Company budgets are too tight to give them both.
Moving young workers into management without that sweet manager pay may be the only way to keep them on staff.
Millennials in management positions are two-thirds less likely to quit their jobs, says a study from data analytic company Visier. And staffing firm OfficeTeam finds 72 percent of millennials will take a promotion without the raise.
“One way employers can motivate and retain their workers is by providing advancement opportunities to those who have excelled in their positions,” says OfficeTeam executive Brandi Britton. “Awarding promotions without raises isn’t ideal, but budgets are often a limiting factor.”
But not all companies are willing to promote their younger workers.
Millennial work turnover
Millennials have been referred to as the “job hopping” generation. The most recent Gallup research has concluded that the generation is more likely to leave the company they work for than older workers.
Twenty-one percent of millennial workers said they changed jobs within the last year, which is more than three times the amount of older workers. The management consulting company estimated millennials’ worker turnover costs the U.S. economy $30.5 billion a year, in 2016.
Sixty percent of millennials said they were open to working a different job. And half of those young workers said they planned to be with the same company a year later, meaning the other half doesn’t see a reason to stay at the same company.
Could it be this generation is just lazy and entitled, or are they just determined to find the right fit? Gallup suggests it may be the businesses they work for.
“It’s possible that many millennials actually don’t want to switch jobs, but their companies aren’t giving them compelling reasons to stay,” Gallup reports. “When millennials see what appears to be a better opportunity, they have every incentive to take it. While millennials can come across as wanting more and more, the reality is that they just want a job that feels worthwhile — and they will keep looking until they find it.”
Retaining a younger staff
Visier’s research suggests similar findings and suggests companies engage millennials more if they want to keep younger talent on staff.
“Millennial employees now make up the largest share of the U.S. workforce,” says Visier CEO John Schwarz. “With employment numbers at an all-time high and the war for talent more fierce than ever, organizations need to have a strategy to attract and retain millennials. The power of promotion is a key factor in motivating millennials to stay with their firm.”
Only 12 percent of millennials who are managers quit, compared to 36 percent who are not. The study suggests that a management position adds a sense of responsibility and career opportunity. But even those in management still want to move up the corporate latter every couple of years.
Millennials in management positions who haven’t received a promotion quit 5 percentage points more often than average older workers.
On the other side of the coin, millennial managers who have been promoted over the past two years quit at a rate 3 percentage points lower than the rest. To that, Schwarz suggests paying attention to younger workers who really give it their all, and boost them up before they leave, too.
“Our recommendation is: don’t fight the tide — work with it,” Schwarz says. “Give your brightest prospects places to go within your organization. Upward and lateral moves both work well. Millenials look for constant training and new challenges to feel they are progressing.”
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Article last modified on August 1, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Millennials Are Taking Job Promotions Without Pay Raises - AMP.