Retain Generation Y In One Easy Step, At No Additional Cost

Recently I did some very informal, unscientific research on our blog and on Linkedin (Where else would a Gen Y do research?). I wanted to find out what was common practice was for performance reviews for organizations. I suspected it was annually but I wanted to be sure. My question on Linkedin was open-ended. I received 40 responses from people in all different types of organizations. I asked, "How often do you do performance reviews?"

Below are the responses:
29 annually
4 quarterly
7 twice per year

I also posted a survey on this blog which received a pathetic 12 responses.
Below is the breakdown of the results.

2 quarterly
9 once per year
1 not even that often

Many of the open-ended responses from Linkedin that indicated they do reviews annually also mentioned they meet at variable times (monthly-quarterly-biannually) to do an unofficial review.

My suggestion for any organization that is looking for how to retain more Gen. Y employees is to meet OFFICIALLY and do it quarterly. As a Gen Y, I can tell you that receiving feedback on an annual basis is not nearly enough. We've been coached our entire lives from t-ball through varsity sports, gymnastics through high school theater. We crave constant feedback and for us (Gen Y), a year is an eternity. We need to see that our organization and our bosses have an interest in our constant and continual improvement and we need that commitment reaffirmed with frequency.

Many organizations bemoan the fact that Gen Y is overtly narcissistic. In many ways we are. The opportunity in this characteristic is our willingness to be coached. Allow your Gen Y's to feel that the performance review process is about helping them become whatever it is they dream.

At Catch Your Limit we do our reviews quarterly. Typically we'll conduct a personal and organizational SWOT analysis. I don't always appreciate the beginning process of doing this, I'll think to myself, "I don't know that my weaknesses or strengths are any different this quarter than last." Sometimes they are, sometimes not; but by the time I'm sitting with my bosses hearing about me, I'm having a great time. I always feel invigorated, inspired and ready to get better. As a Gen Y it is critical for me to hear by the end of quarter. I need to hear what I'm doing right and what I'm doing wrong otherwise I begin to feel as if I'm drifting and no one really cares.

Another tradition worth questioning relates to the traditional model of annual merit increases. Why not offer merit increases at a smaller percentage at a greater frequency throughout the year? I don't pretend to work in HR. I'm sure there are logistical hassles to this suggestion. However it wouldn't necessarily mean an employee would receive a larger raise over the course of a year, it would simply spread the increase out. Gen Y's need for instant gratification and need to see that they are progressing doesn't mesh with once a year merit increases.

There are major differences when it comes to the values of all four generations in the workforce. Retaining Gen Y's simply requires a willingness to rethink tradition and make adjustments for a generation with different values.