Loyalty at Gen-Y

Gen-Y, or the Millennials, as they are called, are the ones born between 1980s and late 1990s and are currently in the age group of 18 to 29 years. This age group is different to Gen-X or Baby Boomers in many ways than one. The fact that they were exposed to technology at a greater pace is the primary reason that makes them so different. Older generations have perceived this gen as being lazy and unconstrained. Needless to say, this is only a myth.

The power of social media has allowed this generation to get more connected and open minded. They have the power to create their own brand and link themselves to brands of their preference. Why then, is there the unforeseen turnover, and the fact that employers are finding it challenging retaining them?

70% of the Gen-Y workforce quit their first job within 2 years of joining. (Who's at Fault for High Gen-Y Turnover?, Dan Schawbel, Forbes, Nov 23, 2011) Is this due to lack of loyalty or are there other hidden reasons? Being in HR since the last five years, it has been observed that there are many underlying reasons. 

The entire thinking at this Generation has changed. With Gen-X, they provided loyalty to their employers while with Gen-Y, they expect it instead! And there is reason too: slower job market, higher competition, greater expectations from employers, continuous multi-tasking, regular honing of skills, flexibility at workplace and higher standards of living. 

Gen-Y needs to keep in constant touch with its environment, be it physically or non-physically and provide updates on what is happening with them. They are not afraid to share their thoughts and experiences openly, something which the older generations were reluctant to. (Here's How Millennials Really View Loyalty In The Workplace, Vivian Giang, Business Insider, Sep 17 2012)

Many of the Millennials opt for Internships and Industrial Trainings after their studies which last for a fixed period, generally between 3 – 6 months. Some of these jobs may be voluntary or may pay a small stipend. Permanent jobs are few, hence, students take up these short term assignments after their graduation. These assignments also allow students to understand their areas of interest, especially if the Internship allows exposure in several departments in the organization. Many a times, the organizations absorb the promising Interns, that is, if they have not found a job yet.  For those who do move, it is because they have received a better pay or position. 

At times, there is a culture of intimidation and control, which tends to “put off” this generation. This type of environment cannot work for any organization. This generation, like others, needs an atmosphere of recognition on achievement, trust and motivation; with the best interests of the individuals in mind. 

Another reason why Gen-Y moves (or stays) is how their leaders treat them. Effective seniors create an atmosphere of inspiration, trust and respect and continuously strive to retain their team. Gen-Y will respect: respect unflinchingly, but managers will need to earn it. They will not respect just because you are the boss. With an ineffective boss, they will just not stay. And then leaders muse over why this generation is so different to theirs, why they will not stay! (Who's at Fault for High Gen-Y Turnover?, Dan Schawbel, Forbes, Nov 23, 2011)

The latest trend is that Gen-Y would like to work for multiple companies at a time instead of working full time for one organization. They would like to use their expertise to the maximum instead of spending time in one office. This could mean a temporary association with companies on a particular assignment to optimize on their competencies. This would be a win-win situation for both parties. (Permanent Job Passe Work for Multiple Cos, TOI, Namrata Singh, June 23 2015)

The effects of rapid turnover are many: we all know it. The clearance cost, cost for finding a suitable replacement and training the new employee all over again. However, the loss of a dedicated employee who was on the way to become a leader is un-repairable. So is the cascading de-motivational factor that the loss of a committed staff brings about. 

Times are changing in the digital age, changing too fast. Gen-Y is the brain child of all this technological change. The need of the hour is for managers to utilize their immense potential to the maximum for survival in the difficult times ahead. And yes, Gen-Y is loyal, dedicated and intense. It is then, up to the leaders, to mold them so as to make them assets in the organization and shape them into future leaders.

Labels: flexibility, Gen-Y, inspiration, leaders, Loyalty, motivation, multi-tasking, recognition, social media, trust, turnover