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How to Improve Millennial Employee Retention

Chad Brooks
Chad Brooks
Editor Staff
Updated Mar 30, 2020

With so many millennials in the workforce, it's important to understand their needs.

  • Millennials make up a large part of the workforce and have a desire for more flexibility within the workplace.
  • Nurturing employee and employer relationships assist in improving your organization’s retention rates.
  • Creating a positive culture and having a social conscience are key attributes to attracting and keeping millennial employees.

Employee retention is a concern for every business, but you can’t approach it the same way for each generation – what works for baby boomers and Gen Xers might not work for millennials. And with so many millennials in the workplace, it’s important to understand their wants and needs as your workers.

We outlined nine ways to do just that.

Be flexible.

Flexibility is a common expectation for workers today, especially among millennials. Much more work can be done remotely than it could just a few years ago, and it’s crucial that employers adapt to these adjustments.

“Some millennials’ desire for interesting experiences might prompt them to want to work different hours or from different countries,” said S. Chris Edmonds, founder of The Purposeful Culture Group. “How can you adapt your work culture to support that desire?”

Provide a purpose.

Millennials want to feel valued. Their idea of a reward is more emotional than monetary. If they don’t believe their role serves a meaningful purpose, then they won’t feel motivated to do their best work.

“Every employee … wants to know their efforts and accomplishments are contributing to the organization’s success and are contributing to the betterment of society,” said Edmonds.

Every job is important; and sometimes, you need to convince your employees of that. Tell them why they are valued by your company and the community, and express your gratitude often. This will increase engagement across the board.

“If you can keep [an] employee engaged and align the company objectives with the employee’s career goals, you have a great chance for the employee to stick around,” said Chris Herbert, community member and sales professional recruiter at PrimeTime Recruiting Services Inc. “It is not always about the money.”

Develop a strong employee-boss relationship.

Millennials respond better to those they connect with. As a leader, you need to create a strong professional relationship with your employees so they feel more accountable for their work.

Creating a healthy employee-boss relationship is simple: You just have to care. Be yourself and treat your workers like they matter.

“Great bosses are generous, supportive, inspiring, firm, consistent and fair,” said Edmonds. “When employees see that in their direct boss, they solve problems independently, they cooperate to wow customers, and work to ensure commitments are made.”

Edmonds noted that it’s crucial to prioritize communication with your workers, and invest time and energy into being available. You can do this by wandering around the workplace, engaging in small talk and addressing any employee concerns.

“Transparency is vitally important,” he added. “Sharing what’s going well, what’s not going well, what’s coming down the pike, etc., increases employee trust and respect.”

Create a positive culture. 

A positive company culture is a major point on the average millennial worker’s checklist. Because millennials hold their values and standards high, it might require more work to maintain a supportive environment for your team.

“A purposeful, positive, productive work culture doesn’t happen by default – it happens only by design,” said Edmonds. “Senior leaders must make [sure] values – how people treat each other – are as important as results.”

According to Edmonds, the hard part is not just defining values in behavioral terms, but aligning all plans, decisions and actions to them. Leaders should model, encourage and praise these valued behaviors.

Be open to employees moving on.

According to the Harvard Extension School, it may sound counterintuitive but encouraging employees to seek out other opportunities for them is a way to improve millennial retention rates. This type of attitude shows the employee that you care about his or her career. This may make the employee inclined to stay within an organization and set the tone for others in the organization.

Show a social conscience.

Millennials are a generation associated with putting great value on social causes. Retain employees by getting more involved in community fundraising efforts. Supporting charitable causes attracts employees and has the added benefit of acting as good PR.

Create unique experiences for employees.

Millennials prefer experiences over expensive objects. Workers are more likely to spend their annual bonus on an exotic vacation over a new car. Plan events and outings that would appeal to your employees’ adventurous sides.

Allow more flexibility with scheduling.

One of the biggest turnoffs to millennial employees is the traditional Monday to Friday, 9 to 5 schedule. Allow for more flexibility with scheduling to improve retention. If possible, offer opportunities for remote work that could be done from the employee’s home.

Provide more resources for employees.

No one wants to get stuck in a dead-end job. Offer career advancement opportunities like continuing education learning courses. Your company could also consider improving incentives in the organization. For instance, a benefit could be tuition reimbursement for college credits.

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Chad Brooks
Chad Brooks Staff
Chad Brooks is a writer and editor with more than 20 years of media of experience. He has been with Business News Daily and for the past decade, having written and edited content focused specifically on small businesses and entrepreneurship. Chad spearheads coverage of small business communication services, including business phone systems, video conferencing services and conference call solutions. His work has appeared on The Huffington Post,,, Live Science, IT Tech News Daily, Tech News Daily, Security News Daily and Laptop Mag. Chad's first book, How to Start a Home-Based App Development Business, was published in 2014.