Other research by LinkedIn shows that industries with the highest turnover rates are:
- Technology (software) 2%
- Retail and Consumer Products 13%
- Media and Entertainment 4%
- Professional Services 4%
- Government/Education/Non-Profit 2%
- Financial Services and Insurance 8%
- Telecommunications 8%
Clearly staff churn in the UK will vary considerably depending on multiple factors including job type, industry and geographical area. But it’s clear that the one segment that most frequently ‘jump ship’ are millennials.
According to the Deloitte Global Annual Millennial Survey 2018, 43% of millennial respondents envisage leaving their jobs within two years; only 28% seek to stay beyond five years. And this 15-point gap is up from seven points last year.
Why are millennials leaving?
The individual reasons will be diverse however it is worth noting that among those millennials who would willingly leave their employers within the next two years, 62% regard the gig economy as a viable alternative to full-time employment. Expectations not being met is another common reason. Employers should be wary of overstating opportunities for progression and the scope of the role during recruitment as this leads to disappointment on both sides. And how a business ‘behaves’ will influence how engaged millennial employees become too. According to Deloitte, millennials’ opinions about business generally are diminishing, in part due to a belief that businesses focus solely on their own agendas rather than considering the consequences for society.
What can be done?
Those businesses that can positively engage and keep millennials are set to secure a bright future. This is important as this is the generation that is increasingly saturating the workforce and business is becoming more and more reliant on them as their current employees age and retire.
Employers must avoid blaming millennial turnover on the issues that commonly get media coverage such as a sense of entitlement and lack of work ethic or loyalty. Instead, HR leaders should investigate what this new generation is looking for and think about what the business can offer or do differently to get the best out of them. The number of millennials in the workforce is increasing – so it is simply good business sense to find solutions now rather than later.
First, use your HR software to mine your staff database and assess the size of the issue you currently have. Look at your leavers over the last 5 years and categorise by age, job function, reason for leaving, etc. Are there any trends or patterns here? Is millennial churn a genuine issue for you or simply a perceived one?
With the baseline in place, think now about what your leavers have said about why they are moving on. Are there any other underlying issues within the business that haven’t been stated but could potentially have an impact?
Once you’ve addressed any obvious issues, it’s now important to focus on getting the most from each person during the time they are with your company. Dissatisfaction with career progression opportunities is a common problem, but one that can be easily resolved. Again, using HR software tools to map skills and potential is an easy and effective way to engage with all staff (not just your millennials) as it allows the company to be proactive about offering new challenges. The fact is if you keep your employees interested and offer a clear way forward so they understand how they could progress, then they’ll stay longer.
HR can take steps to encourage internal mobility, both upwards and sideways, as this is a proven way to offer new challenges and widen the employee experience. Take care to look internally for suitable candidates for every position; this is particularly important for senior roles as it demonstrates that the company is serious about offering career progression opportunities.
And bear in mind that for lots of the millennial generation, a job with flexible hours (as opposed to the typical 9-to-5) is top of the list of priorities. The tightly managed and heavily supervised working practices are losing traction as remote and mobile working takes hold. Seismic change is underway and those businesses that are early adopters of the shift to flexible working are more likely to attract and keep the millennial generation. If the senior management team is unconvinced, why not suggest a trial and see if productivity and engagement increases or decreases? It’s much easier to gain agreement for significant changes with the evidence to prove the benefits.
Finally, millennials as well as other segments of your employee base respond well to feeling as though they are part of something bigger – a company that is growing and evolving and has a clear sense of purpose. Be clear about your successes and goals. As more millennials join your workforce, take time to listen to their needs and look for ways to adapt and grow with them. It can only benefit your churn figures.
If you want to learn more about how our HR software can help you delve into and understand more about the people data within your organisation, so that you can make more informed decisions and put plans into action. Then take a look at our short HR software demo videos that can show you some of the features you can get with our software that can help you get the insight you need to drive real change in your organisation. Alternatively, you can speak to one of our friendly team to arrange a tailored demo that’s suited to your organisational needs.