3 Strategies for Retaining Millennial Employees

As Baby Boomers move toward reduced work hours and retirement, it's crucial to attract younger employees to take their places. But to keep them on the job, hiring managers need a few strategic tips.

Lazy. Entitled. Self-absorbed. Obsessed with taking selfies and posting them on social networking sites. These are the stereotypes frequently applied to the millennial generation (currently between the ages of 18 – 33).

But many are actually very conscientious and hard workers—if you can engage them on their terms.

It's no secret that healthcare is aging. One in three physicians is over the age of 50, and one in four is over 60. The average nurse is 47. Ten-thousand baby boomers (those born between 1946 and 1965) retire daily.

It is estimated that millennials will outnumber baby boomers in the workplace by next year. And while younger employees have traditionally developed the skills to fill the gaps as each elder generation moved on, the generation X talent pool just isn't large enough to backfill all the positions that belong to departing boomers. This means that some millennials will leapfrog into senior positions too soon.

These statistics don't have to be scary. "Each [generation] has its unique traits, assets, and needs," says Michelle K. Lee, a consultant with talent search firm Witt/Kieffer, which specializes in placing leadership candidates with both healthcare organizations and startups.

"I find them to be quite engaged and interested in contributing," she told me. "They just have a different approach."

With this changing of the guards, HR departments have to be ready for swift changes, both culturally and procedurally. You're going to have to hire a lot of younger workers to replace the old generation—but that's nothing compared to the challenge of holding on to them.

Unlike previous generations, if millennials don't feel appreciated, they will leave—the average millennial worker spends two years in each job, in contrast to seven years' tenure for boomers and five for Gen Xers (born 1965 to 1984).

So retention-minded HR leaders need to get hip—fast.

1. Allow For Customization
Consider the number of drink options at Starbucks. Not only can you choose from an array of beverages, but you can customize each drink to be exactly the drink you want—from a "skinny" caramel macchiato made with a low-fat caramel sauce to an iced coffee with just the right amount of hazelnut syrup and a splash of soy milk.

While earlier generations have just looked at the menu and made a selection based on which pre-defined option appealed to them most, millennials have spent most of their lives able to customize anything from their headphones to their eyeglasses backpacks and messenger bags. And most of them see no reason why this shouldn't carry over to their careers as well.

"[Millennials look for] freedom to express themselves in their work. Balancing work is important, but it's just one facet of their lives," explains Lee. "How they are impacting the world around them through their self-expression seems to be another piece of it."

Millennials demand flexibility—89% say they would prefer to choose when and where they work rather than being a traditional nine-to-fiver, and 45% value workplace flexibility more than pay. A whopping 93% of millennials say they want a job where they can be themselves at work, and 79% think they should be able to wear jeans at least some of the time.

The solution is easy. Give them what they want. Maybe it's time to relax a no-visible-tattoos-dress code if you want to attract bright young clinicians. Let the receptionists wear jeans with dressy shoes on Fridays and weekends.

For roles where it's appropriate, let employees work from home occasionally. Of course, every hospital and healthcare organization is different, and the above might not work in your environment—but allowing employees to feel that they're being themselves at work can go a long way toward retention.

2. Encourage Diversity and an Egalitarian Team
Millenials grew up being told that they could be anything they wanted, and that racism, sexism, and homophobia were unacceptable and backward. Diversity, inclusion, and open-mindedness mean something to this generation.

This generation does not appreciate or immediately respect rigid hierarchies or bureaucracy. Working for someone who harbors a closed mind, obsesses over hierarchy, or otherwise thinks like a dinosaur will send most millennials running.

"Retention strategies should be more focused on exposing them to as many opportunities to learn and grow and work in different environments within both diverse cultures and with different team dynamics," urges Lee. "They seem to be comfortable with, and even enjoy change, and take issue with stagnation or the status quo."

Organizations that have strong policies toward workplace diversity will be ahead of the game in retaining millennials. Additionally, team leaders and managers should be urged to encourage employees to share their thoughts and ideas. Millennials want to know that their opinions are respected and appreciated.

3. Feedback, Feedback, Feedback
As a rule of thumb, Millennials want feedback, and they love data-- dashboards, scorecards, and just about anything else that will give them more insight into their performance. They don't just expect a review or two a year—they want a constant flow of information telling them where they stand.

"They still want to know how and where they fit in," says Lee. Most millennials are still fairly new in their roles and want reassurance that they're doing their job right.

However, "the way the feedback is presented is important," says Lee. Don't come down on them in a harsh, authoritarian way—just tell them how they're doing and what they need to improve.

Your retention efforts will be well worth it, says Lee, as millennials are showing promise as employees, and leaders of tomorrow. "Millennials are generally self-assured, yet curious. They tend to be independent thinkers with an eye for improvement [and] how to make things better. Even if the approach is a bit unorthodox."