If you’re looking for millennial talent, it’s going to cost you. One of the biggest trends in 2020, and likely in 2021, will be the high cost of attracting and retaining talent. The job itself and the skills needed aren’t even the issues anymore—it’s expensive to find, train, and retain top talent whether you’re in IT or hospitality.
Millennials, who now make up the majority of the workforce, will have a big impact on hiring trends. This generation is interested in keeping work/life balance whenever possible. Having flexibility in the workplace is important, and the studies show millennial talent are less likely to stay in a job if their needs are not met. This may create a revolving door in the hospitality field, which is a costly proposition to consider. But just how costly is it to recruit and retain millennial hospitality talent?
Millennials Are Expensive to Retain
The Society for Human Resources (SHRM) says it costs about $8,000 to replace an employee earning just under $40,000. But if you’re trying to replace a millennial, you can triple that number. This is a huge problem since a large and growing majority of this population are now in the workforce. Gallup reports that millennials are the job-hopping generation, more likely to leave a job than any other generation that came before them. Gallup also says that in a typical year, millennials are three times more likely to jump jobs than any other generation. All this moving around costs employers big money, to the tune of about $30.5 billion every year. What are these exorbitant costs made up of? One study suggested the costs of hiring, retaining, and replacing millennials included:
- 51% of employers surveyed say the cost of training and development is higher when bringing on millennials
- Interviewing, job posting, advertising, and onboarding were the next highest costs associated with millennial employment
- 71% of employers said losing millennial employees increased the stress and workloads of their employees
- 56% of employers said it took between three and seven weeks to hire and get a new hire millennial up to speed
The result of this lack of retention is higher costs and a bigger headache for employers. Yet many companies lack effective strategies to retain this youthful workforce. One study looked at strategies for retaining millennials in the hospitality field. Here is what they discovered.
Strategies for Retaining Millennials in the Hospitality Field
We know employee turnover is already a challenge in the hospitality field. Millennials may leave hospitality jobs due to long hours, a lack of work/life balance, pay, a lack of flexibility, or any other issue, just like any other worker. But one study showed they would even leave “when the work is not fun or interesting.” How can hospitality companies overcome this to retain their workforce and save money as an added bonus? Tips to retain millennials include:
- Increase salaries and/or bonus structures
- Promote from within
- Improve training and development opportunities
- Train managers to engage their workers in the success of the organization
Hospitality workers come in a variety of sizes, ages, shapes, and colors. Gecko Hospitality works hard to ensure our clients have the right mix of staff. We search for the best employees who will stick with you for the long haul. Talk with our team about how we can help.
