Retaining the Next-gen Workforce

Question:

Hi, I am a HR Manager for a business process outsourcing firm. The work culture at our organization is multi-ethnic, young and energetic since we have a 24x7 work environment. As you can imagine in this case the average age in our organization is 24. Our organization surely does attract a lot of Gen-Yers, as progression is swift if you are good at what you do, along with an attractive remuneration package, however the turn-over is also equally high. What do you recommend we should implement in order to retain effectively a ‘next-gen’ workforce?

Answer:

The new entrants into the global work-force, the gen-Y as they are classified, are characterized by those who are born from 1982- mid 1900. What makes them a force to recon with is due to the fact that there are distinct differences between what motivates them and the kind of work culture they are incline towards, which is different from their parents (Gen-X). Unlike those prior to them, these young entrant want to work, but they don't want work to be their life.

They also have low risk aversion i.e. are more risk-taking than their predecessors, which is why they tend to change careers faster than college students change their majors, creating frustration for employers struggling to retain and recruit talented high-performers. Gen Yers operate with a completely different perspective. Their definitions of loyalty, time and success are often quite different from yours; however they do recognize these concepts and value them.

It would be interesting for you to consider how your young work-force views the world around them, this will help you understand their key drivers or motivators, and thus help you communicate to them in their parlance and retain them.

1. They are less likely to respond to the traditional command-and-control type of management style, this is why perhaps your organization does appeal to them with its flexibility and non-traditional succession policy. I would suggest that the organization has a system of assigning coaches/ mentors, as this will help to anchor young talent.
2. This is the generations that demand work-life balance and paid time off. They want to get the job done, then put it behind them and enjoy life. They also highly value self-fulfilment If you feel that your young employees are not driven to climb the corporate ladder, embrace their true motivation (working to earn enough to spend comfortably) and use it to your advantage. Tell them, "I understand this is not your lifelong career, but to earn the paycheck every month, here is what I expect ..." they are much more likely to respond than if you try to motivate with promises of promotions and titles down the road.
3. The Gen-Y workforce has seen it all happen- they have witnessed the financial insecurity that plagued earlier generations affected by layoffs and the dot-com bust, thus in a rapidly changing and unpredictable world, they live in timeframe based on right now. Life is uncertain. As a result they are not interested in promotion plans for five or two years from now. To reach the Millenial employee and reduce turnover, make the near future certain for them. Tell your employee that you have a plan. Take pains to ensure it is in a timeframe short enough for them to envision. And be prepared to fulfill your promise
4. Contrary to popular myth that the Gen-Yers ‘don’t want to grow up’, it is just that they are more assertive of their individuality. This can be seen in something as innocuous as conflict over the dress-code in some organizations. I would advice not to fight against it, but to use creative thought to balance corporate needs with individual desires.

All these measures do require time and effort on your and your team’s part to implement, but the end rewards would be loyalty from younger employees, which once earned, is long-lasting. The adjustments you make to accommodate the changing attitudes of today's youth will be returned to you tenfold with decreased turnover, improved morale, and measurable business results.