Millennials and the Turnover Phenomenon: Why Do They Resign So Quickly?

Every business wants to survive, and one way to do so is to provide the best to customers, both in terms of product/service quality and price. Companies typically assign targets to their employees in order to achieve this goal, which is often well received by employees and can eventually lead to the phenomenon of turnover.

Employee turnover is a phenomenon in which employees resign from their company; as you can imagine, if a company's employee turnover rate is high, it will be a problem. Unfilled positions must eventually be filled with new employees. This can have a negative impact on the entire company. As a result, businesses must employ a variety of strategies to address these issues.

On Thursday (11/08), iCommunity Level Club discussed the Turnover Phenomenon and Millennials by Sony Tan CHRP, HR Director PT NPH Tbk. Millennials are currently making more turnovers because companies do not provide space for their personal lives, similar to the 'Working Life Balance trend.'

Generational differences lead to different points of view, especially between older people and millennials. This makes it hard for companies to hire and keep millennials because it's hard to make sure they'll stay loyal to the company. According to the 2018 Deloitte Millennial Survey, as reported by Kompas.com, 43 percent of Millennials plan to leave their current company within two years, while only 28 percent plan to stay for more than five years.

The ILC also discusses whether the cost of manpower has been high in the last five years. Sony explained that the high cost of Man Power is due to increased recruitment and training costs as a result of the high turnover phenomenon. However, this has an impact on the company's productivity because if the company has expertise and then decides to resign, the company will feel lost, and its productivity will suffer as a result.

​​​​​​According to Sony, there are several factors that contribute to employee turnover, including:

1. Push Factor Expectations that do not match reality, i.e. expectations that are too high, for example:
   • Superior relationships are not harmonious.
   • Communication is difficult.
   • Uncomfortable working environment
   • Workers and businesses do not have the same value.
   • Dissatisfaction with one's job prospects and a sense that their careers are stagnating due to a lack of growth or development
2. Pull Factor There are many enticing offers from outside that go directly to these millennial workers to provide better offers to employees.
3. An Uncomfortable Work Environtment, for example, is influenced by a sense of displeasure or a good grudge against superiors, the organization, so that employees quit abruptly. There is also the impact of other job opportunities.
4. Companies Are Not Attractive for Employees, Because prospective employees have several options, some of them refuse interview invitations or even do not confirm. Or even from within the company because HR personnel are unfriendly or the recruitment process is overly complicated

These facts demonstrate that prospective employees now have more options because job openings are easier to find. Prospective recruiters also use social media to gain direct access to employees. While it's true that candidates have a lot of options, what really matters is whether or not they meet the requirements set forth by the company.