The workforce is changing with veteran workers retiring and young, hungry millennials taking their place. There will be a large knowledge and skills gap with this shift in the workforce. Millennials are inexperienced in the real world, but they are excited to be led, learn, and be shown they are valuable. Without these three components businesses will be looking at high turnover rates. According to an article by SHRM (Society of Human Resource Management), “turnover can cost up to 200% of an employee’s annual salary.” The same article continues, “entry-level turnover alone costs billions of dollars each year, based on voluntary turnover rates and annual replacement costs. So, how can you be sure to see your bright new employees be led, learn, and shown their value?
- Improve Manager Training
- Offer Professional Development Opportunities
- Provide Access to Key Benefits
According to Gallup, major issues with employee engagement stem from incompetent and disengaged managers. This means it is vital for organizations to invest in and train their managers so that their employees can be engaged and perform. SHRM indicates that respect and fairness are valued over income by millennials. Working for a great manager that leads employees is what millennials demand and what organization’s need to retain them.
Research indicates that young workers are twice as likely to stay at their job for more than a year if they see their job as a career or stepping stone to a career. It also indicates that only 35% of young employees described that situation. This can be instilled through mentoring and on boarding. These types of opportunities help young employees feel invested in, so they can, in turn, invest in the company.
Key benefits can be an absolute game changer in retention. Some of the most important benefits are compensatory factors. These can be both monetary or non-monetary (or cash and non-cash). Having a good salary is definitely a plus – but where companies set themselves apart is in the non-cash compensation. That is where we come in.
QIC has been building and operating comprehensive recognition and incentive programs for decades. Our custom solutions help create a healthy environment by providing an incentive for managers to better lead employees, or help solidify the mentoring/on boarding process so that young employees enjoy the process of becoming a part of your organization. Contact us today and take advantage of our no-cost consultation.