That puts employers in a tough spot, considering this generation will eventually be charged with leading these organizations. And banks are not immune!
What is your bank doing now to prepare for the inevitable millennial takeover?
Millennial Succession Planning: 3 Questions to Prepare
1. What are you actively doing to make them want to stay at your organization?
Attrition is an expensive issue that must be addressed for banks to be successful. In fact, millennial turnover costs US companies $30.5 billion per year (Gallup)! But when you look at the data, it's no surprise:
- 71% of millennials are actively seeking a new job, compared to 44% of baby boomers (ICIMS)
- 42% of millennials expect to change jobs at least every 1-3 years (Jobvite)
- And 32% of millennials said they're likely to leave their job within the next six months, compared to 11-12% of GenXers and Boomers (Clutch)
The moral of the story is that if millennials aren't happy at work, they're not afraid to quit. Your task is to figure out how to make them happy, then make it happen.
Learn what your millennial employees want. Then, make an action plan for engaging millennials within your institution and making them want to stay long-term.
2. How are you helping them grow so they're ready to lead when you need them?
Millennials want to make an impact, and they want to lead. To engage millennials and keep them, you have to understand what they want:
- 25% of millennials say their top career goal is to "make a positive impact on my organization" (compared to 21% of GenX and 23% of Baby Boomers) (IBM)
- 84% of millennials say that helping to make a positive difference in the world is more important than professional recognition (Bentley)
- 71% of millennials expecting to leave their employer in the next two years are unhappy with how their leadership skills are being developed (Deloitte)
Millennials are the most educated generation yet (US Chamber Foundation). They're used to fast upward movement, like moving up in seniority in school. They're also used to frequent feedback and gratification, like grades and certificates/diplomas. Invest time and energy now, and your millennial employees will be well-poised to step into the roles you need them for in the future. When it's time, consider options like executive coaching for leadership refinement.
Mentor and grow millennials from the very beginning of their careers to make them feel valued and developed.
3. Why do you have disengaged [millennial] employees, and how will you fix it?
Leadership development and impact are only two keys needed to unlock millennial potential. Other needs millennials crave include work-life balance, flexible schedules and other perks:
- 50% of millennials, 40% of Gen X and 35% of boomers say burnout is motivating them to consider changing jobs and 53% of millennials say a healthy work-life balance would make them stay at their job (Staples)
- 64% of millennials care more about perks and benefits, compared to 51% of baby boomers and 54% of Gen X; 94% of millennials, 92% of Gen X say nontraditional benefits make employers more attractive (ICIMS); and 74% of millennials expect flexible schedules in the workplace (Access Perks)
- 83% of millennials ranked travel rewards as the number one reward that they would want most from an employer (Achievers)
But don't forget that money is a universal motivator:
- 68% of Millennials say compensation is the most important aspect of their workplace (SAP SuccessFactors)
- 65% of millennials said they didn't make enough money to cover expenses or are living paycheck to paycheck (EIG)
It's not enough to create an exciting work environment for millennials, though it is an engagement factor. For your bank to successfully retain millennial employees, you have to support them extrinsically as well as intrinsically.
Evaluate current perks, benefit packages and salaries. Determine what gaps, if any, exist. Then, develop a plan to align them with millennial expectations. This could mean polling your own employees to see which actions would make the most impact for them!
Hope for banks employing millennials:
Some banks feel that they can't offer what millennials want. But, here's proof that banking and millennials have a lot in common:
- 58% of Millennials want to work for a small or medium sized company compared to 63% of Gen X and 71% of Baby Boomers. Only 13% want to work at very large or global companies with 10,000 or more employees! (WorkplaceTrends)
- 63% of Millennials like their employers to contribute to social or ethical causes (Brookings)
- Work atmosphere traits millennials seek in employers: work/life balance (69.2%), friendly coworkers (57.3%), friendly to people of all backgrounds (55.3%) (NSHSS)
Banks are deeply rooted in the communities they serve. They are generally small-medium in size, and contribute generously to their local markets. Banks strive for incredible customer service, including friendliness and inclusion. Millennials have a huge opportunity to make an impact and enjoy work atmosphere benefits if they opt for a career in banking.
Mentor and develop millennials now so they're ready to take over when it's time.
How is your millennial planning going? Comment below or email me to talk about it!