Understanding and Managing The Generation X and Generation Y And Studying It's Impact on Employee Retention

Abstract

Purpose -The current workforce is majorly dominated by Generation X and Generation Y employees and they have a long tenure of working together. Each generation beliefs, work attitudes, preferences and values are shaped by the social and life experiences of their generational group which makes the needs of each generation unique. Though both the generations are similar in some approaches, they are yet different from the other generation. These unique needs, if not addressed properly can negatively influence many important functions of the management, employee retention being one of the most impacted. This paper aims to address what is important to each generation and which various factors play a vital role in retaining these generations in organisations. Design/Methodology/Approach - The perceptions and work preferences of 500 respondents were taken into consideration and classified into ten constructs. The methodology used involved an initial confirmatory factorial analysis, which was undertaken to examine the validity of the proposed measurement model. Regression analysis was applied to test the significance of the work preferences on employee retention for each generation. Findings This research shows the importance of identifying and acknowledging the characteristics, work preferences and potential points of similarities and differences that exist between Generation X and Gencration Y. Further, organizations must develop a work environment that can capitalize on the similar characteristics and work expectations of each generation to leverage the overall productivity and at the same time, strategize to minimize the negative impact of their points of differences. Communication and Work environment was found to be valued by Generation X and Communication, Personal Beliefs and Interpersonal relations were valued by Generation Y and had significant impact on their employee retention. Research Limitations - This study is a cross sectional study so it is difficult to substantiate whether the preferences given by the respondents are impacted by their age or generational influence. For the purpose of organization specific results and for strategy formulation, present study can be conducted on single firm or categorizing the companies into industries and results can help the managerS and HR practitioners to better manage executive employees. Also, the responses collected for the current study had been collected during pandemic era, an empirical research in the usual circumstances might change or increase the variables having significant impact on retention of both the generations and the results might be different. A geography wise and gender wise bifurcation of the responses might also yield different results.Practical Implications - The authors believe that the identification of work preferences of cmployccs from both the gencrations and the factors which impact the employces from Gencration A and Gencration Y to stay with an organization enables human resources professionals to implemcnt policics and practices that bring into line people managcment with the preferences at work of cach generation, cffectively ensuring retention from employees ofboth the generations. Originality/value - This literature review takes into account the characteristics, work preferences and potential points of similarities and differences of cach generation and it's impact on employee retention of organizations. The problem of a generationally diverse workplace is pronounced and accepted globally in today's scenario. The data analysis is based on data collected by researchers from respondents from various sectors