Unlike past generations, millennials are prone to job hopping between companies and only spend an average of two years in each position. If you find yourself doing this as a result of malpractice in the workplace, contact Cummings And Lewis Attorneys in Greenville.
In order to increase retention among young employees, companies need to shift their approach. Traditional job perks such as sports tickets, rock climbing gym memberships and free trips won’t help.
Blackhawk Engagement Solutions found that millennials crave consistent recognition for their hard work and immediate financial rewards. But is regular positive reinforcement enough to keep millennials in their jobs?
New research from Monika Hamori in MIT Sloan Management Review suggests that increased compensation may be the best approach to retention. While studying data on a group of German young professionals, Hamori found that the number of employer changes positively impacted compensation over the course of five years. “While those who stayed with the same employer received average annual pay increases of 11%, those with two employers received 13% average annual pay increases, and those with three or more employers saw average annual pay increases of 15%.”
Hamori uses the example of two employees who made $80,000 in their first year to illustrate the difference in income growth. After five years, the employee stayed at their first company would make $121,446, while an employee who made two or more changes would be earning $139,921.
The number of employer changes a worker makes is “more important than their gender, age, or any aspect of their human capital, such as their highest degree earned, the specialization of their degree, or their pre-employment work experience — including the number, duration, and types of internships.” Only the number of promotions over the course of a career surpassed number of employers in its impact on average annual salary increases.
For companies to retain millennials, they need to transform their compensation methods to keep up with the best talent.