In today’s workplace, managers and executive leaders find themselves stumped by the challenge of retaining their high-performing millennials. Overcoming this challenge is more crucial today than ever before because millennials now make up the majority of the workforce. Additionally, turnover within this generation is high. According to the “2015 Millennial Workforce Study,” 58 percent of millennials expect to leave their jobs in three years or less, and 53 percent of hiring managers say it’s difficult to find and retain employees within this demographic.
Of course, there are many changes companies must make to keep millennials from searching for work elsewhere. Benefits, pay, flexibility and company culture are all top priorities for them. However, at BetterWorks, we strongly believe that in order to keep this generation satisfied at work for longer than three years, companies need to start by looking at their performance review processes.
Millennials and ‘just-in-time’ feedback: An impactful relationship
Today, many companies are evolving their annual review processes in favor of a more regular performance management structure. Just take a look at companies like GAP, Microsoft and Adobe, which have all decided that giving feedback on a consistent basis could have tremendous benefits for their companies.
“Providing feedback on a regular basis is a significant way to retain millennial employees.”
In fact, providing feedback on a regular basis is a significant way to retain millennial employees. Millennials want more from their job than a paycheck and benefits. They seek to make an impact in everything they do, which means the companies they work for should help them develop professionally. According to research from TinyPulse, 42 percent of millennials want feedback every week. For millennials, feedback is a form of coaching. Regular feedback reassures them that their hard work is being recognized, and gives them the opportunity to improve their skills.
Upward mobility: A path to retention
Upward mobility is extremely important to retaining millennials in the workplace. According to a recent survey, more than 53 percent of millennials aspire to become the leader or most senior executive within their current organization. This is quite interesting, especially considering the willingness of this generation to job hop on a regular basis. Adding to this fact, a PWC report revealed 52 percent of millennials said upward mobility was the main attraction in an employer.
At BetterWorks, we think companies can paint a clear picture of millennials’ paths to growth by using interactive goal setting software that shows how their individual goals relate to company goals and giving feedback that is directly tied to career development on a regular basis.