SAN DIEGO, Feb. 21, 2017 /PRNewswire/ -- Successful businesses understand their markets and their customers. The same cannot always be said about the people they employ to operate their company. Not understanding the millennial employee could have a devastating effect on a business. As the largest generation, millennials present a growing influence in the workplace. Understanding what motivates them is important for carrying that business success into the future.
Hub International Limited (HUB), a leading global insurance brokerage, recently conducted a research study: The Millennial Influence: The Essential Guide to Compensation and Performance Practices. A total of 330 millennials (18 to 34-year-olds) participated in the study. Those participating were full-time, white-collar professionals, employed with Southern California for-profit companies. The participants answered questions about compensation and performance practices for purposes of identifying which were most important to them.
Over 60% of respondents ranked competitive base pay as their number one factor for staying with their current employer. Over 80% ranked competitive base pay first, second, or third. Survey respondents ranked merit increases as least important.
While competitive base pay was the top factor, 45% ranked career opportunity, interesting and challenging work, and incentive opportunity as first, second or third.
Almost 50% of survey respondents expect to change jobs within the next six months due to a lack of competitive base pay, career opportunity or interesting work.
Most survey respondents (92%) agree that competitive base pay and being paid for the value they bring to the company is important. The majority (90%) indicated that understanding how their job impacted the success of the company was very important (56%) or important (34%).
75% of respondents' incentive/bonus programs fail to use individual performance results in calculating payouts.
"When it comes to compensation and performance practices, understanding what's important to millennials is vital to a company's success. Transitioning from traditional to values-based compensation and performance practices helps attract and engage not only this generation but all generations of workers," said Tim Silvera, Vice President Ultimate Rewards Practice Leader, HUB International.