Development and promotions may reduce attrition among millennials
- Millennial managers are nearly two-thirds less likely to resign (11.9%) than non-manager millennials (36.2%), according to a new study from Visier Insights.
- The report also found that millennial managers who haven't been promoted resign at a rate of 5.2% higher than the average, while millennial managers who were promoted in the last two years resign at a rate of 3.1% below average. Men who haven't been promoted resign at a rate of 1.7% higher than average, while similarly situated women resign at a rate of only 0.7%. Millennials (22%) job-hop within a company nearly twice as often as other generations (12%).
- "Our analysis confirmed that millennials change jobs significantly more often, but it also uncovered the power of promotion as a key factor in motivating millennials to stay with their firm," said John Schwarz, Visier co-founder and CEO. "Our recommendation is: don't fight the tide — work with it. Give your brightest prospects places to go within your organization."
Recent analysis suggests that millennial workers place a high value on development and will leave their current positions to work for competitors where career advancement is built into the culture. One O.C. Tanner study found that millennials are more apt to leave an organization when they feel underutilized.
Millennials are sometimes incorrectly tagged as job-hoppers, but when they do leave their jobs to work elsewhere, it's often out of a firm belief in career advancement. Not everyone of any age group is necessarily eligible for a promotion per se, but when employees are given advancement opportunities and goals, they're likely to feel empowered to use the skills and expertise at their disposal.
In a tight labor market, with low unemployment — now at 3.8% — and a skills gap that shows no sign of narrowing, employers who build development into their culture are better positioned to compete in and win the talent war.