple: once prices go up, you won’t be able to afford as much. But the issue here is that pay often stays the same. This is typically the reason why these generations job-hop. It’s proven that they’ll receive at least an 8-10% pay increase by doing so, even in the same industry. The best way to retain workers is by paying them fairly and being willing to increase wages to match inflation and work performance.
- Lack of opportunities: The pay may be great, but if a Millennial feels stuck in a job with zero opportunities for advancement, they’re going to look elsewhere. These younger generations are striving to make an impact and they’re looking to do the same with their work. Giving your employees room to grow, resources, and career-building opportunities plays a significant role in retaining them long-term.
- Relocation: Millennials and Gen Z are no longer children. These generations are currently in or graduated from college, getting married, and starting families of their own. The oldest millennials are actually in their late 30s. Relocation is often a factor in these big life changes. In a Cornerstone study, 77% of respondents revealed that they’d considered relocation to another town, state, or overseas as an exciting, positive career move.
- Company culture: The big piece in all of this is company culture. A great career with good pay is worth nothing to a Millennial if it risks their mental health and well-being. Work-life balance is a priority more than ever for these younger generations. They value time with their loved ones, having an exciting personal life, and maintaining a solid career. It’s ok to want both! If your company culture is negative or doesn’t support employees the way they need it, you risk losing them.
Five Aspects That Millennials Care About Most
There are five aspects that can impact your company culture: opportunity, success, appreciation, well-being, and purpose. All five aspects are arguably subjective, but equally important.
- Opportunity: Opportunity can look different for every role and every employee. Is it the opportunity to learn a new skill or the opportunity to one day have a higher title? If opportunity breeds success, why limit what opportunities are available to your employees?
- Success: Both personal success and the company’s success should be key drivers for your culture, but at what cost? What does success look like to your leadership team and how will you communicate it along the way? How will you celebrate successes, and, on the contrary, how will you develop and coach employees when they fall short of it?
- Appreciation: Heavily important to millennials, your employees seek recognition. The age-old saying, “A person who feels appreciated will always do more than expected,” still holds true. Is your management team expressing appreciation and recognizing achievements? Taking it one step further, are you recognizing your employee in a way that resonates with that particular person? Finally, recognize that communication is crucial in expressing your appreciation, don’t assume your employees know that you appreciate them.
- Well-being: One of the most talked about topics as the country begins to put an emphasis on mental health, what does your culture offer for employees’ well-being? Sure, not every organization can offer mental health days or an office puppy to boost morale. But are your leaders trained to recognize burnout? Do your managers have a zero-tolerance policy for gossip? Are you working to create healthy relationships, or are you giving never-ending to-do lists and nonstop deadlines?
- Purpose: The infamous “why.” What’s your company’s why? What is your employee’s why? Does your job candidate have a why? (Spoiler alert: if they don’t, they likely will lose motivation) Do those align? Are the values made clear?
Tips On Retaining Millennial Employees
Now that you have an idea of what these younger generations are looking for, here are some ideas to implement that will promote a healthy work culture and retain Millennials and Gen Z employees:
Lose the stigma
There is a common misconception that younger generations are lazy and unmotivated. This cannot be further from the truth. In fact, these generations want to make a change in processes and systems that no longer work. Seeing this side of them and championing their innovative ideas will not only break this negative stigma with their generation, but it will allow them to feel seen and heard.
Root for teamwork
Feeling a part of a team is a must, especially for Gen Z. Even in this ever-growing remote work culture, there are tools and resources that can help improve teamwork. Encourage your employees to jump on brainstorming Zoom calls with their peers or invest in processes that make communication easier.
Make efforts toward diversity
These younger generations understand the importance of diversity and are diverse themselves. No one should have to feel the effects of being denied opportunities because of what they look like. It’s one thing to say you are inclusive but making efforts to be inclusive is a completely different ballgame.
Be flexible
A key part in a healthy work-life balance is a schedule that works for an employee, not against them. More and more organizations are jumping on board with a flexible work culture. This can often look like half-day Fridays, an employee-made schedule, or working what used to be unconventional hours. Life happens, and employees want to be able to know their workplace understands and promotes flexibility when needed.
Retain Younger Generations With Ease
Taking the necessary footsteps above to define your culture could save you from losing your top talent. Still, it can be overwhelming to even get started. From improving skills to making employees feel valued, GMS can help you retain employees – and limit turnover costs. Contact us today to discuss your options.