In my experience this divide comes from multiple problems.
Expectations - In the past it was incredibly rare for skilled employees to work a 40 hour week, 50-60 was the general expectation for professional positions in the private sector. That expectation in traditional companies often still exists, while the millennial generation, as a whole, is unwilling to to put in this type of effort, regardless of the pay rate.
It is also expected that new engineers will do the grunt work while the established and proven engineers get the better projects and assignments. This does not sit well with the current generation, to be fair it didn't sit well with Gen x or Gen y either until they were the ones in the old guard chair. But in the era of the tech startup, high risk, high reward positions where a new engineer starts out the same as one with 20 years experience, the millennials are unwilling to start at the bottom, when they can start much closer to the top.
For the millennial chances are they are not looking at the position as a start of a career with the company, instead this is just their first, or often just another job. They have no intention of being with the company in 20 years, and probably doubt the company will still exist in 20 years. Not because the company is managed poorly but just because in their lifetimes there have been a huge number of companies that have collapsed or been bought out. So the typical millennial's expectation is that the company is not likely to survive in its current form until it is time for me to retire.
Compensation - Many traditional companies are very reluctant to pay new engineers a wage similar to what their established and proven engineers are making. However the market is strong for new engineers to come into companies making significantly more than their peers were just 5 years ago let alone 10-20 years ago.
Part of that is because advances in technologies mean that a single engineer that is highly productive can produce so much more than they could. Part of it is just that there is a greater demand for engineers than there is a supply of them seeking employment in the market. Thus even marginally skilled engineers can command a high salary.
Conversely there is less of a demand for the soft skills employees with the increase in the use of the Internet to handle most of the customer interfacing.
This has lead to weak market for these types of jobs.
Combine that with the millennial expectation that they will not likely remain employed with the company for 20 years, benefits like retirement, high quality insurance benefits, and the ability to eventually get 4 or 5 weeks vacation are completely meaningless to them when comparing offers.
Upward Mobility - Many traditional companies are very limited in the ability to move up. There are usually 2 or 3 ranks (Junior, Engineer, Senior), and going from junior to senior will take an average engineer 25 years, while even the best are going to be lucky to do it in 15. The millenial generation has grown up with the level me up mentality. Large corporations with the ability to grow quickly and a much taller ladder to climb are more attractive to them than a tradition small to mid-sized business. And a start up provides them with the chance to get in on the ground floor and be at the top of the food chain if it succeeds in 5 to 10 years.
Respect - There is an expectation of respect from older and more experienced people that the current generation does not seem understand. This has been true for as long as there have been generation differences. But in the past there were not options to work in companies run by 20 year old wiz kids. So in the end many of the senior employees grew up in a climate where they had to learn to thrive in that environment, which meant showing the old guys the respect they demanded, and shoveling the poop(metaphorically) until there was another new guy to take over that job, and you proved you were able to handle the next position.
That climate is gone in many places. Companies are becoming used to bringing in new people, putting them on important projects, and getting the results they want. Companies that still cling to that old school paradigm are finding it nearly impossible to retain new hires for more than a year or two. However, having paid their dues, your current engineers are unlikely to be willing to abandon that mindset.
The result the company has gotten itself into a problem where there is not a cheap and easy fix. Anything your company can do to fix the paradigm to one that works in today's business is going to cost them money and probably quite a bit of it. And it is going to take a long term effort to fix the problem.
Your committee will have to figure out how to fix the issue. I would start by including on your committee not just from engineering but some veterans from the business side. What ever changes you make you will need to have the buy in not just from your millennial staff but also from those who have been with the company for many years as well. It is not going to be easy, I feel safe to predict.
One solution I commonly have seen in my capacity as a consultant(contractor) is that companies put their old guys on a Legacy team, and leave them to maintain systems in place, while bringing in a new team to take over any new projects. This has the effect of allowing for support of your existing platforms, while fixing the problem of not being able to retain new hires(assuming you have good management on the new team).
However this usually results in losing not only the moral of your legacy team, but those guys have a ton of business experience and understanding that gets lost. They tend to understand the needs of the business from an engineering perspective in ways that can only be done through the years of experience they have. I would urge you committee to try to find a solution that avoids that.