No Cap, Gen Z Workforce Pops Off

U.S. labor hits an important milestone this year. For the first time, Millennials and Gen Z will occupy over 75% of the workforce. The meaning of work has changed A LOT for most of us in recent years and turnover rates are high, with as many as 30-40% of new hires leaving their job in the first six months of employment. Aside from the stress and emotional toll this places on teams, Gallup estimates that turnover costs the U.S. economy a trillion dollars a year, or an individual cost of about 50% of an employee’s annual salary. Yes, that’s a trillion with a “t” and it’s unlikely this trend will reverse any time soon.

Many employers I consult are ready and willing to blame the next generation for these challenges. I get it but people-problems are nothing new to management. There may be some comfort in believing that your business challenges are someone else’s fault but if we’re honest, we’d admit that many factors influence this brain drain on America’s businesses. Business leaders should share some of that responsibility. Leadership still plays the largest role in shaping team culture, affecting healthy change management and creating an environment of sustainable growth with the power to benefit everyone. The younger workforce does have a slight difference in values than previous generations but it’s still the leader’s job to make sure there is alignment to your mission when you make a hire.

As a hiring professional, I’ve made these mistakes in my own company or lacked clarity when I thought I knew better. Hiring well is a multifaceted process like many aspects of business. Not once did I enjoy the experience of firing someone or seeing a valued employee quit. Even when you know it’s coming, there is always some surprise, a sense of loss or frustration for all parties. It’s not how most work relationships start and I doubt most employees plan their exit when they start a new job. So what happens in 180 days or less? Is there a way to avoid these frustrations and grow the business that you dreamed of when you first had that entrepreneurial seizure?

The goal of this blog is to help you stack these odds in your favor for hiring and training well, to create a business worth having for both you and your team. Like so much in life, it starts with you. Before you’ve sourced, screened or interviewed a single person, you need to have a clear mission, vision and values for your business. You need to know who and what you need in what we call “define the role” because recruiting talent into your business can mean the difference between either future growth or stagnation, systems and procedures that are efficient or ineffective, and running your enterprise as a savvy owner or as an “in the weeds” operator. When you define the role, you bring transparency to the hiring process which will attract the right candidates, make your expectations clear from the outset and develop a strategic vision for the kind of organization you’re building. Next time, we’ll dig into this important first step of the hiring process.