The massive rise in social media and dynamic digital transformations around has changed our behaviors to a large extent in the past decade. The biggest impact of these can be seen in a specific group that we today call the “millennials”, who were the witness to the entire digital revolution. These behavioral changes greatly affect the functioning of big organizations today. This is a concern because the millennial workforce is growing in every sector.
- 38% of the US workforce are “millennials”, and
- It is expected to reach 75% by 2025.
One of the biggest challenges faced by most organizations today, and the best of HRs couldn’t agree less, is ‘employee engagement’. Creating an environment in a workplace where all the members of the team give their best each day is one of the challenges faced by many organizations globally. With the rise of the millennial workforce in organizations, more and more employees are actively disengaged at work.
In a study by Gallup which included more than 1 million respondents, it says that:
- Only 29% of millennial employees feel engaged at work.
- 71% feel that they are either not engaged or not actively engaged in their daily work.
Unlike Gen X, which focused on job security and growth within an organization, millennials are focused on
- Gaining through experiences and exploring new areas
- Open to switching jobs which are more fulfilling
High attrition among millennials
This is another challenge for large organizations today, who are faced with larger than ever attrition rates which leads to losses amounting to millions of dollars each year that is spent on recruitment, onboarding and also affects their turnovers. An employee’s engagement on the day-to-day basis has a direct impact on organizations meeting their goals and success.
According to a study by Millennial Branding and Beyond.com, it is estimated that this cost $15,000 to $25000 to replace a departed millennial employee.
The best of the multinationals are resorting to extensive feedback and engagement programs to improve retention rates and build a strong and productive team.
A role of an organization in reducing attrition rate:
The study also revealed that 72% of respondents said their productivity was directly impacted by their manager’s involvement and active participation in setting up goals and engagement with them through their development cycle. The engagement between an employee and the organization is a two-way commitment that is based on trust, integrity and clear communication.
To engage better with millennials, the best of the multinationals are resorting to extensive feedback and engagement programs to improve retention rates and build a strong and productive team. “Performance Management Systems” are making their way among enterprise tools like SAP, which focus not only on job-based growth but also the holistic development of an employee in terms of life skills and essential business skills.
Performance management systems help in:
- Facilitates an employee to align his or her goals with the organizational goals driven by the manager who acts as a mentor or coaches.
- Creates short term and long term goals which are aligned with every member within the team and beyond.
- Doing away with the conventional feedback and appraisal systems.
- Focus on immediate rewards, rather than year-end raise.
- Makes employee development a more automated and regulated process.
- Reduces the feedback time from the conventional yearly routine to a weekly or monthly check-in activity.
Setting realistic challenges
Setting challenging and achievable targets on daily basis, while providing job clarity and future prospects of what an employee’s daily contributions are things that managers can do to have better engagement with their millennial employees and build a strong team in an organization.
According to a research by Josh Bersin, setting shorter performance goals quarterly rather than annual goals have proven to generate 31% more returns from their performance process. The study suggests that setting monthly challenges and goals produce better results because of a continuous cycle of constant feedback system.
Mentoring the right way
To drive this kind of system, it is important for the managers to do away with the “Boss is right” mindset and become good listeners and incorporate the feedback and experiences into business strategy. A simple yet effective way of engaging an employee is to reflect to him how his or her experience has affected the company’s business in a positive way and him being rewarded for it with no delay.
A good performance management system along with a manager who continuously engages with his employees and mentors and coaches them with his experiences helps an employee identify the difference he is making at an organizational level thus driving his engagement within the company.
Schedule a Demo to learn how MentorCloud can help improve your Millennial Engagement through Mentoring