‘Ownership’ key to Generation Y retention
It is about more than just salary, as eight out of 10 graduates in the West Midlands state that the prospect of employee ownership schemes is a key driver to deciding on where to work, according to research by law firm, Shakespeare Martineau.
The firm’s research reveals that graduates are increasingly looking for more than just a job that they can clock in and out from. The prospect of having real ownership, responsibility and influence within a business is far more important to them than salary and reward packages and now is the time for businesses to act.
Although more than a third of graduates state that specialist expertise (36 per cent) and a good reputation (34 per cent) provide a huge bearing on where they choose to work, the prospect of employee ownership far outweighs them and large remuneration packages.
Commenting on the research of 150 graduates in the West Midlands, Gary Davie
, head of the employee ownership division at Shakespeare Martineau, said:
“The so-called Generation Y has a reputation of being disloyal and quite flighty when it comes to employment, but this simply isn’t true. It seems that some businesses are failing to keep their finger on the pulse of what this group of future employees are looking to get out of their careers. Adopting an employee ownership model, where possible, could help to narrow the skills gap, enhance innovation, productivity and stimulate business growth.”
“With the battle to attract the workforce of the future more fierce than ever, businesses should now be looking at the motivation factors that not only attract graduate-level entrants, but also maintain and retain them. It is clear from the research that businesses that want to attract graduates need to think about the main motivator – ownership and having a real say. Creating business structures that continually involves and rewards employees is a very real possibility and may give businesses the competitive edge when it comes to recruiting candidates of this nature.”
“Although employee ownership isn’t right for every business, businesses must seek to introduce more imaginative ways to retain and gain a top quality workforce, and for those businesses looking at succession planning or start-ups in the fledging stages of the business lifecycle, moving to employee ownership is a real possibility that should be a consideration.”
“As Brexit looms, market uncertainty is inevitable and employee ownership could provide West Midlands businesses with the answer to employee retention right when they need it the most.”
Gary Davie, concludes:
“Making the transition to employee ownership doesn’t happen overnight but can be done in stages or by way of deferred payments in order to alleviate any pressure on cash flow or bank finance available.”