Why is Employee Retention Getting Worse?

Today the average worker’s tenure is just 4.4 years, according to data from the U.S. Bureau of Labor Statistics with expected tenure of the workforce’s youngest employees at about half that.”

– Seth Ollerton, www.decision-wise.com

 

I remember as a kid, we would visit my dad at work on his lunch break, or stop by to say hi on our way home from running errands. My dad’s workplace was a familiar place for all of us, because he has been employed at the same employer for over forty years. He’s switched buildings a couple times, but has held the same role in the corporate office in the same city for a large majority of those forty years. My dad instilled in us his extremely high work ethic, but also taught us that there’s a generational difference in the way we view work, and the way his generation views work. Loyalty is a big thing for the baby boomers, while the boomers’ kids (millennials, Generation X, and Generation Y) are looking for a career that provides personal fulfillment, growth, and opportunity to learn more throughout their career. Because the baby boomers were more likely to grow up with less than ideal circumstances, they over-parented their millennial children, and sacrificed their happiness for security when it came to career paths and company loyalty.

While this personal tidbit may not strike a chord in all of you, it is an accurate anecdote to the reality of employee retention in 2015. Let’s take a closer look at why this is the case.

  1. The economy is hot, and only expected to get hotter in the coming years. According to the U.S. Department of Labor, job openings exceeded number of hires in May 2015. This mean there are more jobs available than are being filled. Great news for job seekers, because they can be picky. Not so great for employers, because candidates can be picky! Top talent will go wherever they choose….so employers have to work to attract those candidates.
  2. Millennials (adults ages 18 – 34 in 2015) are now the largest group in the workforce. Scary, right? If you said no, and you’re a small business owner, you may want to rethink that answer. Millennials expect to stay in a job for no more than three years, which means if you want to keep them around, it’s your responsibility as the business owner to attract and keep their attention. Need ideas on how to do this? Contact us today and we can guide you on the key factors for your organization to retain your talented yet difficult employees.
  3. Mobile job searches are taking over – is there an app for that? If not, chances are your company may be missing out on top talent. Mobile recruiting, mobile job applications, and mobile screening processes such as interviews are becoming critical to the technology-obsessed job seekers of 2015. This is a trend that is only expected to continue and become bigger over the coming years.
  4. Non-traditional side incomes are becoming more and more popular, so the traditional nine-to-five jobs are not becoming as necessary or prominent for a portion of today’s workers. From bloggers to Etsy shop owners, to distributors of health care and beauty products. Today’s worker has options!

So what can you do as an employer to attract and keep your talented employees? Make your company an attractive place to work, and speak to your audience. For specifics on how to build a high quality selection and retention strategic plan into your business, give us a call, we’d love to help!