TMCnet News
College Debt Weighs on Workplace EngagementIn sheer numbers, millennials may soon rule the workplace. But new research indicates that the crushing amount of student loan debt they have incurred will rule key life milestones (i.e., marriage, children and homeownership) and affect their level of engagement at work. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170110005987/en/ While student loan debt impacts millennials of all ages and backgrounds, women carry a larger burden. (Graphic: PadillaCRT) According to an ORC International survey commissioned by PadillaCRT, a top 10 independent public relations and communications agency, a large percentage of millennials believe their student loan repayments will last well into their 30s and even 40s. Survey results reveal:
As a result, millennial employees don't feel financially secure. This financial insecurity delays traditional life events, impacts how they engage with the workplace and affects how employers can retain them. "Every month, millennials are making student loan payments, which can feel like a mortgage payment," said Natalie Smith, senior vice president, PadillaCRT, who leads the agency's employee engagement team within its Corporate Practice. "This student loan debt impacts millennials of all ages and backgrounds. Given the competition for top talent, employers must update their approach in order to engage and retain millennials, especially among women, who were found to carry a bigger burden of student loan debt." Smith is referring to the study findings that:
Student loan assistance trumps flexibility For millennials, the next 10 to 20 years after college typically include major life milestones. From purchasing a new car and buying a house to getting married and having cildren, the survey showed millennials are choosing to delay these milestones because of their outstanding debt. These delays not only impact their personal life, but also their engagement levels at work. For companies, engaged employees are more than just nice to have - they're integral to business success. Over time, highly engaged workforces outperform less-engaged companies by 147 percent higher earnings per share and enjoy a 90 percent better growth trend, according to a 2013 Harvard Business Review study. With millennials expected to make up 75 percent of the workforce by 2025, it's imperative that companies understand how their needs, preferences and life stages drive their approach to and engagement with work. However, based on a 2016 Gallup study, companies are still missing the mark - only 29 percent of millennials consider themselves engaged at work, less than all other generations. And survey results revealed similar alarming stats that companies need to be aware of as their workforce changes:
"Engaged employees show greater initiative and approach work more passionately and creatively - essentially, they are willing to put in extra effort to help their company succeed. But when it comes to creating an engaged workforce, one size does not fit all. To excite and engage employees, companies must keep employees' ages and life stages in mind," said Smith. To engage and retain millennials - and other employees - companies should consider the following:
"Engaging and retaining millennial employees is a challenge all companies face," said Smith. "However, companies that understand the personal and financial situations facing millennials after graduation, and then tailor their engagement strategy accordingly, will reap the benefits of a highly engaged workforce that is willing to go the extra mile to drive the company forward." View the "Weighing Down Workplace Engagement" infographic at padillacrt.com.
About the ORC International survey
About PadillaCRT
View source version on businesswire.com: http://www.businesswire.com/news/home/20170110005987/en/ |