Abstract This article examines the challenges and opportunities of today's diverse workforce as it relates to the four generations; with an in-depth focus on Generation Y. The author discusses what Generation Y expects from their employer. In addition, the author explores how physical workspace can be aligned to help shape a company's organizational culture and facilitate the communication, teamwork, and creativity that are necessary to retain Generation Y employees. Introduction For most companies, retaining talent and developing future leaders are organizational goals. To meet these goals, companies must understand the needs of today's diverse workforce. Failure to embrace these differences will result in not only having limited talent required for success now and in the future, but also an employee population that is not as engaged as they could be. Employee attitudes impact organizational success. Hence, the level of engagement is critical to an organization's overall effectiveness. I will examine the challenges and opportunities of today's diverse workforce as it relates to the four generations; with an in-depth focus on Generation Y. I will discuss what Generation Y expects from their employer. In addition, I will explore how physical workspace can be aligned to help shape a company's organizational culture and facilitate the communication, teamwork, and creativity that are necessary to retain Generation Y employees. For the first time in the history of the United States, there are four generations in the workforce. It is the largest demographic shift since women and members of minority groups began entering the workforce in significant numbers several decades ago. The implications are as profound now as they were then. Against the background of gender, race and ethnicity, organizations are managing the coexistence of agediverse workers in a transitioning workplace. The Traditionalist generation (pre-1945) is ten percent of the workforce; the Baby Boomer generation (1945-1964) is forty-five percent of the workforce; Generation X (1965-1980) is thirty percent of the workforce; and Generation Y (post-1980) is fifteen percent of the workforce (Eisner, 2005). Although recruitment and retention are top priorities for most companies, finding strategies that appeal to all generations presents its own unique challenges. Beliefs and Attitudes of the Four Generations in the Workforce The generational school of thought maintains that values are imprinted for life by defining historical events that occur as people mature into adulthood. Because of the powerful influence of these shared events, each generation develops a unique set of beliefs and attitudes to guide members' behavior (Giancola, 2006). Traditionalists grew up during the Great Depression and World Wars. Hence, they were socialized through scarcity and hardship. They tend to value family and patriotism. They have had a parent at home to raise children, prefer consistency and use a top-down management style. They are inclined to inform on a need-to-know basis, be satisfied by a job well done, remain with one company over time, and have extensive wisdom and experience. Traditionalists are likely to be loyal and self-sacrificing employees who prefer a hierarchical management structure. When in command, they tend to take charge, when in doubt, they tend to do what is right (Eisner, 2005). Baby Boomers, the children of Traditionalists, grew up in the 1950s and 1960s with feelings of prosperity, safety and that anything was possible. Because they are the largest generation in history, they are competitive by nature, believe in growth, change and expansion. They want it all and work long hours, show loyalty and will be ruthless if necessary to obtain success and material possessions; many do not plan to retire. This generation redefined family by increased divorce rates. They respect authority, but want to be viewed and treated as equals (Eisner, 2005). …