


































UAFS ABR Journal Vol 4 No 1 2013.pdf


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Huegel                                                                                                                                                                           Advances in Business Research 
2013, Vol. 4, No. 1, 98-106 

Gen Y in Public Accounting: A Conceptual Model of Retention 
 

Benjamin Huegel, St. Ambrose University 
 

 

The incongruence between the characteristics of Generation Y employees and the nature of work and 
operating structure within the public accounting industry is analyzed. It is theorized that this 
incongruence will lead to increased turnover rates among Generation Y employees and create a tipping 
point in public accounting as Baby Boomers continue to retire. Ultimately, this creates a deficit of mid-
level employees that could potentially lead to decreased performance among public accounting firms. A 
conceptual model of improved retention emphasizing balance and flexibility, building a s ense of 
accomplishment, and fostering an environment of achievement and progression is proposed.  
 

 

 As the Baby Boomer generation nears retirement, businesses in the United States prepare for a 
significant shift in the makeup of the labor force and the individuals who will inherit responsibility for the 
daily operations and strategic direction of those firms. While much of the concern regarding this shift has 
emphasized the magnitude of the potential shortage, top level managers of organizations are starting to 
place a greater emphasis on understanding the new generation of employees who have been entering the 
labor force throughout the last ten years. This group is commonly referred to as Generation Y, and they 
are considered to have characteristics that are noticeably different from the majority of employees who 
currently populate the labor force. As concerns regarding a pending labor shortage mount (Eisner, 2005), 
managers have recognized the importance of investigating the aspects of retaining employees from 
Generation Y.   
 Although organizations are continually adapting their workplace environments and human resource 
practices to reflect the changing demographics of their employees, public accounting firms face a more 
substantial challenge. While it has not been uncommon for moderately experienced employees of public 
accounting firms to accept promising offers from former clients in private industry, the entrance of 
Generation Y into the world of public accounting has magnified an already challenging issue. As 
Generation Y begins to make up a larger portion of the work force in public accounting, concerns are 
beginning to emerge that there may be a potential incongruence between the characteristics of Generation 
Y and the nature of the public accounting industry. As we continue to develop a more accurate profile of 
Generation Y, it seems as though the type of work that will maintain their level of interest is in direct 
conflict with the type of work commonly experienced in the first few years in public accounting. 
Similarly, the slow process of promotion within the firm structure can discourage Generation Y 
employees and lead them to consider other alternatives more quickly than previous generations of public 
accounting employees. These challenges in retaining the top talent of this new generation, coupled with 
the pending retirement of the Baby Boomers, has placed the public accounting industry on the verge of its 
own human resource tipping point. 
 While some studies have investigated turnover in public accounting (Sauber et al., 1991) and others 
have analyzed retention factors of Generation Y (Eisner, 2005; Lowe et al., 2008), this paper aims to 
provide a conceptual model of retention for Generation Y within the public accounting industry. First, I 
will identify the main differences between the generations represented in today’s labor force. Then, the 
American Institute of Certified Public Accountants (AICPA) Private Companies Practice Section’s 2011 
Top Talent Study will be used to identify the human resource aspects that are considered to be important 
by those surveyed for retention. These human resource aspects will then be analyzed in conjunction with 
the general characteristics of Generation Y to help identify the potential sources of incongruence between 
Generation Y and the public accounting industry. Ultimately, this will lead to a proposed model of 
improved retention in public accounting firms for Generation Y. Finally, I will conclude by providing 
some implications for managers in public accounting firms and identify some potential areas for future 
research.  
 



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Huegel                                                                                                                                                                           Advances in Business Research 
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Figure 1: Model of Improved Retention for Generation Y Employees 
 

 
  

Generational Differences in the Workplace  
 

 One common reason for generational differences is that individuals at different ages and stages of their 
lives will be affected by historical, social, political, and economic events differently. As subgroups of 
individuals experience these events at similar times of their lives, they allow these shared experiences to 
help shape their beliefs, attitudes, and values that ultimately form unique characteristics within each 
generation (Kowske et al., 2010). Similarly, Kowske also pointed out that generations are socialized 
differently as they experience technological advances and social changes at different stages of their lives. 
Because of this, it is important to analyze the differences between generations and how that could relate to 
challenges within the workplace.   
 Currently, four different generations are represented within the labor force. While identifying a change 
from one generation to the next is not an exact science, Howe and Strauss (2000) identified the following 
time periods for each of the generations: Silent (pre-1943), Baby Boomers (1943-1960), Generation X 
(1961-1981), and the Millennials (post-1982); who are also known as Generation Y. A brief overview of 
the characteristics of each generation will be provided in this paper; however, the main focus will be on 
the group referred to alternatively as Gen Y, the Millennials, Echo Boomers, and the Boomerang 
Generation (Eisner, 2005). Although each term has different connotations and slightly different 
interpretations, for the purposes of this paper Generation Y will be used to identify this group.   
 Kowske et al. (2010) found that there are differences in work attitudes that exist between each of the 
generations within the workplace setting. Although they questioned the level of practical significance that 
can be drawn from their study, it was identified that some interesting differences did exist. Given that 
minor differences can often times lead to significant issues, one can consider the potential for challenging 
human resource situations to occur given the subtle differences that may underlie conflicts within the 
workplace setting. Eisner (2005), who referred to the Silent Generation as the Traditionalists, described 
this segment of the workforce as valuing family, consistency, and a top-down managerial style. Being 
shaped by the Great Depression and World War II, this group features a strong sense of patriotism, 
loyalty, and self-sacrifice. They are dedicated, hard-working, and respectful of authority (Sullivan, Forret, 
Carraher, & Mainiero, 2009). Many argue that Generation Y has many similar characteristics of the 
Traditionalists and therefore they tend to get along well together in some ways (Howe & Strauss, 2000).   
 The Baby Boomer generation grew up in a time of significant cultural and social unrest as they 
experienced the Cold War, Vietnam War, Civil Rights Movement, and the assassinations of many great 
leaders. They also came of age in a period of strong economic growth which allowed them to achieve 
great success (Siebert, 2008). Because of this, the Baby Boomers are described as being self-absorbed, 
culturally wise, self-confident, and socially mature (Strauss & Howe, 1991). In the workplace, they tend 
to micro-manage employees and dislike laziness (Lowe et al., 2008) while working long hours and 
enjoying material successes (Eisner, 2005). Eisner also identified that similar to the Silent generation, this 
group values loyalty, although they can be somewhat ruthless due to their experiences working in an 
environment that was extremely competitive and often resulted in scenarios of corporate downsizing.    



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Huegel                                                                                                                                                                           Advances in Business Research 
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 Generation X is commonly described as being shaped by the experiences of growing up with Baby 
Boomer parents.  They witnessed their parents losing jobs and struggling to balance their work and family 
roles, which often led to many marriages resulting in divorce. As a result of the experiences with their 
Baby Boomer parents, Generation X tends to be skeptical of organizations (Sullivan et al., 2009), values 
work-life balance, individualism, and has an entrepreneurial nature (Eisner, 2005). Strauss and Howe 
(1991) describe them as being cynical, distrusting, pragmatic, self-reliant, and fatalistic. Contrary to the 
previous two generations, Generation X created the free-agent workforce where a sense of loyalty to the 
organization was diminished. Reflective of spending most of their lives in homes with personal 
computers, this group features good technical skills and an appreciation for skill development as they 
believe that maintaining and improving skills that are current will lead to regular employment (Eisner, 
2005).   
 Although the earlier generations have characteristics that are generally agreed to be accurate, 
Generation Y is easily the least solidified in its generational makeup because many of them are still fairly 
young and have yet to be shaped by experiences such as entering college or the work force (Kowske et 
al., 2010). However, as the first members of Generation Y were entering their late teenage years and 
beginning to make their way into colleges and universities, Howe and Strauss (2000) provided an 
overview of the general characteristics of Generation Y. In their book, Millennials Rising: The Next 
Greatest Generation, they described Generation Y as being  cooperative, optimistic, team players, smart, 
civic-minded, special, trusting, accepting of authority, sheltered, confident, and achieving. The major 
influences that have shaped their attitudes and beliefs are the Columbine High School Massacre and the 
terrorist attacks of 9/11. Additionally, they have grown up in a technologically connected world and have 
been raised in an extremely protective environment (Sullivan et al., 2009). Similarly, they have been 
described as valuing morality and home and family while being technically literate, educated, and 
ethnically diverse (Eisner, 2005).   
 As time passed and more Generation Yers entered the workforce, a workplace profile began to 
develop. Francis-Smith (2004) used a managerial perspective to describe Generation Y as preferring an 
inclusive style of management, disliking slowness, and desiring immediate feedback about their work.  
Additionally, as more research was gathered, Ng et al., (2010) found that they expected to contribute to 
decisions within the organization while Eisner (2005) identified job satisfaction for Generation Y as being 
characterized by a positive work climate, flexibility, and an opportunity to work and grow.    
 Although there are typically some similarities between each of the generations, it becomes easy to see 
some of the “interesting differences” that Kowske and colleagues (2010) may have been referring to, in 
particular between the Baby Boomers and Generation Y. While Baby Boomers tend to be workaholics, 
Generation Y values their home and family life and generally adopts a mentality of working to live.  
Where the Baby Boomers tend to micro-manage their employees through an authoritative style, 
Generation Y enjoys an inclusive style of management and wants to be involved. Similarly, Generation 
X’s individualism is contrasted by Generation Y’s cooperative, team player mentality. Because of these 
differences and the potential strains that they may cause within the workplace, it is important to 
investigate generational differences from a human resource perspective. As Generation Y continues to 
make up a larger portion of the workforce, these differences have the potential to have a more significant 
impact on organizational performance.   
 

CONCEPTUAL MODEL OF RETENTION FOR GENERATION Y 
 

Emphasize Balance and Flexibility 
 

 The public accounting industry has long been characterized as having an extremely demanding work 
schedule. Although most understand the challenges that can be posed during tax season at a small firm 
where work on Saturdays is mandatory, this issue is also compounded by the number of hours logged by 
employees who perform audits for clients. As auditors spend time at a client’s location gathering evidence 
that will substantiate the findings of the audit, a significant amount of time is spent traveling to and from 
the client’s location. For larger national firms, this can mean out of town travel requiring regular trips 



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Huegel                                                                                                                                                                           Advances in Business Research 
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through airport terminals. For smaller local and regional firms, this can mean logging many miles of 
travel navigating rush hour traffic. In both scenarios, the amount of time spent working at a client’s 
location, coupled with the travel requirements can place a significant amount of physical and mental 
stress on even the most dedicated employees. Over time, the demands of the work environment can lead 
people to question their chosen career path and whether or not it is allowing them to live a lifestyle that 
they enjoy.   
 The profile of Generation Y creates a potential scenario for incongruence between the demands of the 
public accounting industry and the characteristics of this generation. While Generation Y has been 
described as valuing home and family and their own personal time (Eisner, 2005), this can be commonly 
misinterpreted by the workaholic Baby Boomers as laziness and lacking commitment to the organization.  
However, as Eisner points out, Generation Y can be a very dedicated and hard working population, but 
they also appreciate and take advantage of their time away from work. This fits with the description of the 
group being very sociable and on-the-go. Because of this mentality, it is not surprising that the AICPA’s 
Top Talent Study of 2011 revealed that “single high potentials”, described as including unmarried recent 
college graduates, indicated that paid time off received more consideration than salary, medical benefits, 
and retirement savings when evaluating compensation and benefits in deciding whether to accept or 
remain in a position at a firm.   
 Another challenge that faces the public accounting industry is the emphasis on face time, where 
employees are expected to spend their day working within the office when not on location with a client.  
This regularly appears to consume an employee’s personal time as well as the expectation to socialize 
with clients and coworkers after the completion of the workday is a common occurrence. This is in direct 
contrast to the lifestyle that is desired by Generation Y as they value flexibility which has been discussed 
as being an important element of job satisfaction for this group (Eisner, 2005). Further, Generation Y’s 
technological capabilities enable them to live a lifestyle that allows for them to be connected at all times.  
This creates the potential for conflict when the expectation is for them to be physically present in the 
office while they view themselves as having the ability to work anywhere. Although firms have worked to 
incorporate flexible work arrangements and the number of virtual firms is increasing, a greater 
commitment to enabling flexible work arrangements is necessary.    
 Additionally, Howe and Strauss (2000) described Generation Y as being team players, civic-minded, 
trusting, and rule followers. While many firms may use the allure of flexible work arrangements as a way 
to recruit new employees, a significant amount of regularly occurring turnover may limit the firm’s ability 
to follow through on this promise. As the burden of the void left by the exit of more experienced 
employees falls on those remaining with the firm, additional responsibilities make it more difficult for 
firms to allow the flexibility that was promised in the recruitment process. This can lead to a violation of 
the unwritten agreement between firms and employees that provides a subjective framework on which the 
work arrangement is based. This is commonly referred to as the psychological contract (Rousseau, 1995).  
While the violation of the psychological contract may be viewed by the employee as being an 
unavoidable situation, regularly occurring violations of this nature can gradually erode the employee’s 
affective commitment to the organization and eventually lead the employee to consider seeking 
alternative employment (Rousseau, 1995).   
 Given the characteristics of Generation Y, it is becoming more important for public accounting firms 
to evaluate the structure of vacation time and flexible work arrangements in order to improve the level of 
job satisfaction among Generation Y employees. Additionally, firms must make a more concerted effort 
to follow through with promises made to employees in the recruitment stage in order to preserve high 
levels of affective commitment within their employees. Ultimately, increased job satisfaction and 
affective commitment can help to improve retention rates for Generation Y employees. Therefore, it is 
proposed that: 
 

Proposition 1: Implementing a formal system that features increased flexibility in work schedules 
and utilization of vacation time will be positively related to improved retention rates among 
Generation Y employees.   



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Huegel                                                                                                                                                                           Advances in Business Research 
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Build a Sense of Meaning and Accomplishment 
 

 Hackman and Oldham (1976) identified that the presence of task significance, task identity, skill 
variety, autonomy, and feedback within the design of a job would lead to three critical psychological 
states of experienced meaningfulness, responsibility, and knowledge of results. Ultimately, this would be 
associated with higher levels of motivation, job satisfaction, and performance. Further, they described 
task significance, task identity, and skill variety as being the characteristics needing to exist in order for 
employees to find their work worthwhile and valuable. This is a critically important concept for 
Generation Y as they are characterized as seeking to have meaningful work experiences and desiring to 
experience a sense of accomplishment. This is illustrated through the level of importance that Generation 
Y places on a firm’s corporate social responsibility reputation and the expectation that the firm has the 
ability to help them find meaning and purpose in their lives (Ng et al., 2010). Similarly, the link between 
job satisfaction and the opportunity to work, learn, and grow for Generation Y (Eisner, 2005) further 
indicates the importance of providing these types of experiences through job enrichment and enlargement 
(Paul Jr et al., 1969). 
 Daily tasks in public accounting can provide limited opportunities to build a sense of meaning and 
accomplishment within entry level employees which has the potential to further widen the gap between 
the nature of public accounting and the expectations of Generation Y. For many firms, newly hired staff 
accountants are destined to spend a significant amount of time completing mundane tasks on minor 
elements of a larger job. This limited scope of performance inhibits the development of task identity 
where employees are given the ability to see the completion of a job from beginning to end (Hackman & 
Oldham, 1976).  Similarly, the providing of a service makes it more difficult for the employee to see what 
they have accomplished since a tangible, completed product at the completion of the task is lacking.   
 Additionally, this limited scope precludes the employee from having the opportunity to interact with 
clients and gain an ability to understand the importance of the role they perform and the positive impact 
that they might have on other people, albeit indirectly. Without the ability to interact with their clients, 
Generation Y employees will experience low task significance that can potentially lead to lower levels of 
job satisfaction as they struggle to find the desired amount of meaningfulness within their work.   
 Finally, this structure has the potential for employees to feel as if they are not fully utilizing their 
capabilities and talents thus further diminishing the degree of skill variety utilized within the job. This is 
reflected in the AICPA’s Top Talent Study where subjects identified that working for a firm where they 
are stretched and challenged with difficult client projects is an important part of why they stay at those 
firms. As previously discussed, the inability to design a job that is characterized by task significance, task 
identity, and skill variety can limit the value and meaning for the employee assigned the duties (Hackman 
& Oldham, 1976). For Generation Y, this creates a loss in job satisfaction which leads to an increased 
potential for voluntary job turnover.      
 Although some studies have found that there is not a significant difference between previous 
generations and Generation Y in their intentions to leave an organization (Kowske et al., 2010), others 
have argued that Generation Y is more open to leaving an organization as compared to older generations 
due to lower levels of satisfaction with their jobs and employers (Eisner, 2005). Another line of thought 
states that Generation Y may even prefer to have more job security than the preceding generations 
(Twenge, 2010). This may be reflective of the effects of the recent economic downturn and the impact 
that economic uncertainty has had on this group. Although the research on Generation Y’s intentions  to 
leave is inconsistent, some believe that Generation Y’s combination of higher levels of entitlement 
(Twenge, 2010) and greater need for instant gratification (Southard & Lewis, 2004) could lead to the 
possibility of them leaving a firm more quickly than previous generations when a better opportunity is 
presented (Twenge, 2010). Given this possibility and the previously discussed characteristics regarding 
the design of jobs in public accounting and the negative effects on Generation Y’s job satisfaction, it is 
proposed that: 
 



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Huegel                                                                                                                                                                           Advances in Business Research 
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Proposition 2: Implementation of an enriched job design that emphasizes task significance, task 
identity, and skill variety will be positively related to improved retention rates among Generation Y 
employees. 

 

Establish Quicker Career Progression 
 

 Social environments are described to be one of the many different aspects of our experiences that can 
shape our attitudes, values, and beliefs. For Generation Y, it has been the social structures that have 
conditioned them to expect an environment of clarity and certainty, which in turn has severely limited 
their tolerance for ambiguity and unexpected changes to previously established criteria (Hershatter & 
Epstein, 2010). While it may seem advantageous to have employees who prefer to accept authority and 
the structure associated with it, this can be very challenging given that businesses operate in dynamic 
environments and managers often do not have the amount of time necessary to provide the structure and 
reassurance that is demanded by Generation Y.   
 Similarly, Generation Y has been conditioned by their support structures through their time spent with 
their families and in the school systems to develop close relationships and communicate openly with their 
superiors (Myers & Sadaghiani, 2010). While open communication is often identified as one of the main 
ingredients for success, it also consumes management’s most valuable commodity, time. However, there 
are many positive aspects that can emerge from this willingness to communicate as Generation Y is 
considered to be open-minded (Myers & Sadaghiani, 2010), wanting immediate feedback about work 
(Francis-Smith, 2004), and valuing the opportunity to learn and grow (Eisner, 2005). In effect, this is 
reflective of their optimistic, team player approach (Howe & Strauss, 2000) where they view themselves 
as an equal partner with the organization where each party is working towards a mutual benefit.  Because 
of this, they prefer an inclusive style of management (Francis-Smith, 2004) and expect to contribute to 
organizational decisions (Ng et al., 2010). Therefore, it is not surprising that the AICPA’s Top Talent 
Study (2011) indicated that unmarried, recent college graduates valued a positive work climate where 
their ideas are valued and they can approach their leaders.   
 While the challenge of providing supporting structures for Generation Y employees is not unique to 
the public accounting industry, evidence suggests that mentoring and coaching programs may be 
underutilized as a method to help bridge the gap between the desired clarity and daily environmental 
uncertainty. The AICPA’s Top Talent Study reported that only 53% of respondents indicated that their 
firm had instituted a formal mentoring program. Additionally, only 37% of the respondents indicated 
participation in a formal mentoring program. Although 41% indicated having an informal mentor, it could 
be suggested that the presentation and implementation of a formal mentoring program may provide a 
more explicit commitment by the organization to meeting the needs of its Generation Y employees as 
they begin to develop and grow in their partnership with the organization.   
 A final area of concern for public accounting lies in Generation Y’s expectations for career 
advancement. Generation Y has been described as being achieving (Howe & Strauss, 2000) and 
achievement-oriented (Eisner, 2005). This is also evidenced by their expectation for rapid advancement 
which has resulted in an impatience that ultimately leads to voluntary turnover if they do not see 
immediate rewards, such as raises and promotions, at their current organization (Ng et al., 2010). For 
firms that provide the opportunity for development and advancement, Generation Y typically responds 
with loyalty (Hershatter & Epstein, 2010). The importance of career growth opportunity is further 
evidenced in that 93% of respondents in the AICPA’s Top Talent Study identified it as an important 
retention factor.   
 While career growth opportunities are most likely important in a majority of professions, public 
accounting is limited by the traditional structure of its firms. Typically, firms are structured in a manner 
where there are limited levels within the organization and employees spend more time at each level 
relative to organizations within private industry. A typical public accounting firm would consist of the 
four levels of staff accountant, senior accountant, manager, and partner. Additionally, it is not uncommon 
for an employee to be in a position for a minimum of two years before having an opportunity to be 



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Huegel                                                                                                                                                                           Advances in Business Research 
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promoted arises, in particular at larger firms. Although some promotions may be held up by employees 
needing to pass the Uniform CPA Exam in order to perform managerial functions, many times the length 
of time between promotions can be attributed to the limited number of levels within a public accounting 
firm. This can be particularly frustrating for young accountants who may see their private industry 
counterparts receiving promotions and additional responsibilities. A potential solution to this issue is to 
add additional levels to the traditional structure of public accounting firms.   
 Firms that implement a promotion system that includes more levels will want to ensure that the system 
emphasizes opportunity for growth and development within the firm. Those firms that implement a 
system lacking the opportunity for growth and development by granting promotions in title but not 
responsibility will run the risk of alienating its top employees. While turnover is inevitable at higher 
levels of the firm as some employees are eliminated from consideration for partner-level positions, those 
firms that are able to structure the levels of advancement around a process of developing employees will 
have a greater potential to retain its best employees longer thus improving their ability to reduce voluntary 
turnover at the lower levels of the firm. Therefore, it is proposed that: 
 

Proposition 3: Creating quicker career progression through the development of formal mentoring 
and coaching programs and expansion of the levels available for employees to advance will be 
positively related to improved retention rates among Generation Y employees.    

 

Implications for Managers 
 

 While voluntary turnover is not a new issue for public accounting, the pending retirement of the Baby 
Boomers and the differences between Generation Y and previous generations potentially pose a 
significant problem for those managing public accounting firms. Additionally, the incongruences between 
the workplace preferences of Generation Y and the traditional organizational structure of the firms, the 
type of work involved, and the regular operating schedule creates many challenges for firms as they work 
to keep their best talent.   
 Although larger firms may have the human resource capacity and structures in place to handle a 
significant amount of turnover, they are also the type of firms that may be more challenged to provide the 
personal attention and job design that is craved by Generation Y. While it may be difficult for larger firms 
to structure the work in a manner that provides more task significance and task identity, these firms may 
have a greater ability to institute formal mentoring programs that can help to positively affect a young 
employee by placing them in contact with individuals who can help to provide a support structure as they 
navigate their way through the beginning of their careers.   
 Small firms have the greatest potential to be negatively affected by a significant amount of voluntary 
turnover among their newest employees as they may not have the recruiting systems in place or the access 
to a significant number of applicants. Additionally, fluctuation in the number of clients may make it more 
difficult for managers of small firms to accurately predict how many new hires are needed. This problem 
is magnified when voluntary turnover is unexpected. However, while small firms may face the biggest 
challenge in combatting voluntary turnover, they may also have the greatest ability to positively affect the 
retention rate among their Generation Y employees as they have a greater opportunity to improve task 
significance, task identity, and skill variety in the jobs assigned to Generation Y employees. This can be 
done by providing more meaningful tasks earlier in their careers and creating opportunities for them to 
interact with the clients that they are serving in a more formal capacity.   
 Additionally, given the relative size of the small firms, there is a greater opportunity to cater to the 
needs of these employees by “providing individual attention and a supportive, family-like environment” 
(Hershatter & Epstein, 2010: 220-221). This allows Generation Y to work closely with their managers 
and develop friendships with coworkers that can potentially lead to a more engaged workforce (Ng et al., 
2010). Considering the socialization process of Generation Y and the emphasis placed on an inclusive, 
team-oriented environment, a nurturing, positive work climate could provide a significant opportunity to 
reduce the rate of voluntary turnover within small public accounting firms.   
 



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Huegel                                                                                                                                                                           Advances in Business Research 
2013, Vol. 4, No. 1, 98-106 

Directions for Future Research 
 

 Given that this paper proposes a conceptual model of retention for Generation Y employees, an 
important first step for future research would be to test the model empirically in order to determine 
whether or not the previously discussed propositions are valid. Of particular importance will be the 
potential effects of firm size on the model given the potential for firms of different sizes having varying 
abilities to implement the proposed changes. Similarly, an important consideration would be to analyze 
the ability of a firm to recruit new employees. Although there are significant costs associated with 
turnover within organizations, a cost-benefit analysis could reveal that it is more cost-effective to replace 
employees than it is to invest in retention efforts. While this could still place a firm in a difficult position 
if an adequate number of employees are not retained to fulfill more significant duties requiring 
experience, it is an alternative that should be considered.   
 Another area for future research is the potential for subgroups to form within Generation Y. While 
each generation is molded by the events that occur during the impressionable periods of their lives, events 
do occur at different stages of life, even within the larger generational models. For example, members of 
Generation Y who were either employed or seeking employment during the economic downturn of 2008 
will be influenced differently than members of Generation Y who were still in secondary school at that 
time. Because of this, as more of Generation Y makes its way into the workforce, it will be important to 
investigate the potential for subtle differences between subgroups of Generation Y. 
 A final suggestion for future research is to investigate the potential for relationship conflict between 
members of different generations. While there are some similarities shared by each of the generations, as 
previously discussed, there are certainly some significant differences. In particular, considering that many 
firms may adopt a team structure for the completion of audits, are there certain attitudinal differences that 
have the potential to create conflict and research should investigate whether there are strategies that can 
be used to minimize the impact of the conflict on team performance (Siebert, 2008). Additionally, training 
programs that help employees to identify generational differences that have the potential to create conflict 
could be investigated in order to proactively counteract the negative effects of those differences.   
 

Conclusion 
 

 Although generational differences in the workplace have been around for generations, it is important 
for organizations to proactively identify differences in new generations of employees that could positively 
or negatively affect firm performance. This is particularly important when a new generation begins to 
establish itself and a new combination of four different generations is represented in the workforce.  
While some industries may have an ability to delay their recognition of these differences and force the 
newest generation to adapt, industries that operate in an environment that lacks an abundance of labor 
must pay particularly close attention to why employees choose to voluntarily leave the organization and 
work to adapt organizational policies and structures to help improve the retention rates of those 
employees. 
 

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Huegel                                                                                                                                                                           Advances in Business Research 
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Sullivan, S., Forret, M., Carraher, S., & Mainiero, L. 2009. Using the kaleidoscope career model to 
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Benjamin Huegel is an assistant professor of accounting at Saint Mary’s University of Minnesota. He is 
currently on educational leave while completing his D.B.A. in management from St. Ambrose University.  
His current research interests include human resource issues in public accounting, training and 
development, and technology in accounting education. 
 


