Did you know most experts say it costs approximately $24,000 to replace an employee? That is a large line item for your company.
Costs of Replacing an Employee
- Direct Cost - The average cost to recruit an entry-level employee is between $3,000 and $6,000
- Indirect Costs
- Lost Revenue - The average revenue generate per employee is $150,000 per year. For fast-growing companies this could be even higher
- Confusion & Resentment - Workers that have their workload increased to cover a vacant position could become dissatisfied and have a lower productivity or depart themselves
- Training Expenses - Few new hires hit the ground running on their first day. It takes 3-6 months to fully train someone.
those, like myself, born between 1980 and 2000 - will make up 50% of our workforce by 2020 and 75% by 2025. We are not just the next generation but the new leaders. Retaining this large workforce can be tricky with 91% of millennials saying they only stay at a job on average for 3 years. What is the best way to stop millennials from jumping ship? Look at what they value in a workplace and structure a culture that makes them never want to leave.
Career development is key
If your organization doesn't have a defined career path, many millennials that fill entry-level positions will look elsewhere once they have a few years of experience under their belt. Then you will be looking to hire someone new and as we discussed earlier, that could be a $24,000 price tag.
Employee engagement is so important, not just for millennials but for every generation. Satisfied employees do not want to go somewhere else. 
Millennials are less likely to understand the benefit package you offer. I remember sitting down with my HR person when I got my first "grown-up" job and her going over my benefits. She took her time and explained everything clearly with great examples of how each benefit would work for me, her new 22-year old receptionist. She made me value what my company offered and explained to me the true cost of these benefits, not just my obligation. Time Insurance Agency can help you do the same with employee education meetings, as well as show them the true cost of these benefits with benefit statements.
Think outside of the normal benefit offerings - Millennials have come to expect traditional benefits like health insurance and paid time off. Benefits that make your company stand out in the job market are more important than ever. Some ideas of how to stand out and retain this generation may include:
Student loan help
Millennials are leaving school with more debt than ever before. I am eagerly anticipating the spring of 2018 when my student loans will be paid off.
Millennials' started in the job market in a recession, we were willing to take lower starting salaries just to have a foot in the door. Rent is skyrocketing in our developing job markets and a leg up on that would hold most any employee.
My generation grew up hearing about the obesity epidemic, we understand the importance of living a healthy lifestyle more than any previous generation. Workplace wellness programs can be developed with very little expense and Time Insurance Agency can help with that.
Flexible Schedules and Remote Work
Work-life balance is becoming more and more of a factor for people. Technology has made it possible to work seamlessly from a home office for so many employees. Being able to work outside of the traditional 8-5 is more important than ever. I value being able to work my schedule around difficult commuting times and to accommodate my hobby of roller derby. It brings a balance to my life that is very important to me. At the end of the day, what millennials want is the same as what most workers want-to be well compensated, to feel a sense of purpose, to have good benefits and to be able to maintain a healthy work-life balance.
By taking steps to increase retention, you can reduce turnover-related costs and continue to build talent from within. This, in turn, can improve your reputation within the community and increase employee morale-all of which can boost your bottom line.
For more information about retention strategies, contact Time Insurance Agency today.
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