According to a survey of 335 Canadian companies conducted by Morneau Shepell, 76% of human resource managers cited employee engagement a ‘top priority’ while simultaneously noting that salary increases would be at the lowest rate in over twenty years. The stark reality is that traditional motivators such as compensation no longer exist, and in fact no longer motivate.
We’ve all heard the rhetoric. In mature markets, only 31% of millennials believe they will be better off than their parents, and globally 38% would leave their job within two years (2016 Deloitte Millennial Survey). In fact LinkedIn promotes the fact that 90% of its database are open to new opportunities. This can’t leave employers with much confidence. If employees aren’t motivated by the dream of financial security, and employers can’t offer it, both parties must find new common ground if they are going to build a long-term relationship.
There is good news. Millennials are motivated by factors that transcend monetary reward. Here are the top 3 ways to motivate your employees to stay and thrive within your organization.
Flexibility
According to a recent article in Profitguide.com, 86% of employees have indicated that flexibility is a key retention motivator. Offering employees the ability to work from home, come to the office for part of the week or work flexible hours positively impacts retention. Manulife, who introduced at WorkSmart program in 2013 offers over 3000 employees a flexible work environment. In addition to reducing turnover, Manulife is hoping to reduce real estate costs by about 25%. This is a win-win for everyone.
Active Social Purpose
Organizations that give millennials opportunities to support or contribute to charity / good works while at work are 25% more likely to retain employees, have significantly more social optimism, and believe their company is having a more positive impact (2016 Deloitte Millennial Survey). The goal is to engage millennials in CSR efforts consistently, transparently and actively.
Empowerment
Offering millennials a sense of empowerment over global issues such as protecting the environment and social equality also have a positive effect on performance, retention and loyalty. Organizations with a strong purpose demonstrate stronger long-term growth, in part because they are able to tap into this purpose to motivate staff.
Though it may seem radical, money is not the only tool HR managers and business leaders can use to motivate and retain staff. Offering trust, autonomy, empowerment and purpose can have significant impact on how an employee relates to, and engages with their employer.
Brand for Benefit helps companies discover, certify and share their greater purpose as a path to growth.
CEO Carolyn Ansley is an award-winning marketer, entrepreneur and mother who believes using business for good is good business.
