A perpetual motion machine is, theoretically, a device that functions indefinitely without energy from an external source.
To keep growing and running smoothly, companies need outside energy. No workplace can attain perpetual motion. It needs a spark.
The spark now is coming from the millennial-generation workers who are entering the workforce in increasing numbers. Rather than be content to simply have a job in a bad economy, these young people are demanding a sense of purpose in their work and the ability to strike a work-life balance.
And if they don’t get it, they’re moving on.
A new survey released exclusively to this column examines the job-hopping nature of millennials and raises some important questions about how much it costs companies to find and replace young workers.
Here are findings from the survey, conducted by the consulting firm Millennial Branding and the online career network Beyond.com:
30 percent of companies surveyed lost 15 percent or more of their millennial employees in the past year.
87 percent of companies said it cost $15,000 to $25,000 to replace a departed millennial employee.
About 30 percent leave because they’ve gotten a better offer at another company, but almost the same amount say they left because their career goals weren’t in line with their employer.
“This generation has different views of the workplace and what a workplace should be like, and the companies aren’t evolving to meet those changes and needs fast enough,” said Dan Schawbel, founder of Millennial Branding and author of the upcoming book, “Promote Yourself: The New Rules For Career Success.” “In the years to come, companies are going to have trouble, because if they can’t retain these employees, those costs really add up.”
Jim John, chief operating officer at Beyond.com, said it’s a mistake for companies to view millennials as disloyal. They take charge of their own careers — for their own good, the good of their families and, given the generation’s heightened social consciousness, the good of the world around them.
“This generation has a real objective or sense that ‘I have to manage my career,’” John said. “ ‘I have to take control of it and be responsible. Employers are pressed, and they hire and lay off indiscriminately. So I have to be responsible to me, and to my family.’ ”
Schawbel and John said key things millennials look for in a job include: a clear mission and the opportunity to build marketable skills; flexible schedules and work-from-home options that ensure a work/life balance; mentoring programs; and internal hiring for career advancement.
The survey found that 80 percent of employers believe they can increase their millennial retention rate.
“I think that’s optimism,” Schawbel said. “I don’t think they necessarily know how to do it. Workplace flexibility was one of the top concerns for millennials, but only half of the employers are using it. So there’s a disconnect there.”