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Trendy Perks Won’t Help You Retain Millennials — Here’s What Will – Forbes


At some point during my career, tech companies became synonymous with “cool.” And, it doesn’t help that nearly every week I seem to catch another article about “Tech companies with the craziest job perks”— promoting extras like on-site acupuncture, gourmet food, nap pods and egg freezing.

I understand why tech companies feel pressure to compete for talent by investing in a host of unconventional perks and benefits. But while this image of Silicon Valley “cool” may be attention-grabbing, investing in ping-pong tables, anytime happy hours, and catering won’t drive long-term employee satisfaction and retention.

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Consider, for instance, that the tech sector has the highest turnover rate of any industry, according to a recent report from LinkedIn. And, despite companies like Google being known for having a host of incredible perks, the average tenure of Google employees is a mere 1.1 years.

Reshaping the Workplace for Millennials  

By 2020, Millennials will make up more than 75 percent of the workforce. Unlike previous generations, this group of workers values the intangible: they want to feel connected to their work, make an impact, grow professionally and have flexible work-life balance. In my experience leading people and culture at a tech company at which the majority of employees are Millennials, I found that these are the essential elements required to retain top talent.

A Sense of Purpose

Millennials want to connect to the world through their work. Because of this, it’s imperative that companies define their purpose — “why” they exist — so employees have something they can connect with and rally behind.

While some business leaders may view “purpose” as superficial, it’s what inspires employee engagement, performance, and clarity in work. On the flip side, a lack of purpose can present serious retention issues. Gallup research found that 60 percent of Millennials are actively looking for opportunities outside of their current jobs, because they don’t feel connected to the mission or values of the company.

To instill a sense of purpose, leaders can enroll employees in the overall goals of the business, authentically discuss and uphold company values, and guide teams in understanding how their work contributes to the big picture. Purpose is also derived from connecting with those who benefit from the company’s work. This can be done by sharing stories of customer impact — especially with those employees who may not be customer-facing.

Empowerment and Impact

Millennials are entrepreneurial at heart, and they want to be empowered to do great work. At its essence, this means providing workers with the flexibility to take action on ideas, to unleash their creativity, and to determine how to get work done on their own terms. For Millennials, it’s no longer about punching a clock to bring in a paycheck, but knowing that they were given the environment and support to do their best work.

Equally important is giving employees an outlet where ideas can be heard and nurtured. In our new employee orientations, we highlight how any of our team members — regardless of title or tenure— can have their recommendations heard and potentially driven forward. Not only does this empower employees to use their voice, it builds an extremely strong, durable culture.

A Culture of Growth

More so than the Baby Boomers and Gen X/Yers, Millennials value opportunities to learn, grow, and develop their career. In fact, Gallup found that a staggering 87 percent of Millennials rate “professional or career growth and development opportunities” as a top priority when applying for a new job. Another study reported that Millennials are twice as likely to stay with a company if they’re satisfied with their development.

Growth opportunities, however, aren’t limited to corporate Learning & Development programs. A study conducted by HBR found that Millennials want to work for a manager who will invest in their development. And it’s been found that mentorship opportunities and challenging work drives workplace connection and engagement.

At Smartsheet, we’ve found that one of the best ways to meet retention goals and foster growth is by promoting and supporting mobility within the company. Managers should keep an open dialogue with their directs about where they see themselves professionally in one, two, or five years, and encourage growth opportunities and experiences to help them get there.

Avoid the $30.5 billion in annual turnover costs that companies spend on unhappy Millennials by using the best practices above — instill a sense of purpose, empower teams to make an impact, and uphold a culture of growth. Perks are a dime a dozen, but a culture of substance can be a true competitive advantage.



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