Whether you’re ready for them or not, Millennials are now the largest generation in today’s workforce. Many in this generation prefer to bounce from job to job, with the typical career path taking them to four jobs by age 30, but what happens when you lose a top talent, especially to a competitor?
The cost of losing an employee can often cost a company 2.5 times what that worker makes in salary, between the administrative costs, recruiting costs, revenue loss, dip in company performance and, in the case of so-called “top talent,” a noticeable drop in employee morale.
Top talent is comprised of those workers who consistently perform in the top 5 percent of the workforce, so losing one of those superstars can be a tough blow, especially to a small company, but even to a larger one that can seemingly take a “next man up” approach.
A Price Waterhouse Coopers survey from earlier this year shows about 63 percent of CEOs are finding the right people to fill their vacancies or help their companies grow, while 93 percent of them realize they need to change their strategies, but 61 percent haven’t taken the first step and only 34 percent say they’re prepared to make those changes.
The challenges of meeting the demands of today’s workforce include a difference in what employers believe top talent should earn and what the workers believe they should be paid, a skills gap that means workers aren’t trained or equipped to do the job employers want them to do, a lack of qualified candidates in a workforce with unemployment under 5 percent, increased job demands that outpace an employer’s ability to train them and global competition for that so-called top talent.
In today’s evolving workforce, employees need to show a propensity for developing disruptive technology, must use social media to drive change and embrace bring your own device policies, cloud technology and mobile platforms.
“If you haven’t done something to make your brand attractive, no one will want to work for you,” said Carousel Industries talent acquisition manager Pat Halpin in a session on attracting and retaining talent at the seventh annual AlwaysOn Symposium.
Millennials became the largest group in today’s workforce in 2015, when they topped 92 million, compared to about 62 million Gen X’ers and more than 77 million Baby Boomers. Millennials will continue to gain more space in the workforce as Baby Boomers, which was previously the largest generation in American history, retire or die, so employers must recalibrate their approach to the youngest people in their offices.
Today’s young workers want constant feedback on their work, coaches rather than managers, opportunities for growth through succession planning and flexible work environment, says Carousel recruiting director Molly Kreis.
They also crave empowerment, opportunities for collaboration with their peers, a work-life balance and the opportunity to make the world better.
Workers leave most often for a handful of reasons: bad culture, poor management, the inability to agree on salary demands, feeling stuck in a particular job or on a particular career path, and a lack of work-life balance.
Employee turnover costs U.S. companies about $30 billion every year, says Kreis.
To attract top talent—or keep it once you’ve got it—employers must make sure to ensure they have intention behind their strategies, know their brands inside and out and develop a talent marketing strategy.
If you want to stand out, tell a story that makes you different, demonstrate your core values, offer unique and different benefits and develop best practices that protect your employees’ and your company’s reputation.
“By the time you’re talking to candidates, it’s too late to develop your employment brand,” says Halpin.