Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference

Research on generational differences in the workplace is important as it leads to more effective recruitment, retention, and employee wellbeing in terms of human resource management. This study investigates whether there are differences in perceptions of turnover intention, pay level, and organizati...

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Main Authors: Myeongju Lee, Kyetaik Oh, Hyunok Kim
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Administrative Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3387/15/4/125
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author Myeongju Lee
Kyetaik Oh
Hyunok Kim
author_facet Myeongju Lee
Kyetaik Oh
Hyunok Kim
author_sort Myeongju Lee
collection DOAJ
description Research on generational differences in the workplace is important as it leads to more effective recruitment, retention, and employee wellbeing in terms of human resource management. This study investigates whether there are differences in perceptions of turnover intention, pay level, and organizational culture between different generational groups. First, this study identifies the relationship between pay level and turnover intention. Second, it confirms the moderating effect of organizational culture on the relationship between pay level and turnover intention. Finally, a three-way interaction analysis was conducted to determine whether these relationships differed between Baby Boomers, Gen Xers, and Millennials. As a result of the empirical analysis, the millennial generation showed higher turnover intention than other generations. It was confirmed that the effect of hierarchical culture was greater than that of pay level on the decrease in turnover intention in the millennial generation than in other generations. In other words, it was found that as the hierarchical culture weakened, the turnover intention of Millennials decreased more significantly than that of other generations. Based on these findings, we propose recommendations for understanding Millennials in the workplace and managing generational diversity.
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spelling doaj-art-ee99d40372fe427bb5762356dfccaac92025-08-20T03:14:23ZengMDPI AGAdministrative Sciences2076-33872025-03-0115412510.3390/admsci15040125Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational DifferenceMyeongju Lee0Kyetaik Oh1Hyunok Kim2Department of Business Administration, Gyeongsang National University, Jinju-si 52725, Gyeongsangnam-do, Republic of KoreaDepartments Social Policy Research Division, Korea Labor Institute, Sejong-si 30147, Chungcheong, Republic of KoreaDepartment of Business Administration, Kumoh National Institute of Technology, Gumi-si 39177, Gyeongbuk, Republic of KoreaResearch on generational differences in the workplace is important as it leads to more effective recruitment, retention, and employee wellbeing in terms of human resource management. This study investigates whether there are differences in perceptions of turnover intention, pay level, and organizational culture between different generational groups. First, this study identifies the relationship between pay level and turnover intention. Second, it confirms the moderating effect of organizational culture on the relationship between pay level and turnover intention. Finally, a three-way interaction analysis was conducted to determine whether these relationships differed between Baby Boomers, Gen Xers, and Millennials. As a result of the empirical analysis, the millennial generation showed higher turnover intention than other generations. It was confirmed that the effect of hierarchical culture was greater than that of pay level on the decrease in turnover intention in the millennial generation than in other generations. In other words, it was found that as the hierarchical culture weakened, the turnover intention of Millennials decreased more significantly than that of other generations. Based on these findings, we propose recommendations for understanding Millennials in the workplace and managing generational diversity.https://www.mdpi.com/2076-3387/15/4/125generational differenceshierarchical culturemillennialspay levelturnover intentionemployee wellbeing
spellingShingle Myeongju Lee
Kyetaik Oh
Hyunok Kim
Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
Administrative Sciences
generational differences
hierarchical culture
millennials
pay level
turnover intention
employee wellbeing
title Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
title_full Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
title_fullStr Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
title_full_unstemmed Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
title_short Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference
title_sort effects of organizational culture and pay levels on employee retention focused on generational difference
topic generational differences
hierarchical culture
millennials
pay level
turnover intention
employee wellbeing
url https://www.mdpi.com/2076-3387/15/4/125
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