Looks like Millennials are, after all, not the most loyal bunch of employees.
According to Deloitte Touche Tohmatsu Limited’s (Deloitte) fifth annual Millennial Survey, employers can expect that only about a third of the Millennial employees they have now will still be in their organisations by 2020.
Yes. That means around 66% of your Millennial employees are likely to throw in the towel in the next five years.
The survey found that this percentage is higher in markets such as Singapore, Malaysia, Thailand and Philippines (69%) and only slightly lower in countries such as Australia, UK and US (61%).
Why are so many Millennials planning to leave?
Being an ambitious bunch, their intention to leave might have something to do with the way their leadership skills are being developed.
A majority (71%) of those likely to leave in the next two years (19%) are unhappy with how their leadership skills are being developed – 17 percentage points higher than those planning to stay beyond 2020.
The survey found that the loyal employees are more likely to agree with phrases such as “there is a lot of support/training available to those wishing to take on leadership roles” (68% vs 52% of those planning to leave); and “younger employees are actively encouraged to aim for leadership roles” (68% vs 52% of those planning to leave).
On the flip side, the less loyal ones are more likely to agree with phrases like “I’m being overlooked for potential leadership positions” (57% vs 42% of those planning to stay); and “my leadership skills are not being fully developed” (71% vs 54% of those planning to stay).
Additionally, the findings point to a high correlation between satisfaction and purpose.
Despite 73% of Millennials believing that businesses have a positive impact on the wider society, many (54%) are still skeptical, believing that businesses around the world have “no ambition beyond making money.”
“Millennials place great importance on their organisation’s purpose beyond financial success, remaining true to their values and opportunities for professional development. Leaders need to demonstrate they appreciate these priorities, or their organisations will continue to be at risk of losing a large percentage of their workforce,” said Punit Renjen, Deloitte Global CEO.
So, how should employers gain the loyalty of their Millennial workforce?
1. Organisations should start by providing their employees with more developmental opportunities such as mentoring.
Almost all (94%) Millennials surveyed with a mentor reported that their mentor provides good advice.
2. Have a purpose beyond profit, and align values.
Millennials intending to stay beyond 2020 share the same values as their organisation.
3. Create the “perfect” job environment.
Allow employees to have the flexibility they need. Three-quarters of Millennials would prefer to “work from home or other locations where they feel they could be most productive.” However, only 43% currently are allowed to do this.
4. Have the right company culture.
Millennials have reported higher satisfaction levels where there is a creative, inclusive working culture (76%) rather than a more authoritarian, rules-based approach (49%).