People born in the 1980s and 1990s now make up the largest single generational group in the workforce, and managing them, keeping them happy, and truly understanding them, has become a source of stress for big large and small businesses across the globe.
Source Global Research, an industry leader in global research, estimates that U.S. organizations spent between $60 million to $70 million on millennial workers consulting last year. Companies such as Oracle, Red Robin Gourmet Burgers Inc. and Time Warner Inc.’s HBO have retained millennial advisers to help with turnover, market to young people and ensure their happiness at work.
In fact, some experts believe that there is somewhat of a disconnect between young people, their hopes, goals and expectations, and what companies think young people want. And if you’re like many large and small businesses, we’re sure that you already know that if you plan to have a sustainable business, you’re going to have to figure out a way to keep the workers of today (millennials) happy. An effective way that experts have found to help keep millennial workers happy is by simply giving company meetings a millennial-friendly makeover, which means moving from the company offices to somewhere fun offsite.
Here’s Why This Approach Has Proven to Work
Millennials have grown up in a time where information has become available instantly. Through a Google or Wikipedia search, answers to even quite complicated questions can be found. As such, millennials have developed into a group that wants to work on new and tough problems, and ones that require creative solutions. Moving company meetings to an offsite location, such as RAC Houston Conference Center, provides companies with the “creative solution” that millennials, who make up more than 50 percent of today’s workforce, want.
But What about the Costs?
We know and understand that the business environment is tough these days, especially if you’re in the oil and gas and energy sectors. However, According to a recent study entitled, The Cost of Millennial Retention, companies report that it costs them an average of $15,000 and $25,000 to replace every millennial employee they lose.
But the cost to replace higher level millennials is much higher. According to a study by the Society for Human Resource Management, employers will need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement.
Doing the math, that means that for an employee salaried at $60,000 will cost the company anywhere from $30,000 to $45,000 to hire and train a replacement. Other research show that the average costs could be even higher. In a study conducted by the Center for America Progress, the cost of losing an employee can cost anywhere from 16% of their salary for hourly, unsalaried employees, to 213% of the salary for a highly trained position! So if a high trained executive is making $120,000 a year, the true loss could be up to $255,600 to the company!
In conclusion: Millennials are the driving force in today’s workforce, and companies who make an effort to truly understand them, and make them happy by doing little things, such as moving company meetings offsite to a place like RAC Houston Conference Center, will not only save their company a lot in hiring and replacing millennial employees, but will also thrive, because happy employees usually means happy customers. Happy customers means more business.