So you think job hopping Generation Y is only limited to you? Think again – it’s a global epidemic.
In Australia, a new study shows that 40 percent of employees in their 20s change jobs this year. This is twice as high as the average job hopping rate across combined generations. Similar studies in Canada, USA, UK and many other industrialized or service oriented nations.
Why they travel
Exit interviews provide the key to understanding why Y’s transcient resumes. Australians are guilty, just like in other countries, of not using candles when leaving a job. There is a constant fear of burning bridges or conflict on departure. This creates an artificial view of the leadership capabilities of a company’s management. When third parties conduct interviews, they find that most employees leave due to poor management. But they tell their employer that it is because of better pay or opportunity.
The cost of Generation Y revenue is staggering: each position costs 130 to 150 percent of the annual pay rate every time it is open. And this is beyond the ordinary salary. If you are able to cut your turnover in half, it is the financial equivalent of your average salary times half your annual new hires. However, several best practices for maintaining Generation Y have emerged successfully. These include providing dedicated networking time, increasing team assignments over individual functions, and using custom work schedules.
The key points are that profitability is tied directly to revenue, and revenue is reduced in the age group of 20 years as companies move from traditional to modern management – not only in Australia, but worldwide!