This chapter is an overview introduction of the study and addresses the background of the study, the problem statement of the study, the purpose of the research, the research questions, the contribution of the study, and definitions of key terms.
Background of the Study
Continuing advancement in technology and rapid globalization has propelled organization to pay more attention to win the war for talent. Moreover, in Harvard Business Review, Hewlett, Sherbin, and Sumberg (2009) indicated that companies would face the challenge of winning over top talents and managing the changing composition of the workforce. Organizations have to start to recognize generational differences in the workforce.
Henson (2005) also stated that significant changes will occur in the pool of available talents, such as worker attitudes and preferences. A survey conducted in 2009 by Towers Waston, an international human resource consultant company, showed that a quarter of multinational executives believed that recruiting and retaining Generation Y talent is a key to business success in the future. Also, the major challenge of talent management will come from how to manage Generation Y and how to have good cross-generation communication (Tapscott, 2008;
Tyler, 2007)
Issues of social science differ by generations; without questions, the same phenomenon happens in human resource management field. VanMeter, Grisaffe, Chonko, and Roberts (2013) stated that modern workplaces involve diverse blends of individuals, including generational diversity. Henson (2005) also indicated that a decade-by-decade analysis reveals several age groups with distinct characteristics working together simultaneously. According to the definition of Tapscott (2008), Generation Y, also called the Net Generation, started
approximately 80 million people born from 1981 to 2000 globally. That is to say, in 2014 when this study is conducted, the approximate age range of people belong to this new generation is from 14 to 33 years old. No doubt this generation will become the main labor force in the near future. On the other hand, the main management labor force belongs to the so-called Baby Boom Generations who were born between January 1947 to December 1964 (Tapscott, 2008). Generations showing different personalities, values, attitude, and behaviors in workplaces may bring out new management issues, such as the collision between freewheeling Generation Y/ Net Generation and the traditional boomer employers (Tapscott, 2008).
Some studies have discussed the changing work styles, wants and needs of the Y generation, and the ways managers lead this new generation (Tolbize, 2008). Nevertheless, few studies addressed specifically the main factors causing this generation to quit their job.
Mercer, another international well-known human resource consultant company conducted a survey among nearly 30,000 workers in 17 geographic markets from the fourth quarter of 2010 to the second quarter of 2011. According to the findings of this survey, younger workers were more likely than their older colleagues in all 17 markets to consider leaving their employers. Broken down the findings of this survey by age group, employees aged 16-24 were most likely to have the thoughts of leaving (46%). Employees aged 25-34 accounted for 40% (http://www.mercer.com/press-releases/1430455). The results showed that younger generation had higher intention to leave their jobs. In addition, being treated with respect and quality of leadership are cited by employees as most influential to their motivation and engagement at work in Asia from the results of this survey. Moreover, the total work experience, which involves how employees are treated, what kind of work employees do, how employees feel about their colleagues and bosses, and the general work environment, may influence employee engagement ( http://www.mercer.com/press-releases/1430455).
working parents, they expect more interactions from both peers and the environment.
Therefore, relationship with peers may influence Generation Y‟s learning styles and preferences (McCrindle & Wolfinger, 2009; Carver, 2011). These discussions seem to suggest that how the new generation perceives the support from their supervisors and coworkers, and whether the entire working environment fit their own values have great influence on their intention to leave or stay. Therefore, this study aims to empirically test the impact of person-organization fit, perceived supervisor support, and perceived peer support to the intention to leave of Generation Y.
The literature has already indicated that turnover is costly to firm. Allen, Weeks, and Moffitt (2005) mentioned that, to employees, turnover may involve risk (e.g., uncertainty about alternative opportunities), financial costs (e.g., unvested pensions), transaction costs (e.g., moving), and psychological costs (e.g., loss of valued work relationships). Scholars also indicated that voluntary employee turnover has negative consequences to the organization, such as high replacement costs, diminished productivity, and lower employee morale, and so on (Hausknecht, Trevor, & Howard, 2009). Therefore, managers and organizations should undoubtedly pay more attention to voluntary employee turnover. Yet, understanding employees is not an easy task, especially in this global village full of information flowing every day. From now on to next decade, Generation Y who grew up with digital media and internet is ready to occupy the main work place. Some of them are not only employees in the future but also going to become employers. Therefore, how to retain employees of this generation and how to properly manage these employees have become very important issues to human resource management among organizations.
Rationale of the Study
Generation Y have very different characteristics when compared to past generations.
VanMeter et al. (2013) stated that people who enter the workforce during economic downturns are more likely to feel grateful for what they have than people who enter workforce during economic upturns. People belonging to Generation Y entered the workforce during economic upturns. They expect more freedom and personalized work, and at the same time, they prefer to work as a team and need supervisors to pay more attention on them and talk to them more often than the Baby Boom Generation does (Tapscott, 2008).
As mentioned above, this young generation is more likely to think of leaving their employers. However, Tapscott (2008) conducted a survey showing that the Net Generation/
Generation Y actually expects they can stay in one or two companies after they enter the workplace, but, most of them end up quitting their jobs within two years. Another survey conducted among 2000 workers from August to September in 2008 by Randstad USA (Randstad USA, 2014), a large employment agency, also revealed similar results. The survey findings showed that the Generation Y has more ambition and willingness to work than older workers. They are eager to show their loyalty and dedication to their employers. Therefore, the problem is why employees form the Generation Y/ Net Generation quit their jobs when they expect themselves to be loyal employees.
Furthermore, in 2013, Aon Hewitt, an international human resource consultant company, conducted a survey called Best Employer for Generation Y among nine countries of Asia, Taiwan, China, Korea, Singapore, Hong Kong, Malaysia, Indonesia, India, and Thailand. Yet, Taiwan was the only country which did not get the special award (http://www.aon.com/apac/human-resources/thought-leadership/talent-organization/best-empl oyers/2013_results.jsp). This is an indication that Taiwanese enterprises have not implemented proper staffing and management practices for Generation Y.
Statement of the Problem
Intention to leave is defined as an overall attitude that is composed of thought of quitting and intention to search other possible jobs (Miller, Katerberg, & Hulin, 1979). Based on the abundant turnover literature, intention to leave is a prominent factor to predict actual employee turnover and may also be the last step before employees perform actual turnover behavior in the turnover process (Chang, Wang, & Huang, 2013; Mobley, Griffeth, Hand, &
Meglino, 1979). Scholars indicated that external correlates (e.g. organizational climate, organization commitment), work-related correlates (e.g. job satisfaction, met expectations, satisfaction with supervisors), and personal factors (e.g. personality, age, tenure) are related to voluntary turnover (Cotton & Tuttle, 1986). However, few studies on turnover target Generation Y especially in Taiwan.
Furthermore, as previously discussed, Generation Y concerns more about the total work experience, such as how they feel about the entire work environment and how they are treated by organizations. Therefore, psychological factors may influence more on their decision to stay with a company or not. If an organization cannot match Generation Y‟s need, the possibility of intention to leave may be higher. When Generation Y cannot receive what they need from the organization, they may turn to their supervisors who interact with them the most. However, most supervisors who belong to a different generation from Generation Y may not truly understand this new generation. As a result, Generation Y employees may not feel they receive sufficient support from their supervisors. Moreover, Generation Y seems more easily influenced by peers than the prior generation and may also have a higher preference for teamwork. Thus, the interaction effect of person-organization fit, perceived supervisor support, and perceived peer support may provide much insight on Generation Y employees‟ turnover intention.
education level, family responsibilities, and tenure, on turnover intention of Generation Y. As these may show a different pattern from researches that were done on their predecessors, analysis of demographics may bring additional insight into Generation Y‟s turnover intention.
Purpose of the Study
The main research purpose of this study is to have further understandings of what employees of Generation Y want and care about for their work and what factors influence their intention to leave. This study collected demographics (i.e. gender, age, education level, numbers of dependents, and tenure) of participants to examine whether demographic factors have significant influence on intention to leave of Generation Y. In addition, this study was conducted to examine whether person-organization fit influences intention to leave of Generation Y, and at the same time, to find out what specific dimensions of person-organization fit have more impact. Moreover, this study aimed to test whether perceived supervisor support and perceived peer support moderate the relationship between person-organization fit and intention to leave. The result of this study may provide more updated details of Generation Y‟s demographic composition in Taiwan and how they relate to turnover intentions. Also, the result may help organizations to have a clearer picture of Generation Y‟s needs to better prepare the working environment and the supervisors to get ready for this new workforce.
Research Questions
Derived from the problem statement and research purpose above, this study attempted to investigate and analyze the relationship between predictors of turnover and intention to leave a company in the Generation Y by answering the following research questions:
1. Will demographic factors have a significant relationship with intention to leave of Generation Y?
of Generation Y?
3. Will perceived supervisor support have a moderating effect on the relationship between person-organization fit and intention to leave a company of the Generation Y?
4. Will perceived peer support have a moderating effect on the relationship between person-organization fit and intention to leave a company of the Generation Y?
Definition of Key Terms Generation Y
Generation Y, also called Millennials or The Net Generation, started from January 1977 to December 1997 and it is the first generation to grow up surrounded by digital media, such as e-mail, instant messaging (IM) and cell phones since childhood and adolescence (Tapscott, 2008; Tyler, 2007).
Intention to Leave
Intention to leave and turnover intention are used as alternative to each other. Intention to leave is defined as conscious and deliberate willfulness to leave the organization (Tett &
Meyer, 1993).
Person-Organization Fit (POF)
P-O fit is the equivalence between the norms and values of organizations and the values of individuals. P-O fit is the compatibility between people and organizations that occurs when one entity provides what the other needs or they share similar fundamental characteristics (Chatman, 1989; Kristof, 1996).
Perceived Supervisor Support (PSS)
Perceived supervisor support is defined as the perception of how much supervisors value subordinates‟ contributions and care about their well-being (Kottke & Sharafinski, 1988).
Perceived Peer Support (PPS)
and offer more authentic empathy. Also, peers can offer each other practical advice and suggestions that other professionals may not offer (Mead & MacNeil, 2006). Perceived peer support is defined as the perception of empathy, advice and suggestions peers provide.