About a month ago, the Chicago Tribune ran an article titled The Cost of Millennials Job Hopping. In the article, writer Rex Huppke highlights the findings of a survey conducted by Millennial Branding, a consulting firm, and online career network beyond.com. The survey focuses on the “job-hopping nature” of millennial employees as reflected upon by “hundreds of HR professionals.”
Looking at the most significant findings, Huppke’s article puts the spotlight on the following survey results:
¥ “30 percent of companies surveyed lost 15 percent or more of their millennial employees in the past year.”
¥ “87 percent of companies said it cost $15,000 to $25,000 to replace a departed millennial employee.”
¥ “Most said millennials leave the company because they don’t consider it ‘a good cultural fit.‘“
¥ “About 30 percent leave because they’ve gotten a better offer at another company, but almost the same amount say they left because their career goals weren’t in line with their employer.”
Is this data surprising? Not so much. But the study is important for a variety of reasons. Most notably, it’s one of the first surveys published that has been conducted solely on millennial employees. Gen Y(ers) really haven’t been in the workplace for all that long, so there hasn’t been the opportunity for researches to collect long term data. Although this wasn’t a longitudinal study, it’s the first step to conducting further research on millennials.
Secondly, the results may have an impact on how hiring managers go about recruiting and hiring millennials. With turnover costing about half of entry-level millennials’ salary, managers may rethink rushing into a hiring decision. Moreover, some may even rethink hiring millennials entirely due to fear that they will become the next company to lose 15 percent of their millennials in a year.
For those not turned away by these statistics, a valuable lesson can be learned here –culture is key. It’s not enough to just say you’re all about culture, you actually have to act on that in order to keep most millennials around.
What do you think about the results of this survey – are you surprised? Do you think it will cause some companies to avoid hiring millennials or will they continue with their current hiring practices?
If you follow our Millennial Monday posts, I’m sure you know Hireology fully supports hiring millennials. But it’s important to make sure the candidate(s) you are hiring has what it takes to learn and grow with your company. Although it may sound easy, determining who that perfect candidate is one of the most difficult steps of the hiring process. So to help you make the best hiring decision, we put together this guide to attracting, interviewing and hiring Gen Y talent.