How to keep millennials on the team

14 Nov

Millennials often stay at jobs for a year or less.

Job hopping has been a trend among millennials recently, according to Human Resources Executive Online. The website reported that most young workers stay at their first jobs for less than a year before moving on to another position. Fueling this trend is the tendency for many workers in the recession and post-recession years to take jobs for which they were over-qualified. Additionally, employees are less committed to employers, said Bob Funk, CEO of Express Employment Professionals, a staffing group that performed a survey on this subject. The study indicated 77 percent of employers believe that people who have just graduated college are very likely to quit within a year.

"It's true that the 'grass isn't always greener,'" Funk said, "but this generation seems plenty willing to go check out the grass on the other side. Employers, take note."

Retaining millennials
One human resource planning strategy of keeping employees around includes giving them more work, according to Val Grubb, president of Val Grubb and Associates, an operations consulting firm. She believes millennials are ready to work hard and have high expectations of rising through the ranks of workers.

"If they say they want to be CEO, ask them, 'What does the company look like that you want to be CEO of?'" Grubb suggested. "Remember, they have so little work experience, so little customer-service experience. They don't connect the dots to understand how meticulously managing invoices [something they might find tedious or boring], for instance, will set them on their way to managing budgets, which—oh by the way—will affect the financial health of the company a CEO cares about."

Job hopping hurts retirement benefits
Something millennials may not have considered is the reality that many people who leave a job early are missing out on their employer's vesting policy, CNN Money reported, citing a study by Fidelity. Those who quit their jobs before they earned the right to retain the money their employer put into their 401(k) have the potential of losing thousands of dollars.

Over a third of millennials fall into this category, according to the story.

"Chronic job hopping could really sink your retirement savings," said Meghan Murphy, a director at Fidelity who conducted the analysis.

Companies that want to keep people would do well to teach their employees about the value of saving money away for retirement, and it would also help to explain the rules about vesting.

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