The Role of Intergenerational Differences in Influencing Perceptions of Salary and Benefits: A Review Study

Authors

  • Mohd Huzaini Abdul Malik Graduate School of Management, Postgraduate Centre, Management and Science University, 40100 Shah Alam, Selangor, Malaysia
  • Adiza Alhassan Musah Graduate School of Management, Postgraduate Centre, Management and Science University, 40100 Shah Alam, Selangor, Malaysia

DOI:

https://doi.org/10.53469/jgebf.2024.06(09).01

Keywords:

Compensation and Benefits, Challenges, Generation X, Generation Z, Millennials, Perceptions, Pattern

Abstract

There are at least four generations represented in the modern labor force, each with their own perspectives on work values. The impact of Generation X, Millennials, and Generation Z on the workplace has been significant, posing challenges for organizations in developing a competitive compensation strategy that caters to each generation. The objective of this research review is to examine generational characteristics, conduct a thorough analysis of cross-generational perspectives and preferences, explore influences on compensation and benefits trends, and address the challenges of managing different generations, along with potential solutions. The underlying assumption is that there are shared similarities or differences in these determinants across generations. We conducted a comprehensive review of recent literature on generational cohorts and compensation and benefits to summarize findings from the past five years. This review will also serve as a foundation for future longitudinal research, aiming to uncover the latest insights into trends among organizational cohorts and other related factors, particularly in the realm of compensation and benefits, and how they intersect with other organizational contexts, potentially influenced by socioeconomic events. Researchers suggest that qualitative research or mixed methods, with their more robust methodologies and theoretical study objectives, are the most appropriate approaches to explore generation as an influencing variable in research.

References

Aggarwal, A., Sadhna, P., Gupta, S., Mittal, A., & Rastogi, S. (2022). Gen Z Entering the Workforce: Restructuring HR Policies and Practices for Fostering the Task Performance and Organizational Commitment. Journal of Public Affairs, 22(3), 1–18. https://doi.org/10.1002/pa.2535

Aina, R. Al, & Atan, T. (2020). The Impact of Implementing Talent Management Practices on Sustainable Organizational Performance. Sustainability (Switzerland), 12(20), 1–21.

https://doi.org/10.3390/su12208372

Alferjany, M. A., Abdullah, M., Alferjany, O. A., & Alias, R. B. (2021). Generational Differences in Values and Attitudes within Workplace. Article in Psychology and Education Journal, 1495–1503.

www.psychologyandeducation.net

Alhmoud, A., & Rjoub, H. (2020). Does Generation Moderate the Effect of Total Rewards on Employee Retention? Evidence From Jordan. SAGE Open, 10(3), 1–15. https://doi.org/10.1177/2158244020957039

Ann, S., & Blum, S. C. (2020). Motivating Senior Employees in the Hospitality Industry. International Journal of Contemporary Hospitality Management, 32(1), 324–346. https://doi.org/10.1108/IJCHM-08- 2018-0685

Appelbaum, S. H., Bhardwaj, A., Goodyear, M., Gong, T., Sudha, A. B., & Wei, P. (2022). A Study of Generational Conflicts in the Workplace. European Journal of Business and Management Research, 7(2), 7–15. https://doi.org/10.24018/ejbmr.2022.7.2.1311

Arras-Djabi, M., Cottard, L., & Shimada, S. (2023). Understanding the Stereotypes of Millennials in the Workplace. European Management Review, 1–21. https://doi.org/10.1111/emre.12559

Babel’ová, Z. G., Stareček, A., Koltnerová, K., & Cagáňová, D. (2020). Perceived Organizational Performance and Retaining Employees with Respect to Different Generational Groups of Employees and Sustainable Human Resource Management. Sustainability, 12(2), 1–23. https://doi.org/10.3390/su12020574

Brachle, B., & McElravy, L. J. (2023). WHAT ARE WE MISSING? Problems with Using Generational Cohorts in Leadership Research and Suggestions for a Better Direction. The Journal of Leadership Education, 22(1), 1–18. https://doi.org/10.12806/v22/i1/r1

Brink, K. E., & Zondag, M. M. (2021). Examining Job Attribute Preferences Across Three Generational Cohorts. Journal of Career Development, 48(1), 60–72. https://doi.org/10.1177/0894845319837384

Chen, X., Al Mamun, A., Hussain, W. M. H. W., Jingzu, G., Yang, Q., & Al Shami, S. S. A. (2023). Envisaging the Job Satisfaction and Turnover Intention among the Young Workforce: Evidence from an Emerging Economy. PLoS ONE, 18(6), 1–21. https://doi.org/10.1371/journal.pone.0287284

Costanza, D. P., Ravid, D. M., & Slaughter, A. J. (2021). A Distributional Approach to Understanding Generational Differences: What Do You Mean They Vary? Journal of Vocational Behavior, 127, 1–19. https://doi.org/10.1016/j.jvb.2021.103585

Dorina Racolța-Paina, N., & Dan Irini, R. (2021). Generation Z in the Workplace through the Lenses of Human Resource Professionals-A Qualitative Study. General Management, 22(183), 78–85. https://www.researchgate.net/publication/352374489

Egerová, D., Komárková, L., & Kutlák, J. (2021). Generation Y and Generation Z Employment Expectations: A Generational Cohort Comparative Study from Two Countries. E a M: Ekonomie a Management, 24(3), 93–109. https://doi.org/10.15240/TUL/001/2021-03-006

Evseeva, S., Rasskazova, O., Kalchenko, O., & Evseeva, O. (2020, November 18). Training Generations X Y Z in Human Resource Management. ACM International Conference Proceeding Series. https://doi.org/10.1145/3446434.3446513

Frye, W. D., Kang, S., Huh, C., & Lee, M. J. (MJ). (2020). What Factors Influence Generation Y’s Employee Retention in the Hospitality Industry?: An Internal Marketing Approach. International Journal of Hospitality Management, 85. https://doi.org/10.1016/j.ijhm.2019.102352

Fulmer, I. S., & Li, J. (2021). Compensation, Benefits, and Total Rewards: A Bird’s-Eye (Re)View. Annu. Rev. Organ. Psychol. Organ. Behav. 2022, 9, 147–169. https://doi.org/10.1146/annurev-orgpsych-012420

Gabrielova, K., & Buchko, A. A. (2021). Here Comes Generation Z: Millennials as Managers. Business Horizons, 64(4), 489–499.

https://doi.org/10.1016/j.bushor.2021.02.013

Ghadi, M. Y., AlGhazo, A. M., Al-Nakeeb, A., Qureshi, T. M., Shehata, O. I., & Ghadi, O. Y. (2023). Exploring the Differences in Work Value Among Generations in the UAE. International Journal of Service Science, Management, Engineering, and Technology, 14(1).

https://doi.org/10.4018/IJSSMET.318086

González, F., Selva, C., & Sunyer, A. (2021). The Influence of Total Compensation on Job Satisfaction. Universitas Psychologica, 20, 1–15.

https://doi.org/10.11144/JAVERIANA.UPSY20.ITCJ

Hassan, Z. (2022). Employee Retention Through Effective Human Resource Management Practices in Maldives: Mediation Effects of Compensation and Rewards System. Journal of Entrepreneurship, Management and Innovation, 18(2), 137–173.

https://doi.org/10.7341/20221825

Irawan, I. A. W., & Komara, E. (2020). The Influence of Financial Compensation and Career Development Mediated Through Employee Engagement Toward Turnover Intention of Millennial Employees of XYZ Group. Jurnal Ekonomi, Manajemen Dan Perbankan, 6(2), 75–89.

https://doi.org/https://doi.org/10.35384/jemp.v6i2.251

Isabelle, D. M. (2020). Compensation and Benefits Policy Design and Implementation – A Company’s Key To Success [Haute École de Gestion de Genève]. https://doc.rero.ch/record/330009/files/MIR-

DEBORAH-RENDU-JUL20.pdf

Jambulingam, M., Hassan, M. M., Narayan, E., Islam, S. N., & Zaman, A. U. (2021). Retention Approaches of Millennial at Private Sector: Mediating Role of Job Embeddedness. Global Business Review, 1–27. https://doi.org/10.1177/0972150920932288

Jane Cacanindin, R. N. (2023). Generational Differences in Job Satisfaction Level Among Employees of State College in Aurora Province, Philippines. Asia Pacific Higher Education Research Journal, 10(1), 14–30. https://po.pnuresearchportal.org/ejournal/index.php/aph erj/article/view/1975

Jereb, E., Urh, M., Strojin, Š., & Rakovec, P. (2019). Importance and Satisfaction of Employees with Factors Related to Job Satisfaction: Differences between Generation X and Y. 23–32.

https://doi.org/10.31410/EMAN.S.P.2019.23

Kennedy, J. O., Okechuhwu, E. U., & Mbah, P. C. (2023). Identification and Management of Generation Z Employees in the Workplace. Advance Journal OfManagement and Social Sciences, 7(2), 134–155. https://aspjournals.org/Journals/index.php/ajmss/index

Kim, H. S., & Jang, S. C. (Shawn). (2020). The Effect of Increasing Employee Compensation on Firm Performance: Evidence from the Restaurant Industry. International Journal of Hospitality Management, 88(2020), 1–9.

https://doi.org/10.1016/j.ijhm.2020.102513

Kollmann, T., Stöckmann, C., Kensbock, J. M., & Peschl, A. (2020). What Satisfies Younger Versus Older Employees, and Why? An Aging Perspective on Equity Theory to Explain Interactive Effects of Employee Age, Monetary Rewards, and Task Contributions on Job Satisfaction. Human Resource Management, 59(1), 101–115.

https://doi.org/10.1002/hrm.21981

Kristal, T., Cohen, Y., & Navot, E. (2020). Workplace Compensation Practices and the Rise in Benefit Inequality. American Sociological Review, 85(2), 271– 297. https://doi.org/10.1177/0003122420912505

Macovei, C. M., & Martinescu-Bădălan, F. (2022). Managing Different Generations in the Workplace. International Conference KNOWLEDGE-BASED ORGANIZATION, 28(2), 191–196.

https://doi.org/10.2478/kbo-2022-0071

Magano, J., Silva, C., Figueiredo, C., Vitória, A., Nogueira, T., & Pimenta Dinis, M. A. (2020). Generation Z: Fitting Project Management Soft Skills Competencies—A Mixed-Method Approach. Education Sciences, 10(7), 1–24.

https://doi.org/10.3390/educsci10070187

Mahmoud, A. B., Fuxman, L., Mohr, I., Reisel, W. D., & Grigoriou, N. (2021). “We aren’t your reincarnation!” Workplace Motivation A X, Y and Z Generations. International Journal of Manpower, 42(1), 193–209. https://doi.org/10.1108/IJM-09-2019-0448

Maloa, F., & Fobian, D. (2020). Exploration of the Reward Preferences of Generational Groups in a Fast- Moving Consumer Goods Organization. SA Journal of Human Resource Management, 18(0), 1–11.

https://doi.org/10.4102/sajhrm

Mansaray-Pearce, S., Bangura, A., & Kanu, J. M. (2019). The Impact of Financial and Non-Financial Rewards on Employee Motivation: Case Study NRA Sierra Leone. International Journal of Research in Business Studies and Management, 6(5), 32–41. https://www.ijrbsm.org/papers/v6-i5/4.pdf

Md Mahamudul, H., Alam, M. N., Aslam, M. S., & Jambulingam, M. (2020). Redesigning the Retention Strategy Against the Emerging Turnover of Generation Y Revisiting the Long-Standing Problems From 20 to 21 Century. International Journal of Entrepreneurship, 23(2), 1–17.

Mutiso, J. M., Rahab Mugambi, D., & Maranga, V. (2022). Employee Compensation Strategies and Labour Turnover in Star Rated Hotels in Nairobi City County- Kenya. African Journal of Emerging Issues, 4(4), 120– 129.

Ng, Y. N., & Salamzadeh, Y. (2020). The Impact of Ethical Leadership on the Intention to Stay among the Generation-Y Workforce of MNCs in Penang, Malaysia: Mediating Role of Employee Rewards. Journal of Business Science and Applied Management, 15(2), 16–37. http://hdl.handle.net/10419/261645

Onukwuba Henry Okwudili. (2020). Managing Millennials in the African Workplace What the MIllennials Need. Journal of Organizational Pscyhology, 20(2), 139–158. http://m.www.na- businesspress.com/JOP/JOP20- 2/9_OnukwubaFinal.pdf

Pitaloka, E., Naibaho, H., Prasetio, T., & Kayla Putri Agustono, S. (2023). Generation X and Millennials: Perception Toward Pay for Individual Performance. KnE Social Sciences, 2023, 769–780.

https://doi.org/10.18502/kss.v8i12.13723

Prund, C. (2021). It Is Time to Realize Generations Matter on the Labour Market. Interesting Facts About Generations in the Workplace. Revista Economică, 73(1), 88–100.

https://doi.org/http://dx.doi.org/10.56043/reveco-2021- 0008

Putu, N., Damayanthi, S., & Suastini, N. M. (2022). The Effect of Indirect Compensation on Employee Performance: Case Study at The Khayangan Dreams Villas, Bali, Indonesia. International Journal of Applied Research in Tourism and Hospitality, 1(2), 156–168. https://doi.org/10.52352/jarthy.v1i1.814

Rafiki, M., & Hartijasti, Y. (2022). Generational Differences in Dimensions of Work Values of Indonesian Permanent Employees. Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021), 210, 298–303.

https://doi.org/https://doi.org/10.2991/aebmr.k.220304. 039

Ramli, Y., & Soelton, M. (2019). The Millennial Workforce: How Do They Commit to the Organization? International Journal of Business, Economics and Law, 19(5), 7–18. https://ijbel.com/wp- content/uploads/2019/08/K19_204.pdf

Safrankova, J. M., Sikyr, M., & Skypalova, R. (2020). Innovations in Workforce Management: Challenges in the Fourth Industrial Revolution. Marketing and Management of Innovations, 2, 85–94.

https://doi.org/10.21272/mmi.2020.2-06

Setiawan, R., Cavaliere, P. L. L., Chowdhury, A. R., Koti, K., Mittal, P., Tamil, S. S., Suman, S. rajest, Regin, R., Singh, S., & Subramaniam, T. S. (2021). The Impact of Motivation on Employees Productivity in The Retail Sector: The Mediating Effect of Compensation Benefits. Turkish Online Journal of Qualitative Inquiry (TOJQI), 12(6), 8159–8190.

Singh, V., Verma, S., & Chaurasia, S. (2020). Intellectual Structure of Multigenerational Workforce and Contextualizing Work Values Across Generations: A Multistage Analysis. International Journal of Manpower, 42(3), 470–487.

https://doi.org/10.1108/IJM-04-2019-0207

Tanveer, M., Hassan Meiraj, Ali Shah, Z., & Ul Islam,

S. (2020). Clash of Generations: Assessing the Impact of Generational Diversity in a Workforce. International Journal of Business and Economic Affairs, 5(4), 184– 198. https://doi.org/10.24088/ijbea-2020-54004

Vizano, N. A., Sutawidjaya, A. H., & Endri, E. (2021). The Effect of Compensation and Career on Turnover Intention: Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(1), 471–478.

https://doi.org/10.13106/jafeb.2021.vol8.no1.471

Yamane, T., & Kaneko, S. (2021). Is the Younger Generation a Driving Force Toward Achieving the Sustainable Development Goals? Survey Experiments. Journal of Cleaner Production, 292(2021), 1–14.

https://doi.org/10.1016/j.jclepro.2021.125932

Zafirah, N., Amiruddin, M., & Rodzalan, S. A. (2022). The Relationship Between Compensation and Job Satisfaction. Universitas Muhammadiyah Yogyakarta Undergraduate Conference, 2(1), 333–337.

https://doi.org/10.18196/umygrace.v2i1.467

Downloads

Published

2024-09-26

How to Cite

Malik, M. H. A., & Musah, A. A. (2024). The Role of Intergenerational Differences in Influencing Perceptions of Salary and Benefits: A Review Study. Journal of Global Economy, Business and Finance, 6(9), 1–10. https://doi.org/10.53469/jgebf.2024.06(09).01