You cannot buy a millennial and Gen Z employees’ loyalty with a hefty paycheck. Unlike Gen X or baby boomers, these generations of workers factor in several aspects of their job role other than money to determine their loyalty towards a company.
You may have heard that the new generation is infamously known for being “job hoppers” because of the assumption that they are lazy or impatient. However, several studies prove otherwise and determine the valid reason for this trend.
Millennials and Gen Z often struggle to find a position that gives them a sense of accomplishment. Additionally, they consider other key factors that affect their decision-making, such as work-life balance, management, and the opportunities a position can offer. They also think very differently from their predecessors and understand loyalty in another way.
According to a few surveys, job loyalty among millennials and Gen Z are not as bad when you compare it to previous generations. When the right conditions are met, these generations can become some of your most loyal employees.
As a business owner or a recruitment agency in the Philippines, taking note of how these generations view job loyalty can be a game-changer in lowering your turnover rates.
1. Going all or nothing
Millennials and Gen Z are famous for wanting to take control of their lives and the decisions that they make. As a result, they have become self-reliant and unfazed by things such as unemployment rates.
Statistics show that 49% of millennials think about leaving their jobs within the first two years. This is backed up by the fact that these generations continuously seek purpose in their lives. They also want to be inspired and grow in their careers rather than live from paycheck to paycheck. If your company fails to provide these factors, they will not stick around at all.
2. Discussing the desired salary
While paychecks do not drive millennials and Gen Z as much as their predecessors do, it still plays a vital role in their decision-making. Around 74% of workers from these generations expect annual pay raises in exchange for their loyalty and are typically bolder with negotiating for what they want.
Rather than trying to buy the loyalty of your younger workers, reward them for it. Companies that offer competitive salaries and annual pay raises are typically more favorable among the younger generation.
3. Finding their purpose
Around 73% of millennials and 65% of Gen Z workers state that they consider their jobs a fundamental part of their identity. As a result, they seek like-minded companies that can give them a sense of purpose for what they do.
While not all positions may be noble or exciting, sticking to your company values is essential. Additionally, you should ensure that your younger generation of workers feels appreciated for their work.
4. Developing their skills
The younger generations see jobs today more as an opportunity to grow and learn rather than a means to live. If a position does not offer much room for career growth or opportunities, chances are they will look for jobs elsewhere.
Providing the necessary training programs for your millennial and Gen Z recruits can help them satisfy this need. Simultaneously, it allows them to understand better their role and how they can grow from this down the road.
5. Establishing meaning into their work
More often, millennial and Gen Z workers will let go of their hefty salaries to work more meaningful jobs. This is because workplace culture and the concept of altruism are vital to them. Companies that ensure honesty and quality service are more likely to retain these employees in the long run. If these generations can feel empowered with what they do, they are more likely to stick around.
6. Thriving in the workplace culture
Millennials and Gen Z value their individuality. However, at the same time, they want to thrive and fit into the working environment. You can help them feel comfortable by adopting healthy working routines that make the workplace more enjoyable. When a healthy environment is provided, these workers can focus more on their work and develop their skills.
7. Receiving appreciation and recognition
The younger employees are eager to contribute to the workforce and share their ideas with a team of like-minded people. Simultaneously, they eagerly seek the guidance and recognition of their seniors. Sparing a few minutes of your time to talk to these workers about their progress can go a long way. Schedule employee evaluations and give feedback on their performance over a specified period.
Keeping Up with the Times
Millennials and Gen Z are slowly pushing more and more companies to evolve for the better. However, because these generations are the most complex to understand, it has created some issues in the corporate world.
The younger generation is known to have different values and perspectives when it comes to job loyalty. As a result, companies often struggle to attract them and experience rising turnover rates. They want to work to give themselves purpose rather than for a paycheck. Understanding this perspective is crucial if you’re going to maintain these workers in the long run.