Literature Review
Introduction
According to careful estimation, Millennials, today, account for the highest percentage of total population in the U.S. as well as across the world as also shown in the figure provided below:
(Goldmansachs, 2016)
It is an admitted fact that participation of youth in total population has always been critically important and center of attention for authors, thinkers, and scholars around the globe. They endeavored to investigate the role of the young generation in different dimensions such as society, economy, environment, patterns of religious beliefs, etc (PWC, 2016). So is applicable to organizational dynamics. Due to their growing influence, it is interesting to assess and discuss the impact of retaining millennials on the organizational heath.
The study is critically important because millennials have a dominating share of the workforce in most of the modern organization, and their participation is at rise. This demographic shift is following a series of social, economic, and technological changes coupled with globalization. Therefore, there is a strong case in studying the behavioral patterns of this group of individuals and its outcomes in terms of benefits on an organizational level (PWC, 2016). These facts provide a base for considering the study of the relationship between retention of youth at the workplace and their contribution to the overall performance of the organization. Another factor stimulating the researcher to conduct a study on the underlying case is the gap in the literature in the coverage of same from every critical angle. Even though there are a handful of studies dealing with certain characteristics of millennials from the perspective of the organization, there is hardly any comprehensive research made on what factors can make the millennials retain in the organizations. Therefore, the review of the literature is going to identify these factors in the previous studies that can help in retaining millennials.
With reference to the case of the study that is focused on the importance of retaining millennials at the workforce, there is one dependent variable. And, this dependent variable is itself retention of Millennials. However, there will be many independent variables that will be considered to impact on the dependent variables. These independent variables may include all those factors that can impact on the millennial employees in the context of their retention such as pay, training, management communication and support, etc. Different theories and studies are going to analyze to extract some major factors either affecting positively or negatively on the retention of Millennials in the organization.
Historical Background
In early times, Millennials were retained in the organizations using incentive motivation either financial incentive or non financial incentive (Statistics and Trends, 2016). It was the time in the 1960s when women entered in the world of business and employment (McGraw & Burr, 2011). Millennials are the generation that was born during 1979 to 1994. This generation was more required in the organization earlier because they were considered as more confident and tolerant. They are less reactive to racism, cultures, languages, and groups.
Historically, the organizations and Human resource management used some distinctive strategies to retain millennials in the firm according to the demands of Millennials. Some of the major demands at that time include good fit in job, relationships with coworkers, early offs and high pays (Taylor, 2013). One of the most important perspective about millennials was that they do not live to work, but they need a job to live means the pay must be enough to meet demands.
Theoretical Background
Before going to understand the importance of retaining millennials in the organization, it is important to evaluate the theoretical background about a millennial generation to understand their specifications and distinctions from past generations. In this perspective, Mannheim’s Theory is one of the most popular theories to explain Millennials generation.
4.1. Mannheim’s Theory of Generations
Dr. Karl Mannheim has presented a theory of generations, mainly to explain Millennial Generation completely. According to his theory, the people are more look like their time as compared to their parents. According to the theory, the millennial generation is different from past generations as they have more access to technology, and they can see what past generations were not able to see with a wider range of videos and photographs. The time of millennial generation is considered as more interesting as it is full of inventions and innovations. Therefore, it can be said that the creativity and innovation of Millennial generation is high as compared to the past generations. However, the theory is being criticized based on some basic assumptions. Such as, it has far been considered that millennial generation is available with technology because their parents want them to have something like this such as personal computers. In addition to this, the generation has reached to the excellent use of internet due to the external events such as 9/11. In general, the theory has stated that millennial is completely different generation as compared to past generations. It means they can have different impacts and advantages to the firms and businesses as compared to what the past generations have done (DeChane, 2014). There are many other theories and models that are relevant to this study and room to discuss the generation in details in the future researches.
Impact of Millennials’ Retention on Organizational Performance
As discussed earlier, scholars and researcher fail to cover the case of the study from the specific perspective of the impact of retaining millennials on the performance of an organization. However, literature is brimming with studies dealing with issues relating to that in different areas. This section is specified to have an overview of some of the most significant contributions in this regard.
According to a detailed research conducted by PWC (2016), it is found that Millennials are keen towards innovation. They are always in quest of the workplace that can provide them an atmosphere encouraging to innovative ideas. Their approach to innovation mainly revolves around the innovative utilization of technology. Furthermore, it is derived from the response of the majority of respondents that millennials like to optimize the process of carrying out different tasks by using technology either provided by their employers or arranged by them.
Lewis (2015) has also in strong agreement with the viewpoint discussed above and opines that young generation is always inclined to innovative ideas. They are instinctively reluctant to follow the set patterns and like to come up with their own ideas. To emphasize, he uses the term “unleash innovation” to shed light on the unavoidable association between innovation and risk. In other words, the writer is of the view that millennials are habitual to take their chances accepting the amount of threats such as chances of failure due to the untested status of their ideas (Lewis, 2015). Then, Myers & Sadaghiani (2010) have also treated the role millennials at workplace comprehensively. According to the key findings of the authors coupled with theoretical ideas referred by them, it is established that it is important to have youth at the workplace. It is beneficial for organizations to retain them in different areas where innovation holds key importance. According to the authors, today’s business climate is much more competitive than ever before. Competitive strength or differentiation of different organization is largely based on innovation, and youth is the best source of generating creating novel ideas. Therefore, if a business aims to seek add value to the organization, it is essential for management to have the decent participation of Millennials within its workforce (Myers & Sadaghiani, 2010).
Factors affecting Millennials Retention
It is important to explore those factors that impact on the millennials in terms of their ability to give a performance in the organization. One of the most important factors is the relationship of millennials with coworkers and supervisors. The researches in the HR and business field have analyzed that HR is needed to implement the strategies and actions that must be effective to change the past generation into millennials in the workplace (McGraw & Burr, 2011). It helps in motivating them to contribute to the organization to achieve success. The ability of millennials is improved when they get feedback from their supervisors and managers (Myer & Sadaghiani, 2010). Some of the considerable factors that affect millennials include communication, teamwork, coordination, support, and knowledge sharing and workplace environment. However, another study has identified some other factors that motivate and impact on the retention of millennials. Career growth, training, high pays incentives and benefits and equal opportunities can be some factors that can impact millennials to retain them.
6.1. Opportunities for career progression
Millennials are more focused towards their career flexibility as they want to live their life. The study has argued that career is not a basic factor to motivate millennials as compared to past generations, and they prioritized the relationships at workplace over their career (Myers & Sadaghiani, 2010). However, the study also argued that young generation is more aware of their career choices, and they are choosier in terms of job and career for their long term achievements. Therefore, it is important for the organizations to consider special and different career options for millennials (Kowske, Rasch & Wiley, 2010). They prefer flexibility in their work which is the most desirable option in their career progress (PWC, 2016). It has also argued that the companies must provide growth opportunities to the young generation to motivate them to stay in the organization to get more experiences and creativity. Millennials are more engaged to develop their creativity and innovation skills as the theory of generation also claims that millennials are more innovative and technological as compared to the past generations.
6.2. Competitive salaries
One of the major concerns about millennials in the organization is the salaries pay to them. This generation is needed to have high pays in the organizations, and therefore, they switch jobs quicker as compared to past generations. According to the recent statistical report, only 36% Millennials are getting average pays in the United States. The study has argued that to retain millennials, it is the time to pay them for their roles and responsibilities. Either pay them high or pay them a bonus and other rewards for their work (Stahl, 2015).
6.3. Training and development
According to the PWC report (2016), training and learning is one of the important factors to retain millennials. The generation gives more attention to its learning in the organization and prefers more experience of training. The organizations can lose the future talent in the workplace if it is not effective to engage millennials in the training and development. Training is one of the significant factors to engage employees in the organization; however, training for millennials is more aligned with their goals for growth in the company.
6.4. Communication with Management
The major need of the millennials is to hear in the organization. The young generation believes in open culture and truth from the management as according to Booher (2016), communication is the major concerns for young generation as an individual and not only as an employee. He suggested the management must organize some meetings, get-togethers. It helps the millennial employees to feel the family environment and free to communicate and build a relationship with managers and supervisors. Another study has highlighted that not only relationship building is prioritized in the context of communication but getting feedback is also important for millennials employees (Adkins & Rigoni, 2016). According to them, feedback is important for every generation, but millennials want more from their management as compared to others.
6.5. Support from Management
According to the report of Statistics and Trends (2016), Millennial is the generation that requires more support from the management than any other past generation. The expectations of Millennials are very high to the team management either managers or supervisors. The young generation as found to be interested in learning, therefore, they want more time and support from the managers to learn new practices and skills. According to Adkins & Rigoni (2016), the engagement of millennial employees is linked to the support and conversation with the managers.
References
Adkins, A. & Rigoni, J. B. (2016). Managers: Millennials Want Feedback, but Won't Ask for It. Retrieved August 10, 2016, from http://www.gallup.com/businessjournal/192038/managers-millennials-feedback-won-ask.aspx
Booher, D. (2016). What Matters Most In Managing Millennials? Communication. Retrieved August 10, 2016, from http://www.forbes.com/sites/womensmedia/2016/01/14/what-matters-most-in-managing-millennials-communication/#55f0e94a7bca
DeChane, D. J. (2014). How to Explain the Millennial Generation? Understand the Context. Student Pulse, 6(03).
Goldmansachs. (2016). Millennials: Coming of Age. Retrieved August 10, 2016, from http://www.goldmansachs.com/our-thinking/pages/millennials/
Kowske, B. J., Rasch, R., & Wiley, J. (2010). Millennials’(lack of) attitude problem: An empirical examination of generational effects on work attitudes. Journal of Business and Psychology, 25(2), 265-279.
Lewis, K. R. (2015). Everything you need to know about your Millennial co-workers. Retrieved August 10, 2016, from http://fortune.com/2015/06/23/know-your-millennial-co-workers/
McGraw, A., & Burr, M. (2011). Changing Demands: The Workforce of Yesterday, Today, and Tomorrow. Cornell HR Review. Retrieved August 10, 2016, from http://www.cornellhrreview.org/changing-demands-the-workforce-of-yesterday-today-and-tomorrow/
Myers, K. K., & Sadaghiani, K. (2010). Millennials in the workplace: A communication perspective on Millennials’ organizational relationships and performance. Journal of Business and Psychology, 25(2), 225-238.
PWC. (2016). Millennials at work Reshaping the workplace. Retrieved August 10, 2016, from https://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/assets/reshaping-the-workplace.pdf
Stahl, A. (2015). Four Ways To Satisfy (And Retain) Millennial Employees. Retrieved August 10, 2016, from http://www.forbes.com/sites/ashleystahl/2015/10/08/four-ways-to-satisfy-and-retain-millennial-employees/#6124b43f7285
Statistics and Trends. (2016). Millennials are the most demanding workforce, according to UK bosses.The Online Recruitment Resource. Retrieved August 10, 2016, from http://www.onrec.com/news/statistics-and-trends/millennials-are-the-most-demanding-workforce-according-to-uk-bosses
