Employee Retention in the Millennial Generation
Employees are the significant assets of the business organization. Every country in the present economy is focusing on developing a well defined team of motivated and talented employees (Brack, 2012). It will help the organization in creating an effective growth and development measures within the market. Young employees are being employed by the organizations in order to deliver high and successful results for the firms. Retaining the employees is one of the major objectives of every business organization as it helps in enhancing the performance and manages the cost of operations as well (Currie & Hill, 2012).
Figure 1Employee retention data
(Source: Millennial job turnover: Not as bad as you thought, 2014)
Millennial generation consists of the individuals born between the years 1981 to 1997. This group of individuals consists of the people aged between 20-35 years of age. This is the young and most productive lot of people (Currie & Hill, 2012). The stated group of people represents youth of the market who works significantly to attain the business as well as personal objectives of the economy. They are the major employees which helps companies in enhancing productivity while developing organizational innovation and creativity. Researches and surveys have stated that the rate of employee turnover in US is high in young generation as compared to older generation (Deshpande, 2012). A survey published in the year 2016 stated that the rate of employee turnover in millennia generation is critically high. This has created an insignificant impact on organizational growth and development.
Figure 2 Millennia generation data
(Source: MILLENNIAL TURNOVER: WHY EMPLOYEE RETENTION IS NO LONGER REALISTIC, 2016.)
Reports from Labor Bureau of USA reflected a significant statistics which revealed that an average tenure of 25-35 years employees is less than 3 years. This is significantly low and reflects high rate of employee turnover for organizations. On contrary to this employees from older generation portray higher retention rate in the organizations (Brack, 2012). It was evaluated that thirst for hikes and quick increments attract employees towards opportunities which pay effectively (MILLENNIAL TURNOVER: WHY EMPLOYEE RETENTION IS NO LONGER REALISTIC, 2016).
Figure 3 Employee turnover prediction
(Source: Farrell & Hurt, 2014)
Different theories have analyzed a different factor which contributes in high rate of employee turnover for the organizations. This aspect affects the performance of the organization and employees both in a significant manner. According to Hayes, (2011) job dissatisfaction is one of the major and most reason which causes low retention within the organizations. It creates a significant impact the business development aspects for the company. It has been analyzed and experienced that the impact of employee turnover is not effective for the companies and it creates irrelevant chaos and cost increment in the businesses (Hertzman, Moreo & Wiener, 2009). Setting definite goal is one of the major aspects of career growth and success within the market. It helps individual in developing significant vision for the job and plan the same to attain high success within the market. Hayes, (2011) evaluated that effective and well defined means of career planning is one of the major factors which have helped the employees in managing significant brand loyalty (Jerome, Scales, Whithem & Quain, 2011). For example employee aspired to become a manager in the hospitality sector will start the career in Hotel industry and will gradually attain the aspired designation within set period of time. Power goals are the aggressive and definite goals which the business unit develops in order to create a well defined impact on business growth and development (Lopes & Delellis, 2009).
Factors Affecting Employee Retention
The average rate of retention for young employees between ages 25-35 years is 2 years. This figure represents that employee loyalty has fallen widely within the market. it has also created a significant change within the working styles of the employees as well. Employees between age group of 20-27 years of not have a significant plan of settling down in the life which makes them choose different profession to explore their chance of career (Lyons, Schweitzer & Ng, 2011). This has resulted in revealing that employees from this age group are expected to retain in the business for less than 1 year. However after the age of 28 individuals focus on serious careers which makes them chooses the industry and companies. The rate of retention thus rises within these employees (Deshpande, 2012).
The present study will focus on analyzing the millennia generation and their working aspects closely. The report will closely examine the factors which affect the employee performance in the organization. In-depth analysis of needs and demands of millennia generation will be examined in the study (Eversole, Venneberg & Crowder, 2012). Critical evaluation of their working aspects will be analyzed. The study will determine the motivational measures for young generation and the issues which make them switch jobs on short terms. Implementation of theoretical models will help in attaining well defined results for the study. It will develop effective and significant results for the study (Costanza, Badger, Fraser, Severt & Gade, 2012). In addition to this a structured report will be undertaken on the stated topic. It will be highly helpful in analyzing a well defined result for the business growth and development (Mirvis, 2012). The overall evaluation will focus on the changing perspective of employment in the modern era. The factors that have contributed in implementing the stated changes will be closely determined. The study will evaluate the impact of setting power goals within the organization to attain high and effective results (Brack, 2012). The study will also evaluate the definition of goals for the employees and their significance in their career and professional lives.
Employees are the significant and most crucial part of business success in the present competitive economy. In the modern world organizations are developing into service sector units where employees play a critical role of service providers (Gallicano, Curtin & Matthews, 2012). Managing a strong team of employees is one of the major requirements of every organization. It helps in enhancing business growth and productivity in a significant manner. Employees contribute in the success of the organization widely (Madhavan, 2012). However hiring and training the employee is a very costly aspect for the organization. Thus employee retention is one of the major and most critical business issues. It has helped companies in enhancing development and growth measures within the market (Shook & Keup, 2012).
Statement of Problem
The Millennia generation consists of 75% of the working population which is why the stated issue has become a critical problem for the employers. Researches however have revealed that there is a high rate of employee turnover within millennia generation. It has resulted in developing an insignificant impact on organizational performance and cost effectiveness. Surveys and evaluation has reflected that millennia generation has changed the face of employment in a major way (Kuyken, 2012). These employees have developed a significant practice of job hopping to attain quick and significant market growth. Loyalty and long term planning has not been the part of these employees which has resulted in making their average rate of retention within the organization to 2 years.
High rate of retention is resulting in raising the cost aspects of the business and also reducing the skill sets within the employee due to continuous job hopping. This is affecting the talent management aspects as well. Thus the overall evaluation reflects that no goals have increate the rate of employee turnover within Millennia generation (Sias, Pedersen, Gallagher & Kopaneva, 2012). Thus companies need to critical analyze and evaluate the factors affecting motivational and retention aspects of the stated generation within the modern era. The concept of power goal will be analyzed in the evaluation. It has been analyzed that setting aggressive but attainable goals help employees in enhancing their level of motivation (Madhavan, 2012). This strategy effects their urge to win the reward (financial or non financial) and attain significant success within the market. It also develops high rate of growth for the business as well. The overall study will evaluate the stated business issue and will also seek effective solutions through implementation of the stated measure.
Millennial generation consists of 75% of the working population which helps the business in creating a significant and well defined impact on business growth and development. it has helped the business units in growing in a significant manner. However, low rate of employee loyalty and high attrition rate has challenged the businesses significantly. This has resulted in enhancing the organizational cost highly and widely (Mirvis, 2012). The purpose of the study is to analyze the major factors which have contributed in low employee morale for the stated age group. The study will develop an in-depth understanding about the job focus and demands of these professional. A significant different between the older and younger generation will be carried out in order to analyze the attitude and behavioral aspects of the two. Moreover the study will focus in investigating the strategies which businesses could effectively adopt to overcome the issue or motivate the employees to retain for a longer period of time (Brack, 2012). It will also evaluate the changing functions of human resource management and its contribution in business growth and development. The overall evaluation will undertake an in-depth and detailed evaluation of the stated subject and will focus on attaining significant results. Its purpose is to research and analyze the needs and demands of millennia generation and find effective measures to manage and maintain the same for business development (Gallicano, Curtin & Matthews, 2012). The core focus of the researcher will be on evaluating the concept of no goal for the stated generation which will help in understating the motive behind the attitude adopted by the employees. In addition to this focus of theoretical understanding and concepts will be effective for relating the models and framework with modern working aspects. it will also be useful in determining the relevance of theories in actual practice (Howell, Beckett, Nettiksimmons & Villablanca, 2012). Hence from the evaluation it can be analyzed that the purpose of the study is to carry out a valid and in-depth research on the millennia generation and how no goals attitude of the generation is resulting them in high rate of turnover within the economy.
Analysis and Discussion
The research aim for the present study is “High turnover among millennia’s will reduce by x if organizations set power goals”. In order to effectively attain the stated aim the following objectives will be developed for the study:
- To evaluate the changing employment perspective within Millennia generation
- To examine the impact of power goals on employee retention
- To evaluate the impact of power goal on employee turnover within millennia generation
- To recommend effective strategies to enhance employee loyalty in millennia generation
The research questions for the stated study will be:
- What significant changes have been analyzed in employment perspective for millennia generation?
- How power goals affect employee perspective within Millennia generation?
- Does setting power goals in the organization effect employee turnover rate in firms?
Different factors and theories have been analyzed for employee retention and motivation within the business unit. Effective and well defined measures of framework and models have been developed to define the stated concept. Different factors has been evaluated which widely contributes in employee loyalty and retention within the organization. The major factors associated are:
Low payment: this is one of the major and most critical issues of employee retention within the business unit. As per the evaluation financial rewards and remuneration are the most effective and significant factors which affect employee motivation and performance within the organization. It creates a significant and well defined impact on business growth and employee needs within the organization (4 Reasons For High Employee Turnover, 2017). In addition to this the stated factor also enhances the long term association with the business unit.
No goals: This is another crucial aspect of employee performance and retention within the market. Effective roles and responsibilities with well defined aspects of working create a significant job satisfaction for the employees. Setting effective goals for the employees helps them to develop an effective way towards working and generating results within the organization. It also helps in developing high and significant rate of development for professional growth. The overall evaluation of the aspect thus reveals that satisfied job help employees in retaining for high and significant time within the organization.
Employee engagement: Employee engagement in the business unit helps the staff members to feel highly motivated and as the part of the business unit. This aspect is crucial for business development within the competitive market. Significant measures such as freedom to make decisions, providing well defined working aspects, effective leadership and supervision, proper coaching, effective communication, feedbacks etc are the few approaches which businesses adopt to develop a well defined position within the market. This helps in enhancing employee motivation critically and attaining high rate of growth and development within the market.
Organizational management: Management and supervision aspect of the business is yet another major aspect of business development and growth within the company. It helps the organizations in ensuring a valid and well defined position within the market. it also helps companies to establish an effective brand identity and growth position within the economy. it helps companies in enhancing wide and effective measures of development. It has been analyzed that effective management aspects helps the employees in developing a sense of fairness within the organization (The Millennials: A new generation of employees, a new set of engagement policies, 2011). Moreover this develops a positive perception for growth and development in the companies. Thus employees feel motivated in the organization.
Conclusion
The above evaluation effectively reflects effective and significant aspects of employee motivation in the present competitive era. The stated measure has helped businesses in creating a well defined measure of development within the market. However researches have raveled that Millennia generation has changed the perception of employment and professional behavior. The impact of no long term goals has resulted in developing shirt terms plans of employment for the employees. As per the theories long term association with the business is significant for the employees to attain effective results for organizational development. However employees currently are seeing the opportunities which deliver high salary and growth in the organizations. Moreover the practice of job hopping is also quite common in the stated generation. The major reason for the same is developed information system and availability of higher market opportunities. Thus it can be analyzed that the concept of employee motivation has changed widely within the market.
The present study focuses on evaluating that how no goals is causing high rate of turnover in Millennia generation. In order to attain the stated aim structured and well defined analysis will be undertaken by the researcher. It will develop effective and reliable results for the study. The concept of the study focuses upon evaluating the changing perspectives of employee needs and demands in the current competitive era. In order to attain the stated aim case study analysis will be undertaken for the evaluation. This will create an effective and significant development measures for critical success of the study. the stated design will also be helpful in closely evaluating the research problem and develop effective measures to resolve the same.
It will thus focus on identifying the aspects of employee retention for the identified age group. The impact of power goals on employee retention will be evaluated and analyzed by the businesses. This will demand quantitative aspect of research evaluation. Thus the researcher will ensure to adopt a psychometric method for the topic which will help in attaining valid and reliable results for the overall business results within the market. This statistical method will be significant for attaining accurate results for the analysis. Employee perception will be closely analyzed and determined by the researcher which will demand quantitative tools and techniques.
Data collection is another significant aspect of the research evaluation which helps the researcher in effectively attaining a valid and representative data to attain appropriate results for the study. It helps in attaining a significant data for evaluating the research issue. The current research problem focuses on analyzing no goals causing high rate of turnover in Millennia generation. Data collection through primary as well as secondary methods will be done. Secondary data collection will be done through different sources such as past researches, news articles, online data, books, journals, magazines etc. This will help the researcher in developing a significant result for the analysis and attain effective results for the evaluation. Primary data however is significant for the analysis. It will be collected from a employees of Millennia generation. In order to reach these employees 5 hospitality organizations will be approached and a sample of employee’s age between 20-35 years will be selected. This will help the researcher in developing an effective and well defined base for collecting direct information. Thus 50 employees from different organizations will be approached and questioned. Primary data collection will do through survey method. A structured questionnaire with open and closed ended questions will be developed and will be distributed within the sample size. The employee response from the questionnaire will be taken as an effective base for employee response within the organization thus creating a significant business results for the organization and research topic as well.
Recommendations
Sampling technique for attaining valid and representative sample for the research is important. A sample size of 50 employees will be selected. In order to collect the stated sample probabilistic sampling technique will be adopted. By implementing random sampling technique 10 employees from a company will be selected. This will minimize the level of biases from the sample and help in attaining valid sample for the data collection.
Data analysis however will be done through quantitative technique. Effective and well defined measures of data collection will be represented and analyzed at this stage of research. The researcher will adopt SPSS tool to analyze the findings of the research. Both statistical and numerical data will be represented by the researcher for the same. It will help in collecting significant and well defined means of data for the study it will also help in enhancing the reliability of the study for the same.
Present work class employees consists 75% of the millennia generation employees. They consist of a significant part of the group. The evaluation and researches revealed that they have managed considerable low rate of retention within the market. It has been analyzed that employee retention is one of the most significant and crucial aspect of organizational performance and growth. It creates a definite impact on business development and influence (4 Reasons For High Employee Turnover, 2011). However rising market competition within the economy demands employees to develop high skills and competitiveness. Moreover companies need to manage and maintain a reliable and effective base of employees which helps in enhancing competitiveness for the businesses. This aspect of the study is crucial for analysis. the present study thus is significant as it focuses on examining that how no goals is causing high rate of turnover in Millennia generation.
Moreover the surveys also analyzed that aspects such as financial crises and high rate of competition within the market is also considered as one of the major reason of enhancing labor turnover within the stated age group. Researches also evaluated that youth are currently prioritizing salary over work which has made them switch towards the best possible opportunities within the market. Moreover lack of considerable goals and vision has also arisen into the market which has made the employees attracted towards highly paying jobs irrespective of their interests and skills. The overall evaluation thus reveals that significant rise in employee attrition for millennia generation is due to variety of factors (Gallicano, Curtin & Matthews, 2012).
References
The stated topic will help in analyzing the changing perspectives of employees in the modern world and simultaneously will contribute in analyzing the significant of developing effective goals for the employees to enhance retention within the organizations. The concept of power goals will be critically determined by the business units which will help in developing high and effective results for the organizations (Mirvis, 2012)). The overall study will develop an effective and in-depth analysis of how employees should be motivated in order to attain effective and significant results for the business growth and development. It will also be effective for the strategic development of the business unit. Setting power goals helped the employees in attaining significant industry experience along with wide prospects of development within the economy. However, Millennia generation focuses on earning high salary by grabbing best market opportunities available (Kuyken, 2012). These individuals do not plan their future with the industry or firm rather focus on job hopping to attain quick hikes in a small time frame. This has raised the attrition rate of employees widely.
Employees help the organization in creating an effective growth and development measures within the market. Young employees are being employed by the organizations in order to deliver high and successful results for the firms. Millennial generation consists of the individuals born between the years 1981 to 1997. This group of individuals consists of the people aged between 20-35 years of age. This is the young and most productive lot of people. The stated group of people represents youth of the market who works significantly to attain the business as well as personal objectives of the economy. The purpose of the study is to analyze the major factors which have contributed in low employee morale for the stated age group. The study will develop an in-depth understanding about the job focus and demands of these professional. The cost associated with hiring new employee, training and developing them is considerably high which has created an insignificant impact on the performance of employees within the economy. It has also been evaluated that the high turnover ratio of young employees has affected the employers too. The analysis will focus on understating the issue which is causing a significant rate of retention in the organizational and will focus on seeking effective and reliable results for the same. It will also create a significant impact on performance level of employees which will be significantly effective for business growth and development.
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