A new survey suggests that the job-hopping Generation Y are costing businesses thousands of dollars every time they decide to broaden their horizons.
According to research conducted by Gen Y research and consulting firm Millennial Branding and Beyond.com, 87 percent of companies pay between $15,000 and $25,000 to replace each millennial employee they lose.
The study, "The Cost of Millennial Retention," also says that roughly 40 percent of companies currently employ 50 or more millennial workers, and these costs are expected to rise dramatically in coming years.
The survey sugguests that 60 percent of millennials leave their companies within the first three years. By 2025, 75 percent of the global workforce will hail from this generation -- and the majority of firms believe they can't afford not to improve their retention rates.
Some highlights from the report include:
- 30 percent of companies have lost 15 percent or more of their millennial employees in the past year, and 10 percent believe these members of staff moved on to competitors.
- 51 percent of companies report that the cost of training and development is the highest when hiring millennials. 56 percent of employers revealed that it takes between 3 and 7 weeks to hire a millennial for a job role.
- Some companies already have retention programs in place to keep millennials longer. Those programs address such things as: "workplace flexibility" (48 percent of companies reported), "mentoring programs" (40 percent) and "internal hiring" (37 percent). Only 10 percent of companies cite using “intra-preneurship” and community service programs to engage and keep millennials.
- The top reasons why millennials leave their companies are because they received a better offer from other firms -- 30 percent -- their career goals aren't aligned to their company -- 27 percent -- and a lack of career opportunities, according to 13 percent of respondents.
The average salary for a millennial worker is between $30,000 and $50,000, according to 50 percent of respondents, while 15 percent of companies said the average pay packet is worth at least $50,000.
Rich Milgram, Founder and CEO of Beyond.com commented:
"The millennial generation has learned to be two things during the recession: resilient and nomadic. As the job market improves, the level of confidence will improve along with it and cause many in this age group to reevaluate their current situation, possibly seeing value in seeking greener pastures."
Image credit: Flickr
This post was originally published on Smartplanet.com