Factors that make a difference when creating an attraction strategy for this generation.
By Brenda Leadley
By 2020, millennials will make up more than one third of the world’s working population. Allianz Global Corporate & Specialty’s new report, Trend Compass 2019, found that the influx of millennial employees will be a significant challenge for businesses over the next five years. Offering a creative and flexible corporate culture, introducing transparent and fast communication and decision-making structures, and embracing a mission with a social impact are some ways to engage this important segment of the workforce. In the global war for talent, companies need a clear millennial strategy.
What will this mean for businesses and how can employers adapt to attract and retain millennial talent? Here are three strategies that can appeal to these employees:
- Execute digital competency. Millennials are technologically savvy and the digital skills they bring are considered extremely valuable for companies. Businesses must be able to offer options in sectors such as artificial intelligence, data science, or frontier risk management. Having positions and roles involving cyber or reputational risk can also set a business apart.
- Create work-life satisfaction. Hiring managers should be aware that work-life balance and stability are becoming some of the most desired requirements on millennials’ job wish lists. A 2017 study by Allianz that surveyed more than 5,000 millennials revealed that when it comes to work, security and stability are top priorities. Millennials prize work-life balance along with a job that provides them with a healthy compensation and allows them to travel and enjoy different experiences. They also want to feel like they’re contributing to their community and have the opportunity to grow in their careers.
- Establish agile environments and limit bureaucratic formalities. Research shows that millennials prefer agile environments that can respond quickly to changes rather than working within settings built on strict processes or procedures. Millennials also prefer adaptable conditions and scheduling, and the option of remote working schemes. Businesses should respond by enabling a greater sense of autonomy and flexibility to attract talent.
Millennials also seek development opportunities with low levels of hierarchy that encourage learning by trial and error. Providing opportunities to gain new skills and capabilities through upskilling and advancement will appeal to talent, as many top performers are likely to leave a company within two years if they are unhappy with their development.
The success of today’s businesses will rely on the recruitment and retention of millennial talent. Employers must strive to deliver innovative and unique experiences, and take the necessary steps to improve corporate culture and practices. But this is not a one-time exercise: It’s a matter of continuous improvement and agility. Organizations that fail to connect with millennials do so at their own demise, as change is today’s only constant.
Brenda Leadley is senior vice president and head of HR Americas at Allianz Global Corporate & Specialty.