Retention rethink a Millenial must

THE most valuable resource in any organisation is its employees. While all organisations seek to build a team of highly-talented employees, that task is becoming increasingly difficult.

As younger Australians tend to move rapidly from one job to the next, companies are forced to radically rethink their retention strategies.

A recent Gallup report found that 21 per cent of Millennials (born 1980-1996) had changed jobs in the past 12 months, more than three times higher than older generations.

This trend is having enormous financial implications for companies and it will only increase. Increased hiring costs, training costs and lower initial productivity can all have negative impacts on profitability.

Companies that struggle to keep talented employees over the long term are in danger of lacking stability and trailing behind in competitive markets. There is a war for talent in many industries.

Senior management and HR professionals are being forced to seriously rethink their strategy or risk losing their best employees.

Job descriptions should be designed to take the individual’s skills and passions into account. Employees need a certain level of autonomy in tasks where their skills and abilities can be put to good use.

When staff don’t consistently feel satisfied in what they are doing, they are less committed to the company.

How many times have you heard workmates say they don’t feel appreciated by management? Often it is the small but intentional comments and positive feedback from managers that show employees what they are doing is noticed and appreciated.

Leadership also needs to rethink how they are making a habit of celebrating the hard work of individuals and teams. Knowing you are valued in your role can be a huge motivator to stay.

Companies are often slow to invest in the ongoing growth of employees. The Australian HR Institute revealed in 2018 that 63 per cent of staff leave organisations because of a lack of career progression options.

To maximise retention, staff need to have individualised career progression plans. Employees need to know how persisting with their employer longer term will develop their career and skill set.

Crucially, management must be keenly aware of employee discomfort and role frustrations. If they want to retain employees, they should be willing to do whatever possible to encourage a healthy worklife balance, something highly prized by most employees.

What about introducing more flexible work arrangements that give employees more say in how they work?

There should be frank discussions between line managers and talented staff about what it would take for them to stay long-term in their workplace.

Each employee is motivated uniquely in the roles they perform. The ball is in the employer’s court. They must grasp the needs of each employee if they want to hold on to talented staff.