It Pays to Attract and Keep Top Young Talent
It Pays to Attract (and Keep) Top Young Talent
The Center for American Progress estimates that it costs between 10% and 20% of an individual worker’s salary to find a suitable replacement. Based on a median income of around $44,500, businesses may spend upwards of more than $13,000 per each turnover incident. In today’s competitive employment marketplace, it is increasingly important keep employees that can be nurtured from entry-level roles into prominent management positions.
Hiring from within makes (dollars and) sense
There are numerous benefits associated with promoting current employees as opposed to hiring from the outside. Employees that have the option to climb the corporate ladder will likely perform well in lower paying positions. Long-term staffers have the opportunity to get to know all of the little nuances that keep a business ticking forward and are more prepared to handle emergencies than a new intake. Forbes points out that new hires demand 18% higher salaries and are 61% more likely than internally-appointed employees to be fired. Managers that “grow up” within a company are better able to train new entry-level team members and identify skill sets and personality traits that will best benefit the business’s bottom line.
Employee selection matters
New employees – even those at the very bottom – should be chosen carefully based on their potential. Applicants with an unsteady work history and those with lengthy, unexplained gaps in their resume are likely poor candidates. Business owners should also consider their company’s culture and whether or not an applicant is likely to be a good fit.
Young workers come and go and that’s not always a bad thing
Businesses with ample entry-level opportunities for high school students often find it difficult to convince college-bound kids to return to the payroll after graduation. But bringing these young adults back after they’ve received an education is one of the best decisions a business owner can make; this is especially true in the construction industry , where contractors are expected to have not only technical expertise but hands-on experience as well. The younger an employee begins with the company, the more time they have to help build the business. Managers hoping to retain young workers should offer benefits that make it a smart career decision to return with a degree in hand.
It isn’t only salary
College grads expect fair compensation but, studies show that many are willing to trade a higher salary for a more positive and thought-provoking work environment. As this recent Fast Company article notes, more than three-quarters of young workers expect a challenge and tend to remain faithful to companies that offer long-term development opportunities. Millennials gravitate toward flexible work schedules and companies that provide opportunities that allow them to have a positive impact on society. Young professionals value work-sponsored retirement planning programs – 401(k), stock options, and employer-matched savings. Less considered benefits that have a huge influence with young employees include stocked break rooms, onsite childcare, and freedom to complete daily tasks without constant micromanaging.
The best worker bees are cross-pollinated
Not only do workers want to be challenged, they also want to know how other parts of a company affect their workplace responsibilities. When workers are exposed to the specific roles of each department, they have a deeper skill set and a broader understanding of a company’s products and services. This gives them an edge as a future leader and creates a more efficient workplace overall.
All industries will benefit from grooming young workers into managerial roles. Employees treated well and provided with desirable benefits and growth opportunities create a loyal company workforce…one that can save a business hundreds of thousands of dollars in the long run.
Remember, the only difference between today’s janitors and tomorrow’s general managers is experience. Growing low-level workers into high-powered executives is a smart move that eliminates the problems made by plugging internal holes with outside forces.
This message is brought to you by the Leeds Area Chamber of Commerce. For more information about Leeds, Alabama, the Leeds Area Chamber of Commerce and how the Chamber can support your business, please contact Sandra McGuire, Executive Director, at 205.699.5001 or Sandra@LeedsAreaChamber.com.