- Countering notions that millennial workers care less about pay, a Mercer study that used predictive modeling to test data about millennials concluded that the higher the base pay, the stronger the retention of millennials will be. Millennials are far less apt to quit if they report to a highly rated supervisor or a female boss, too, according to Mercer.
- Mercer's models also drew predictions about millennial turnover. The study concluded hierarchy offers a path to career advancement for millennials and that they take performance ratings less seriously than older generations. However, millennial workers are more likely to leverage promotion and positive reviews to get new jobs, Mercer said. The study also found that millennials working part time are twice as likely to leave as other workers.
- “Organizations should not let stereotypes guide their decision-making as they can be highly misleading,” Haig Nalbantian, founder of Mercer’s Workforce Sciences Institute, said in a media statement. “For example, the idea that high turnover is simply a fact of life when employing Millennials is unfounded; we find that the employee value proposition offered by employers matters a lot and can strongly influence the choices Millennials make at work.”
Mercer's data found that the stereotypical views about millennials being chronic, dissatisfied job-hoppers may not hold true on closer look. Although a third of the HR professionals in a March Speakap survey said millennials were their biggest challenge and the most difficult of all generations to engage, Mercer's findings don't reflect this rebelliousness. Millennials value employers who allow them to develop their careers, move up in their organization's hierarchy and land roles with greater responsibility. Millennials also want learning and development at work, but are frustrated when employers' programs fall short, a 2018 Harvard Business Publishing report found.
Money still matters to most employees, even when a bigger salary isn't their top motivator. In an effort to better retain millennials on this basis, employers might review their pay practices to see whether salaries are competitive and unbiased. How employers structure employee value proposition can impact workers' decision to stay or move on to their idea of a more rewarding job opportunity.