Money, millennials and mission
THE PRESENCE OF MILLENNIALS IN THE WORKFORCE IS RAPIDLY INCREASING; CURRENTLY, THEY HOLD ABOUT 20 PERCENT OF ALL LEADERSHIP ROLES, AND THAT PERCENTAGE IS SET TO GROW IN 2018. THEY’RE THE MOST DESIRABLE COMMODITY IN THE FUTURE WORKPLACE AND CAN’T BE ATTRACTED BY TRADITIONAL BENEFIT SCHEMES.
The current workplace
The workplace is changing – flexible working is becoming the norm and traditional benefit packages are not cutting it with the millennials. With millennials holding about 20 percent of leadership positions, employers are adjusting the workplace to suit these new entrants into the workforce
What motivates employees?
In recent years, the most important motivators for employees have shifted. Gone are the days when a ‘competitive salary and company car’ are an attractive offer for employees.
Now, when choosing a new position, salary is no longer the biggest motivator for employees – particularly amongst millennials – with 88 percent saying that they would consider choosing a lower-paying job with better benefits and more flexible hours over one with a higher sal
Why do employees want to have a social impact?
Millennials are the most engaged with social impact than any generation before. They support companies that do good, making social entrepreneurship a smart business model to follow. 70 percent of millennials are willing to pay more for a product that makes an impact on issues they care about which ties in with their personal motivations – 64 percent of millennials say it’s a priority for them to make the world a better place.
Engaged employees are more productive – and a great way for organisations to boost engagement amongst their millennial workforce is to have a demonstrable commitment to social purpose. So it’s clear that social impact pays dividends for organisations when it comes to attracting and retaining millennial talent, but what are the benefits for business more widely?
Profits for business
Work for Good is a social enterprise that connects SMEs with charities through an an online platform, making it easier than ever for businesses to build giving into the heart of the company and empower employees to shape their company’s social impact.
But it doesn’t stop there. The benefits of meaningful incentives extend far beyond engaging millennials. New research from Work for Good has revealed that the more SMEs give to charity, the better their business performs.
On average, SMEs give 1.8 percent of their turnover, equivalent to £32,000 a year. SMEs that give more than 0.5 percent turnover are 20 percent more likely to see an increase in profits, twice as likely to report benefits to company reputation, and almost 50 percent more likely to improve recruitment and staff retention. Overall, 67 percent of businesses who give to charity reported a positive impact on profitability. In short, charitable giving allows organisations to grow.
With more and more millennials joining the workforce, employers are increasingly forced to rethink their company culture in order to keep up with the expectations of the most socially conscious generation. Mission and money need to be equally balanced in order to attract and retain millennial talent in a meaningful way. Through initiatives such as Work for Good – which allow employees from SMEs to feel like their job tangibly supports causes they are passionate about – are a powerful differentiator in a crowded market.