The new year greeted us with positive employment data. All those programs and policies put in place by the Obama administration and supported by the Trump administration are finally taking hold! And, all Americans are enjoying the benefits.
According to the U.S. Bureau of Labor Statistics, the unemployment rate is down to 4.1 percent. The recent data is great news for the underemployed Millennial baristas as well as the Baby Boomers, who were staying on long enough to recover losses in their 401(k) portfolios. Now, the Baby Boomers are saying, “Bye, Bye, Bye” and opening the doors for Millennials.
According to data from Zero Hedge, Millennials are on the move. ZeroHedge, a popular financial blog, cited the Job Openings Levels: Total Nonfarm (JOLTs) report and found that, in Q1 2017, there was a “…surge in quits, the so-called ‘take your job and shove it indicator’, which… soared by 135K people voluntarily leaving their jobs, the biggest monthly increase since December 2015, which in turn pushed the total number of Americans quitting their jobs… to 3.22 million, a level not seen since January 2001.”
Are Millennials The “Hop, Skip And Jump” Generation?
A Gallup poll found that “Millennials have a reputation for job-hopping. Unattached to organizations and institutions, people from this generation — born between 1980 and 1996 — are said to move freely from company to company, more so than any other generation.” According to the 2016 Deloitte Millennial Survey, “During the next year, if given the choice, one in four Millennials would quit his or her current employer to join a new organization or to do something different. That figure increases to 44 percent when the time frame is expanded to two years. By the end of 2020, two of every three respondents hope to have moved on, while only 16 percent of Millennials see themselves with their current employers a decade from now.”
Job hopping might be very beneficial for the hopper. As Sarah Landrum, a Forbes contributor noted in her article, Millennials Aren’t Afraid To Change Jobs, And Here’s Why, “Job-hopping is in, and being stuck in a dead-end job is on its way out – and that’s good for everyone. Job-hopping millennials are more likely to earn a higher wage, develop their career on a faster track and find a better fit in work culture by changing jobs more frequently.”
Job Hopping Is Not Good For The Company
Job hopping is a real problem for corporations because Millennials now are the most significant segment of their workforce. According to Pew Research Center, “More than one-in-three American workers today are Millennials…” Will this majority of the corporations’ workforce be a stable source of talent? It doesn’t look that way.
Gallup, in their report, finds that “Millennials also show less willingness to stay in their current jobs. Half of millennials — compared with 60% of non-millennials — strongly agree that they plan to be working at their company one year from now. For businesses, this suggests that half of their millennial workforce doesn’t see a future with them.”
There are apparently direct costs of losing an employee and of replacing them with another who has to get up to speed. ZaneBenefits indicates that the “… cost is even more (then the cost of 6 to 9 months’ salary on average and) that losing a salaried employee can cost as much as twice their annual salary, especially for a high-earner or executive-level employee.” The Gallup report also provided data that shows this turnover costs U.S. companies a staggering $30.5 billion annually.
There are also indirect costs. Employers must deal with morale issues; the remaining team members may be left high and dry. In addition, the company has to temporarily cover the employee’s duties, perform exit interviews, pay severance and unemployment taxes, create and execute searches, review candidate’s resumes, conduct interviews, initiate background verifications, pay sign-on bonuses, incur training costs, and more. The biggest cost may be productivity; it could take months for a new employee to get up to speed.
Keep Them Engaged And Productive
Gallup conducted a poll and found out that “71 percent” of Millennials are not engaged in or are actively disengaged from their workplace. So, as an employer, you don’t want a disgruntled employee in your organization. Misery tends to seek misery, and they may be engaging others to also jump ship with them. But the good news is, that, Gallup also found that Millennials who said that they were engaged workers were 26 percent less likely than their disengaged counterparts to consider switching jobs, even with a raise of up to 20 percent.
The moral of this story? For Millennials, it is better to say, “I quit,” than to hear, “You’re fired.”