CALIFORNIA STATE UNIVERSITY, NORTHRIDGE

Millennials, Retention, and the Public Sector

A graduate project submitted in partial fulfillment of the requirements

For the degree of Master of Public Administration in Public Sector Management and

Leadership

By Jimmy Alcantar

December 2019

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Copyright Page

Copyright by Jimmy Alcantar 2019

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Signature Page The graduate project of Jimmy Alcantar is approved: ________________________________________ _______________ Dr. Elizabeth Trebow Date ________________________________________ _______________ Dr. Ariane David Date ________________________________________ _______________ Dr. Anaïs Valiquette L’Heureux, Chair Date

California State University, Northridge

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Table of Contents

Copyright Page ii

Signature Page iii

Abstract vii

Introduction 1

Review of the Literature 4

Introduction 4

Turnover 5

Turnover Intention 6

Causes of Turnover Intention 6

Consequences of Turnover 7

Financial Costs 7

Low Employee Morale 8

Decrease in Quality of Public Services 8

Recruitment: Time and Resources 9

Retention Strategies 9

Growth and Promotion 9

Salary and Benefits 10

Human Resource Management 10

Flexible Workplace 11

Teleworking 11

Compressed Work Week 11

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Generations in the Workplace 12

Baby Boomers 12

Generation X 13

Generation Y (Millennials) 13

Generational Workplace Trends 14

Mobility and Retention Between Generations 14

Job Satisfaction and Motivation Between Generations 14

The “Job Hopping” Generation 15

Theoretical Frameworks 16

Punctuated Equilibrium 16

Limitations in Current Research 17

Section Summary 18

Research Question and Aim 19

Research Design 20

General Approach 20

Data Collection Methods 20

Sampling 21

Analysis 22

Methodological Limitations 23

Discussion 24

Projected Results 24

Potential Implications: Social and Economic 25

Ethical Considerations 25

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Limitations 26

Conclusion 27

References 29

Appendix A 33

Appendix B 35

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Abstract

Millennials, Retention, and the Public Sector

By

Jimmy Alcantar

Master of Public Administration in Public Sector Management and Leadership

Millennial employees will soon become the majority of the workforce in the United

States. Their tendency to “job hop” creates a problem for public sector agencies due to the

negative consequences that follow turnover. High turnover can prove costly for the

organization both financially and in other ways. Adapting to the propensities and values of

millennial employees will be essential for the organization to retain them for more extended

periods. The literature currently examines different retention strategies, but none touch

upon the best retention strategies of millennial employees in the public sector due to the

problem being so modern and new. The purpose of this project is to analyze the causes of

turnover among millennials in the public sector (more specifically in a local municipality

in Southern California) and recommend managerial and organizational strategies that are

likely to reduce turnover intentions or limit the worsening of the problem. Participants in

this study will be surveyed through an in-person interview. The data will detail what

retention strategies work best in retaining the incoming wave of millennial employees.

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Introduction

The landscape of the workforce in the United States is beginning to change. The

Baby Boomer generation is retiring in masses and creating a retirement wave; meanwhile,

the Millennial generation will take over as the majority in the workforce (McGinnis-

Johnson & Ng, 2016; Piatak, 2017). A recent research study conducted by Gallup (2016)

indicates that, currently, Millennials make up 54% of full-time employees. It is estimated

that 75% of the workforce by 2025 will be comprised of Millennials (Meola, 2016; Pinzaru,

Vatamanescu, Mitan, Savulescu, Vitelar, Noaghea, & Balan, 2016). This data is essential

because Millennials, in comparison to other generations, tend to be mobile when it comes

to work. The Millennial generation moves from occupation to occupation (Cloutier,

Felusiak, Hill, & Pemberton-Jones, 2015; Pyöriä, Ojala, Saari, & Järvinen, 2017;

McGinnis-Johnson & Ng, 2016; Walden, Jung, & Westerman, 2017). Often defined as "job

hoppers," Millennials have a higher propensity to have job switching intentions (Ferri-

Reed, 2014; McGinnis-Johnson & Ng, 2016).

A direct impact from Millennials' constant movement and "job hopping" is high

turnover rates (Ertas, 2015; Petrucelli, 2017). Recruitment, hiring, and turnover are

ongoing in all organizations, both public and private. Turnover is expected in any agency,

whether public, non-profit, or private. Employees leave an organization for many reasons,

which include retirement, job satisfaction, salary, and growth, among others (McGinnis-

Johnson & Ng, 2016; Piatak, 2017; Pyöriä et al., 2017; Walden et al., 2017). Walden et al.

(2017) also explained that employees are one of the most important stakeholders for any

agency. Organizations need to be proactive to combat employee turnover and implement

retention strategies to increase retention rates. Increased retention and decreased turnover

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are essential for organizations as it can lead to improved effectiveness and efficiency;

employee turnover can lead to the opposite. (George & Wallio, 2016). Turnover creates a

drain in resources both in time and money (Berman, 2015). It is estimated that recruitment

for a vacant position can cost from 50% to 200% of the former employee’s salary (Cloutier

et al., 2015).

As previously explained, turnover can cost organizations money, time, and

resources. Public sector organizations and leadership are stewards of taxpayer dollars, so

it is crucial to reduce turnover and increase retention to save money. Since the millennial

generation will make up 75% of workers in the next few years, public administrators need

to be proactive and innovative to increase employee retention and decrease employee

turnover (Meola, 2016; Pinzaru et al., 2016). According to Gallup (2016), it is estimated

that millennial turnover costs the U.S. economy $30.5 billion annually. Koppel, Deline,

and Virkstis (2017) explained that the price to replace a registered nurse (RN) can cost up

to $90,000. The fact that replacing an employee can be financially costly should be

alarming to employers, but turnover can also affect an organization's effectiveness and

efficiency, as well as employee morale.

Strategies to retain the majority of the millennial workforce should be appealing

and innovative. The causes of employee turnover, specifically in millennials, can vary. Best

practices for retention are crucial for managers to implement to minimize the impact of

turnover in public sector organizations. Therefore, this study will focus on the reasons why

Millennial employees have a tendency to leave their current employers in a short amount

of time and the practices that managers are currently employing to reduce turnover.

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The purpose of this project is to analyze the causes of turnover among millennials

in the public sector (more specifically in a local municipality in Southern California). The

research design will explain who the participants for the study will be, how the data will

be analyzed, and list possible limitations to the research design. Lastly, a discussion and

conclusion will narrate the practical and methodological implications of this research,

along with the possibilities of future research.

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Review of the Literature

Introduction

Employers, in both the public and private sectors, encounter various organizational

problems. As previously stated, Millennials currently makeup 54% of current employees

in the U.S. and will make up 75% of the entire workforce by the year 2025 (Gallup, 2016;

Meola, 2016; Pinzaru et al., 2016). This data is vital because Millennials are the most

mobile generation in the workforce. Their mobility and "job-hopping" tendencies create a

problem for organizations due to the negative consequences that follow, such as the

financial costs to replace an employee, and other costs such as time and resources (Berman,

2015; Cloutier et al., 2015). Due to this looming problem, the researcher will look at the

literature related to turnover, retention strategies, and workplace differences between

generations to give the reader a detailed overview of the current problem.

One of the main issues that can be financially costly and affect the effectiveness

and efficiency of the organization is employee turnover (McGinnis-Johnson & Ng, 2016;

Piatak, 2017; Pyöriä et al., 2017; Walden et al., 2017). A predecessor to actual employee

turnover is turnover intention. Turnover intention is essentially the intent the employee has

to leave an organization (Cregard & Corin, 2019; Kim, 2015).

Retention strategies help increase retention and decreasing turnover. Some

retention strategies that the literature touches upon include: decrease in role ambiguity

(Hassan, 2013), growth opportunities (Chenkovich & Cates, 2016), salary and benefits

(Deery & Jago, 2015), flexible work schedules (de Vries, Tummers, & Bekkers, 2019; Dye

& Lapter, 2013).

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Generations in the workplace are also discussed in the literature due to their

differences and tendencies in work styles. Baby Boomers, Generation X (Gen Xers), and

Generation Y (Millennials) are examined as an integral part of the current workplace

landscape, although Baby Boomers are at retirement age (Clark, 2017; Dye & Lapter,

2013). Key differences, specifically in job movement and voluntary turnover, are what

distinguishes Millennial employees from Baby Boomers and Gen Xers (Becton, Walker,

& Jones-Farmer, 2014; Clark, 2017).

This literature review will examine all the areas discussed to provide further

explanation for the reason why millennial employees leave their current employer,

strategies employers can use to retain Millennial employees, and how the difference in

work styles between generations has made this an issue in today's age.

Turnover

Turnover is defined as an employee leaving an organization, according to Cregard

and Corin (2019). Turnover can come in two ways, involuntary and voluntary. Involuntary

turnover is employer initiated, and Voluntary turnover is started by the employee (Cregard

& Corin, 2019). Involuntary turnover occurs when the employer begins practices such as

permanently firing, laying off, or issuing mandatory retirements. In contrast, voluntary

turnover takes place when an employee pursues their autonomous decision to resign from

their occupation. Employees voluntarily leave for a variety of factors such as role

clarification and vague goals (Hassan, 2013); job satisfaction (Rehman, 2012; Walden et

al., 2017); salary and flexibility (Piatak, 2017); and job stress and burnout (Willard-Grace,

Knox, Huang, Hammer, Kivlahan, & Grumbach, 2019; Kim, 2015). The period before an

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employee voluntarily resigns and is considering the possibilities outside of their current

organization is called turnover intention (Kim, 2015).

Turnover Intention

Turnover intention is the act that precedes turnover (Cregard & Corin, 2019).

Turnover intention can arise when an employee looks at open job positions elsewhere and

essentially applies to those vacant positions (Kim, 2015). It also occurs before the act of

resigning, or turnover happens. Turnover intention can be defined as "the intention to leave

one's dissatisfying organization and job" (Kim, 2018. p.340). Intention to leave an

organization can occur due to organizational or individual factors (Kim, 2015).

Causes of Turnover Intention

Either organizational or individual factors cause an employee's intention to leave

an organization. Organizational factors such as stress, burnout, or instability can increase

an employee's turnover intention. Public sector employees, specifically police officers and

teachers, tend to have higher turnover intentions due to the challenges they may deal with

regularly (Kim, 2015). Cho and Lewis (2012) mentioned that Human Resource

Management (HRM) practices in organizations can affect the turnover intention rates of

new-hires, mid-career employees, and retirement-eligible employees. Researchers Wang,

Yang, and Wang (2012) explained that public sector employment is seen as far more stable

than any other sector; therefore, public sector employees have lower turnover intentions.

Cho and Lewis (2012) mentioned that turnover intention is strongly correlated to the act of

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turnover happening. This suggests that if an employee starts to display turnover behaviors

and begins to experience turnover intentions, they will most likely leave the organization.

A factor that can decrease an employee's intention to leave an organization is the

level of support employees receive from their supervisors and management (Cregard &

Corin, 2019). An employee who has work autonomy and control of their work reduce their

intention to resign voluntarily (Mastracci, 2009). When an organization, specifically the

human resources department, offers training to its employees, turnover intention is

decreased (Cho & Lewis, 2012). Additionally, an organization that applies fair and accurate

performance reviews also lowers turnover intentions (Cho & Lewis, 2012). The Union's

grievance process can decrease turnover intention since employees get a chance to voice

any concern through the grievance system before deciding to resign (Cho & Lewis, 2012).

When an employee intends to leave an organization and ultimately resigns, employers are

left with the burden and cost of having to replace the employee.

Consequences of Turnover

Financial Costs

In terms of economic costs, researchers Cho and Lewis (2012) explained that the

cost to replace an employee can total to more than half of the employee’s annual salary.

Rehman (2012) estimated that American organizations incurred $11 billion annually as a

result of voluntary and involuntary turnover. Public sector organizations need to be

conscious of the high costs that accompany turnover. Therefore, it is prudent for agencies

to innovate and create better retention strategies. Turnover and its financial costs can also

be debilitating for agencies during times of economic crisis (Piatak, 2017).

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Low Employee Morale

Turnover can also have other negative consequences. Authors Abbasi and Hollman

(2000) indicated that employee turnover in both the private and public sectors is one of the

main reasons for decreased productivity and lowered employee morale. Cregard and Corin

(2019) explained that other indirect costs of turnover are loss of competence and loss of

institutional knowledge. This is mainly seen with long-term employees, or if the employee

that left was in a supervisory or management role.

Decrease in Quality of Public Services

The quality and stability of the services provided are also hindered due to turnover,

especially in the public sector, where public services are what run an agency (Cregard &

Corin, 2019). If turnover is high, depending on the service provided, the community can

be affected. For example, if lifeguard resigns during the summer, then the safety of pool-

goers at a city pool can be affected. If a police officer or firefighter resigns, that is one less

employee patrolling the streets or one less person fighting a fire. Communication between

the organization and external stakeholders is also affected by turnover (Rehman, 2012).

Other departments or external vendors can be affected if their point of contact resigns.

There is a lapse in communication and work until someone takes over the work left behind

or until a new employee is hired.

Recruitment: Time and Resources

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Plenty of time and work also goes into recruiting and replacing employees.

Masibigiri and Nienaber (2011) mention that the recruitment process is time-consuming as

it includes: advertising the job opening, examinations processes, interviews, and pre-

employment process. Once that is completed, the new employee must be trained and

brought up to speed in their new role (Masibigiri & Nienaber, 2011). Lower turnover rates

can save an organization’s costs in personnel and time during the recruitment process. This

can also increase an individual’s commitment and loyalty and may create a more effective

and efficient organization (Wang et al., 2012).

Retention Strategies

Retention is crucial for any organization as it can be very costly, both financially

and in other ways (Berman, 2015; Cho & Lewis, 2012; Willard-Grace et al., 2019;

Masibigiri & Nienaber, 2011; Rehman, 2012). Retaining employees can be done in a

variety of ways such as growth and promotion, salary and benefits, human resources

management procedures, and teleworking.

Growth and Promotion

Chenkovich and Cates (2016) explained that organizations should have room for

growth if they aim to increase retention rates. Employees, specifically Millennials, are

more likely to stay with an organization for an extended period of time if room for growth

and promotion are available (Chenkovich & Cates, 2016; Deery & Jago, 2015).

Researchers Deery and Jago (2015) explain that the main reason why employees leave their

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organization is because they were offered better growth opportunities and pay at other

organizations.

Salary and Benefits

Two major factors that plays a part in retaining any employee, at any level, are the

salary and benefits that an organization offers (Deery & Jago, 2015). An innovative way

that the Transportation Security Agency (TSA) is trying to retain its part-time employees

is by providing them full-time benefits (Mastracci, 2009). Benefits are a significant factor

in retaining employees, especially in the public sector. The public sector has an advantage

over other sectors due to its highly sought-after benefits (Coggburn, Daley, & Kearney,

2012). Offering not just regular employee benefits, but also retiree benefits can help retain

employees in public sector organizations (Coggburn et al., 2012). Although offering

employees benefits even after they retire will cost organizations money, ultimately this

incentive can increase retention rates and lower turnover.

Human Resource Management

A different approach public sector agencies can take to retain employees is by

changing their human resource management procedures (Rehman, 2012). Recruitment

strategies are essential in identifying and hiring the right employee for any position. A

perfectly executed recruitment strategy will yield the right employee who will be retained

by the organization (Rehman, 2012). If a recruitment strategy is not done correctly, then

the organization and employee fit will not match. This will ultimately force an employee

to move on from the organization to another that aligns more with their values.

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Flexible Workplace

An organization that offers a flexible workplace and work schedule can be

appealing to millennial employees due to their placed importance on a work-life balance

(de Vries et al., 2019). Flexible work schedules such a teleworking and compressed work

weeks offers Millennials the flexibility to work from home or work shorter work weeks.

Teleworking

A retention strategy that emphasizes flexibility is teleworking. Employees view

teleworking as an opportunity given to them by supervisors and managers to assist them

with completing a work-life balance and in turn, become more committed to staying with

the organization (de Vries et al., 2019). Teleworking is a significant strategy organizations

can utilize to reinforce the retention of employees. Dye and Lapter (2013) stated that

teleworking is a reliable driver of employee retention. This retention strategy incentivizes

employees with scheduling freedom that may encourage employees to stay with the

organization. However, management and leadership in organizations have been hesitant

in implementing and offering such a program (Dye & Lapter, 2013).

Compressed Work Week

Another retention strategy that offers flexibility and increased retention rates is a

compressed work week schedule (Wadsworth & Facer, 2016). A compressed work week

is defined as a schedule for employees to work less weekdays but have longer work days.

Wadsworth and Facer (2016) mentioned that standard compressed work weeks are either

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4/10 or 9/80 schedules. In a 4/10 work schedule, employees work four 10-hour days from

Monday through Thursday with every Friday off. This allows employees to have an extra

day off every week, which increases their work-life balance. The 4/10 work week schedule

is the most common in the public sector. The second most common schedule is the 9/80

work schedule, which is worked over two weeks. In this schedule, employees work 9 hours

a day from Monday through Thursday and work 8 hours on the Friday of the second week.

This idea is not new in the public sector, but not many organizations take advantage of this

strategy (Wadsworth & Facer, 2016).

Generations in the Workplace

Currently, there are a variety of generations collaborating and working together in

the workplace across all different sectors. The diversity in generations in the workforce can

be positive because there are different attitudes, ethics, and decision-making processes

(Clark, 2017). Presently, there are three generations in the workforce; Baby Boomers,

Generation X, and Generation Y (Millennials). Every generation has a different set of

values, morals, and ethics (Clark, 2017).

Baby Boomers

The Baby Boomer generation thrives through teamwork and team-building

training. They have a strong work ethic and are committed to their professional goals and

careers. Baby Boomers are more committed to their employers than any other generation

(Pyöriä et al., 2017). The commitment and loyalty from employees of this generation

allowed them to be retained by the organizations for more extended periods. This

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generation values a hierarchical structure at work, which is vertical, top to bottom. At work,

this generation of employees was termed as “good soldiers” who obeyed any directives

given to them by their superiors and got the job done (Ferri-Reed, 2014).

Generation X

Generation X employees desire a balance between work and family, due to the fact

they were brought up with a missing family element (Clark, 2017). This generation

questions authority and dislikes being supervised directly, as well as any micromanaging.

In comparison to the Baby Boomer generation, Gen Xers do not believe in the philosophy

of teamwork but can work collaboratively with colleagues and peers to achieve a common

goal. This generation also relies on a top-down structure and traditional command and

control organization (Ferri-Reed, 2017).

Generation Y (Millennials)

Millennials are less independent than any previous generation but are more

community-oriented and seek meaning in all aspects of life, including work. Money is a

motivator for millennials, and they seek instant gratification. As a confident generation,

millennials also strive for a balance between personal life and work (Clark, 2017). This

generation prefers a horizontal work structure in which they can communicate freely with

employees at all levels in the organization (Pinzaru et al., 2016). They seek praise and

support from supervisors and a sense of validation. Unlike Gen Xers, Millennials expect to

receive immediate feedback from their employers, along with clear goals and structure

(Clark, 2017). Overall, every generation is different from one another, especially when it

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related to the workplace. This is due to their different perspectives about work ethic and

their differing values.

Generational Workplace Trends

In an adapting workplace, it is no surprise that technology is at the forefront of any

organization. Clark (2017) indicated that of the three generations currently making up the

workforce in the United States, Millennials are more adept at using technology in

comparison to Baby Boomers and Gen Xers.

Mobility and Retention Between Generations

Concerning turnover and mobility, according to Becton et al. (2014), Baby

Boomers are least likely to move from employer to employer and stay at a job longer in

comparison to Gen Xers and Millennials. Generation X employees remain at a job the

second-longest. Millennials come in last, continually moving and averaging 23 months

spent at one job (Becton et al., 2014). This explains that Baby Boomers were retained

longer by organizations due to their lack of mobility, followed by Gen Xers. Millennials,

on the other hand, were the least retained by their organization due to their high mobility

rate.

Job Satisfaction and Motivation Between Generations

Lu and Gursoy (2016) found that Millennials when compared to Baby Boomers,

indicate lower job satisfaction levels and higher turnover intentions. This can be due to

Millennial employees placing more importance on a work-life balance, and valuing their

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personal life more than work (Lu & Gursoy, 2016). On the other hand, Baby Boomers will

deal with more stress and work exhaustion because of their work ethic and job commitment

(Lu & Gursoy, 2016). When it comes to work motivation, Baby Boomers are more

motivated than Generation X and Y. Generation X employees expressed that their

employment affects their personal life, as well as family problems affecting their work

(Keepnews, Brewer, Kovner, & Shin, 2010). Researchers Keepnews et al. (2010) also

mentioned that Millennial employees had higher commitment levels and emphasized better

promotional opportunities and supervisor support and feedback when compared to the

other two generations.

The “Job Hopping” Generation

Millennials have been defined as “job hoppers” due to their constant movement

from job to job (Ferri-Reed, 2014; Lyons, Schweitzer, Ng, & Kuron, 2012). Compared to

all other generations, Millennials had the most job changes, with an average of 2.59 job

changes between the ages of 20 and 24. Meanwhile, Baby Boomers averaged 1.39 job

changes in their career, and Gen Xers experienced 1.28 job changes in their career between

the ages of 20-24 (Lyons et al., 2012). The job-hopping trend shows no sign of slowing

down at this point (Petrucelli, 2017). Millennials do not hesitate to leave their current job

for another one, as long as the other job provides better opportunities for them (Koppel et

al., 2017). The differences between generations can be a sign as to how organizations

handled retention before the Millennial generation entering the workforce.

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Theoretical Frameworks

Punctuated Equilibrium

Punctuated equilibrium, as described by Kraft and Furlong (2018), explained that

policy is typically stable and only changes when there is a shock to the system that causes

a policy change. In this case, the retirement wave of Baby Boomer employees has disrupted

the status quo and has forced employers to begin thinking of innovative policies to increase

retention rates and decrease turnover (Dye & Lapter, 2013). From 1994 to about 2012, the

Baby Boomer generation made up the majority of the U.S. workforce (Pew, 2018). As

explained earlier in the literature, the Baby Boomer generation displayed loyalty to their

employer by committing to that employer long term compared to both Gen Xers and

Millennials (Becton et al., 2014). Baby Boomers working for their employers' long-term

due to their values and work ethic made it easier for employers to retain those employees.

The retention strategies in place worked, partly because they were not mobile and were

loyal to their employer, many times, not leaving that organization at all (Pyöriä et al., 2017).

In 2016, Millennials became the largest generation in the U.S. workforce (Pew, 2018).

Their mobility tendencies and need for quick rewards have largely impacted organizations

with high turnover rates (Cloutier et al., 2015; McGinnis-Johnson & Ng, 2016; Pyöriä et

al., 2017; Walden et al., 2017). This transformation in the U.S. workforce has changed the

ways organizations engage in retention policies. Strategies have differed from those used

before. For example, employers offer more flexible work schedules, more pay, non-

traditional work benefits, and different styles of management (Chenkovich & Cates, 2016;

de Vries et al., 2019; Deery & Jago, 2015; Dye & Lapter, 2013; Hassan, 2013). Policies

within the public sector need to change to retain the wave of Millennial employees.

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Limitations in Current Research

There is little guidance as to how local-level public sector organizations can

develop strategies that practically address the issue of millennial turnover and reduce

turnover intentions. Millennial employees will make up 75% of the workforce in the United

States, so it is crucial for organizations to be proactive rather than reactive to combat what

can be looming turnover rates (Meola, 2016; Pinzaru et al., 2016). Retention strategies need

to be innovative and geared towards the Millennial workforce. The Baby Boomer

generation is exiting the workforce, and a wave of retirements is expected within the next

few years (McGinnis-Johnson & Ng, 2016; Piatak, 2017). Employers need to be ready to

retain institutional knowledge and provide clear expectations and goals for the incoming

workforce. The cost of turnover itself should be a reason as to why organizations should

begin thinking of retention strategies.

Currently, the literature identifies different strategies that employers can implement

to increase retention and decrease turnover. The literature also recognizes the tendencies

of millennial employees in life, and more importantly, for this study, in the workplace.

However, the existing research does not identify the most effective strategies that public

sector employers can use to retain millennial employees are. The lack of literature about

best practices and retention strategies can be because it is such a new problem. Millennials

just became the largest workforce in the United States in the past three years (Pew, 2018).

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Section Summary

Overall the current literature explains the many reasons why Millennial employees

tend to leave an organization at a much faster pace than previous generations. The work

ethic and values of Millennial employees differ much more than those of the Baby Boomers

and Gen Xers. Millennials value more leisure, a coach and mentor rather than a supervisor,

opportunities for growth and quick rewards, as well as a more flexible workplace than can

give them a better work-life balance (de Vries et al., 2019; Dye & Lapter, 2013; Wadsworth

& Facer, 2016). Due to the mobility of the Millennial generation, the turnover that is caused

leaves a financial burden on the organization as well as other adverse factors such as low

employee morale and lower organizational effectiveness (Abbasi & Hollman, 2000;

George & Wallio, 2016). Retention strategies can be implemented by employers to retain

Millennial employees better. These include more pay and non-traditional benefits, less role

ambiguity, more opportunities to grow within the organization, and more flexible work

schedules. The current research and literature do not explain what best practices or

strategies employers can implement to increase millennial retention rates. Therefore, this

study will seek to find solutions to increase millennial retention rates, and in turn,

decreasing turnover rates and the negative consequences that follow.

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Research Question and Aim

What are the causes of turnover among millennials in the public sector and what

managerial/organizational strategies are likely to reduce turnover intentions, or limit the

scope worsening of the problem?

The purpose of this project is to analyze the causes of turnover among millennials

in the public sector (more specifically in a local municipality in Southern California) and

recommend managerial and organizational strategies that are likely to reduce turnover

intentions or limit the worsening of the problem. This study will contribute to the field of

retention, specifically for the new majority of the workforce, Millennials. By analyzing

current practices’ effectiveness, this study can help by giving public administrators

beneficial strategies to decrease millennial turnover.

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Research Design

General approach

The methodology for the proposed study will be a qualitative approach. This

approach will aid in uncovering trends as to why previous employees left the organization

and if current managers are using best practices to retain employees, specifically

millennials. The information gathered for this exploratory study will be through

interviewing previous employees who voluntarily resigned and current managers at the

local government agency.

The interviews will be semi-structured and in-person or over the phone. Individual

interviews will be done. Questions for the employees that have resigned will relate to their

employment at the municipality and the reason(s) why they quit, along with how the local

government agency could have prevented the resignation. The questions for the current

managers will relate to their opinions as to why employees are resigning, and the strategies

currently being used to reduce employee turnover. The items will be emailed or mailed to

the participants in advance so they can be aware of the questions the researcher will be

asking.

Data collection methods

The researcher has developed the interview questions. All participants in the study

will give written consent to take part in the study, but they will be given the option to stop

the interview at any point if they feel uncomfortable. Once the participant has confirmed

consent, the interviews will be scheduled via email or phone call. The number of interview

questions will be less than ten for each interviewee. Too many interview questions can

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deter an employee from finishing an interview because they may perceive the process as

too long and tedious (Johnson, 2002). The set of questions for the former employees who

voluntarily resigned will be geared towards the reason they left, ways the organization

could have retained them, changes the organization can make in the future, and if they

would go back and work for the agency and under what circumstances, if any. They will

be initially asked for their age and how long they worked at the agency. Current managers

will be asked a different set of questions relating to what they think is currently driving

turnover and what strategies they are following to increase retention and decrease turnover

among current employees. They will also be asked for their age and how long they have

worked at the agency. The interviews will be recorded on a recording device for further

analysis after the interview has concluded. All interviewees will remain anonymous to

protect them from any retaliation or future job opportunities in case they decide to go back

to work for the public agency they left. Current managers will also remain anonymous to

protect their identity and their current job.

Sampling

The participants for this study will be selected by using purposive sampling for both

the former employees and the current managers. A purposive sampling method will allow

the researcher to deliberately select the participant due to the qualities that the participant

possesses (Etikan, Musa, & Alkassim, 2016). In this instance, participants need to be

former employees who voluntarily resigned from the local government agency within the

last five years. As well as current managers for the local agency. Since the participants will

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all have a shared characteristic (i.e., voluntary resignation, current managers), the

purposive sampling will be homogenous.

The unit of analysis will be employees, past and current, from the local

municipality. The names and information for former employees will be gathered with the

help of the Human Resources department. The name, sex, age, position title, phone number,

and email address for the former employees will be collected using ePersonality and Tyler

Munis, both Human Resources Systems (HRS). Only employees who have voluntarily

resigned will be considered. The date range for those who have resigned will be from 2019

back to 2014. Therefore, employees who resigned in the previous five years will be eligible

to participate in the study. This is because Millennial employees became the largest

workforce generation in 2016 (Pew, 2018). The information for current managers will also

be collected by enlisting the help of the Human Resources department. The Human

Resources department will provide the names, age, sex, position title, and contact

information for current managers.

Analysis

For the analysis, the researcher will use coding to present any recurring themes that

were prominent throughout the interview process. Common words that were used or

patterns should also be analyzed. This will be done by transcribing all interviews in an

electronic form to easily search trends in commonly used words. Observations made by the

researcher will also be analyzed. Body language, setting, and mood changes or anything

else observed during the interview will also be captured by the researcher and further

analyzed.

23

Methodological Limitations

The proposed study will use a purposive sampling method. Some limitations that

arise with this method can be that there can be researcher bias because the researcher is

subjectively choosing participants for the study. However, for this study, it is vital to select

participants that have voluntarily resigned from the local agency. This is since the

researcher is setting out to discover the reason for their resignation. Although researchers

make it a focus to be non-biased, interviews can lead to interviewer bias (Johnson, 2002).

Turnover can also differ from agency to agency. Some local municipalities may have more

voluntary turnover than involuntary due to budgetary constraints. Another consideration

for this study is that former employees may have a negative perspective of the organization,

and their negative experiences may exaggerate their interview responses. Although there

may be certain limitations in this study, the contributions this research can have on best

practices for Millennial retention can be beneficial to the field of research because current

research does not exist.

24

Discussion

Projected Results

The purpose of this study is to analyze the causes of turnover among millennials in

the public sector and recommend managerial and organizational strategies that are likely

to reduce turnover intentions or limit the worsening of the problem. Examining

participant's responses, as well as the current practices being used by managers, can help

identify if other strategies need to be implemented to retain Millennial talent. The data

gathered from this research can also help public organizations by increasing retention rates

and in turn, saving the agency and the public the cost of continually having to replace an

employee. Establishing a set of best practices can be a positive solution to the problem of

turnover due to what is currently known about Millennials’ values and work tendencies.

Considering the amount of literature regarding Millennials and their work styles

and tendencies, the researcher can project that Millennials will value flexibility. Flexibility

is important to Millennials as they value work-life balance more than previous generations

(de Vries et al., 2019). Wadsworth and Facer (2016) explain that employees respond better

when given the option of a compressed work week, reporting higher satisfaction levels,

and higher satisfaction levels, in turn, lead to less turnover and increased retention. Flexible

work schedules such as 4/10 or 9/80, which are currently in place now in some

organizations, can help with the flexibility Millennials value. Another flexible work

schedule that can help with retention is teleworking. Teleworking is another viable option

for organizations to implement as it also gives Millennial employees the flexibility needed

to retain their talent. Teleworking, according to de Vries et al. (2019), results in positive

outcomes such as organizational commitment, therefore also increasing retention and

25

decreasing turnover. This study would have reached its goal when enough data has been

gathered and continually used to reduce turnover rates.

Potential Implications: Social and Economic

The Millennial generation is currently the largest population in the United States

workforce and is projected to make up 75% of the workforce by 2025 (Meola, 2016;

Pinzaru et al., 2016). In a social context, it can create a new landscape for working in the

United States. Much like the landscape and retention policies were shaped by previous

generations, the changes to retain this generation can have everlasting impacts regarding

how organizations retain employees. More flexible work schedules and management styles

can become the norm in the workplace. Economically, if organizations get on-board with

trying to retain Millennial employees, they can save costs. Turnover, as mentioned in this

paper, comes with high financial expenses along with costs in time and resources. If

employers work towards implementing a strategy that values flexibility, then turnover rates

will decrease, and in turn, so will costs.

Ethical Considerations

This project will comply with California State University – Northridge protocol and

Institutional Review Board (IRB) policies. Although participants in this study voluntarily

decided to take part in the research, their anonymity is of the utmost importance. Informed

consent was given in full detail to each participant, as well as the purpose of the study and

how the results will be used. The data will be used only to describe themes and trends as

to why they resigned from the local agency being studied. Data from current managers at

26

the local agency will be used to discover what practices they are currently using to increase

retention rates and decrease turnover. Each participant also signed an informed consent

form at the beginning of the interview. Keeping the participants anonymous is essential

because if some of the information they shared with us is publicly disclosed, it can hinder

their ability to be employed at the local agency discussed in this study.

Limitations

The study will mainly focus on the responses of former employees who voluntarily

resigned. Current employees are not currently considered since they are still working at the

public agency. The study is seeking to discover trends as to why employees leave an

organization. However, the focus on current millennial employees can be a field for further

research with an emphasis on turnover intention. In this study, managers are the second

group of participants, but a limitation can be that leadership in the organization, such are

directors or other stakeholders who make decisions for the agency, are not interviewed.

Their insight will be something to look at in further research, as well. Another possible

limitation is that this study primarily focuses on millennial employees and not all other

generations. Mainly because the majority of the workforce is currently and will continue

to be Millennials for the next few years.

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Conclusion

As millennials are projected to become the majority of the workforce in the coming

years, it is crucial to strategize and adapt to their work values and tendencies (McGinnis-

Johnson and Ng, 2016; Piatak, 2017). The literature details that they are the most mobile

generation when compared to other generations (Cloutier et al., 2015; Ferri-Reed, 2014;

McGinnis-Johnson & Ng, 2016; Pyöriä et al., 2017; Walden et al., 2017). Public sector

agencies need to adapt and implement innovative retention strategies to minimize the

financial and organizational impact that comes along with turnover. Researchers have

explained that replacing an employee can be financially costly and can also affect employee

morale and effectiveness (Abbasi & Hollman, 2000; Cloutier et al., 2015). Millennial

mobility from job to job and the cost of turnover should be alarming to public sector

managers. However, managers can implement retention strategies that can help minimize

turnover and increase retention.

Millennials value a workplace that will ensure a work-life balance and one that is

also flexible with schedules. (de Vries et al., 2019; Piatak, 2017). The flexible work option

of teleworking can prove to be beneficial in retaining millennial employees as it offers both

flexibility, work-life balance, and trust (de Vries et al., 2019). Trust in their managers for

providing the option of teleworking will lead to millennial employees offering the

organization their commitment (de Vries et al., 2019). This option can work for

government agencies, as teleworking can be offered to most of their positions. This option,

however, may be challenging to offer to positions that work in the field.

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There is still much to learn about the Millennial generation in the workplace, and

further research would be needed in the field of study to better understand what strategies

work and which do not. Once Millennials settle into the workplace, values are work ethic

may change with years of work experience, but that is yet to be seen.

29

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34

Appendix A

Former Employee Interview Questions

First off, thank you for participating in this interview process. The purpose of this

interview is to get a better understanding as to why you resigned from a local government

agency. There is no compensation for your participation. The benefits of this interview will

help us better understand what strategies can be implemented to retain talent at the local

municipality better. Your participation in this interview process is voluntary, and you have

the right to stop the survey at any time, and/or refuse to answer specific questions. Your

participation in this interview is also anonymous and confidential. The interview recording

and responses will be stored in a USB file that will be kept under password for the use of

the researcher only. If you have any questions about this study, please contact (the

researcher) at (email).

This interview should take approximately 30 minutes to an hour to complete, depending

on the length of the responses and any follow-up questions. Thank you for your

participation.

Interview Questions

1. What is your current age?

2. What age were you when you resigned at (local municipality)?

3. What was your title at (local municipality)?

4. How long did you work at (local municipality)?

5. What was your reason for resigning at (local municipality)?

6. What, if anything, could have been done to retain you at (local municipality)?

7. Would you consider returning to (local municipality)? Why or why not?

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8. What changes should (local municipality) implement to retain current and future

employees?

36

Appendix B

Current Manager Interview Questions

First off, thank you for participating in this interview process. The purpose of this

interview is to get a better understanding as to what you think is the reason employees

resign and what strategies are currently in place to retain employees. There is no

compensation for your participation. The benefits of this interview will help us better

understand what strategies are in place to retain employees. Your participation in this

interview process is voluntary, and you have the right to stop the survey at any time, and/or

refuse to answer specific questions. Your participation in this interview is also anonymous

and confidential. The interview recording and responses will be stored in a USB file that

will be kept under password for the use of the researcher only. If you have any questions

about this study, please contact (the researcher) at (email).

This interview should take approximately 30 minutes to an hour to complete, depending

on the length of the responses and any follow-up questions. Thank you for your

participation.

Demographic Questions (select from the drop-down menu)

1. What is your age?

2. What is your current title?

3. How long have you been working at (local municipality)?

4. What do you think are some of the main reasons why employees resign at (local

municipality)?

5. What retention strategies does (local municipality) have in place to increase

retention rates?

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6. Do you think the retention strategies being used are successful in limiting

turnover? Why or why not?

7. What do you think is the biggest problem in retaining employees?

8. What changes would you like to see, if any, to decrease turnover?