These days, frequent and voluntary job changes are becoming rather common among new workforce generations. Retention management teams are concerned about the motives for this tendency since replacing an employee can cost from one-half to two times their annual salary. So, it is no surprise that we hear the question of how to retain employees more often. And, as employers, you can hardly ignore dynamic working conditions, so what can you do?
Since employee turnover directly influences business revenue, you should be mindful and become the game-changer your employees expect you to be. Below we will not only explain why job-hoppers constantly look for new opportunities. We will also help you create innovative strategies to gain new talents and retain the best ones.
Understanding the job-hopping generation
When it comes to taking risks and seizing new opportunities, younger people show more willingness to change jobs than those more established in their careers.
These numbers have revealed the critical need for employers to find new methods to retain young talent. So, as you embark on this journey, it is important to understand what stands behind this behavior and adjust your retention plan accordingly.
Low engagement in the workplace has become one of the main reasons why new workforce generations are eagerly ready to jump into new opportunities. The lack of connection to the company is a big red flag that organizations miss, and since employees aren’t getting compelling reasons to stay, it’s easier to leave. While the role of millennials in the job market grows, employers need to learn how to attract those who are looking for new positions while retaining their existing millennial employees.
What new generations want from a new job
As leaders strive to change their organizational culture, we share the top 5 things younger generations seek when changing jobs:
- Purpose—Although compensation is important, employees also want meaningful jobs that let them add value to business. Think of ways for your company to develop a purposeful retention plan for employees by aligning your mission to their goals and interests.
- Development—Rather than daily satisfaction from free food and playrooms in the workplace, job-hoppers look for companies that offer development plans. Consider how retention management teams can help deliver clear career paths to your employees.
- Mentors—Having a boss who commands and controls is no longer what employees want. Instead, they prefer a mentor who can coach and guide them to reach their goals. It should be someone who values them both as individuals and employees. Evaluate what type of leadership is directing your organization right now.
- Communication—With social media granting continuous and immediate conversations, employees also expect the same from their workplace. Real-time feedback is more effective than waiting for an evaluation at the end of the year.
- Recognition—Now more than ever, employees question how much their talent is valued. As they seek purpose and development, they want to know if their efforts and contribution are appreciated.
Employee engagement and retention management
Retention management must be applied knowing that managers shouldn’t only hire the best candidates but develop a retention plan to keep them. Workplaces have evolved tremendously over the past years, and so did work conditions and necessities. All these circumstances allow employees to seek and ask for what they want. As more companies discover that making cultural changes can boost productivity, they’re looking for creative ways to retain employees and apply innovative strategies.
The main benefit to retain employees is reflected in the quality of their work. Since lack of experienced workers can affect business revenue and the confidence of employees, who end up taking workloads and responsibilities they may not be ready to take. So, here’s some advice on how to retain employees and attract the talent your company requires.
Below you’ll find some strategies that managers can apply to reduce turnover and provide employees with expected value:
1. Offer a 4-day working week
Many companies worldwide are taking on this trend and experiencing higher productivity and improved wellbeing. Imagine working from Monday to Thursday with three days to relax while getting paid the same salary. Doesn’t that sound attractive? Of course, it does, and employing this strategy can make your company stand out and attract new talent.
2. Reduce working hours
Multiple research results prove people get more done when they work fewer hours. Global experts state that six hours a day is the optimal work time before productivity begins to decline. People would get more done in six focused hours than eight unfocused hours. Offering employees more time for themselves and their families is an innovative way to appreciate their work and effort.
3. Suggest that they lead the change
It’s not a secret that people feel most valued when they can make an impact. Ask employees what changes they expect to see in the office and invite them to lead those initiatives. Don’t be afraid of leaving behind traditional organizational structures and be open to rethinking your work environments. Leaders must reinvent their human capital strategies to satisfy the new generation’s needs.
4. Establish a broad wellness program
It is no surprise that workers look for a better work-life balance. So, companies should offer improved benefits and wellness programs aligned with employee needs. Many organizations have established coaching sessions on self-care and mental health or provided apps for better personal goal setting and mood journals. Since 61 percent of job seekers expect their employer to offer higher mental health benefits, it’s essential that leaders design and execute effective wellness programs tailored for everyone’s needs.
5. Offer sabbatical programs
A wonderful way to retain employees and appreciate their work is by allowing them to take extended breaks to recharge and come back even more motivated. These breaks are usually for one month or more, depending on each organization’s policy. When allowing employees to dedicate time for themselves, their families, passions, and hobbies, they’ll become more engaged. Even offering one week off for mental rest can make a difference to your retention plan.
How to retain employees can be one of the most critical questions leaders should address if they want to thrive now and in the future. At the end of the day, it doesn’t matter how ambitious or well thought out your business plans are if you don’t have the right or experienced people to execute them.
Job hopping is the new corporate ladder
If a millennial expects to stay in a job for less than three years, they will have between 15 to 20 jobs in their working lives. What does that mean for their careers? As job-hoppers look for better opportunities, getting a promotion every time they switch jobs allows them to speed up their career advancement. Therefore, job hopping helps boost them up the corporate ladder, leading to greater professional fulfillment, happiness, and purpose.
If leaders want to retain employees, they must fully commit to providing them with the opportunities they seek while becoming more human-centric. Times demand new and innovative strategies that resonate with what new generations need to balance their work and personal life. Rethink your working policies and approaches to attract and retain valuable employees.