Millennials are not loyal: Moving beyond the stereotypes
Millennials, now the largest generation, will soon become the top stakeholders in the U.S. financial system. Like any other customer, these clients will value financial advisors who display an understanding of their investing needs and goals. But adding more employees to your team who represent this same age cohort so that they can connect with this prospective pool of clients may seem daunting. After all, millennials are often portrayed as not being loyal. They've gained a reputation for job-hopping, and, at first glance, the numbers used to support this claim are hard to dismiss.
Sources have estimated the annual cost of U.S. millennial turnover to be $30.5 billion. As many as 21% of millennials (over three times the number of reporting nonmillennials) disclosed changing jobs within the prior year. Only about half of the millennials intended to remain with their current employer for at least another year, reportedly 10% less than non-millennials.
These figures can make it easy to forget an important fact: job candidates also incur costs. So what compels millennials-- more than prior generations--to give up time, energy, and money to look for greener pastures every one to two years?
Attracting and retaining the best talent from this cohort requires, above all, recognizing that it takes more than paychecks to foster commitment. Deloitte's annual international survey, which recently included 10,455 millennials and 1,850 Gen Z respondents, indicates that evidence of workplace diversity and inclusion can go a long way in alleviating turnover. Millennials want to know that their employers and the companies they do business with are interested in making a positive impact in their communities.
Deloitte's survey results also reveal that millennials worry about their employers' loyalty, too. It turns out that the people born and raised in the digital era fear being replaced by advancing technology, despite understanding its potential to provide more interesting and creative work through the elimination of rote tasks. As a result, this generation yearns for guidance in developing the skills required to survive the imminent changes. Consider creating a professional development plan that includes milestones to track movement and success along the way.
Millennials, now the largest generation, will soon become the top stakeholders in the U.S. financial system. To become a trusted financial advisor to this investor segment, you will want to invest in and cultivate younger talent internally, in addition to hiring passionate external talent. Communicate regularly with this age group of employees, and identify where they are making a difference within your business. Reimagining your firm's culture in light of millennial values may be the key to ensuring a competitive future for your firm.
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