A Generational Change: An Empirical Exploration of the Gen Y’s Workplace Expectations

Abstract

The study was designed to empirically capture expectations of new job seekers and their perceived obligations and expectations as they enter a multigenerational workforce. Specifically, we utilized psychological contract theory to study differences in transactional and relational elements among graduating college seniors entering their first jobs, and the extent to which careerism, expected tenure, and earning potentials influenced the contract formations. The sample (n= 405) were graduating seniors from a state university on the east coast of the United States and all belonged to Generation Y (also referred to as the Millennials). Contrary to existing theories, the results did not reveal that today's young job seekers exemplify selfish behaviors (i.e., expecting more from their future employer than they are willing to reciprocate). However, the data did suggest that individuals entering the workforce with an opportunistic mindset viewed their first job as a stepping stone for future employment and career opportunities, while those scoring lower on careerism endorsed greater loyalty and relational elements, which may not be that different from behaviors among other generations. Earning potential appeared to correlate with both types of psychological contracts (i.e., transactional and relational). However, we found that careerism did moderate and strengthen the relationship between earning potential and transactional contracts. A discussion of the results is included, in addition to limitations of the current study, and recommendations for future studies.