Understanding the Attitudes of Generation Y Employees

Abstract

This is the first time in history that the workforce is comprised of employees spanning four different generations. Due to age, experience, and the generational size, members of the Baby Boomers comprise a majority of the management positions. Generation Y is the newest generation into the workforce and possibly the most influential due to their technical savvy. However, the generational differences between these two cause many managerial issues; the most important of which is motivating and retaining these Generation Y employees. This project delves into comparisons between Generation Y and Baby Boomers to determine the best methods of retention. Employee retention is one of the most important issues companies face. Replacing an employee typically costs at least 150% of that employee’s annual salary. High turnover also makes it extremely difficult to cultivate new managers from within the company. With more than half of generation Y employees having either already switched careers or planning on switching sometime before they retire, Generation Y retention becomes very difficult. After examining personal experience, interviews, and an online survey, I have found that to best retain these employees, a company must understand what keeps them satisfied in the workplace. A majority of Generation Y members are concerned with keeping a work/life balance. Offering flexible hours, fewer overall hours, and more vacation time allows these individuals to balance their life outside of work, while still succeeding for the company. Almost all companies can compete with salary, so companies must use other techniques such as advancement and schedule to keep these important Generation Y employees for the long haul.