Millennials in the Workplace: 7 facts you need to know

Posted by Erika Rykun on Aug 25, 2020 8:45:19 AM

As the global workforce becomes “younger” with older generations heading into retirement, employers born before the millennials may have difficulty understanding millennial culture, and how the generation views the workplace differently than generations before it.


We’ve compiled 7 enlightening facts on millennials in the workplace, taken from a variety of studies and surveys conducted on the matters in each fact.

Millennials value methods of company communication

94% of Millennials say that up-to-date technology is one of the key things they look for in a workplace, and companies that utilize social media as a recruitment tool have a much higher chance of recruiting new talent.


Millennials are also most likely to respond to emails and text messages. Furthermore, because short-term objectives are important to millennials, they prefer regular check-ins over annual reviews, so that they’re more able to plan accordingly. In other words, millennials prefer the rapid communication style of social media even in the workplace. As a leader and manager, you might need additional training (check out these PMP courses) to be able to meet millennials expectations in the workplace.

Millennials will represent the global workforce majority by 2025

It’s estimated that by 2025, millennials will represent around 75% of the global workforce population. It’s only the natural order of things as Baby Boomers and Generation Xers head into their retirement years, leaving millennials to take their place.


As of now, millennials already represent around 20% of the world’s population, and Generation Z (those born between 1995 - 2010) will represent around 15% of the global workforce.

Millennials encourage and even prefer workplace diversity

According to a Gallup poll, millennials responded that they encourage workplace diversity, but in a different way than traditional gender and racial diversity. Traditional demographic diversity is already assumed to be a given, and so millennials view workplace diversity as not just being about racial and gender inclusion, but cognitive diversity as well.


In other words, millennials prefer collaboration and teamwork that incorporates unique perspectives and opinions.

Millennial employee turnovers costs around $30.5 billion annually

As a tech-savvy generation that leans toward entrepreneurship, especially in digital businesses, it should come as no surprise that around 30% of Millennials and Gen Z employees say they plan to start their own business, rather than seek tenure and career progression with any single employer.


Thus, most employers are struggling with retention and engagement, and it costs the U.S. around $30.5 billion annually. In fact, the cost of replacing an individual employee can range from one-half to two times the employee's annual salary.


Millennials may be enticed to stay with a company through business innovation, mentorship programs, career advancement opportunities, and healthy work/life balance.

Millennials are often short on money just before payday

The Millennial generation is facing financial difficulties that were not afflicting the generations before them. These challenges include record-high costs for health care, tuition, and student loan debt, as well as the daily cost of living and bills.


The traditional one-income household has long been on its way out. From 1976 to 2015, the number of single-income households with children has fallen by more than half, while the number of dual-income households has nearly doubled.


Furthermore, marriage rates in the US have fallen over the past few decades, from 7 marriages for every 1,000 people to only 2 marriages per 1,000, so “dual-income households” is a niche.


As a result, Millennials are often lacking sleep, taking second jobs, selling their possessions, and donating blood to make ends meet. They are often holding less than $100 before the next payday, which means that traditional pay cycles are also perhaps becoming outdated.

Millennials are more selective about their employers than previous generations

When Millennials were asked what they prefer in employers, they listed company values, culture, benefits, and perks as the main responses. In fact, many said they would agree to work for lower salary in exchange for perks such as more frequent pay days, flexible hours, mentorship hours, and job security.


This reflects similar studies findings that overall compensation is simply not enough of a motivational factor for Millennials, but they place a higher importance on financial wellness packages, which include those things like higher payday frequency and flexible hours.

Millennials prefer mentorship and feedback from the chain-of-command

According to research, around 64% of millennials say they want to be recognized for personal achievements, but 39% say their employer doesn’t offer any recognition. Furthermore, a lack of respect or amicable relationship with their boss is one of the top causes of millennials quitting their jobs.


Thus it’s important to keep millennials engaged through mentorship, constructive feedback, a good on-boarding process, and check-in culture. Millennials become discouraged when they have no idea where they stand with their employer, and typically respond well to clear upward mobility and recognition.

Topics: Diversity & Inclusion, Workplace Culture, Millennials, recruitment

VERCIDA Group is a global inclusion consultancy and talent attraction organisation. We specialise in diversity onboarding, leadership development programmes, and creating inclusive work cultures. VERCIDA group consists of and VERCIDA Consulting

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