When an industry colleague of mine was recently asked how his company was able to grow from 3 employees in 2006 to 62 last year, his response was Gen Y professionals. It was the ‘build it and they will come’ mentality. The company started by creating a place where people wanted to work and soon top professionals (from their competition) came knocking – and eager to perform.

While hiring and retaining Generation Y professionals is seen as one of the greatest challenges across industries, it also is one of the greatest opportunities for businesses.

Born in the mid-1980's and later, Generation Y professionals are in their 20s and are just entering the workforce. Gen Y, also known as Millennials, is the fastest growing segment of today’s workforce with estimates as high as 70 million.

My generation may have “created” technology and understands the intricacies of the Internet and networks, but Gen Yers have used it their entire lives and know how to make the most out of it. That’s valuable for businesses – no matter the industry.

So, what does it take to attract Gen Y professionals and keep them happy?

A fun place to work.
Previous generations may have thrived in “cube farms,” but not Gen Y. From foosball tables, to segways, businesses that are creating dynamic, engaging, and yes, entertaining work environments are attracting the top Gen Y professionals. It’s being called a “culture of happiness.” I have had to think about this as we developed plans for our new corporate headquarters. It changes the layout to foster collaboration and creativity, and requires us to invest in the “soft stuff” – like a fireplace and lounge space.

Don’t pay for time.
Millennials buck the 8 to 5 system because they do not want to get paid for their time. It’s less about a guaranteed salary and more about their control over paycheck. I often hear this from our top performing Millennials, “Tell me what I need to do to make more money and I’ll go do it.” This is not limited to sales. It may mean they get paid on project profitability or other metrics specific to the job. We implemented a new pay-for-performance bonus last month for one of our divisions and we’re seeing Millennials completely blow it out of the water. Sure, businesses will need to pay more. But they also will make much more.

Give a shout out – for the good things.
Millennials want to be recognized - in front of their peers. Their performance enhances (as do others on the team) when they receive personal accolades for a job well done. They are looking for specific and consistent feedback on the work they do.

Some of the most successful, fastest growing companies are start-ups because they get to start from scratch. It may require a dramatic shift for businesses that have been around for 10 or 20 years and are built around the traditional work environment. But its time and dollars well spent.

Gen Y is the new workforce. They will be running the company someday, and today, their performance-focused minds are driving top and bottom line growth.