Why Millennials Are The Key To Your Next Revenue Lift
In recent years, there has been a lot of attention on the Millennial Generation, Gen Y, Gen Next and several other terms used to describe this group of people born between 1981 and 2001, everything from how to advertise to them, how to engage them and should a company invest in them. And why not? This group makes up over half of today’s workforce at 80 million strong and growing. Studies have shown that within the next 5 years, this group of individuals will roughly encompass 75% of the labor force.
There is a changing of the guard happening and companies all across the United States will need to know some key factors about their new workforce in order to capitalize on the talent that lies within. As Baby Boomer’s continue to retire at a rapid rate, there is just not enough of the Gen X generation to fill the leadership gaps left behind. In fact, Gen X only makes up 16% of the workforce. So, who will fill the 25% of positions being retired from? You guessed it, the Millennials.
That’s good news if you are Google, Amazon, or Apple who have revolutionized and set a new standard for company culture to recruit and maintain the best of the best.
Tech companies have been forced to adapt one by one to stay competitive in their industry, but what about your company? When was the last time you evaluated the strength of your company’s culture, values, and mission? If you haven’t done this recently, there are a few things you might consider as your company competes to hire over the next few years.
Millennials want to align their values and interests to the work they do and, more importantly, who they work for. Adjusting corporate culture to appeal to this group results in a mutually beneficial relationship according to the last White House UPSkill Summit by the HR Policy Foundation. They released a study titled, “Talent Sustainability Report: The CHRO View from the Front Lines of the War on Talent.” Consider the top priorities found most important when hiring from this pool:
- Have an impact on their communities for good
- Freedom for self-management – coach/mentor vs boss mentality
- Collaborative environment rather than competitive
- Work life integration – not work life balance
- Competitive pay with incentives
The study seems to suggest that while collecting a paycheck is important, it’s not the most important. The culture has changed from an “I work for a living” to “I want to be recognized, acknowledged, paid competitively and work collaboratively for a living in order to make a difference in the community which I live.” That’s a tall order! However, 2/3 of employers who have adapted company culture to this philosophy, report exceptional work performance and an overall thriving environment.
While corporate culture and recognition for work performance are more valued than salary, it still carries a significant weight in a millennial’s decision. Millennials have been deeply affected by the recession and carry the largest student debt in the country. They have liabilities and lives, and companies must acknowledge this by paying fair market value to see the greatest return on investment. This by no means indicates that companies should break the bank but rather consider additional ways of competitive compensation such as – tuition payback, tuition reimbursement, healthcare incentives, or travel/bonus incentives.
If you are a company in need of a makeover, Fabrica Creative stands willing to help. We’ve worked with several companies to “remodel” corporate cultures and give a fresh new look while keeping the company’s core brand and values intact. We would love to work collaboratively so your company can confidently move into this new way of doing business and see increased revenue lifts because of it.