Findings of a survey show that 30% of the organizations lost 15% or more of their millennial employees in the past year and 87% of the organizations stated that the cost to replace a departed millennial employee is $15.000 to $25.000.
Most millennials left the organization because they don’t consider it “a good cultural fit”. Due to the fact that 90% of an organizational culture is determined by the styles and traits of leadership, this is an alarming development. Approximately 30% of the millenials left because they have gotten a better offer at another organization, but almost the same amount said they left because their career goals were not in line with their employer.
Gallup estimates that millennial turnover costs the USA alone economy $30.5 billion annually. So therefore attraction and retention management is critical within organizations.
Based on conducted research especially generation Y is interested in more than a paycheck. This generation of employees is a customer in the workplace and demands a sense of meaning and purpose in their work. They want clear communication to e.g. understand the mission the organization, flexibility and opportunities to constantly improve their skills. They want to be in control of their career, therefore loyalty nowadays has to be earned by an organization.
This requires different traits and thus flexibility from current managers and leadership in their management styles in general. There are many traits managers and leaders should obtain, but based on research conducted to assess the state of leadership within the Caribbean, the following traits that should be developed are empathy and trust. Within the Caribbean the importance of people management is often underrated. Aforementioned traits are layered and require different skillsets and mindsets of our current managers and leaders.
Developing and becoming more flexible in your communication and leadership styles to meet contemporary standards and being able to understand and meet the current needs of generation Y and Z are necessary and inevitable. This prevents disconnect of modern and older generations. As a manager you become effective with your team and you will meet your set goals as planned while you retain your talents where they belong: within your organization.
With our extensive experience in the corporate sector, non-profit sector and the Government, Creating Milestones provides such tools that serve as an excellent way to upgrade and develop your managers and leaders within your organization that will result in more successful teams and inevitably will influence your results as an organization positively. Please contact us to discuss the possibilities.