Millennials Under the Microscope As Businesses Look Ahead to Future Workforce, Growth, Leadership

It seems rarely a month goes by that the Connecticut Business & Industry isn’t posting a new article to its website, publishing a story in its print magazine, or devoting a podcast, into one aspect or another about millennials in the workforce.

The numbers – as cited in the articles – indicate why it’s a topic on the front burner at businesses across the state:  a growing percentage of Connecticut’s workforce projected to retire within the next decade, and the increasing percentage of millennials—those born between 1981 and 1996—on track to comprise 50% of the global workforce within a year.

According to CBIA/Marcum's 2019 Survey of Connecticut Businesses, employers expect 3% of the current workforce will retire this year and 5% the following year. Between 2021 and 2024, they expect another 11% to retire, CBIA reported.

Connecticut employers report that 41% of their workers are 40 years old or younger, while 25% of managers are 40 years old or younger. The survey found that 55% of companies have issues finding and retaining young workers, 19% just have trouble finding them, and 8% have problems keeping them.

In September, CBIA noted that “the oldest millennials are turning 40 next year. And despite being in the workforce for nearly two decades, businesses still struggle to adapt to their work style.”  The topic was front and center at CBIA’s annual Connecticut Economy conference that month.  Charles Botts III, project director for Career Team, said the younger generation doesn't want to stand in line and wait its turn.  They also prefer a steady stream of feedback (“constant communication”), and a proactive recruitment approach.

CBIA has also noted that the best way to stem the tide of employee churn – staff leaving for perceived greener pastures much more rapidly than preceding generations – is an old fashioned concept: promotions.  John Schwarz, Visier co-founder and CEO, told CBIA that "Our analysis confirmed that millennials change jobs significantly more often, but it also uncovered the power of promotion as a key factor in motivating millennials to stay with their firm.”

He adds, “Our recommendation is: Don't fight the tide—work with it. Give your brightest prospects places to go within your organization. Upward and lateral moves both work well. Millennials look for constant training and new challenges to feel they are progressing."

Dubbed “the manager effect,” data suggested that “an added sense of responsibility and career opportunity helps retain millennial talent.” Millennial managers resign two-thirds less often than millennials who are not managers (11.9% compared to 36.2%).  And millennials change jobs within a company almost twice as often as non-millennials (22% compared to 12%), with millennial managers moving the most.

The changes won’t be stopping there.  As Ethan Brysgel, Partner at Marcum LLP, has pointed out, “With ownership expected to turn over in up to one-third of Connecticut companies in the next 10 years, it will be very interesting to see how the new generation of leaders manages change to maintain growth.”

As Connecticut’s economy continues to undergo changes - potentially on the brink of a national recession amidst a sluggish state recovery -  it’s a wonder that this growing and critical segment of the workforce remains vastly misunderstood and underestimated, but no wonder that they’re an increasingly frequent topic of conversation and analysis.