Although employee turnover is often thought of as part of the overall business model, too much turnover can be a sign of a larger issue at hand.
Much of the workforce is being made up by Millennials, 20-somethings who are ready for experience but not completely ready for a 20-year commitment. In addition, many employees are not looking for an end-all-be-all job at the beginning of their career either.
According to Dov Baron, author of Fiercely Loyal: How High Performing Companies Develop and Retain Top Talent, keeping employees in your business and happy has become a real issue for many.
Recent data has found that Millennials are looking to make a career change about every four years, but the average tenure of an employee is about 1.2 years.
Although some business leaders may wonder if it is even worth it to retain Millennial workers, the bottom line — revenue — has proven that it is. It costs anywhere between 1.5 to 2 times an employee's annual salary to train and develop workers who will eventually leave. If businesses are not focused on their employees staying within their ranks, they will never make a profit.
One manner in which businesses can make a change is through their leadership training and open positions. Front-line leaders have been proven to perform exceptionally well when they are new to the position and the management role.
According to Chief Learning Officer, front-line leaders often manage 80 percent of the workforce and comprise more than half of the management within a business. These managers are known to comprise most of the direct reporting within a business as well as execute strategies and implement both employee engagement and customer satisfaction.
Millennials have the potential to form the newest, most innovative leadership ranks. Developing front-line leaders through Millennials is a great way to ensure a business workforce continues to grow, while employees move laterally and vertically and management is maintained.
There are a few factors to consider when implementing this kind of change. These include:
- Company growth: Companies are growing at faster speeds and must keep up with this growth to maintain both customer satisfaction and smooth office interworkings. Due to a talent shortage because of earlier retirements and newer employees, looking to Millennials as a source of leadership may be the best option. Look for traits in new hires, such as critical thinking, worker engagement, mentoring and achieving results, when determining if a new hire will be a good fit.
- Invested development: Investing in leadership from the beginning of an employee's stay within a company often solidifies his or her future. In terms of succession management, invested development from the beginning can also help determine the overall success of a business.
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