It's not just millennials who are causing the downward trend in job tenure. In Australia, even CEOs aren't staying in their jobs for as long. Here, we explore why this is the case, and what ways there are to increase tenure, including Years of Service Programs such as those offered by Power2Motivate.
You'll have read heaps in the news about how millennials are staying in jobs for shorter periods of time. And this is true - 70 per cent of millennials leave their job within the first two years, Forbes reports.
CEOs in Australia have the shortest employment tenure in the world standing at only 4.2 years.
However, it's become all too easy to blame this on a millennial fad, when in actual fact it's not just young people who are leaving their jobs earlier.
CEOs in Australia have the shortest employment tenure in the world, according to Gillian Fox Leadership Development, standing at only 4.2 years, and it's clear this trend is permeating all layers of the workforce. The Department of Employment puts the national average job tenure in Australia at just three years and four months.
Why is this trend increasing, and what can companies do to encourage their team members to stay?
The reasons for low employment tenure in Australia
1) The changing workforce
Although this trend isn't solely caused by millennials, they do still play a part. But it's not just that they're fickle or disloyal, as some tabloid newspapers like to constantly remind us. Instead, they want completely different things from their jobs.
Learning and development opportunities are highly sought after by millennials.
Learning and development opportunities are highly sought after. In Accenture's list of factors influencing millennial retention, it came third, after productive relationships with managers and opportunities for advancement.
Many millennials leave school not knowing what they want to do. Therefore, the stability of a long-term job isn't appealing. Instead, chopping and changing, learning as much as possible and trying different careers out to see which suits is much more attractive.
It is only those companies who provide sufficient training and upskilling that will retain their millennial talent for longer.
2) Lower salaries
Statistics from Forbes also indicate that job hopping often proves more profitable than staying at a company for a long time. Raises average only a three per cent increase in salary while starting a job with a different organisation can lead to a 10 or 20 per cent rise.
While not every business can offer their employees significant rises every time they ask, they do have the ability to offer other benefits. A study from Wichita State University found that employees would be much happier to receive a TV or cruise than the equivalent in cash, indicating that, when done correctly, rewards can have a significant impact in encouraging people to stay.
3) Not using the right engagement programs
Clearly, rewards can go a long way in swaying employees to stay. A Years of Service Program is one of the most effective ways to do this.
Instead of simply using rewards programs to entice new candidates (this is important, but it's just one part of the picture), a Years of Service program celebrates the employees who have proven their loyalty to you. This in turn helps to drive employee retention, motivation and engagement.
At Power2Motivate, we'll handle all the admin of your Years of Service Program, reminding busy managers when their team members are approaching their anniversaries and issuing points and rewards.
Our huge Rewards Gallery allows employees to choose their own prizes. Rewards can include high profile electronics and even travel.
For more information on Power2Motivate Australia's Years of Service Programs, or any of our other employee loyalty initiatives, contact the team today.