By the year 2020, the U.S. workforce will be comprised almost entirely of millennials. What’s more, Generation Y is projected to account for 30 percent of new vehicle sales in 2016, and that number could double next year.
Millennials are much more apt to make a purchase from—or develop brand loyalty to—a company with whom they identify and are even more trusting of purchases from employees who are like them. As a result, companies must now clearly communicate their viewpoints and company culture to potential millennial customers, and perhaps most importantly, employ individuals who connect with that target audience.
Unlike previous generations, millennials care more about fulfillment from their careers and evaluate potential jobs on a number of factors that can cater to this need. To retain these workers, organizations must tailor internal positions and programs to meet the needs of this growing workforce demographic. Also, recruitment strategies must be updated accordingly, to attract the best candidates effectively.
Companies must first identify what millennials want. Here are key traits of what they look for in potential jobs, and how that plays a role in the recruitment process.
What does millennial recruitment mean for dealerships?
The dealership model has been in play for decades with little to no change. But these days, millennials want to work for a company that is not only profitable but making a difference in society and providing them with perks that will fit into their personal lives. Millennial needs from employers include:
Due to the challenges of making large student loan payments and covering basic living expenses, millennials as a demographic are not interested in a commission-based position where pay is unreliable. Rather, they are interested in a base pay plan that gives them the confidence of a guaranteed stream of income. In the auto industry, providing base salary positions in lieu of commission will not only attract better talent but can provide a better customer experience, as well.
Fewer millennials today believe in the 9-to-5 workday but prefer instead the flexibility to integrate their personal and professional lives. In an interview with Forbes, Chief Strategy Officer for the Intelligence Group Jamie Gutfreund stated that 88 percent of millennials consider how a potential job will cater to their work-life balance. While it may seem more challenging to provide scheduling flexibility in your dealership, there are a number of options that can work for your organization. Examples include running two shifts—9 a.m. to 3 p.m. and 3 p.m. to 9 p.m.—and perks such as giving every other weekend off. Some innovative dealerships have even moved to a “four days on, three days off” format where sales associates work four ten-hour workdays.
Clear Job Titles and Descriptions
Job descriptions and position titles must be updated for the millennial audience, highlighting the aspects that will fulfill their wants and needs. Outside of salaries and benefits, millennials are looking for a job with a higher purpose—one that makes them feel fulfilled. As a result, they are interested in companies focused on helping solve problems in society.
In addition, because millennials are still relatively early on in their careers, they want job titles and responsibilities to outline the scope of the work clearly. They are interested in learning as much as they can to advance in their careers and want to know if a company is willing to invest in them through ongoing training and development programs.
Lastly, when placing job openings online, be sure to use concise keywords and descriptors that your target audience will most likely type into search engines when looking for open positions to help better connect you with ideal candidates.
In addition to clear communication of job responsibilities, millennials are interested in real-time feedback on the job. Because they appreciate knowing where they stand, along with the opportunity to consistently learn, maintain engagement with them by providing periodic, consistent check-ins as opposed to an annual review.
A Bigger Picture
As mentioned, millennials consider a number of factors from a potential position so as to feel fulfilled, maintain a work-life balance, continue career advancement and align with a company’s values. In exchange for their productivity and devotion, millennials are looking at what a company can offer them not just in monetary compensation, but how a job will fit into their overall life and society.
Once you’ve successfully recruited top talent, it becomes imperative that your dealership retains that employee. This is a particular challenge with the Gen Y employee. In fact, according to a recent 2016 Gallup report, 21 percent of millennials have changed jobs within the past year—more than three times the number of other generations. This turnover is estimated to cost the U.S. economy $30.5 billion annually.
One of the biggest complaints millennials have is a lack of opportunities to move their career paths forward. One explanation for this is a company’s preference to hire externally rather than promote from within. Hiring from within is more cost efficient and provides your millennial employees the chance to further engage with, and invest in, your company.
Tailoring recruitment strategies to attract top talent to your workforce, and providing them with ongoing opportunities for advancement and support, will help ensure your millennial employees will connect with your company and provide loyalty and dedication for years to come.