Long gone are the days where employees stay with companies for 10, 15 or even 20 years. Today, employees aren’t sticking around if the job isn’t a good fit for them. You’re likely to find employees leaving a company within a couple of years and in some cases within a few months.
Shorter job tenure is being lead by millennials, the fastest growing generation in the U.S. workforce. But why are millennials switching jobs so quickly and what is it that they really want from an employer? According to a recent study, the top 3 reasons employees leave are as follows:
31% Burnout / Feeling overworked
28% Poor management
15% Company culture
(Hear more reasons and solutions for small businesses on my Fox Radio interview – listen in here.)
Surprisingly, compensation isn’t at the top of the list because this new workforce cares more about job flexibility, training and social causes. Millennials have seen a lot of loss. They’ve watched their parents and family members lose jobs, homes and retirement accounts after spending so many years with one employer. Have they seen more loss and failure than any of the previous generations? Some would say yes and others would say no.
The key to understand is that millennials haven’t been taught to be loyal. Are they spoiled? Maybe. I like to believe they have the bright, shiny object syndrome. They are constantly being bombarded with the next best or greatest thing. There’s always a better version of something around the corner, jobs included.
Fantasy football is a great example of the shift from being loyal to a team (or company) but instead moving players around weekly to create a team that will win.
In summary, whether you’re a large or small business, turnover can be very costly as it can quickly eat into profits. To minimize the effect of turnover on your small business’ bottom line, be willing to implement out of the box programs and initiatives that will keep your employees happy and your bottom line growing.
Take a look at this article from TinyPulse (click here) for some out of the box employee retention strategies.