Where the demand in the financial industry is increasing day by day, there are some disturbing statistics found about the turnover rate in the industry. According to a recent survey, the Finance Industry has an 18.6 turnover rate, which is very high as compared to other industries. Many factors are playing the role in this turnover rate, but mostly it is seen that those leaving this industry are usually millennials.
Another study was conducted in the finance sector which was solely for the millennials and it showed that almost 10% of the millennials plan to stay in the current position they are in for the long term. But, 42% of them said that they are open to new and different opportunities and 48% of them were actively looking for new opportunities. This shows that since the millennials are the majority in the finance sector, they are being dealt in the right way.
Recently, LinkedIn also showed some staggering statistics that showed that the associates and analysts who left their jobs were held up to their position for almost 17 months. When you look at the statistics closely, you will notice that the new-age workers are the ones who are leaving the job in the finance sector. But, what could be the reason? What are the companies lacking that is causing this?
Why are Millennials leaving the finance sector?
Once it is known that the millennials are the ones leaving the space, it is wise for every company in the finance sector to find out why is that the case? They must look into their policies and company culture to know more. Here are a few things that are leading to an increase in millennials’ turnover in the finance sector:
Work-life balance and flexibility
For someone who is looking for a job that fits the description of a healthy work-life balance, the job in the finance sector might not be a great idea. This field becomes as challenging as it can be over time. Every one in three financial analysts is working 50 to 70 hours per week. This exceeds the limit of a typical 8 hours a day type of work, which is a great turn off for the youngsters who want to maintain a work-life balance. Most of the millennials say that work-life balance is very important for them and they choose flexibility over a rigid environment.
One of the main reasons for the millennials to shift their jobs is that they have very lower engagement levels in their finance sector jobs as compared to the previous generation. A study found that almost 29% of millennials are engaged at work. This low level means that most of the millennials don’t feel like connected to their jobs at all, and that’s why they move towards a better job. As millennials show this much lower engagement level, their turnover rate is meant to rise, and it is a loss for the financial sector.
Since the financial industry has faced many crises, it has affected the way the world looks at them. With a poor reputation, it becomes hard to attract potential employees. Millennials prefer to work in the industry with a better image and reputation as compared to past generations.
A study found that almost 21% of the millennials working in the financial industry said that they wouldn’t like to work for the industry that has a bad reputation. That’s why many millennials are moving away from the finance sector and are moving towards tech companies like Facebook, Google, Amazon, etc.
These reasons don’t mean that it is a dead-end for millennials in the finance sector. Instead, these reasons give the company’s exposure and a way to improve their policies to help retain their employees.
How to Retain Millennials and Reduce Turnover Rate
Knowing the reasons for turnover rate, there are a few things that can be changed in the finance industry to let the millennials stay:
Increase employee engagement
Millennials like to work in an environment where their ideas and creativity are enhanced and appreciated. Firms need to look into ways of increasing employee engagement such as having a good corporate social responsibility policy, promoting educational and professional development among the present employees through the introduction of training. Such things can make them feel connected to their jobs as the companies will train them for their better future.
If you want to keep the talent in your company, you ought to be flexible with the environment. You can provide a good environment through the following ways:
- Offering a suitable vacation time is a great way of letting your employees off the hook for a while and let them enjoy their time.
- Providing workspace flexibility is a great way of keeping them connected. As per their needs, providing them the opportunities to work from home and listening to their issues goes a long in retaining and nourishing the talent.
- Acknowledging their part in the progress of the company and appreciating them even outside the office while trusting them to maintain the work-life balance is a great way to reducing turnover rate.
Allow them to make an impact
One of the most important things for the millennials is to let them be heard. They don’t just want to what they are told, they want to add their ideas and creativity to it. If you are never letting your employees speak their minds, you are making a big mistake. You need to give them a more interactive environment to explore their capabilities and appreciate them wherever required. If they like to work with you, why would they look for other opportunities? Care for them and they will be yours.
With the turnover rate in the finance industry on the rise, it has become very important for the companies to evolve and make the necessary changes. With the growing labor on millennials, the financial sectors need to maintain their retention practices. If they don’t take a step right now, they might lose great talent.