The 3 Biggest Predictors of Employee Retention (Especially Millennials)

August 1, 2021

Claire Hastwell

Kamilia Aokal

If you’ve ever had a job where you loved the work but not your employer, or where you’ve been proud of the company’s mission but felt distanced from your colleagues, then you know how important it is for all these factors to exist in tandem and how important they all are to employee retention.

Finding this sweet spot is much like what the Japanese call “ikigai” (pronounced “eye-ka-guy”), which loosely translates to “reason for being.” It’s the point at which your passion and talents overlap with what the world needs and what it’s willing to pay for.

Will they stay or will they go?

In our research on millennials in the workplace, we found our own version of ikigai, in which passion, pride, and personal connection must overlap. Together, they form the three keys that indicate whether an employee is likely to stay with a company or to recommend their workplace to others.

While this applies to employees of all generations, in our research, Gen Xers and baby boomers were more likely to positively weigh statements like “I’m proud to work here” and “I enjoy the work” than their millennial counterparts.

In other words, millennials are more discerning when it comes to ranking passion and purpose in the workplace – and therefore more likely to leave if a job feels out of alignment.

For our 2021 Best Workplaces for Millennials™ list, we surveyed over 20,000 millennial employees in the Middle East and 330,000 millennial employees across industries, assessing their experiences of trust, innovation, company values, and leadership.

Our results in the Middle East show that millennials are at least 10 times more likely to leave a job than Gen Xers and boomers. But when workplaces hit the ikigai bullseye, the risk of millennial turnover drops.

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3 keys to millennials employee retention in your workplace

1. Reputation: “I’m proud to work here”

Perks like ping pong tables have been flaunted as the key to employee retention among the millennial workforce. But the Best Workplaces recognize it’s about so much more than that. Employees need to have pride in their work and in the company overall.

For Century Financial (ranked #1 Best Workplace for Millennials in 2021), it’s all about acknowledging that there should not be a one-size-fits-all approach and that each member needs a tailored plan. By believing that Millennials are motivated by social action, leadership at Century Financial also pushes millennials and provides them with opportunities to volunteer for social causes to make them feel good about themselves and their workplace.

Other organizations such as Global Food Industries LLC and The International Beverage & Filling Industries LLC, aim to provide growth prospects for their upcoming generation through internship programs. The organizations also made it a priority to support millennials by providing them with work flexibility and implementing lenient work policies: such as work-from-home opportunities. This initiative was also shared by The Chalhoub Group as they provide multiple programs aimed at millennials to include enhanced policies such as placement opportunities, flexible working hours, and working conditions.

2. Purpose: “My job has special meaning”

In the Middle East, more than 90% of millennial employees say their work has special meaning and is more than “just a job.”

Millennials are seen as the future of Transworld Group. Initiatives set up by the Group aim to challenge the status quo and provide the next generation with a chance to interact with upper management and share any concerns they might be facing.

A similar approach has been taken by Hilton, from providing crucial training and development programs to offering essential Thrive@Hilton wellness initiatives, Hilton ensures that every Team Member feels empowered so they can achieve their very best.

3. Connection: “I enjoy the work”

How connected are your colleagues? In the Middle East, 87% of millennial employees say people look forward to coming to work.

For employees to enjoy the day-to-day, they need a workplace that allows them to bring their whole selves to work, collaborate with colleagues, and have a bit of fun while doing it.

Promoting creativity and innovation, SARA Group works on providing a new workplace culture for millennials that promotes the possibility of trying and failing by creating high engagement programs and investing in training and development.

The sweet spot: peak job satisfaction

It takes effort to create a workplace that attracts and retains talent – millennial or otherwise. The Best Workplaces achieve this by conducting regular employee engagement surveys, defining their company’s north star, and encouraging connection while still valuing individuality.

But the payoff to satisfying these three keys is increased employee engagement and lower turnover. And as any employer who’s struggled with employee retention knows, that’s a sweet spot, indeed.

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