Millennials Job-Hopping and the Impact on Payroll

by Anne Reily, Founder and CEO of PaycheckPlus

Millennials last just 8 months in a job
Each generation has their unique sets of priorities and expectations and Millennials (those born between 1980 and 2000) are no different. Millennials are notorious for “job-hopping” and new research, by EngageSmith, suggests that they last just 8 months in a job. This can put significant burden on HR and payroll functions.

The benefits
Hiring Millennials can bring a fresh perspective into the business and a greater understanding of the needs of the growing millennial customer base. Typically they are more tech-savvy and adaptable to the needs of a dynamic business. They are multi-taskers that want to grow with the business. Also, due to the inexperience of many millennials, there can be a cost saving in terms of payroll. However, does this cost saving outweigh the cost of catering to millennials in the workplace?

Catering to Millennials
Millennials are motivated by more than just money. They want responsibility, feedback, a certain level of freedom and flexibility. Catering to their specific needs, priorities and expectations, in order to reap the benefits that they bring, can incur costs (as with focusing on any specific generation). For example:

• training may be required for Millennials that are new to the workforce
• greater management time may need to be invested to get the most out of Millennials
• there is likely increased HR and payroll management costs as a result of the typically higher turnover of Millennial staff members
• catering to and getting the most out of the Millennial workforce may also require a cultural shift for businesses which can be a substantial undertaking

However, consideration of Millennials in businesses is of increasing importance – Millennials are already starting to outnumber Baby Boomers in the workforce in many countries and soon they’re expected to be the dominant working generation.