Leadership challenges associated with the management of Generation Y employees : a proposed theoretical model

This paper acknowledges that Generation Y (Gen-Yers), who have grown up in a world of convenience and easy access to information, are more complex to lead and to understand than generations before them. Gen-Yers have entered the labour market at a time when the current labour force is aging in the world and in South Africa. Gen-Yers are working with forty to sixty-year-olds and in some cases supervising employees old enough to be their parents. If unhappy with work circumstances Gen-Yers change careers fast, thus creating frustration for employers struggling to retain and recruit talented high-performers. According to the report for the Future of Small Business Management (2007) issued by the Institute for the Future (IFTF) based in California which has forecasted emerging trends affecting the global marketplace for 40 years, Gen-Yers, will emerge as the most entrepreneurial generation ever in the next decade. These highly independent individuals will rather be small business owners or freelancers and will choose not to work for large corporations. What are the leadership challenges facing South African companies when they engage with Gen-Yers? Firstly, this paper explores the concept Gen-Yers, as discussed in the theory. Secondly the paper further explores possible conflicting areas between current leadership practices and Gen-Yers. The paper concludes by supporting the value that Gen-Yers can bring to companies and suggests some practices that can be adopted by leadership to engage and motivate them and at the same time ensure that their companies stay ahead of competitors by keeping Gen-Yers motivated to stay in their employment. A theoretical model is suggested for testing Gen-Yers tenure of employment relationship