Dive Brief:
- North American chemical companies are struggling to attract and retain millennials, according to a recent survey – which could spell danger for those about to face a major exodus of older talent.
- The survey, by Accenture and the American Chemistry Council (ACC), found that workforce turnover issues and an aging worker population could mean added unplanned operations disruptions, more hiring and training costs, and more efforts to maintain safety.
- Chemical companies face a shortage of experienced workers and must replace a substantial number of retiring baby boomers in the short term, as over 20% of the chemicals workforce is approaching retirement in the next 3-5 years. If the aging workforce issue is not resolved, 86% of respondents said the chemical industry's profitability will suffer significantly.
Dive Insight:
With an aging workforce, keeping millennials in the fold is critical, yet only about one quarter of North American chemical companies retained 90% or more of millennials hired in the past three years. Most employers saw a 30-50% attrition rate among millennials. A recent Accenture Strategy study showed that new university graduates expect to stay on the job for more than three years.
The good news is that executives interviewed for the survey said that many chemical companies have effective knowledge transfer programs, so they can hire millennials with non-technical degrees and train them in the technical knowledge needed to do the job. The true challenge is keeping millennials for long, productive careers in an industry considered "old" by many, despite a track record of tremendous innovation.