5 Benefits Millennials Look For in Employers

November 7, 2018

Millennial employees are known for changing jobs faster than other generations, so it’s no wonder Millennial turnover costs the U.S. economy $30.5 billion annually. But instead of writing off this segment of employees, many companies are looking at what drives people in this generation to join a company, and how can you keep the younger allstars once they’re on your team? Many Millennials have college degrees with varied backgrounds and experiences, they’re loyal to causes they care about and connected in their communities. Keeping top talent is a key business driver for success, but there are some things you might not know that Millennials are looking for in employers.

Opportunity for Advancement

Millennials don’t want to get into one position and stay there forever. After seeing their loyal parents ousted from companies during the recession, young employees know not to settle and let skills stagnate. They might even leave for other opportunities, but you can attract and retain the best of them by offering development opportunities and continuing education. Millennials want to know that they can grow with the company and they won’t get stuck in one position. As a matter of fact, 59% of Millennials say this is extremely important to them.

The State of Student Loan Debt in America Today

Support

Nothing is more frustrating than working in a space or with a team that doesn’t support you. Millennials want to be somewhere that they feel supported. Whether that’s the right computer for their job, a sit-to-stand desk, ergonomic work chair, or regular check-ins from leadership, support is crucial.

Work-Life Balance

Most would say it is not considered admirable to work a 60-hour workweek or to skip using your vacation time, because you’re that valuable. Millennial employees have no interest in being the first to the office and the last to leave because a work-life balance has become a mantra for this generation. Keep in mind these young workers had parents who were not as available for family time, and they are choosing instead to spend more time with their families or to disconnect from work to recharge their batteries. Since everyone is reachable through digital tools 24/7 getting away from the office and finding other ways to put work-life balance in harmony is crucial to avoiding burnout and keeping the best talent.

Recognition and Feedback

Some people balk at the Millennials for having gotten participation trophies as kids, but the result is this generation likes to be recognized for good work and need more feedback to feel secure. Whereas a typical Baby Boomer might be happy assuming things are fine if they aren’t getting criticism, a Millennial would likely want regular status updates from their boss. They usually want to be doing things that are meaningful and helping the team progress, so things like a weekly meeting or quick one-on-one session to talk about goals can really go a long way to helping your top Millennial talent stay engaged. Plus, giving your Millennial employees props for their good work can be more effective than other types of perks or bonuses. 68% of Millennials said they’d prefer being personally called out for their efforts.

Meaningful Perks

It’s a common misconception that all you need to attract and retain Millennials are things like pizza parties and bean bag chairs. In reality, they want more meaningful perks than this. Time off means more to them than raises because they’re driven to see the world and connect with other cultures. Options like bonuses that go straight to their student loans or more competitive benefits packages can be the difference between staying at your company or jumping ship for a competitor.

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Polish Your Company Brand

Today’s job seekers are looking for more than just a good compensation package. They want to be part of a team that emphasizes shared values and a unified purpose. A company and its workforce should have a recognizable brand with clearly communicated values. By clarifying your core values and creating a cohesive mission statement, you define your business philosophy and give new recruits a glimpse into your workplace culture. Make a deeper impression on potential new team members by going a step further: Let high-potential employees experience your company culture firsthand. Consider including activities like these in your recruitment process:

Tour of facilities & on-site amenities
Lunch with staff at the corporate lunchroom
Face-to-face meetings with company or division heads
Informal conversations with valued team members
Off-site mastermind gatherings with new and existing employees

You will reduce turnover costs when you identify new staff members who share your company values and have the potential to fit seamlessly into your corporate culture. Understanding your company’s management style and the characteristics of your most successful employees can prevent potential hiring mistakes. One of the most common reasons cited for an employee leaving a job is a “poor relationship with management.” Your company will succeed at employee retention when you understand and communicate your management style and company culture at the outset— before you have spent the resources to recruit and train the wrong candidate.

Create a Meaningful Compensation Package

A competitive salary is essential to new team members, but other types of compensation may seal the deal. Companies seeking to differentiate themselves from competitors offer compensation packages that are meaningful to their employees. In addition to healthcare benefits, paid time off and 401K fund matches, employees are looking for perks and benefits that enhance their lifestyle. A recent Robert Half survey cited these desirable additions to a company’s compensation package:

Paid parental leave
Opportunities for professional development
Profit-sharing plans
Student loan reimbursement
Dental & vision insurance
On-site amenities like childcare, gym & concierge services
Compressed workweek
Telecommuting
Flexible work schedule
Paid time off for volunteering

Many perks are an expression of your company’s culture, adding purpose and engagement for your high-potential employees. Consider sponsoring a community food drive or park clean-up. Host social events, investment seminars or concerts. You could also incorporate monthly rewards for employees who exceed expectations, such as a $50 meal certificate. This would drive your employees to perform to their highest every month and maintain workplace morale. Today’s recent grads respond to a work environment that meshes with their personal values and interests.

Sell High Potential Employees on Your Company

Once you have identified a talented candidate for hire, make the sale. New recruits who understand how they fit into your company’s culture and structure are more likely to invest themselves and stay. Boost talent retention by defining a path forward within the company. New hires want to know they will have opportunities for professional development, continuing education and the possibility of internal promotion. Show them where they could be short term, such as a year or two in the future. Seeing the growth within arm’s reach will give them the drive to perform the best they can. They are also highly focused on achieving work-life balance. If your business model permits it, offer greater work flexibility with schedules that allow work-from-anywhere options and unstructured time on the job.

Add Student Loan Repayment Benefits

Corporate help with student loan repayment is a big plus for high potential employees and a key business differentiator. ELFI for Business has the expertise to help your HR department put together an attractive hiring package with sought-after benefits like these:

Financial education
Employer contribution match
On-site consultations
Budget-friendly refinancing options

Connect with ELFI for Business right from your HR portal—or call 844.601.ELFI to discuss the positive impact these benefits have on hiring and engaging valuable team members.

Why Are Employees Leaving Your Company?

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2019-07-03

Measuring the Costs of Employee Turnover

Best-selling business management author Jim Collins was asked during a 2001 interview if he had identified a good business response to the economic slowdown that had gripped the nation. His widely quoted answer is as relevant today as it was at the time: “If I were running a company today, I would have one priority above all others: to acquire as many of the best people as I could [because] the single biggest constraint on the success of my organization is the ability to get and to hang on to enough of the right people." Nearly 20 years later and in a highly improved economic climate, Collins’ words still encapsulate the biggest challenge facing HR departments of corporate giants and small start-ups alike: finding and retaining quality team members. In an era of competitive recruitment and job-hopping staff, your company risks losing monetary and human capital each time a valued employee chooses to leave. Employee turnover impacts your bottom line and your company's culture. To set wise employee retention policies, you first need to assess the costs of staff turnover accurately and measure the full impact of employee loss.

Direct Costs of Replacing Employees

A talented employee exiting your company costs you money. Estimates of how much employee turnover costs can vary by industry and employee salary. A study by Employee Benefit News estimates the direct cost to hire and train a replacement employee equal or exceed 33% of a worker’s annual salary ($15,000 for a worker earning a median salary of $45,000). Cost estimates are based on calculatable expenses like these:

HR exit interview & paperwork
Benefit payouts owed to the employee
Job advertising, new candidate screening & interviewing
Employee onboarding costs
On-the-job training & supervision

You can track the expenses of your company’s employee turnover using this online calculator, or create a spreadsheet to determine how actual costs add up to affect your bottom line.

Full Impact of Employee Loss

Josh Bersin, a human resource researcher, writing for LinkedIn, refers to employees as a business’s “appreciating assets.” Good employees grow in value as they learn systems, understand products and integrate into their teams. When one of these valuable employees leaves, the business loses more than just the cost of hiring and training a replacement. Bersin cites these additional factors contributing to the total cost of losing a productive employee:

Lost investment: A company typically spends 10 to 20% of an employee’s salary for training over two to three years.
Lost productivity: A new employee takes one to two years to reach the level of an exiting employee. Supervision by other team members also distracts those supervisors from their work—and lowers the team’s collective productivity.
Lost engagement: Other team members take note of employee turnover, ask “why?” and may disengage.
Less responsive, less effective customer service: New employees are less adept at solving customer problems satisfactorily.

According to Bersin, studies show the total cost of an employee’s loss may range from tens of thousands of dollars to 1.5 to 2 times that employee’s annual salary.

Strategies to Slow Employee Turnover Rates

An effective exit interview helps you and your HR team pinpoint the drivers of your company’s employee turnover. You may find that hiring practices need to be refined or employee engagement should be enhanced. Changes to the break room space, such as fresh fruit or games, will allow your employees to relax and come back to work with fresh eyes and a better attitude. This will keep up the workplace morale, shaping your company culture to include perks appealing to younger workers and will lead to increased job satisfaction. Today’s employees are career-oriented and highly motivated. Keep them on your team with other opportunities such as:

Pathway for advancement within the company
Professional development & advanced education
Flex-time & work-from-anywhere options
Management support & recognition
Lifestyle rewards or amenities like catering & concierge services
Culture of shared values & volunteerism

Add Student Loan Benefits Through ELFI

Student loan repayment tops the financial-worries checklist of many recent graduates. Older team members question their ability to pay for educating their children. New, highly desirable HR benefits like student loan contributions and financial literacy education are emerging from these employee concerns—and ELFI for Business is leading the way for employers to incorporate them into hiring packages. You can connect with ELFI directly from your HR portal and access multiple ways to contribute to employees’ student loan debt. We offer new-hire onboarding booklets, educational newsletters and onsite consultations filled with information for you and your employees. Reach out to us at 1.844.601.ELFI to add cutting-edge benefits to your HR employee package!

Learn More About ELFI for Business

2019-06-28

How Do You Become an Employer of Choice?

Is your company—the company everyone in your industry wants to work for or an “Employer of Choice?” Employers of choice consistently retain their highest performing employees and attract the best and the brightest over their competitors. Employers of choice have little trouble recruiting talent since college graduates line up eagerly to interview for coveted jobs. In today’s competitive labor market, the majority of companies do not qualify as employers of choice. Their workforces are in constant flux, and the cost of employee turnover is hurting the bottom line. Fortunately, that cycle can be halted and reversed. Any business can become an employer of choice by following these five strategies to transform company culture into one that (1) delivers value to employees, and (2) encourages their engagement.

Make Your Workplace a Positive Environment

If your business has been getting by with lackluster performance and frequent turnover, you’ll need a critical eye to evaluate the current culture. Try to hire for longevity and look for the best possible fit for each unique position. Employers of choice search for employees who can make a positive impact on not only their work but their team, too. With capable and involved staff, from new-hires to top management, you can build a workplace recognized for its atmosphere of trust, personal growth, and positive performance. There’s no room for micromanagement in this kind of workplace environment. Entrust your employees with a mission, direction, and goals—then step aside. Allow them to make decisions and respect their choices. In a positive environment, differences of opinion become opportunities for learning and growth.

Provide Relevant Compensation & Benefits

Competitive compensation has always been a hook to catch the attention of potential employees. Even if your business cannot support top-tier pay and benefits, you can shape your compensation package to deliver the value your employees want. Offer the best salary you can afford and supplement it with bonuses and perks that reward company performance. Recognize that today’s employees place a high value on their time—and offer flexible scheduling and remote work options. Consider turning the standard break room into a comfortable lounge where workers can relax, play games or socialize. Go beyond the traditional benefits by adding college loan contributions, paid time off for family emergencies and parental leave to your benefits package.

Encourage Professional Growth

Engaged employees have a keen interest in professional growth and career development. Employers of choice encourage this interest by supporting their team with relevant training and additional growth opportunities, including:

Professional development seminars
On-the-job continuing education
Exposure to new tasks through job rotation
Tuition reimbursement for certifications & advanced degrees
Pathways for advancement

Establish Transparency

People like to know where they stand in a relationship, job, or career. Professionals who feel uncertain about their place in the organization, workplace expectations, or their own performance may seek other opportunities with another company. Transparent communication and clearly defined expectations give your team the perspective they need to stop worrying and start investing in the job. Employers of choice also develop channels for mentoring, giving helpful feedback and praise, and rewarding performance and risk-taking. They provide opportunities for teams to voice their ideas and concerns. Feeling safe and appreciated, employees buy-in to the company culture and become engaged.

Create a Collaborative Culture

If your company is to become an employer of choice, you must develop a respectful and collaborative community. Engaged employees appreciate corporate responsibility, and they have expectations of your business that go beyond products, services, and profits. Workers want to feel their companies are good local and global citizens. Employers who embrace charitable outreach are rewarded with employees who are more confident, purposeful, and willing to work as a team. You can boost staff morale and develop a meaningful and relevant work community by sponsoring activities that include:

Food & clothing drives
National fundraisers
Community clean-up initiatives
Health & wellness fairs
Recycling events
Health awareness campaigns

Become an Employer of Choice With ELFI for Business

Today, a college degree is more accessible than ever—and more expensive. An employer contribution to student loan repayment is one of the best ways to attract loyal employees. ELFI has created a cutting-edge benefits program that is easy to access through your HR portal and includes multiple incentives for attracting and keeping top talent. Take the first step to becoming an employer of choice.

See Why Employees Leave

NOTICE: Third Party Web Sites Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.