This year, more than one in three American workers is a Millennial (i.e. a member of Generation Y). This means the number of 18 to 34 year olds in today's labor market has surpassed Generation X as the largest pool of workers. With that in mind, consulting firms will need to make their workplaces more appealing to this generation in order to attract and retain its talent.
In Compensation Metrics in US Consulting 2015, I discuss some of these trends with a focus on compensation. I spotted this trend of Millennials becoming more demanding and looking at a potential employer's total compensation package as opposed to just the base salary. It has become standard practice with this generation to switch jobs and move from company to company every couple of years. So to win the war for talent, consulting firms need to offer a competitive package that includes a signing bonus, relocation bonus, PTO or flexible time off, ability to travel for work, health & dental benefits, life insurance, 401K or equal, and performance bonuses. They must look at their HR policies and compensation packages and revise or adjust them to reduce turnover and increase commitment from Millennials.
Firms that do not offer signing bonuses report finding it more difficult to compete against firms that do, so they need to be able to make up for it in other ways – i.e., offer higher performance bonuses and other incentives. This also means they must offer challenging and rewarding projects that teach new skills and give the opportunity for travel. Millennials are increasingly more accepting of traveling for work in professional services careers. They understand it is necessary and are eager to do so. Firms that invest heavily in these areas of employee development will have better luck with talent recruitment and retention.
