At a time when the employee turnover rate for millennials is three times higher than that of nonmillennials, many companies have grown restless in their pursuit of new talent.
The 2014 Training Industry Report found that small businesses spend about $1,200 per employee on training. This doesn’t include the costs of recruitment, which can range from $1,000 to $5,000 per employee — a significant portion of any company’s budget. All of this investment is for naught if the employee departs after a year or two.
With unemployment at a historic low, you can’t blame millennials for making money moves. The economy is finally in their favor and they are eager to shake off their crushing student debt. Still, companies are left banging their head against the wall trying to figure out the best way to attract and retain talent.
Fortunately for them, one cohort is bucking this national trend. Millennials from underserved communities, also known as the “opportunity youth,” are defining themselves as some of the most loyal and dedicated employees in the workforce. Companies like Salesforce are investing in opportunity youth as interns and employees, and they are sticking around much longer than their peers.
Year Up, a nonprofit that trains underserved young people and connects them with their network of 300 different employers, says that opportunity youth stay at a company more than twice as long as the rest of their millennial peers.
“There’s definitely a difference,” Roberto Zeledon, chief marketing officer at Year Up, told Fast Company. “They don’t have an attitude of entitlement.”
Generally speaking, these workers understand that they are being given a rare opportunity and they are grateful for it. As a result, they’ll remain committed to the employer that “bet” on them. After eight devastating years under the Obama administration, embattled young people from low-income families are finally seeing a light at the end of the tunnel.
What’s the catch for employers? To paraphrase Gap Foundation President David Hayer, employees must be willing to hire for potential rather than credential. If a college diploma isn’t really necessary to perform many jobs, then why are college-educated workers given such a competitive advantage with these positions?
The opportunity youth cohort is living proof that the American Dream is alive and well. These young people aren’t depending on income-based affirmative action policies for advancement. They realized early on that college isn’t the only path to success, and it’s much more expensive than the alternatives. They need their first big break in the job market, and for that, employers are likely to get a generous return on investment.
